Value for Money Analysis in U.S. Transportation Public–Private Partnerships

Abstract

Value for money (VfM) assessment has been used by various public agencies worldwide as a tool to compare the viability of pursuing a project as a public–private partnership (PPP) with traditional procurement. Although sources have described the use of VfM in Europe, Australia, and parts of Asia, relatively little is known of the use of such tools in the United States. This paper presents the results of a survey of state transportation agency officials on their PPP practices and their use of assessments and tools to evaluate public–private partnerships. From the evaluation, the paper provides a guided reference for public agencies looking to adopt the VfM methodology in their current PPP decision-making framework. It also provides recommendations for future adaptations to enhance the VfM tool's level of effectiveness.