To demonstrate VfM, it is necessary to demonstrate that the tender outcome genuinely represents best-in-market pricing for delivering the approved Business Case requirements and objectives through a best-in-market project solution.
It is generally not enough to compare a single Proposal with the Business Case as the Business Case is the Owner's estimate for investment decision making, but may not reflect a best-in-market outcome. Moreover, the Business Case budget may have a high degree of uncertainty and low/medium accuracy reflecting the degree of information and expertise used without the benefit of the TOC development phase.
A competitive NOP selection process provides market-based benchmarks by which performance and abilities can be gauged. In this sense, the competitive process involves a simpler task in the BCAR of demonstrating a VfM tender outcome compared to a non-price competitive process.