| The Value for Money (VfM) Assessment Guidance is mandatory guidance for all capital The VfM principles of this guidance should also be adhered to in the event of any variations to contracts following the procurement phase. |
1.6 At the programme level, this guidance will assist the Scottish Government or the relevant Directorate to establish the appropriate procurement route and strategy for future investment. At a project level, it informs Procuring Authorities of the nature of the VfM assessment process which should be followed.
1.7 This guidance is most relevant to those investments which are not funded conventionally (i.e. those that are privately financed such as NPD) but equally the assessments required in the guidance could be useful to any programme or project involving the procurement of public services over the longer term. This guidance may also be applied to support robust evaluation and VfM justification of outsourcing decisions by public bodies.
1.8 Some of the core principles relating to achieving VfM in programmes and projects which include private finance, DBFM elements or are procured through NPDs may also be applicable to other forms of public sector procurement, in particular those programmes and projects that involve substantial capital expenditure. The application of this guidance note and its VfM principles to capital expenditure, infrastructure programmes and projects where a private finance solution is not used should be considered.
1.9 Private sector involvement in infrastructure delivery is characterised by a long-term commitment by the private sector to deliver and maintain public infrastructure and services and, given the complexity generally associated with its procurement, it will normally only be relevant for certain types of investment, therefore naturally limiting its use. Private funding and its associated rigour and due diligence can often be leveraged into public infrastructure transactions. When done so, the themes and assessment tests of this guidance should be applied.