Concept Plan. Guidance Document

Transcription

1 Cncept Plan Guidance Dcument Ministry f Finance and Partnerships British Clumbia

2 Page 1 TABLE OF CONTENTS 1 OVERVIEW Purpse f a Cncept Plan Need fr a Cncept Plan Time Requirements fr Preparing a Cncept Plan PREPARING FOR CONCEPT PLAN DEVELOPMENT Gvernance Develp a Wrk Plan Identify Apprvals Requirements CONCEPT PLAN CONTENTS Executive Summary Part A: Need fr Investment Part B: Service Delivery Optins Part C: Prcurement Part D: Funding and Next Steps Part E: Decisin Request APPENDIX A CONCEPT PLAN TABLE OF CONTENTS... 14

3 Page 2 1 OVERVIEW 1.1 PURPOSE OF A CONCEPT PLAN The cncept plan prvides decisin-makers with infrmatin abut the need t address service demand pressures, as well as a preliminary analysis f ptential service delivery ptins. Decisin-makers will cnsider the infrmatin cntained in the cncept plan and prvide directin n prject scpe, timing, budget/financing and ther pririties befre the prject s wner cmmits additinal time and resurces t develp a detailed business case fr the prject. The subject matter f the cncept plan is similar t the subject matter f the business case, but at a higher level. The cncept plan will prvide a detailed assessment f part A (justifying the need fr the prject) and a higher level review f parts B, C and D (service delivery ptins t meet the need, prcurement ptins analysis and funding impacts); the business case will update and expand n part A and will prvide a thrugh analysis f parts B, C and D. The cncept plan typically includes: A definitin f the prblem, need fr change, r pprtunity, including detailed data supprting the need fr the prject: Fr example, service demand frecasts and current facility cnditin assessments, including risks related t the cnditin f the current asset(s) used fr service delivery Preliminary review f appraches t address the service needs based n either service delivery mdels (e.g., hub and spke mdel fr health care), r service delivery ptins (e.g., build new, renvate, d nthing), resulting in a shrtlist f service delivery ptins that will be examined in mre detail during business case develpment; Master prgrams fr the service delivery ptins being cnsidered, including a Class D cst estimate (+/- 25 per cent certainty); Ttal capital cst build-up fr the service delivery ptins being cnsidered; High-level timeline fr implementatin; Prcurement mdels recmmended fr additinal analysis in the business case: Pssible funding surces and estimated amunts f funding that may be prvided by each surce, if pssible; Next steps, including identificatin f the gvernance mdel fr the prject; and Decisin request.

4 Page 3 The cncept plan shuld prvide answers t the fllwing key questins: 1. Is there a need fr an asset slutin (e.g., new r replaced asset) t address the need (e.g. frecasted demand)? a. D the current / frecast levels f service demand exceed the available capacity f the asset(s)? b. Is the cnditin f the existing asset(s) inadequate t meet current / frecasted demand? If s, is it cst-effective t rehabilitate the existing asset(s) t address demand requirements? 2. What are the ptential benefits f respnding t the need? 3. What are the ptential risks f nt respnding t the need (i.e., maintain status qu)? 4. What are pssible service delivery ptins? and 5. What are the respective estimated csts, risks, and delivery timeframes t address the need fr each service delivery ptin under cnsideratin? Apprval f a cncept plan typically prvides the fllwing: Agreement that the descriptin f the need and ptential slutin are cnsistent with gvernment s strategic pririties; A placehlder in the Prvince s verall capital plan; Apprval t d a cmprehensive business case; and In sme circumstances, the prvisin f planning funds. 1.2 NEED FOR A CONCEPT PLAN At the prvincial level, gvernment recmmends that the wner submit a cncept plan fr apprval prir t investing in a business case fr majr r cmplex prjects, especially when the prject team needs directin frm the apprval authrity. Examples f prjects that culd benefit frm a cncept plan include: Prjects which may frm a first phase, r a pilt intended fr replicatin; High-prfile prjects with public interest sensitivities; and Large, cmplex prjects with multiple stakehlders and funders.

