4.12 Value for Money Guidance for PFI requires the procuring authority to undertake a quantitative assessment of value for money for a PFI scheme as part of the stage 2 project appraisal. The quantitative analysis is a useful tool to help support the qualitative judgement of the most appropriate procurement route. The procuring authority should show that every effort has been made to quantify all relevant costs and benefits.
4.13 In exceptional cases there may be clear but unquantifiable costs or benefits which are deemed sufficient to override a quantitative value for money result. Where this is the case there must be a clear statement of these decisive factors, why they are considered sufficient to influence the decision, and why they cannot be quantified in the analysis. It is important however that such analysis is transparent and that it is not structured in such a way as to produce a biased or predetermined result. It is also important that procuring authorities consult with other authorities which may be affected by their procurement contracting decisions, the Treasury and, where appropriate, the Office of Government Commerce (OGC).
4.14 Departments have the responsibility for designing and implementing value for money delivery models and procurement processes. The Treasury expects departments to have or develop effective tools for assisting procurement teams and for appropriate scrutiny. In order to support departments and as experience with a range of models grows, the Treasury intends to revise its Value for Money Assessment Guidance to take account of the broader range of delivery options set out in this document.