6.29 The value for money analysis of different bids should be assessed taking into account risks which will be retained by the public sector. Bids should be evaluated on a net present value basis which includes the effects of risk transfer. The Scottish Government Value for Money guidance for the procurement level must be applied. This is discussed further in the Chapter on risk in Technical & Commercial Issues.
6.30 When undertaking NPD projects, Procuring Bodies should refer to the PFCU to obtain guidance of the approach to be adopted to assess VfM.
6.31 All figures should be expressed in real terms (i.e. in today's prices). Discounted values should be calculated using a 3.5% real discount factor. Where options have different life spans the Business Case Guide explains how they can be assessed using equivalent annual costs (EACs) and typical annual benefits.