After an effective procurement, the benefits of this deal will be similar in cost to the forecast cost of conventional procurement; other factors tipped the balance in favour of PFI

9  In assessing the value for money to be expected from a PFI deal, a number of factors need to be considered together: the strategic justification for the deal; the competitiveness of the procurement process, including analysis of any movements in the price of the deal during exclusive negotiations with the preferred supplier; and the forecast costs of the deal alongside any qualitative factors which differentiate the deal from other options. In this case:

  the PFI deal emerged as the most promising from a wide range of options;

  the selection of Modus was competitive, but the price of the deal changed during exclusive negotiations with Modus, in particular as a result of further building work identified from surveys and increases in the cost of finance for the project;

  the costs of the deal were similar to those of a public sector comparator and, by the time the contract came to be signed, other factors were decisive in giving the deal advantages over the alternatives then open to MOD.

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