5 Page 4 A cncept plan may nt be required fr smaller, less cmplex prjects. While the wner shuld cnsider a cncept plan fr each prpsed prject, general threshlds include ne r mre f the fllwing: Prjects smaller in size (typically, less than $50 millin); Prjects that are straightfrward in nature, such as highway paving r bridge rehabilitatin. If there is uncertainty regarding the need fr a cncept plan, it is recmmended that the prject team discuss the requirement with the apprval authrity. 1.3 TIME REQUIREMENTS FOR PREPARING A CONCEPT PLAN Technical studies are required t supprt the cncept plan and these studies may have a lng lead-time t cmplete. Examples f these studies include: a) Demand prjectins; b) Master prgram; and c) Master plan. It culd take the prject wner apprximately six mnths t prepare the cncept plan fr submissin; hwever, this will vary depending n the prject s cmplexity. Depending n the wner s readiness and number f user grups, it may take six mnths t prepare a master prgram fr a cmplicated hspital redevelpment, whereas if the wner has recent experience implementing a similar prject, then the master prgram many nly take fur t six weeks t cmplete. The Ministry f Finance recmmends that wner s rely n recent experience (including recent engagements n similar prjects) t supprt a cncept plan fr new prjects. 2 PREPARING FOR CONCEPT PLAN DEVELOPMENT 2.1 GOVERNANCE The first step in prject planning is t develp a gvernance structure t guide decisin making fr the prject. The gvernance structure needs t be flexible t accmmdate different needs as the prject mves thrugh the planning, prcurement, and implementatin phases (e.g., cncept plan, business case, prcurement, implementatin and peratins). The cncept plan shuld explain the current decisin making framewrk. Simple structures, such as a senir steering cmmittee, can be very effective in mving the prject frward thrugh cncept plan develpment.

6 Page 5 If the wner has already created a Prject Bard fr a different prject, the wner has an ptin t include the cncept plan develpment fr a new prject under the scpe f the existing Prject Bard, prvided that the Bard members have the apprpriate skills/experience t versee each prject. 2.2 DEVELOP A WORK PLAN The develpment f a wrk plan assists in the verall management f wrk. The team will identify and priritize wrk and create a detailed schedule. Sme tasks can be cmpleted in parallel while thers will be sequential. Clear identificatin f the tasks, their precedents, and duratin will supprt estimates (funding and resurces) required t cmplete the wrk. These may be apprved internally, r may require further apprvals if multiple stakehlders are funding the wrk. 2.3 IDENTIFY APPROVALS REQUIREMENTS It is helpful t fully understand the apprvals prcess fr the cncept plan. Will apprvals be required frm executive bards, bards f directrs, ministry executives (including Minister respnsible), and Treasury Bard/Cabinet? Apprval meetings ften need t be scheduled well in advance, and if an essential apprval step is verlked, the result can be a significant delay.

7 Page 6 3 CONCEPT PLAN CONTENTS The fllwing reviews the elements f a cncept plan and suggested cntent. A cncept plan includes the fllwing: Executive Summary (the highlights f the cncept plan) Part A: Need fr the Investment Part B: Service Delivery Optins Analysis Part C: Prcurement Mdels fr Cnsideratin Part D: Ptential Surces f Funding Part E: Decisin Request and Next Steps 3.1 EXECUTIVE SUMMARY The executive summary f the cncept plan shuld include a high-level summary 1 f the dcument s key cmpnents, including a brief descriptin f the preferred ptin(s) scpe, budget and schedule. This infrmatin is brken dwn in the fllwing sectins: a) General descriptin f the cncept plan s purpse; b) Apprach used t develp the cncept plan including: a. detailed assessment f the service need/demand fr the asset slutin, b. summary f the preliminary service delivery ptins analysis, including a descriptin f the preferred ptin(s) 2 (prject scpe, budget, and schedule) c. whether r nt a master prgram was develped, d. what was used fr csting purpses (e.g., unit rates r rder f magnitude cst estimate), and e. descriptin f the prject team members. c) Funding requirements (e.g., ttal capital cst) and pssible surces; d) Next steps in the planning phase including gvernance structure(s) used fr the remaining planning, prcurement and delivery f the prject; and 1 The rule f thumb is that the executive summary shuld nt exceed 10 per cent f the dcument length, t a maximum f ten pages 2 The cncept plan can shrtlist mre than ne service delivery ptin fr further cnsideratin in a detailed business case

