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 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 preferred bidder process and appraise the ongoing performance against agreed outputs?

Has an appropriately skilled procurement team been assembled and made available to the project throughout the procurement?

Does the project remain feasible within the required timescale?

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

Does the size of the project continue to justify the transaction costs?

Competition / Market Interest

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

Has sufficient market appetite been demonstrated for the project?

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?

Has the nature of the investment and / or the strategic importance of the work and / or the prospect for further business resulted encourages market appetite in the project?

OVERALL ACHIEVABILITY

Overall is the relevant Accountable Officer satisfied that the project is still achievable, that the project team will continue to be sufficiently resourced and the project has received sufficient market interest?