This first principle set out some key parameters of the CADMID Assessment process intended to take potential projects from concept through to potential Main Gate approval. The assessment phase was supposed to constitute a relatively "low hurdle" for entry, but was expected to screen out or risk-reduce projects before proceeding to full implementation. Specific objectives for the Assessment process included:
• increasing the proportion of spend at the front-end before "locking down" major expenditure post Main Gate (a rough guideline of 15% of total project spend was suggested);
• implementing a revised and clarified risk-reduction process;
• ensuring that trade-offs between performance, cost and time are made appropriately; and
• introducing design-to-cost principles.
Chapter 7 considered the effectiveness of the Assessment process based on analysis of project data. This analysis shows that up-front expenditure has been significantly below the indicative target, few projects are screened out or significantly reshaped, and technical risk levels remain very high heading into Main Gate.
Aside from what the data show, discussions with the acquisition community about the effectiveness of the Assessment phase process confirmed that it is not working as intended. They believe it serves primarily as a preparatory stage for projects that were highly unlikely to be cancelled, rather than a screening or refinement process. Initial Gate appears to act as a "mini-Main Gate" rather than the low hurdle intended. From time to time, the Assessment phase is also used as a throttle on large expenditure commitments, held up by various process and decision-taking activities until they are deemed to be affordable - a sort of holding pattern rather than a legitimate phase of work to clarify requirements.