8 Page 7 e) Decisin request. 3.2 PART A: NEED FOR INVESTMENT Planning future service delivery is the primary fcus f the cncept plan and this sectin sets the fundatin fr the prject ratinale. Part A f the cncept plan shuld be as detailed and develped as pssible; it frms the basis fr Part A f the business case, with apprpriate updates Intrductin This sectin prvides a general intrductin f the prject wner and its mandate fr prviding the prgram r service Descriptin f Status Qu The cncept plan will include a descriptin f the current state, r status qu, which identifies: The asset(s) currently used t supprt prgram delivery, including when they were cnstructed and any subsequent changes in service demand / need r asset cnditin that have ccurred; Any significant risks r issues that have emerged with service delivery; and Hw the wner is managing these risks and any utstanding cncerns (e.g., client / staff safety, negative impacts n service quality, ver-crwding f facility space, lengthy travel times n rads / bridges, high vehicle accident rates). Fr thse prjects with an estimated ttal capital cst ver $50 millin, the cncept plan must include a mre detailed analysis f the expected asset cnditin, any related capacity cnstraints/risks, and prpsed risk management arrangements fr the status qu ptin ver the next five t ten years. This will include identificatin and quantificatin, wherever pssible, f the fllwing: Frecast asset cnditin ver the next five t ten years, assuming regular / rutine maintenance levels; Key risks that may emerge ver the frecast perid (e.g. client/staff safety risks, nn-cmpliance with municipal building cdes and/r legal/plicy standards fr service delivery); Prpsed mitigatin strategies (e.g. significant upgrades t building systems, rads); and Residual / remaining risks Prvincial, Ministry and Agency Strategic Plans This sectin discusses hw the prgram fits int the strategic plans f the Prvince, ministry and agency. The sectin is intended t supprt the need t cntinue t prvide the prgram/service and can als identify hw the new services will supprt the agency, ministry and the Prvince s strategic directin and pririties fr investment.

9 Page 8 The cncept plan shuld address the wider impact n the strategic plan, including direct and indirect impacts n ther services. Fr example, if a hspital prject envisages a new mdel f care with reduced inpatient treatment and lengths f stay, Part A f the cncept plan shuld identify high-level plans t prvide the supprting cmmunity based services 3 in the cncept plan Establishing the Cntext Establishing r identifying the cntext and cnstraints f a prgram/service requires an understanding f the gals, bjectives, values, plicies, strategies and required results that may impact the prgram r service. This sectin deals with assumptins and cnstraints f the prgram/service. Examples include: Critical decisin pints during the prject schedule (planning, prcurement, and implementatin); Prgram cmmitments that have already been publicly annunced; and Other requirements that culd impact the viability f varius deal structures (e.g., philanthrpist requirements) Need/Opprtunity fr Investment This sectin summarizes the need fr new infrastructure t supprt future demand, supprted by available data (physical status f existing asset, demgraphic pressure, changes in use f asset(s)). This sectin must include a cmprehensive analysis justifying the need fr an investment, fr example: Frecasted demand fr the gvernment service (e.g. client caselad grwth, frecast traffic vlumes) ver a minimum f the next five t ten years. Describe the extent t which the capacity f the existing assets can r cannt meet the frecasted demand (e.g. frecast changes in facility space utilizatin rates, travel times n transprtatin crridrs) Cnditin f the existing asset(s) using established measures (e.g. facility cnditin index, rad/bridge cnditin indices) and whether r nt the cnditin f the asset(s) is expected t be adequately t meet future service need. If nt, is it cst effective t rehabilitate the existing asset(s) t address future service demand? 3 Nte that these services may r may nt be included in the prject definitin.

