The Stage 2 Project Level Assessment of VfM should consider the following key generic components along with any other elements considered critical by the project owner to demonstrating that the project represents the best possible value for money:
Scope Options | Procurement Options |
• Whether investment is the most beneficial option to meet strategic / service needs • Opportunities for service / system redesign to reduce investment need • Fit of the project as scoped with organisational purpose and service / asset plans • New build versus refurbishment options (including e.g. equipment retention) • Opportunities for sharing / strategic asset management • Life cycle costs / benefits and operability / sustainability considerations of options should be quantified / considered • Wider consideration of total public sector value through engagement with stakeholders and partners • Flexibility considered against reasonable future scenarios • Benchmarking to compare proposals with leading practice, ideally including other jurisdictions | • Within a revenue funded structure, what procurement strategy is optimal (potential stand alone NPD, use of hub?) • Phasing approach • Packaging approach - elements included in revenue funded scope or excluded for separate procurement / delivery, single or multiple contracts • Bundling / batching of requirements into a larger contract / procurement • Services strategy - FM services to include in revenue funded project • EU procurement routes considered • Disposal / backfill / re-use strategy for any vacated / redundant assets • Consideration of wider Government objectives - SME access, training etc. |
Effective Delivery | |
• Proper consultation and stakeholder involvement practices followed • Procurement team sufficiently skilled, experienced, resourced & advised • Clear governance and accountability structures and arrangements in place • Project management disciplines in place and properly operated • Level of market interest considered and actively managed • Clear risk allocations evaluated and communicated • Stable and agreed affordability with appropriate contingencies / risk allowances • Interaction of design and procurement resolved • Land issues resolved • Impact on staff understood and communicated • Planning and other statutory processes considered and on-track | |
The documentation of this assessment will generally be via a business case prior to launching the procurement.
Note that accommodation projects within the Revenue Funded Investment Programme are expected to adopt the scope of services (i.e. a narrow scope of hard facilities management services) set out in the standard service level specification that accompanies the standard NPD and hub DBFM contract documentation. A more extensive service scope will, however, not be precluded where it is shown to demonstrate value for money.