Issue

Questions

Response

Risk management

Does the project involve the purchase of significant capital assets, where the risks of cost and time over-runs are likely to be significant?

Is the private sector likely to be able to manage the generic risks associated with the project more effectively than the Procuring Authority?

Bearing in mind the relevant risks that need to be managed for the project, what is the ability of the private sector to price and manage these risks?

Can envisaged standardised payment mechanisms and contract terms incentivise good risk management within the project (as per standard form NPD / hub DBFM contract, where applicable)?

Innovation

Does a preliminary assessment indicate that there is likely to be scope for innovation on a project basis?

Does some degree of flexibility remain in the nature of the technical solutions / services and / or the scope of the project?

Can solutions be adequately free from the constraints imposed by the Procuring Authority, legal requirements and / or technical standards?

To what extent will the individual project's scope, specification and operation be pre-set or open to negotiation with the private sector?

Could the private sector improve the level of utilisation of the assets underpinning the project (e.g. through selling, licensing, commercially developing for third party usage etc)?

Service provision

In relation to the project, are there good strategic / service delivery reasons not to retain soft service provision in-house? What are the relative advantages and disadvantages of this approach?

Incentive and monitoring

EITHER

Confirm that the standard form NPD / hub DBFM contract provisions relating to monitoring and incentivising service delivery will be adopted.

OR (where standard form NPD / hub DBFM monitoring and incentivising service delivery are not applicable - e.g. acute health / transport projects)

(a)  Can the outcomes or outputs of the project be described in contractual terms which would be unambiguous and measurable?

(b)  Can the project services be assessed against an agreed standard?

(c)  Would incentives on service levels be enhanced through the standard contract and payment mechanism?

Lifecycle costs / residual value?

Is it possible to integrate the design, build and operation of the project?

Is a lengthy contract envisaged?

Will long-term contractual relationships be suitable (or advantageous) for the service?

Are there constraints on the status of the assets at contract end?

Are there significant ongoing operating costs and maintenance requirements across the project? Are these likely to be sensitive to the type of construction?

OVERALL DESIRABILITY

Overall, is the relevant Accountable Officer satisfied that the project and its procurement approach would bring sufficient benefits?