10 Page PART B: SERVICE DELIVERY OPTIONS Prject Objectives This sectin prvides a cmprehensive descriptin f what the prject is expected t achieve and any relevant linkages t the ministry s / agency s service plan and mandate letter. Prject bjectives will be used t assess the service delivery ptins analysis during the planning phase (including cncept plan and business case) and be incrprated int future pst-cmpletin evaluatins. Fr thse prjects with an estimated ttal capital cst ver $50 millin, the prject bjectives must be measurable and utcmes-based since they will frm the basis f the perfrmance management framewrk 4 fr the prject that mnitrs and reprts n utcmes during the prject s pst-cmpletin perid. Prject bjectives that are qualitative in nature (i.e. nt measurable r utcme based) culd be presented as Guiding Principles in the cncept plan Preliminary Service Delivery Optins Analysis This sectin will include an initial analysis f alternative (nn-capital) strategies t address the needs identified in Part A, such as demand management (e.g. wait lists), utsurcing, prgram redesign and recnfiguring existing infrastructure and prgram service delivery arrangements (e.g. mving prgram/service t a larger gvernment facility, extending hurs f service delivery). If the nn-capital strategies d nt meet the need identified in Part A, then the team shuld cnsider capital strategies (e.g. renvate, build new). The prbable service delivery ptins (capital and nncapital), including the status qu ptin, shuld prceed t a multiple criteria analysis. The assessment f varius service delivery ptins shuld include the use f the Multiple Criteria Analysis (MCA) apprach. The MCA methdlgy cmpiles quantitative and qualitative infrmatin fr a decisin, including advantages and disadvantages f each ptin under cnsideratin. Prjects with a ttal capital cst ver $50 millin must use bth qualitative and quantitative methdlgies t assess the service delivery ptins. This sectin shuld respnd t the fllwing questins: What brad service ptins are available? e.g., centralized vs. decentralized service mdels, rail/transit vs. rad slutins, r utpatient vs. inpatient appraches. Capital and nn-capital strategies Are there any alternative (nn-capital) strategies that can address the need such as demand management (e.g., wait lists), utsurcing, prgram redesign, r recnfiguring existing 4 This framewrk will be develped and prvided in the business case

11 Page 10 infrastructure and prgram service delivery arrangements (e.g., mving prgram/service t a larger gvernment facility r extending hurs f service delivery)? What evidence is available that wuld supprt ne ptin ver anther? What are the direct and indirect implicatins f a new service delivery ptin? e.g., if a prt is expanded, there may be ancillary requirements fr imprved rad r rail links. If the practices arund the delivery f the prgram have significantly changed, supprting reprts including implicatins f current peratins n the prgram s success wuld assist in the justificatin fr the prject. This sectin culd als summarize the review f current delivery mdels, relevant technlgies, and experiences in ther jurisdictins. Fr example, the existing infrastructure culd be utdated and nt prviding the prgram at the current standards r may nt be meeting current safety standards. The wner is encuraged t initiate preliminary cnsultatin with key stakehlders arund the current delivery mdel, pprtunities fr imprvement, future needs and mdels fr service delivery that are under cnsideratin.

12 Page Service Delivery Optin Infrmatin The fllwing infrmatin is required fr the capital service delivery ptins under cnsideratin. Preliminary Prject Scpe The scpe descriptin shuld be as cmprehensive as pssible t supprt a Class D cst estimate. Transprtatin prjects describe what is required, e.g., length f rad/highway, transit slutin including rute. Accmmdatin prjects supprted by a master prgram, describe the general size f the new building, the required prgrams, and site implicatins (e.g. build n existing site r new). Health care prjects shuld always include the number f inpatient beds, perating rms, and ther relevant cmpnents. Crrectinal facilities shuld include the number f cells, classificatin f cells, and a general descriptin f the prgrams. Regardless f the sectr, if the wner plans t build n the existing site, the cncept plan shuld include a descriptin f the new cnstructin s ptential impact n the existing facility s peratins. Preliminary Prject Schedule Prject duratin has a significant impact n cst and impact, and a general understanding f the schedule will be helpful, even at a preliminary stage. The schedule must als cnfirm the key assumptins r factrs imprtant t the schedule such as prgram delivery cnstraints, seasnal/weather impacts, permitting, re-zning (if required), crdinatin with ther prjects r initiatives, and gvernment cmmitments. The cst estimate (e.g., escalatin estimate) must be cnsistent with the preliminary prject schedule. At this stage, unless instructed therwise, base the prcurement schedule n a design-bid-build apprach. Preliminary Prject Budget (Ttal Capital Csts) This early estimate f ttal capital csts will establish the initial financial baseline fr the prject. The ttal capital cst shuld include: Cnstructin cst estimate 5 (based n Class D estimate) assuming a design-bid-build prcess; Estimate f the wner s prcurement and implementatin csts; 5 Include bth hard and sft csts

