Factor Analysis of Public Clients’ Best-Value Objective in Public–Privately Partnered Infrastructure Projects

Best value is the ultimate goal of the public client in infrastructure development through public–private partnerships (PPPs). A best-value approach necessitates a sound best-value source selection methodology, which encourages creativity and innovation from the private sector and allows the public sector to make a right tradeoff between cost and noncost criteria in tender evaluation. Through a factor analysis of the relative significance of the best-value contributing factors (BVCFs) based on a previous questionnaire survey of international PPP experts, this paper has determined the major common dimensions of the public clients’ best-value objective in infrastructure development and the key BVCFs that measure each of these dimensions. Statistical tests confirm the adequacy and quality of the survey, the soundness of the factor analysis and the internal consistency of the BVCFs, and they also indicate that the public, private, and academic sectors consider BVCFs rather similarly. The establishment of the best-value objective dimensions and the BVCFs that measure each of these dimensions would direct and concentrate the efforts of the private sector in crafting innovative project delivery models to offer the best value, the public sector in efficiently evaluating project proposals to award a defensible contract, and the consequently formed PPPs in continuously enhancing the best-value objective through long-term contractual arrangements.     

Developing a Fuzzy Risk Allocation Model for PPP Projects in China

Equitable allocation of risks between the government and the private sector in concession agreement is essential to the success of public-private partnership (PPP) projects. The decision-making process, based on the established risk allocation principles expressed in linguistic terms, requires qualitative judgment and experiential knowledge of construction experts. However, it is subjective, partial, and implicit in actual application. This paper aims to develop a fuzzy synthetic evaluation model for determining an equitable risk allocation between the government and the private sector. By doing so, it assists the PPP project practitioners to transform the risk allocation principles in linguistic terms into a more usable and systematic quantitative-based analysis using fuzzy set. Twenty-three principles and influencing factors for risk allocation were identified through a comprehensive literature review. Nine critical risk allocation criteria (RACs) that evaluate the risk carrying capability of project participants were further identified, validated, and compiled based on the experts’ knowledge via face-to-face interviews. On the other hand, the weighting for each critical risk allocation criterion was determined through a two-round Delphi questionnaire survey. A set of knowledge-based fuzzy inference rules was then established to set up the membership function for the nine RACs. Based on the research findings, a fuzzy synthetic evaluation model was finally established to determine an equitable risk allocation between the government and the private sector.     

Paving the Way for Public–Private Partnerships in Infrastructure Development

Infrastructure privatization has multidimensional impacts with long-term uncertainties and wide risk portfolios. A wide range of barriers to public–private partnerships (PPPs) in infrastructure development have been identified through a questionnaire survey, which are broadly classified into six aspects: (1) social, political, and legal risk; (2) unfavorable economic and commercial conditions; (3) inefficient public procurement framework; (4) lack of mature financial engineering techniques; (5) problems related to the public sector; and (6) problems related to the private sector. To explore measures for removing these barriers, a systematic research approach (literature review, case studies and interviews/correspondences with experts and experienced practitioners) has been taken to draw experience, learn lessons, and benchmark the best practices in international PPPs. An improved PPP protocol for infrastructure projects in general has been developed, addressing key issues in nine areas: (1) appropriate roles of governmental authorities; (2) best value for money approach; (3) effective management of adviser services; (4) formulation of appropriate PPP schemes; (5) use of relational contracts; (6) improvement of the procurement framework; (7) payment structure; (8) contract monitoring, termination, and step-in rights; and (9) transfer management. Effective measures for successful PPPs are identified in each of the nine areas.     

Work pressure, workplace social resources, and work–family conflict: The tale of two sectors.

