Value for Money Needs Standardization: If Only It Were That Simple
The concept of value for money (VfM) in P3 projects has faced criticism globally, prompting efforts to create an equitable procurement method for public authorities. As infrastructure projects multiply, choosing the best procurement model becomes crucial. Standardizing procurement principles can help authorities navigate these choices, ensuring transparency and a fair comparison between traditional and alternative methods like P3s. Such efforts aim to demystify the procurement process, helping authorities make decisions that truly reflect the best value.
Alvarez & Marsal Managing Director Andy Lucido provides critical insights into optimizing VfM in procurement. Lucido stresses the need to evaluate both the qualitative and quantitative aspects of procurement models: "Establishing a process to decide which procurement model offers the best value is critical, yet far from straightforward. What is meant by 'best value'? Is it the cheapest option, the one that lasts the longest, or the one that offers the most community benefits?" He advocates for a pragmatic approach that incorporates innovative practices and early private sector engagement. Read the full article to explore Andy Lucido’s contributions and his strategies for enhancing value in procurement.
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