E.1 SFT NPD VfM guidance assesses VfM factors associated with an NPD procurement route. A number of the assessment categories (particularly qualitative factors) focus on key elements that should be addressed in whatever eventual procurement route is chosen. That is, regardless of the procurement route developed, the level of detailed review undertaken should be as robust as that required for a full NPD project.
E.2 In addition, public sector procurement guidance (The SG Procurement Policy Manual) states "PPP procurement should be considered when the evidence of the benefits that PPP can deliver gives a strong case for considering PPP for a Project or Programme. These characteristics include:-
• A major capital investment programme, requiring effective management of risks associated with construction and delivery;
• The private sector has the expertise to deliver and there is good reason to think it will offer value for money;
• The structure of the service is appropriate, allowing the public sector to define its needs as service outputs;
• The nature of the assets and services identified as part of the PPP scheme are capable of being costed on a whole-of-life, long term basis;
• The value of the project is sufficiently large to ensure that procurement costs are not disproportionate;
• The technology and other aspects of the sector are stable, and not susceptible to fast paced change;
• Planning horizons are long term, with assets intended to be used over long periods into the future; and
• There are robust incentives on the private sector to perform.
In such circumstances, there is a prima facie case for considering PPP procurement. The public sector bodies (and where applicable Procuring Authorities, Agencies and Directorates) are required to confirm that these areas have been reviewed. "
E.4 Based upon the characteristics above and, following best practice guidance, it is appropriate to develop an assessment of a Rail Infrastructure project under an NPD delivery vehicle for comparison to the alternative procurement routes likely to be used in practice. It is recognised that although a full NPD solution is potentially not sustainable for rail infrastructure projects, the preferred procurement route should demonstrate, as far as practical, compliance with the above characteristics and further review against key VfM areas outlined in Scottish Government NPD VfM Assessment Guidance.
E.5 In summary, therefore, NPD delivery can be used as a comparator to benchmark the chosen delivery route against. The objective is to ensure that the chosen procurement route addresses qualitative aspects achieved under a NPD and addresses wider VfM factors in an appropriate and best value way. Finally different quantitative outcomes and affordability elements will also be assessed for the preferred option against a NPD benchmark where this is practical.
E.6 Note: it is recognised that the quantitative benchmarks of the chosen procurement route may in some cases be made against the conventional procurement option (CPAM).