Although research has extensively examined work–family issues in the private sector, little is known about sector-related differences. Here, we used data from the 2002 National Study of the Changing Workforce and multiple-group structural equation modeling to compare the levels and mechanisms through which work pressure and 3 workplace social resources (i.e., work–family culture, supervisor support, and coworker support) are related to work–family conflict in the public and private sectors. First, work–family culture affected work–family conflict directly in the private sector and indirectly, through reduced work pressure, in the public sector. Moreover, work–family culture had a much stronger impact on supervisor support in the private sector. Second, public sector employees perceived higher levels of supervisor and organizational support while experiencing higher levels of work pressure. The study illustrates the necessity of differentiating between the 2 sectors of employment when studying work–family relationships. (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Perception of Financial Institutions toward Financing PFI Projects in Hong Kong

Private finance initiative (PFI) has emerged to be a viable strategy for governments to transfer financial risks in public projects to the private sector. It does not only help tap the efficiency and finances of the private sector but it also promises to deliver better public services to the community. Despite these obvious incentives, there is still a low PFI diffusion in Hong Kong. Based on this understanding, we have undertaken this exploratory study, which is probably the first of its kind, to investigate the PFI’s financial issues from the perspective of financial suppliers. This study was intended to identify factors that may affect the perception of the supplier side and to explore ways to facilitate their participation in PFI projects. The findings suggest that respondents had low level of understanding and knowledge of the PFI and they perceived that PFI public projects had an average risk and performance. To increase their involvement, several enablers are provided in this paper.     

Analyse psychométrique d'une adaptation en langue fran?aise de l'échelle de Conscience de Sol.

The present work is an attempt to assess the psychometric properties of an adaptation in French of the Self-Consciousness Scale developed by Fenigstein, Scheier, and Buss (1975). The scale is composed of 23 items, distributed in three subscales: private self-consciousness (SC), public SC, and social anxiety. The French version was administered to three distinct samples: two groups of undergraduate students (n = 196; n = 217) and a third one of psychologists (n = 411). Overall, results show that each subscale is homogeneous with appropriate test-retest reliabilities over a two-week period. As expected, private and public SC correlate moderately, whereas social anxiety and private SC are not related Principal components factor analyses show that the scale is in fact composed of three orthogonal factors, in accordance with the three scales. The results in general point to the adequacy of the current adaptation in French of the Self-Consciousness Scale, which presents the same basic properties as the original. (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

The choice of dental care sector by young adults before and after subsidization reform in Finland

This work is a part of a project, which aims at studying the utilization of dental care by young adults and the effects of subsidization reform (SR) on it. SR was introduced in 1986 for the Finnish population born after 1960 and comprised a decrease of about 50% in the out-of-pocket price for dental care both in the public and private sector. The copayments are paid by the National Health Insurance in the private and municipalities through taxation in the public sector. In this work, the choice of dental care sector (private or public) before and after the reform and the effect of the reform on the choice are examined. The choice was measured by revealed preference; i.e. by actual choice in a period of two years before and after the reform. A random sample was drawn at the end of 1985 (before) and 1987 (after) from the population of 19-26/27 years of age in four towns, in which the conditions of supply of dental services differed essentially (n = 2250 at both occasions). The data were gathered by using a self-administered questionnaire. The method of analysis was discrete logit analysis and applied Chow-test. The changes in choices between 1985 and 1987 were counted by estimated model by using means of independent variables. The change in the choice of sector caused by the subsidization reform was marginal. The probability of choosing public sector increased 3%-points in the target group of the reform (19-25 aged), but the relative importance of different factors explaining the choice did not change. However, changes in the relative importance of explanatory factors took place in the first age group left outside the reform, but no clear picture was obtained about a possible change in the probability of choosing public sector in this group.     

NPV Model for Evaluating the Economic Efficiency of Municipal Street Maintenance by Private Providers

Municipal street maintenance can be either performed by a local authority or by a private provider through public–private partnership (PPP) or outsourcing. The choice of either alternative requires proof of economic efficiency at the planning phase of these services. The economic model presented in this paper outlines the basis for the comprehensive probabilistic comparison of the economic efficiency of two approaches: (1) self-performance (public sector delivery) and (2) performance by a private provider (PPP delivery). Based on clear system boundaries, the net present values of the two alternatives are addressed, including possible risk costs. The results of the efficiency comparison are then evaluated using the net present value difference axiom and the net present value efficiency axiom. To ensure that the short-term effects of privatizing or outsourcing street maintenance services are not overrated and the long-term economic efficiency is maintained, the analysis must cover at least two long-term periods.     

