8 Where, as in this case, the Private Finance option has a higher direct cost to taxpayers, departments should, before signing the deal, consider carefully the indirect benefits in terms of risks reduced or transferred to the private sector and the value to their operations of higher service quality. If quantification is not possible, they need to set out clearly and comprehensively how they have arrived at the conclusion that the un quantifiable benefits outweigh the quantifiable costs.
In this case, and in accordance with then-extant guidance, the Agency took assurance on value for money through competition. Comparisons conducted by the Department showed that the Private Finance deal had a higher direct cost than the alternative of remaining in existing accommodation. But they considered that the extra direct cost of the deal was justified by the operational benefits they expected it to bring.