Single Assessment Framework

The ACT Government has developed The Capital Framework (TCF), which outlines a new capital works review process Stage 3 (Prove) of TCF includes a pre-funding business case review referred to as the Single Assessment Framework (SAF). This provides a structured basis for the review of capital works projects prior to funding. This framework does not intend to replicate the complex "multi-gate" capital works review processes utilised by other jurisdictions, however it aims to develop a streamlined and fit–for-purpose review process with a single "gate" prior to funding. The new business case process is a critical part of the overall project.

The business case process is designed to achieve a number of practical outcomes. These are:

• Prevent poorly developed output specifications/functional briefs going to market
• Ensure risks are allocated to the party that can best manage them
• Embrace a broader range of delivery models
• Realised improved value for money outcomes in capital works procurement

The SAF will enable the ACT to embrace a broader range of delivery models and facilitate a more appropriate allocation of risk. The level of analysis required will escalate in complexity based on the value and risk profile of the project in accordance with the following three tiers. The tiers are indicative only and flexible based on risk and scope of the particular project. The three tiers are:

• Tier 1: > $50million or High Risk
• Tier 2: $10million  - $50million
• Tier 3: < $10million

The objectives of the SAF are aligned with the overall objectives of the TCF which are:

Funding Objective: to provide qualitative and economically measurable information to assess and prioritise capital funding. This will ensure that scarce funds are rationed to projects in order of economic merit. This is primarily defined through a needs analysis and an economical assessment.

Spending Objective: to place a far greater emphasis on up-front analysis where savings per dollar spent are greatest. A formalised and consistent approach will be applied to:

• Risk assessment;
• Risk quantification;
• Development of commercial principles; and
• Delivery model selection.

This will ensure that scarce funds are spent in a manner that optimises value for money outcomes by allocating risk to the party than can best manage it.

Process Objective: to be fit-for-purpose to meet the Funding and Spending objectives. The proposed three tiered approach helps ensure that the level of analysis is proportional to scale of the project.

Templates / Guidance Notes

Templates are available in table below.

Comprehensive guidance notes covering all tiers 1 through to 3 have been prepared to help guide directorates through business case preparation. Note that Assessment checklists are also available for Treasury analysts evaluating business cases. If you require any assistance please contact Trevor Banks directly by either email: Trevor.Banks@act.gov.au or phone directly (02) 6207 8424 or alternatively Grant Halstead either by email: Grant.Halstead@act.gov.au or phone directly 0401 684 940.

Panel

The ACT Government has established a Panel of  Infrastructure Commercial Advisors, which  is accessible through Major Projects Canberra for Tier 1 and selected  Tier 2 projects.  Please contact Grant Halstead in Major  Projects Canberra to use this panel arrangement (email: Grant.Halstead@act.gov.au or  phone directly on 0401 684 940).