| VIABILITY Investment objectives and outcomes need to be translatable into outputs which can be contracted for, measured and agreed. | ||
| Issue | Questions | Response |
| Project level objectives and outputs | Is the Procuring Authority satisfied that a long term, operable contract could be constructed for the project as envisaged within the Programme Level Assessment? | |
| Confirm that the proposed contract describes / will describe service requirements in clear, objective, output-based terms over a long term period? | ||
| Confirm that the contract will support assessments of whether the service has been delivered to an agreed standard? | ||
| Confirm that the proposed project outcomes will meet the project objectives and address the need. | ||
| Will there be significant levels of investment in the new capital assets and related services? | ||
| Confirm that any interfaces with other projects or programmes are clear and manageable? Confirm that the services to be provided as part of the project do not require the essential involvement of Procuring Authority personnel? To what extent does any involvement negate the risk transfer that is needed for VfM? Will the private sector have control / ownership of the intellectual property rights associated with the performance / design / development of the assets for the new service? | ||
| Operational flexibility | Is the Procuring Authority satisfied that operational flexibility is likely to be maintained over the lifetime of the contract at an acceptable cost? | |
| Is there a practical balance between the degree of operational flexibility that is desired and long term contracting based on up-front capital investment in projects? | ||
| What is the likelihood of large contract variations being required during the life of a typical contract? | ||
| Equity, efficiency and accountability | Are there public equity, efficiency or accountability reasons for providing the project directly rather than through private finance / NPD contracts? | |
| Does the scope of the project services allow the contractor to have control of all the relevant functional processes? Do the services have clear boundaries? | ||
| Are there regulatory or legal restrictions that require project services to be provided directly? | ||
| Will the private sector be able to exploit economies of scale through the provision, operation or maintenance of other similar services to other customers? Does the private sector have greater experience / expertise than the Procuring Authority in delivery of the project services? Are the services in the project non-core to the Procuring Authority? Is a privately financed / NPD procurement basis for projects likely to deliver improved value for money to the Procuring Authority as a whole? | ||
| OVERALL VIABILITY | Is the relevant Accountable Officer satisfied that operable contracts with built in flexibility can be constructed across the project, and that strategic and regulatory issues can be overcome? | |