The purpose of the quantitative assessment is to objectively test whether the objectives, service requirement and proposed structure of the project are likely to provide the private sector with sufficient scope to access and exploit the value drivers. Quantitative assessment will determine which project delivery option is most likely to deliver optimal value for money. It will also provide the benchmark against which bids will be evaluated in the binding bid stage (stage 5).
The quantitative assessment is based on discounted cash flow analysis carried out on the partnership model and in comparison with the public sector comparator. The quantitative assessment should be built up using the following techniques: