The value for money analysis is focused on these value drivers as the sources of efficiency savings. These savings counter balance the additional procurement costs and financial premiums associated with the public private partnership Delivery Option.
Broadly, the initial analysis that must be carried out on these value drivers as part of the preliminary assessment and business case development is:
• Qualitative assessment of the objectives, service requirement and proposed structure of the project to establish whether there is likely to be sufficient scope for the private sector to access and exploit the value drivers; and
• Quantitative assessment, based on sensitivity and scenario modelling on the partnership model, to establish the likely cost (in net present value terms).