1.11 In this section the Guide explains how the Spreadsheet can be used to test various VfM propositions. The Spreadsheet assists users by including dialogue boxes for active cells. These boxes describe the information required to run the Spreadsheet and present the relevant references to the User Guide.
1.12 Running different versions of the Spreadsheet to improve the user's understanding of the impact of changing given input variables provides useful decision-support to Procuring Authorities. Whilst this Guide encourages Procuring Authorities to tailor certain inputs and scenarios of the Spreadsheet for the particular project or programme being assessed, its usefulness will not be significantly improved by increasing its level of complexity. Amendments to the functionality of the spreadsheet should therefore be avoided
1.13 The Spreadsheet is used at both the programme and project stages of VfM appraisal. When used to support programme-based decisions, a Department will need to consider a "representative" project on which modelling can be undertaken. Where projects in a programme are not homogeneous, Departments may need to construct a number of such "representations" and then model each before supportable conclusions can be drawn for the programme.
1.14 The Spreadsheet assumes that the project satisfies a long-term service requirement for a public body (the "Procuring Authority"). As such, it should prove to be a useful tool for a large number of investment projects being considered by public sector Procuring Authorities. Where a project is less standard than that upon which the Spreadsheet has been based (for example, a joint venture), the Spreadsheet is unlikely to be a suitable method of analysis. In these circumstances, it may be appropriate for a Procuring Authority to develop a bespoke spreadsheet to test VfM in discussion with HM Treasury. However, even for such spreadsheets, the principles upon which the Spreadsheet is based will continue to be relevant.
1.15 The Spreadsheet is deliberately set up in a way that requires Departments and Procuring Authorities to collect, collate, extrapolate and disseminate information about the effect that different procurement routes have on the quality, cost and timeliness of an asset and/or associated services. The creation of a robust and well-populated database is essential if future procurement decisions are to be properly evidence-based. Where the evidence base is not currently well developed, public bodies are required to improve it so as to ensure that the results obtained from using the Spreadsheet properly reflect all available experience.
1.16 Tables 1.A-1.D below set out the headings of each input cell for the spreadsheet with a description of the input required and a reference to a more detailed explanation later in the guide.