1.3 Value for Money ("VfM") at a project level is defined as the optimum available combination of whole-life costs and quality (or fitness for purpose) of the good or service to meet the users' requirements. VfM is not the choice of goods and services based on the lowest cost bid.
1.4 By applying this guidance, Procuring Authorities, Agencies and Directorates will be able to make more informed investment decisions as to
i. which procurement route offers best VfM for a specific programme or project;
ii. the selected procurement route for a project continuing to offer VfM at all stages of the project development and procurement process.
1.5 At all stages, the emphasis of the guidance is on:
• Evidence: making a robust assessment based on detailed evidence and previous experience. Data should be collected on all projects and used to aid future assessments.
• Early Assessment: ensuring that project appraisals are started early, and are undertaken prior to engagement with the market. Late changes to a project's scope or timing, once procurement has commenced, are likely to cost more and therefore, erode VfM.
• Sufficient Resourcing and Planning: Ensuring that a procurement process is well planned, managed, executed and transparent in order to maximise VfM from the competitive process. Procuring Authorities must ensure they have sufficient capable resources to apply to the procurement regardless of which procurement route is selected.