The value for money assessment also includes the NPV of the PCC.56 Developing a whole life cost is an important element, so is understanding the benefits to the transfer of risks, single ownership and facilitation of the operations, the use of assets (both operating and capital), and innovation of the private sector.57 The VfM as defined by Treasury as the "optimum combination of whole life costs (capital and operating) and quality of services to meet the requirement of the public sector." The ultimate rule for decision making following a VfM assessment is that there must be a net benefit for the public sector in order to enter into a public private partnership.58
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56 Robinson (2010).
57 Pangeran, M.H., &Wirahadikusumah, R.D. (2010). Challenges in Implementing the Public Sector Comparator for Bid Evaluation of PPPs Infrastructure Project Investment. Proceedings of the First Makassar International Conference on Civil Engineering.
58 Robinson (2010).