Selected Method

Purpose

1 Evaluation of individual projects

We examined 25 projects (15 of which have passed the main investment decision and ten of which have not) to assess cost, time and technical performance. The Department attribute any variations in cost, time or performance to agreed factors, and compile project summary sheets on each project according to agreed guidelines. These are then validated by the NAO, but are not subject to a full audit.

To confirm that the project summary sheets conform to the guidance and that it has been accurately and consistently applied. We do not question forecasts or assumptions of the Department's long-term costings unless better information becomes available.

2 Review of key documents

Our review included key Departmental planning documents, contracts, project plans, contractor reports, and assessments of performance by the Director of Capability and front-line commands.

To validate the information provided by the project teams in the project summary sheets.

3 Analysis of cost, time and technical performance

Using the qualitative and quantitative data collected above, we considered whether the Department is forecasting to deliver to the budget, time and technical performance expected when the main investment decision was made.

To identify the greatest cost and time variances and the factors that cause them, with particular attention to trends in the Department's overall performance.

4 Historic trend analysis

Review of published project summary sheets from 2000-11 covering all projects that have featured in our Reports.

It is not possible to perform the same analysis before Major Projects Report 2000, as the basis for the reporting significantly changed in this year mainly due to the Department introducing SMART procurement and resource accounting and budgeting.26

To identify trends in cost of the projects and highlight areas where value for money has not been achieved.