Transport Scotland is responsible for the Value for Money of revenue funded transport projects. Each project in the revenue funded pipeline has been evaluated using the STAG process7 which identifies the value for money of the scheme at a Strategic Business Case level and has led to the inclusion of each scheme as a priority in the Strategic Transport Projects Review (STPR)8.
Transport Scotland produces individual Outline Business Case (pre-procurement) and Full Business Case (pre contract award) for each project. These Business Cases should be structured to consider (without overlapping with the STAG appraisals) Scope Options, Procurement Options and Effective Delivery as considered in Section 2.2 and 2.3 of this Guidance for OBC and FBC respectively.
As in other sectors, no quantitative evaluation of the relative value for money of traditional capital procurement and the revenue funded alternative is required.
The qualitative evaluation should include completion of the checklists at Annex 1 and Annex 2 of this document for the OBC and FBC respectively.
Business Case formats and contents following this guidance should be agreed with SFT for individual projects in advance.
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7 http://www.transportscotland.gov.uk/stag/home
8 http://www.transportscotland.gov.uk/strategy/strategic-transport-projects-review