2.54 At each stage of the procurement MOD compared the PSC to the PFI bids. MOD used this value-for-money comparison as a tool in evaluating the PFI bids. MOD considered it important that, for a PFI deal to go ahead, the bid should be less than the midpoint of the distribution of possible costs shown by the PSC.
2.55 MOD also evaluated the constituent elements of the PFI bids in relation to equivalent elements in the PSC to identify where the value in the proposed deal was coming from and to evaluate the viability of the bids. At each stage, up to and including the selection of preferred bidder, the capital costs, facilities management costs and life-cycle costs in the bids were compared to the PSC. Between the selection of preferred bidder and contract close this analysis was carried out again when certain cost elements in the PFI bid changed.