5  VALUE FOR MONEY

While the detailed Green Book VFM assessment for any PPP type project is expected to take place at the OBC stage, an initial review for the SBC can be considered good practice.  The main drivers behind a review at this early stage are to:

•  Provide an assessment early on of whether the PPP route is likely to provide VFM;

•  Increase transparency and improve the flow of the procurement and subsequent deal;

•  Assist the Authority focus its spending review focus the spend review process; and

•  Ensure the Authority has the necessary framework in place to ensure VFM can be achieved.

Evidence that a partnering arrangement is likely to be a suitable procurement route and represent VFM are:

•  The service(s) can be defined in terms of outputs

•  The assets and services can be costed on a long term basis

•  Procurement costs are not disproportionate to the project cost

•  Technology or other changes in the sector are relatively stable

•  The assets and services can be used over a long period of time

•  The private sector can deliver the service