13 Page 12 Allwances fr risk, equipment 6 and IMIT csts; and A prject cntingency r reserve. The cst estimates shuld be justified by dcumented underlying assumptins (e.g., specific inflatin / deflatin assumptins, prject schedule, and a descriptin f the assumptins / risks underlying capital cntingencies). Risk Assessment This high-level risk identificatin includes an initial analysis f mitigatin strategies fr key risks (e.g., getechnical) relating t the planning, prcurement, and implementatin f the capital prject. The Ministry f Finance des nt expect this risk assessment t be peratins fcused. Thse prjects that exceed a ttal capital cst f $50 millin must include a high-level quantificatin f key risks, mitigatin strategies, and residual / remaining risk fr each f the service delivery ptins under cnsideratin; teams can base this infrmatin n recently cmpleted prjects, if infrmatin is available t the wner Preferred Service Delivery Optin The cncept plan shuld recmmend at least tw service delivery ptins fr further cnsideratin in the business case. 3.4 PART C: PROCUREMENT This sectin shuld identify and describe thse prcurement mdels that will underg further analysis in the develpment f the business case. The cncept plan will identify the likely prcurement ptins fr the prject, including their relative strengths and weaknesses. 3.5 PART D: FUNDING AND NEXT STEPS Funding Surces Based n the preliminary ttal capital cst estimate, a descriptin f ptential surces f capital funding must be included, including the dllar amunts and timing f cntributins frm each surce. Ptential funders f the prject may include the federal gvernment, prvincial gvernment, Reginal Hspital Districts, and private fundatins. Funding surces will be cnfirmed during the develpment f the business case. 6 Equipment required fr peratins, e.g., medical equipment, security, cameras; building equipment will be included in the cst estimate.

14 Page 13 Gvernance The cncept plan will include a general descriptin f the prpsed prject versight structure and prcesses that are cmmensurate with the prject s size, cmplexity, and risk. Next Steps This sectin shuld explain the next phase in the prcess; e.g., preparatin f a business case. This sectin describes the assciated wrkplan, including majr tasks, schedule, and budget PART E: DECISION REQUEST Apprval f a cncept plan typically prvides the fllwing: Agreement that the high-level descriptin f the need and ptential slutin are cnsistent with gvernment s strategic pririties; A placehlder in the verall capital plan, based n a high-level cst estimate; Apprval t d a business case; Depending n the sectr, funding fr preparing the business case; and Apprval f gvernance structure and cnfirmatin f future apprval requirements. 7 Cnsultant team includes: architect, engineering team, quantity surveyr, business advisr, and ther specialty advisrs as needed (e.g. medical equipment, kitchen cnsultant, security)

15 Page 14 APPENDIX A CONCEPT PLAN TABLE OF CONTENTS Table 1: Cncept Plan Table f Cntents Sectin Cntent Cmments Executive Summary Part A: Need fr Investment Part B: Service Delivery Optins Part C: Prcurement Part D: Funding and Next Steps Part E: Decisin Request The Purpse The Apprach Service Delivery Optins Scpe, budget, schedule Risks f nt prceeding Ttal capital cst and ptential funders Decisin Request Intrductin and backgrund Descriptin f status qu and assciated risks Need/Opprtunity fr investment Fit with strategic plan and prgram s cntext Identificatin f viable service delivery ptins t meet need Identificatin f risks in nt prceeding with prject Use f MCA fr Service Delivery Optins Analysis Preliminary prject scpe, budget, and schedule fr preliminary preferred ptin Descriptin f prcurement mdels fr analysis in the next phase Ptential funders shuld be identified Wrk plan fr next planning phase Apprval f cncept plan request Purpse f cncept plan Apprach used t plan fr and write cncept plan Cnclusins reached Summary and decisin request This sectin shuld be well- develped. Ideally there shuld be minimal changes in Part A when mving t business case. Use a Multiple Criteria Analysis apprach fr service delivery ptins analysis. Preferred service delivery ptin: Prject Scpe Prject Schedule Prject Budget Risk Assessment An appendix is required that cntains prject infrmatin helpful in a screen. Sample wrding fr this sectin is: The Agency will undertake a detailed assessment f prcurement ptins and related risk assessment upn apprval t prceed t the business case. It is anticipated that all mdels f prcurement will be cnsidered including traditinal Design-Bid-Build, Design-Build, and private-public partnership prcurement mdels such Design-Build-Finance and Design-Build-Finance-Maintain.