4.2 The Stage 2 assessment assumes that a conclusion has already been reached that, using the best available evidence at programme level, PFI is the most appropriate procurement route and represents VfM. The objectives of the Stage 2 project level assessment are summarised in Box 4.1 below.
Box 4.1: Objectives of Stage 2 • demonstrate that the initial decision to use PFI, based on an investment programme assessment, is valid for particular project; • verify whether appropriate risk transfer arrangements are achievable; • where project specific issues emerge so that PFI is no longer likely to offer VfM, direct the procuring authority early on towards the possibility of using other procurement routes including switching to conventional procurement; • feed information back to the programme level to improve the evidence base and potential for market management; • provide improved cost estimates so that, as part of the OBC, procuring authorities can be confident that the project is affordable; • test whether the PFI solution has sufficient market interest; • help ensure an efficient bid process is planned within a realistic timeframe; and • provide the procuring team with a framework within which they can take decisions if the assessment should suggest that the market conditions are unfavourable. |