1.1 The accompanying spreadsheet should normally be used as part of the quantitative Value for Money assessment of privately financed PPP and PFI projects, in line with the Value for Money Assessment Guidance November 2006 (the "Main Guidance") and the results presented as part of the business cases submitted to the relevant central government department (and in most cases, subsequently to HM Treasury) for approval. Infrastructure UK (IUK) at HM Treasury hold the master copy and are responsible for commissioning updates or changes to the spreadsheet. No amendments should be made to the spreadsheet by any other party without express approval from IUK.
1.2 A standard recommended spreadsheet for the VfM assessment has been developed to meet the following objectives:
• ensure that a simple approach is taken, reflecting the early point at which this analysis takes place;
• focus Procuring Authorities' minds on the underlying assumptions and the interplay with qualitative judgement and move the analysis away from a single pass/fail point estimate. See Section 1.22 of the Main Guidance;
• reduce costs and ensure ownership of the decision lies with the Authority and not their advisers;
• introduce consistency across the public sector and improve the underlying evidence base.
1.3 There are certain assumptions which are hardwired into the model which the Authority should not seek to amend, for example the model assumes that the Employment cost per employee is equal for the conventional procurement, in line with Government policy that PFI should not be pursued at the expense of employee terms and conditions (see Section 1.14) of the main guidance.