Part 2 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

2.1  This part of the report shows that MOD considered a wide range of options and selected Modus through an effective procurement. The price, however, increased during preferred bidder negotiations, mainly due to survey work and increased financing costs, and the final costs of the deal were similar to the forecast costs of a public sector comparator. By the time the deal came to be signed, there were other factors which gave the deal advantages over the alternatives then open to MOD.