6.1.1  The PSC and quantitative assessment

The PSC is the financial benchmark in the quantitative assessment of value for money during the tender process and the evaluation and comparison of RFP responses.  The RFP responses will be assessed against the PSC to determine whether they offer value for money in respect of quantitative analysis.

RFP responses will be ranked according to their risk-adjusted Net Present Cost ("NPC") relative to each other and to the risk-adjusted PSC. Adjustments may be made to the NPC of individual RFP responses according to their preferred risk allocation.

As considered in the Commercial Principles for Social Infrastructure, all risks to the extent not explicitly taken by government will be borne by the private party.  The financial impact of the risks taken by government (e.g. retained risk) should be added to each RFP response to show the total project delivery cost.