Overall Costs, Affordability and Value for Money of the Bid

The cost evaluation will involve a comparison of the annual Unitary Charge proposed in respect of each Bid with the PFI Reference Project developed for the project by the Local Authority.  In particular, cost will be assessed taking into account:

•  Any assumptions made regarding financial deductions applied under the Payment Mechanism

•  The credibility of service unit costs bid in response to the Output Specification

•  Any other aspects of the Bids which are considered likely to have a cost impact in delivering services

•  Expected NPV of the risks transferred under each Bid

•  Sensitivity of different inflation assumptions.

[Insert other details as appropriate]