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During our audit, we could not effectively evaluate the Commission's compliance with the cost, schedule, and performance variance thresholds mandated by FASA. Our review, however, finds that such expertise within state government has not been sufficiently developed in California. Mandatory criteria generally apply to protection, performance, administration and compatibility. Our analysis indicates that utilizing a different set of assumptions (such as a discount rate of 5 percent and excluding the assumed tax adjustment) would result in the cost of the Presidio Parkway project being less—by as much as $140 million in net present value terms—in the long run under a traditional procurement approach than the chosen P3 approach.

Pages: 82

Publisher: Lye Publications (October 18, 2015)

ISBN: B016VIWBSI

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