Concessionaire Selection: Methods and Criteria

Various innovative public private partnerships (PPPs) have been explored in worldwide infrastructure development in which BOT (build-operate-transfer) is the underlying concept. Selection of the right concessionaire, which is critical to the success of such BOT-type PPPs, depends on the quality of identifying and defining suitable project-specific criteria and the quality of formulating an efficient tender evaluation methodology. A systematic research approach (including literature review, case studies, interview/correspondence, and a structured questionnaire survey) has been adopted to draw experience and learn lessons from international PPP practices and to unearth and refine experiential and expert knowledge from worldwide experts and practitioners. Tender evaluation criteria and methods currently used in diverse types of PPP projects in both developed and developing countries are identified, compared, analyzed, and then generalized.     

Empirical Study of Risk Assessment and Allocation of Public-Private Partnership Projects in China

Earlier research studies on public-private partnership (PPP) indicated that an objective, reliable, and practical risk assessment model for PPP projects and an equitable risk allocation mechanism among different parties are crucial to the successful implementation of these PPP projects. However, actual empirical research works in this research area are limited. This paper reports the first stage of a research study, which aims to identify and assess the principal risks for the delivery of PPP projects in China and to address their proper risk allocation between the private and public sectors. An empirical questionnaire survey was designed to examine the relative importance of different risk factors and to analyze the allocation of risk factors to different parties in PPP projects. A total of 580 questionnaires were sent out, and a total of 105 valid responses were obtained for data analysis. The Mann-Whitney U test is employed to investigate whether significant difference in perception existed first between the private and public sectors and second between industrial practitioners and academics in China. The empirical findings show that the three most important risk factors for PPP projects in China are (1)?government intervention; (2)?government corruption; and (3)?poor public decision-making processes. These findings reveal that the Chinese government intervention and corruption may be the major obstacles to the success of PPP projects in China. A major cause for these risks may be attributed to inefficient legislative and supervisory systems for PPP projects in China. After conducting the Mann-Whitney U test on the 105 survey respondents, the empirical findings indicate that the perceptions of all 34 risk factors in China between the private and public sectors were not significantly different. Similarly, there were no significant differences between academics and industrial practitioners except that the former perceived the problem of government corruption to be more severe than did the latter. For risk allocation, the empirical results indicate that the public and private sectors were in general consensus with most of the risks identified. The major risks that the public sector preferred to accept are within the systematic risk category, especially political, legal, and social risks. The private sector preferred to retain the principal risks within the specific project risk category, especially construction, operation, and relationship risks, in addition to economic risks within systematic risk category. The remaining risk, environment risk, is preferred to be shared between the two sectors. This research study enables international construction companies to better understand how risks should be assessed and allocated for PPP projects in China. It also assists in risk response planning and control for future PPP projects in China.     

The Metals Industries in the Eighties: A Preface to the Arden House Conference∗

The changing nature of the world metals industry was the subject of a three-day meeting of experts from around the world. The conference, held in May, 1986 and sponsored by the United States Bureau of Mines and the Henry Krumb School of Mines of Columbia University, included sessions on: the current status of the industries; changes in metals demand; changes in metals supply and trade; implications for the private sector; and implications for the public sector. The article introduces the issues raised at the Arden House Conference.     

