4.2. Strategic planning / Outline Business Case (OBC)

An outline draft of the Output Specification should be produced at the Outline Business Case (OBC) stage to inform the financial modelling of the project and procurement options. The outline draft Output Specification should, where relevant, utilise information arising from the market-sounding exercise.

In developing the outline Output Specification, the Authority can draw on its own experience of standard setting in other tendering exercises. It may also draw on the expertise of its advisers. Technical advisers often lead on this exercise but the Authority should take care to ensure that members of the in-house team (usually technical/operational officers) are sufficiently involved in the process. The production of the outline Output Specification can also involve other relevant stakeholders, for example, Waste Collection Authority officers. Involvement and discussion of the outputs required is likely to result in wider ownership of the end product, and thus contribute to a better partnership.

An effective approach to preparing the outline Output Specification is to use the suggested drafting set out in Part II of this Module as a starting point, and to use project team meetings to refine and develop the Output Specification to ensure that it meets local circumstances and service delivery arrangements, and the Authority’s own specific needs.

Pragmatic compromises can be made as to the balance between the inputs and outputs and the parameters and standards specified. In moving away from outputs, the Authority needs to consider whether the change in emphasis materially compromises risk transfer; stifles creative thinking; limits future changes; or potentially affects Best Value.

The following questions provide a useful framework for determining and defining outputs:

• What are the objectives of the services to be provided?

• What solutions could result in the successful delivery of the service?

• In the light of the list of solutions are any definitely not wanted?

• What aspects of the Output Specification are open to competitive dialogue?

• What is the standard of service that must be delivered?

What is likely to change over the life of the Contract and what are the potential drivers? How can such changes be allowed for in the Output Specification?