Q7.  Should the public sector comparator be based on cost figures from previous projects, even though things can be done better?

A. If a government agency believes that things can be done better under conventional public sector procurement than in the past, and there is significant credible and verifiable evidence to support this belief, then the public sector comparator should reflect these efficiencies. Evidence of potential for future cost savings might be provided by a declining trend over a significant period. Equally, if costs have been increasing, this trend should be projected into the future. If cost savings are possible, but there is no supporting evidence for their realisation, then they should not be incorporated into the public sector comparator. However, sensitivity analysis should be undertaken to understand the effects of such possible cost improvements on the public sector comparator.