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, has the private sector demonstrated its ability to price and manage these risks?

Do the proposed payment mechanisms and contract terms incentivise good risk management within the project?

Innovation

Have bidder submissions displayed innovative ideas for the project?

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

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

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

Has the private sector suggested improvements to 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, has any soft service provision not been retained in-house? What are the relative advantages and disadvantages of this approach?

Incentive and monitoring

Have the outcomes or outputs of the project been described in contractual terms which are unambiguous and measurable?

Have standards been agreed against which the project services will be assessed?

Are incentives on service levels enhanced through the standard contract and payment mechanism?

Lifecycle costs / residual value?

Have the design, build and operation of the project been integrated?

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 sensitive to the type of construction?

OVERALL DESIRABILITY

Overall, is the relevant Accountable Officer satisfied that the project and the bids received would bring sufficient benefits?