Bidder Selection

4.16 The HM Treasury research also sought to identify what project managers presented as the primary factors underpinning their selection of bidders. Project managers were asked to list those factors that were particularly important in awarding contracts (Chart 4.5). Overall, procurers said that price followed by design had been the dominant factors affecting their bidder selection.

4.17 The Government is clear that value for money should not be equated with the lowest cost option, but should instead identify the optimum combination of whole life cost and quality. Chapter 8, paragraphs 8.42 to 8.44 outline the Government's plans to investigate further bidder selection in PFI. Box 8.1 outlines the Government's approach to encouraging good design in public procurement.