9.1.2  Impact on services

The second quantitative element which should be assessed is any differential impact on the cost of delivery of government services. If the private sector bid incorporates additional innovations which will make it cheaper (or more expensive) for government to deliver services, this needs to be taken into account. For example, a bid for a hospital facilities contract may incorporate a novel design which reduces the cost to government of delivering medical services in the facility. These savings, and their sustainability, should be estimated and taken into account in the evaluation. For social infrastructure projects, the estimation of the quantitative impact on core service delivery can be very important.