ACHIEVABILITY

Significant transaction costs are involved in a privately financed / NPD Project. In particular, the procurement process can be complex and significant resources, including senior management time, may be required for programme and individual project development and ongoing monitoring. Client capability will have direct consequences for procurement time. Perceptions of this capability will also affect the level and quality of market interest. NPD and other contract-based approaches should maximise the benefits of a competitive process - but the structure of proposals and the choice of procurement route should be informed by an assessment of the likely market appetite.

Issue

Question

Response

Transaction costs and client capacity

Is there sufficient Procuring Authority capability to manage the procurement process and appraise the ongoing performance against agreed outputs?

Can an appropriately skilled procurement team be assembled in good time?

Will the project be feasible within the required timescale?

Is there sufficient time for resolution of key Procuring Authority issues?

Does the size of the project justify the transaction costs?

Competition / Market Interest

Is there evidence that the private sector is capable of delivering the required outcomes?

Is there likely to be sufficient market appetite for the project?

Has this been tested robustly? Is there any evidence of market failure for similar projects?

Have any similar projects been tendered to market?

Has the Procuring Authority's commitment to a privately financed / NPD solution for this type of project been demonstrated?

Does the nature of the investment and / or the strategic importance of the work and / or the prospect for further business suggest that it will be seen by the market as a potentially profitable project?

OVERALL ACHIEVABILITY

Overall is the relevant Accountable Officer satisfied that the project is achievable, that the project team is sufficiently resourced and the project is attractive to the market?