Critical Success Factors for Public–Private Partnerships in Infrastructure Development

Different types of public–private partnerships (PPPs) have been practiced in worldwide infrastructure development with diverse results and a variety of problems have been encountered. A number of factors combine to determine the success or failure of an infrastructure project in terms of its objectives. There is an urgent need for a workable and efficient procurement protocol for improved practices in future PPP projects. As an important step toward the development of such a protocol, this study identifies, analyzes, and categorizes various critical success factors (CSFs) for PPPs in general based on a public–private win–win principle and a systematic research approach that includes case studies, literature review, and interviews/correspondence with international experts. A CSF package is developed that contains five main CSFs, each including a number of success subfactors (SSFs). Relative significances of these CSFs and SSFs are examined based on the results of a questionnaire survey of international expert opinions. Agreement analysis shows that there is a good agreement in the ranking of these CSFs and SSFs between respondents from the industrial sector and those from the academic sector.     

A Review of Occupational Stress Interventions in Australia.

The authors investigated empirical research into occupational stress interventions conducted in Australia within the past 10 years. They focused on evidence published and the quality of the evidence base. All intervention studies were conducted in the public sector. Only 1 study reached the gold standard in evidence-based research. Most interventions were individually focused, despite the preponderance of research identifying risky work environment stressors. Results suggest a paucity of published information regarding what works with occupational stress interventions in Australia and an urgent need for further research in the area, particularly focusing on the private sector, rural workers, and scientific evaluation. (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Powerlessness regarding health-service barriers: construction of an instrument

PURPOSE: The purpose of the study was to develop a scale to calculate college students' powerlessness regarding health service barriers (PHSB). METHODS: Scale items were generated to represent two domains of interest: powerlessness and college students' powerlessness regarding health service barriers. The final 20-item instrument was subjected to multiple measures of validity with college students and panels of nurse experts in the area of nursing diagnosis. Reliability was assessed by two samples (n = 92 and n = 33) of college-age students. A final administration was conducted with 197 college students. FINDINGS: The PHSB scale was determined to be an accurate and consistent measure. CONCLUSIONS: This instrument will provide a reliable and valid measure to conduct research.     

Adenosine deaminase in progressive systemic sclerosis

The aim of the present study was to confirm the increase of adenosine deaminase (ADA) activity in progressive systemic sclerosis (PSS), described by Sasaki & Nakajima, and to compare plasma ADA activity of patients in different stages of the disease. Enzyme activity was measured with a colorimetric assay. The 48 patients were subdivided into 3 groups: subgroup 1 (n = 10), disease still limited to the skin; subgroup 2 (n = 21), involvement of the skin and oesophagus; and subgroup 3 (n= 17), involvement of the skin and multiple internal organs. ADA levels were highest in subgroup 3. However, the difference with respect to subgroup 2 did not reach statistical significance. Subgroup 1 was different from controls and subgroups 2 and 3 (p<0.001). Our results confirm that ADA activity is increased in PSS, and that this finding is observed even in the early stages of the disease process. We speculate that the increase in ADA, a well-known marker of T-cell activation, might be an indicator of disease activity in PSS, in the beginning as well as during phases of exacerbation in later stages of the disease.     

Private and public sector managers: An empirical investigation of job characteristics and organizational climate.

Compared the perceptions and satisfaction of 120 top managers from the private sector and 120 from the public sector in Israeli organizations. All Ss (median age 44 yrs) completed a job characteristics questionnaire and an organizational climate questionnaire. It was hypothesized that performance-based rewards and policies that promote efficiency would be significantly more prevalent in private-sector organizations and that higher levels of satisfaction would be expressed by managers in the private sector. Two-way analyses of variance (ANOVAs), consisting of private vs public and production vs service organizations, were performed. Results show significant main effects for sector of ownership and provide strong support for the hypotheses. Interaction effects in specific scales were also in the hypothesized direction, revealing that the private-sector/public-sector differences were further amplified in service organizations. The relation of the present findings to those of comparable studies in the US is discussed. (56 ref) (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Critical Success Factors for PPPs in Infrastructure Developments: Chinese Perspective

