A6 At the procurement stage the value for money appraisal should focus on the effects of market conditions and competition issues on the bids received, and will not be an evaluation of PFI as a procurement route, which will have been tested using the reformed PSC. This assessment is different from the full bid evaluation process to determine which bid offers the best value for money. Instead, the aim of the assessment is to ensure that the preferred PFI bid offers a value for money PFI scheme.
A7 Additional factors relevant to the procurement stage will include:
• the quality of the competition through the expressions of interest received;
• market factors such as the effect of capacity constraints on prices; and
• quality of the proposals received; where the project attracts inadequate quality of responses and may require adjustment as to scope and timing.