1. Purpose
- Provide a summary of the Options Analysis undertaken
- Provide sufficient level of detail to enable key decision-makers to understand the issues and rationale for the selected shortlisted option/s.
- Detail the implications of the initiative.
2. Executive Summary
- Clear rationale for the preferred option or prioritised shortlist of viable options to be analysed further.
- Clear, succinct summary of the findings of the Options Analysis.
- Alignment with government, departmental, program and agency strategic directions.
3. Description of service requirements
What are the key drivers/requirements for the project?
(Insert detail from the Strategic Business Case and update where required)
- New government policy?
- Service delivery needs:
- Increased demand for services?
- Expanded range of services to be provided by an existing site?
- New services to be provided?
- Enhanced service capacity?
- Alternative range of services?
- Role-conversion?
- Downsizing of service?
- Business improvement and efficiency to improve or maintain the viability of the current service?
- Provide details of current and projected demand for the proposed services.
(Appendix A – Service Throughputs – current and projected)
- Building/Facility
- Regulatory compliance?
- Replenished asset capacity to sustain service delivery?
- Building fabric condition?
- Building services condition?
- Site infrastructure condition?
- Respond to an agreed asset management strategy?
(CMB responsibility)
4. Project function, objectives and critical success factors
Project objectives that will support the required outputs, defined in precise and measurable terms.
(Insert detail from the Strategic Business Case and update where required)
- What are the objectives of the project (SMART – Specific, Measurable, Attainable, Relevant & Timely)?
- How are these objectives prioritised?
- What are the critical success factors for each of the objectives?
- How will the critical success factors be measured?
(Program responsibility)
5. Alignment with strategic directions
(Insert detail from the Strategic Business Case and update where required)
Government
- What government strategic directions does the proposal address?
- How does the proposal assist in delivering the strategic government directions?
- Opportunities for co-location and ‘joined-up’ government?
- Growing Victoria Together Strategy
Department
- What DHS strategic directions does this proposal address?
- How does the proposal assist in delivering the DHS strategic directions?
- How does the proposal fit into the Department’s Asset Management Plan and Multi-Year Strategy?
Program
- What Divisional/Program strategic directions does this proposal address?
- How does the proposal assist in delivering the Divisional/Program strategic directions?
- Are there any outstanding strategic direction issues still to be resolved?
Agency
- How does the proposal assist in delivering the Agency strategic directions?
6. Stakeholder Identification
- Who are the key stakeholders to be involved or impacted by the proposal?
- What are the potential impacts (both positive and negative)?
- How will these be managed?
- How will stakeholder input to the proposal be sought and managed?
- Do stakeholders support the preferred option?
End-users Identification
- Who are the end-users for the project?
- How will their input to the project be managed?
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7. Options analysis
- Assessment of all realistic options for meeting the service need including:
- Base case (do nothing)
- Minimal approach
- Existing asset options (eg upgrading, refurbishment or reconfiguration of assets held by DHS or other Govt departments.
- Non-asset options (eg reconfiguring service delivery, demand management strategies, increasing or changed use of existing assets.
- New asset-based options (eg provision of new infrastructure)
- Viability for Partnerships Victoria project where project cost is expected to exceed $10m.
- Options for collaboration with other government departments and projects explored?
- The feasible options to address the project requirements identified and ranked including details of:
- Key assumptions used
- The ranking process and assessment criteria including:
- rating of achievement of project and strategic objectives,
- capital cost (present value) (including confidence levels),
- recurrent costs (including confidence levels),
- potential revenues/savings (including confidence levels),
- environmental benefits, social benefits, and
- risks if the project does not proceed.
- Feasible options assessed against list of wider government and departmental objectives, standards and business change programs?
- What are the quantifiable relative advantages/disadvantages of each feasible option?
- Identify major risks associated with each option and the risk management plans to address these.
- For each feasible option, what are the risk adjusted estimates:
- Indicative scope and whole-of life cost (capital and recurrent)?
- Impact on the identified service requirements?
- Alignment with strategy/policy?
- Feasibility of each option?
- Sensitivity analysis of each feasible option?
- Is there one clear ‘best’ option or would several options meet the business need
- Does the preferred option meet wider government and departmental policies, strategic objectives, standards and business change programs?
- Preferred timing and sequencing of the project,
8. Project Risk Management
- For viable options, identify and rank major risks associated with further development and implementation of the option, potential impact of those risks (including a financial impact if appropriate) and identify risk reduction strategies to be developed.
9. Project Delivery Alternatives
For viable options, identify proposed project delivery approaches such as:
- Traditional procurement
- Design-construct
- Partnerships Victoria.
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10. Next Steps
What further actions are required to progress the Strategic Assessment to the Options Analysis phase?
(Appendix E – Project Brief)
- Further work on non-capital options
- Financial and resource implications for the next stage?
- Timetable for implementation for the next stage and proposed indicative timetable for the project?
(Appendix F – Project Timelines in MS Project)
- Incorporation of the initiative into the Department’s Asset Management Plan and Multi-Year Strategy?
11. Supporting documents
List of the documents that support the Options Analysis and Preliminary Business Case:
- Service Plan (Signed off) (Dated)
- Options Analysis – eg Master plan/Feasibility Study Report
- Project Risk Assessment Proforma
- Project Brief for next stage.
- Cost Report on Project to date, against budget.
- High level activity, time and resource plan for the project.
12. Sign-offs required
The Preliminary Business Case is to be signed off by:
- Director/Authorised Delegate from Program/Division
- Director CMB
