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
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The deal was better than the alternatives available in May 2000, the cost of the deal being similar to the forecast cost of conventional procurement
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For negotiation and presentation purposes MOD placed emphasis on achieving a price slightly better than conventional procurement
For negotiation and presentation purposes
MOD placed emphasis on achieving a price slightly better than conventional procurement
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MOD used the value-for-money comparison to secure a £4 million price reduction
This helped MOD to present the deal as value for money although it was aware that the reduction did not significantly change the value for money of the business case