1.52 The Spreadsheet divides Whole Life Costs into five components. These are:
• Capital Expenditure (including equipment);
• Investment in Lifecycle Costs;
• Operating Expenditure (comprising the cost of buildings and grounds maintenance and ancillary services, such as catering and cleaning, as well as overheads and insurance);
• Residual Cost;
• Transaction Costs.
1.53 Input Values for each Whole Life Costs component under the two procurement methods should be based on a combination of project-specific costings and on sector-specific experience. Procuring Authorities may even derive some value from reviewing the evidence base assembled by Departments other than their sponsoring Departments, particularly where projects share a number of common characteristics, such as, for example, accommodation schemes.
1.54 If, under the PFI Option, outturn Whole Life Costs data is not yet readily available, then estimates used by Procuring Authorities might be informed by studying, where permitted, related costs included within successful bids received by other public sector bodies on either outsourcing or other broadly similar PFI projects. Cost data is likely to be more readily available for conventional procurement, either from records on current and projected budgets held by the Procuring Authority or from data maintained by appropriate Departmental Estates Agencies.