It is necessary for the agency to articulate both the price and non-price elements of the Value-for-Money proposition in the Business Case, including:
• the service delivery benefits;
• relevant service delivery and capital budgets developed on a whole-of-life basis; and
• cost contingencies for risks, and the assumptions underlying them.
The Business Case, and its Value-for-Money proposition, represents the agreement between the agency and the government. The Business Case recommends the best procurement option to achieve the Value-for-Money proposition, i.e., delivering the project at the lowest price and to the required standard over the life of the project. The approved Business Case will subsequently direct and benchmark planning, negotiation and implementation activities for the alliance.
Within six months after the alliance completes the project, the agency should provide the Portfolio Minister and the Treasurer with a Value-for-Money report on outcomes achieved by the alliance. This should be in the form set out in the relevant Commonwealth Department of Infrastructure and Transport guidelines.