Assessment Framework - overview

Introduction

This section provides information, processes and procedures to assist Approved Organisations and the NZTA in using the NZTA’s Assessment Framework to assess and prioritise strategies, packages, programmes, projects and other activities - for the 2012-15 NLTP A National Land Transport Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. adopted by the NZTA under section 19 of the LTMA, as from time to time amended or varied only.

For the latest information, please see the Assessment Framework for the 2015-18 NLTP.

The framework and priorities will be used by the NZTA in developing the National Land Transport Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. (NLTP A National Land Transport Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. adopted by the NZTA under section 19 of the LTMA, as from time to time amended or varied ) and to make subsequent investment decisions.

Value for money

When evaluating strategies, programmes, packages and projects, the GPS A Government Policy Statement on Land Transport Funding issued under section 86 of the LTMA requires both local government and the NZTA to consider a number of matters, including achieving better value for money Selecting the right things to do, implementing them in the right way, at the right time and for the right price. .

Value for money has been defined in a variety of ways but in general it means selecting the right things to do (strategic fit), implementing them in the right way (effectiveness), at the right time and for the right price (economic efficiency).

This requires taking a long-term, whole-of-life view of the total value for money Selecting the right things to do, implementing them in the right way, at the right time and for the right price. attributable to an activity, not simply consideration of the initial capital cost. A whole-of-life assessment considers:

the social, environmental, cultural and economic impact of the outputs Goods or services delivered by an activity or combination of activities.
any ongoing maintenance and operation costs of the asset or service, and
costs associated with its disposal.

The NZTA uses the Assessment Framework to assist it achieve value for money Selecting the right things to do, implementing them in the right way, at the right time and for the right price. in selecting the right things to invest in, as it:

assesses the contribution that strategies, programmes and activities make against the impacts sought by the GPS A Government Policy Statement on Land Transport Funding issued under section 86 of the LTMA and wider objectives of the LTMA The Land Transport Management Act 2003, as amended from time to time. ,
provides a consistent means of comparing and prioritising land transport activities based on their relative contributions to outcomes, and
takes into account the strategic potential of proposed activities and considers the effectiveness and economic efficiency of the solutions in a balanced way.

When assessing an activity’s readiness to proceed, a number of criteria are considered that can impact on value for money Selecting the right things to do, implementing them in the right way, at the right time and for the right price. . These include social responsibility, project management and delivery, consultation, peer review and audit, risk assessment (consent, designation, environment, land, engineering, contracting, etc) and management.

The further components of value for money Selecting the right things to do, implementing them in the right way, at the right time and for the right price. (implementation in the right way for the right price) are addressed by the NZTA’s procurement policies and procedures.

Assessment

Assessment using the Assessment Framework involves rating strategies, programmes, packages, projects and other activities across three factors, being the:

strategic fit of the problem, issue or opportunity that is being addressed,
effectiveness of the proposed solution, and
economic efficiency of the proposed solution.

No rating can be assumed as each proposal needs to be assessed against the minimum requirements of each assessment factor. When assessed, each of these three factors is given a rating of

H: high,
M: medium, or
L: low.

Therefore, an assessment profile The three-part rating for an activity, rated as high, medium or low e.g. HMM, and representing the assessment for Strategic Fit, Effectiveness, and Benefit and Cost Appraisal respectively. of HMM means the activity is rated:

high for strategic fit,
medium for effectiveness, and
medium for economic efficiency.

Use of the NZTA Assessment Framework

The NZTA encourages Approved Organisations and Regional Transport Committees (RTCs) to use the NZTA’s Assessment Framework to assess activities and combinations of activities proposed for inclusion in their transport programmes and Regional Land Transport Plans Plans describe the tactics to give effect to a strategy. They are specific in content, action oriented and outputs focussed, resulting in a tangible set of activities to be delivered within a clear timeframe. (RLTPs Regional land transport plans, prepared under Part 2 of the LTMA, as from time to time amended or varied. ).

If Approved Organisations and RTCs use the same Assessment Framework to assess activities for inclusion in the RLTP A regional land transport plan, prepared under Part 2 of the LTMA, as from time to time amended or varied. , there is more likelihood that these activities will be aligned with the NZTA’s outcomes and, therefore, will meet the criteria for inclusion in the NLTP A National Land Transport Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. adopted by the NZTA under section 19 of the LTMA, as from time to time amended or varied and for subsequent investment approval.