With the rapid growth of the Chinese economy, the desperate demand for infrastructure developments has created bottlenecks in the country’s sustainable development. Infrastructure investment could not be funded completely by the government alone. Taking Beijing as an example, there will be about 2,400 infrastructure projects to be developed during 2006–2010 with a total investment of over RMB 470 billion, which may impose budgetary pressure on the government. As a result, public-private partnership (PPP) could be considered as a favorable option to help provide these rapidly demanded public works and services. In order to investigate the potential for adopting PPPs in the People’s Republic of China, this paper aims to explore the critical success factors (CSFs) necessary to conduct PPP projects. The views from Chinese experts were collected via an empirical questionnaire survey. The respondents were invited to rate a total of 18 CSFs that contribute to the success of PPP projects as gleaned from the contemporary literature. The results of this survey were analyzed by the factor analysis technique. The findings showed that the 18 CSFs could be grouped into five underlying factors including: Factor 1—stable macroeconomic environment; Factor 2—shared responsibility between public and private sectors; Factor 3—transparent and efficient procurement process; Factor 4—stable political and social environment; and Factor 5—judicious government control.     

Comparison of continuity clinic experience by practice setting and postgraduate level

OBJECTIVE: To compare continuity clinic experiences by practice setting and postgraduate level. DESIGN: Mailed questionnaire. SETTING: Baylor College of Medicine pediatric residents selected 1 of 3 continuity practice settings, including community-based private offices (n = 35) and university-based clinics in a private (n = 71) and a public (n = 12) hospital. SUBJECTS: One hundred eighteen pediatric residents, May 1993. OUTCOME MEASURES: Patient volume, continuity of care, type of patient visit, and faculty supervision. RESULTS: The response rate was 77% (91/118). Pediatric residents in community-based private offices reported seeing more patients per session than those in the university-based private and public clinics (88%, 10%, and 0% residents in the respective practice settings reported > or = 4 patients per session), but were less likely to see patients repeatedly (6%, 68%, and 40% residents in the respective practice settings had seen more than half their patients > 2 times). Residents in private offices provided a smaller percentage of well child care (16%, 61%, and 90% residents in the respective practice settings reported > 50% patients were well) and more acute care (68%, 15% and 0% residents in the respective practice settings reported > 25% patients were acutely ill). Residents in private offices reported a higher percentage of time spent observing only (33%, 0%, and 0% residents in the respective practice settings observed > 25% of the time) and less time managing patients independently (93%, 59%, and 40% residents, respectively, managed < or = 25% of the time). No significant differences among postgraduate levels were found for these variables. CONCLUSIONS: Patient volume, continuity of care, type of patient visit, and faculty supervision were significantly different among continuity practice settings. Postgraduate level of training did not affect significantly these measures of continuity clinic experience. These differences need to be considered in curriculum development.     

Concessionaire’s Financial Capability in Developing Build-Operate-Transfer Type Infrastructure Projects

The concessionaire of a build-operate-transfer (BOT) type infrastructure project undertakes many responsibilities, and consequently, assumes a broad scope of risks and potential financial consequences. In addition, appropriate financial engineering skills are required in nonrecourse or limited-recourse financing, which is usually used in BOT-type projects. Therefore, strong financial capability of the concessionaire is an important prerequisite to the successful development of a BOT-type project. A common set of 35 financial criteria has been identified through a systematic research approach, and their relative significances determined based on worldwide expert opinions solicited by a structured questionnaire survey. Statistical analyses of the responses to the survey conclude that (1) the public, private, and academic sectors consider financial criteria rather similarly in the evaluation of the concessionaire’s financial capability, and there is no significant statistical difference in the rating of the significances of the 35 financial criteria across these sectors; (2) almost all of the 35 financial criteria are important in measuring the concessionaire’s financial capability; and (3) the 35 financial criteria can be grouped to measure the concessionaire’s financial capability in four dimensions: “strong financial engineering techniques,” “advantageous finance sources and low service costs,” “sound capital structure and requirement of low-level return to investments,” and “strong risk management capability.” Outputs of this research facilitate the private sector in assessing their financial capability and making corresponding improvements to increase their financial competitiveness, and the public sector in evaluating potential concessionaires’ financial capability for BOT projects in general.