2.31 KHHD used its market knowledge and cost databases to price each item in the models of the Agency's base case and high demand scenarios. The Agency reviewed KHHD's models and inputs, using its own quantity surveying team. This team concluded that the models were well prepared and that the outputs were reasonable.
15 | After evaluating GeneSYS's Revise and Confirm bid, the Agency assessed that the bid was, for the first time, lower than the public sector comparator (PSC) |
Bid round | Cost in present value terms/ | ||
| GeneSYS | LINK | Risk adjusted Public Sector Comparator |
Invitation to Negotiate1 | 680 | 910 | 6603 |
Evaluation after Clarification1 | 690 | 920 | 6603 |
Best and Final Offer2 | 490 | 770 | 4503,4 |
Revise and Confirm | 425 | - | 4354 |
At contract award | 385 | - | 4154 |
Source: National Audit Office |
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NOTES 1 These April 2004 priced figures were calculated by inflating April 2003 prices using the Office for National Statistics' Retail Prices Index CHAW (all items). 2 Between the Evaluation after Clarification and the Best and Final Offer, the Agency reduced the scope of works that would be covered by the base service charge. 3 The PSC at Invitation to Negotiate, Evaluation after Clarification and Best and Final Offer included an allowance for non-recoverable VAT, which was not included in the bids. 4 From Best and Final Offer there were minor incompatibilities between the PSC and the bids. To achieve like-for-like comparisons, the Agency adjusted the values of the bids rather than alter the PSC. In the table above, we applied the adjustments to the PSC rather than to the bids. For example, we applied the Agency's £10 million compatibility adjustment at contract award to the PSC which reduced it from £425 million to £415 million. | |||
2.32 Our technical consultants, Mason Communications Ltd (Mason), compared KHHD's pricing of telecommunications items, representing approximately a third of the total price of the public sector comparator, against its own market knowledge. Mason reported that most of the cost inputs that it had sampled were reasonable. It did, however, note that, for bulk order capital cost items, the Agency might have secured discounts that could have reduced the present value cost of the comparator by between £4 million and £14 million. This would have severely reduced the difference between the public sector comparator and the cost of GeneSYS's wining bid.