3  OPTIONS APPRAISAL

1  Options appraisal typically consists of two stages:

•  Appraisal of project options (see Service Evaluation Approach document within this pack) in order to identify the scope of the project, its scale (including whether or not to engage with another public body) and approach that best meets the service delivery needs - the Preferred Project Option.

•  Secondly, the appraisal of delivery options (such as in-house, outsource or partnering) to identify the route to transformation that is likely to offer Best Value.  The selected project and delivery option will become the Reference Project.

This is the technical part of the Business Case where options are identified, developed and analysed.  It is important to achieve a wide input to this area from interested parties across the organisation.  There MUST be a Do Nothing or if this is not feasible/acceptable a Do Minimum option.  The preferred option will deliver the optimal value for money and become the Public Sector Comparator for the Full Business Case.

The following steps are required:

•  Define the objectives to be met and the benefits sought

•  Generate the options for meeting those objectives

•  Measure the benefits of each option

•  Calculate the costs for each option

•  Assess the risks of each option

Are there any lessons learned from recent projects?]

•  Have the listed options explored the possibilities of links or collaboration with other projects?

•  How does each option meet the Critical Success Factors?

•  Have the options been appraised in accordance with HMT Green Book - where appropriate?

•  Have all options that are acceptable in principle been ranked?

•  Have the Whole Life costs of each option been analysed?

•  Have the options been subjected to sensitivity analysis?

•  Are the major sensitivities included in the Risk Register?

•  Has the preferred option been assessed against the wider government and authority objectives?

•  Has the preferred option been assessed against the strategic objectives set out in the SBC/Strategic theme?

•  For IT projects does the option comply with Euro compatibility guidance, e-government frameworks etc?

•  Do the key stakeholders support the preferred option? Evidence of consultation, involvement, support and endorsement is required.