Q14. Should the PSC be based on cost figures from previous projects, even though things may be done better?

If a government department believes that things can be done better than under conventional public sector procurement, and there is significant credible and verifiable evidence to support this belief, then the PSC should reflect these efficiencies. Evidence of potential for future cost savings might be provided via projection of 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 they can be realised, then they should not be incorporated into the PSC. However, sensitivity analysis should be undertaken to highlight the effects of such possible cost improvements on the PSC.