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

2.61  MOD considered it important for presentational purposes in its final analysis of the proposed deal that the final PFI deal price was below its estimated average cost of conventional procurement. Although MOD referred to this slight cost margin in favour of the PFI deal as supporting the case that the PFI deal was value for money it also understood the uncertainties in the value for money comparison. MOD recognised that a reduction of £4 million, although helpful in securing a better deal for MOD, had not significantly changed the value for money of the deal with the cost of the PFI deal, in broad financial terms, still equivalent to conventional procurement.