17. The MOD has completed eight post-costing investigations since last year's report to the PAC, which also reported eight results. The total value subject to post-costing has increased from £1.1 million to £1.4 million. The variance between the estimated costs in these contracts, as compared with actual outturn costs, can be taken as an indicator of original pricing accuracy. The variance has reduced from the 8.01% variance in last year's sample, to 3.26%) in this year's sample. This variance reduces to 2.38%> when taking account of the £11.4 million repaid to MOD on two of the contracts.
18. As an indicator of trends in post-costing results, the 10-year rolling average variation for cases post-costed in the period 2000-2010 (excluding nil results reported for year 2007) has reduced to +2.69%>, compared to +2.84%o for period 1999-2009. Further analysis of the eight post-costing results covered by this report is shown in Annexes A & B.