2.4.9 Alternatives to the status quo are referred to as the 'do something' options. These should generally cover a range of levels of provision, for example, from 'minimum acceptable provision' to the highest standards of provision. They should reflect variations in the scale, content, timing and location of services. The range of options considered should be as wide as possible.
2.4.10 Consideration should be given to alternative techniques for delivering the required outputs. Conventional approaches should be considered alongside more innovative methods.
2.4.11 The number of options to be subjected to full appraisal will vary according to the scale and significance of the proposal, the constraints under which it is conducted, and considerations of feasibility and affordability. In relatively straightforward appraisals, the number of options short-listed for full appraisal might be in the range 3 to 6 in addition to the status quo. (This is a very broad guideline, not a stipulated minimum number). In more complex cases, a larger number of options may be appropriate.
2.4.12 Following the identification of the preferred service option, alternative approaches to procurement should be appraised. The scope for solutions involving Public Private Partnerships (PPPs), should generally be considered as alternatives to traditional procurement methods. Experience suggests that PPP approaches suit some situations better than others, and resources should not be wasted investigating PPP solutions where they are clearly not appropriate. Where there is doubt over the relevance of PPP guidance in the SCIM PPP manual should be followed. Advice should be sought from SGHD Capital Planning & Asset Management Division.
2.4.13 It is important to consider alternative options for funding of proposals. This is essential when appraising proposals concerning assistance to the private, voluntary or community sectors, as there will usually be various possible scales or types of funding, but it may also be important in other cases.
2.4.14 Completion of an economic appraisal report does not necessarily bring the consideration of options to an end. For instance, changing circumstances may invalidate the appraisal's assumptions and conclusions prior to project implementation, necessitating a review of the options. Also, identification of a preferred option is often followed by a tendering process in which bids are sought from the private sector. The principles of option appraisal should be applied at this stage in order to help determine which bid offers the best VFM.