Significant developments have taken place within the LIFT market since the publication of the NAO Report in May 2005. LIFT stakeholders have since identified the need for the development of a credible Value for Money (VFM) evaluation system which could be applied to all LIFT ventures.
LIFTCo's are contractually obliged to provide evidence of the value for money of potential schemes in comparison to both LIFT and non-LIFT developments. We recognise the Office for Government Commerce definition of Value for Money, and its assertion that simple benchmarking should not be seen as a substitute for a comprehensive VFM test.
We support the opinion of the NAO: "whole life costs over the length of the partnership are inevitably uncertain. The cheapest option may not, therefore, be the option which offers best value for money".
A Value for Money system will ensure that potential individual LIFT ventures are accurately judged using long-term criteria and local communities receive full value for money.
LOBI has engaged collectively over the past three months in conceiving, developing and building such a comprehensive value for money system with Ernst and Young and with the support of the NAO and Partnerships for Health. The system will be used for the assessment of every past and future LIFT scheme. It carries the support and endorsement of all LOBI members. We continue to work to finalise and publicise this important system and hope that it can be used as a future model for procurement in other sectors.