SP Aus Net Capex Approval Process Project Assessment

SP Aus. Net Capex – Approval Process

Project Assessment Process Forecast Projects Unforecast Projects Need for Investment Project subject to economic/engineering analysis to justify proceeding, deferral or cancellation Efficiency of Solution Engineering Study Deferred and cancelled projects Ato. P Variation Significant variation in costs Ato. P Delivery of Project OARs Post Implementation Review Efficiency of Delivery

Economic/Engineering Analysis • Major report for large projects such as • • • station rebuilds Working papers are combined in Ato. P for more minor work Analysis may be for program of work rather than specific projects within the plan Contains the economic cost/benefit analysis of all technically feasible options Always considers the “do nothing” option. Both internally and externally generated reports are used

Authority to Proceed (Ato. P) • Provides summary of economic/engineering analysis and a risk analysis (ie Implementation risks) • Includes business case and sets internal budget • May function as the economic/engineering analysis itself for minor projects • Variation needed if Ato. P budget is to be exceeded after the project is underway

Order Approval Request (OAR) • Covers analysis of all tenderers and evaluation criteria. • Approval level is same as Ato. P • Waiver of competition requires higher level of approval • Waiver of competition, where relevant, with explanation

Post Implementation Review (PIR) • Major projects subject to external PIR • Explains cost over-runs, lessons learned and recommended improvements to processes • Part of the feedback loop in the AM Process