Investing in transportation: The role of Value for Money analysis

Getting the best value on your transportation investment         

As transportation agencies around the country deal with the reality of limited federal budgets and increasingly look to public-private partnerships (P3) as an alternative, they are relying more on thorough appraisals to determine the best investment options.

A comprehensive Value for Money (VfM) analysis helps assess the value that a P3 could provide, and compares it with more traditional means of project delivery. If a P3 is selected, the analysis can also demonstrate to stakeholders clear benefits that outweigh the associated costs or risks of private-sector participation. 

Releasing the results of the VfM analysis to the public can provide the kind of transparency that helps taxpayers and other stakeholders understand why a private or public delivery method was chosen for a particular transportation project.

VfM analysis measures relative financial benefit

A VfM analysis compares cost and value for a project financed by the public versus the private sector. While it is often used
 in evaluating potential P3 projects, 
it can be applied to other types of procurement decisions, such as selecting between design-bid-build (DBB) and design-build (DB) options.

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Daryl Walcroft
Principal, US Capital Projects & Infrastructure Leader
Tel: +1 (415) 498 6512

Peter D. Raymond
Global Advisory Leader, Capital Projects & Infrastructure
Tel: +1 (703) 918 1580