Various authors have written about public private partnerships (PPPs) and their ability to provide public sectors with Value for Money (VfM). However, few literary sources provide a background on the state of the practice of VfM. This paper provides an overview of VfM practice across the globe, focusing particularly on the practice of three agencies with well-developed VfM guidance and toolsPartnerships Victoria, The United Kingdoms Her Majesty Treasury Department, and Partnerships British Columbia. In addition, it discusses the critiques regarding VfM and suggestions brought up in the literature to improve this type of assessment. The authors find that although VfM analyses can be faulty, they are often valued as adequate tools that allow public agencies to determine the added value - benefits, costs and risks - that can result from a PPP option versus a traditional procurement. With targeted incentives to develop the appropriate data, and as the applications of these tools continue to evolve in robustness, such assessments and tools can be an extremely valuable resource for U.S. state agencies looking to provide services and facilities through the PPP option.
Samenvatting