On completion of negotiations with CMG, the Agency expected that the partnership would improve the value for money of their IT services

4.9  On completion of the negotiations with CMG, Capita prepared a "Final Business Case" in which the present value costs of CMG's charges for the IT services were compared with the remaining public sector comparator. The results are summarised in Figure 13. The Agency estimated that the net present value of the deal was £10.7m, which was within the range of savings that Capita, in the "Baseline Business Case", considered feasible (Figure 12).

4.10  CMG included in their bid an assessment of the impact that improved standardisation of desktop services would have on the charges the Agency would pay for partnership supplied IT services. From these figures Capita estimated that the present value cost of IT services would reduce to £50.8m. CMG also priced two further scenarios of partnership supplied IT services: one, in which there was an annual eight per cent increase in demand; and the other, an annual four per cent fall in demand. The present value costs were estimated to be £55.4m and £49.5m respectively. In their assessment of value for money, the Agency compared these three figures against their Public Sector Comparator without adjusting it to suit the changes incorporated in each of the scenarios.