What are the Objectives of the Review?

10.  A VFM Review should achieve the following objectives for the benefit of the customer:

•  Evaluate how the project has performed against estimated costs, performance and identified benefits forecasts included in the original business case and approvals note;

•  Evaluate project performance in accordance with HM Treasury's VFM definition; assessing quality, effectiveness and outlay;

•  Assess whether projects are being implemented and managed well against the NAO Framework for evaluating implementation of PFI Projects criteria and the NAO Changes to Operational PFI Deals guidance;

•  Assess the appropriateness of the actual risk allocation in comparison with that identified in both the original business case and the contract;

•  Highlight the lessons learned with a view to improving the quality of future decision making (including any re-let following contract expiry), including highlighting the successful features of the project;

•  Assess the appropriateness of the Service Provider's actual insurance arrangements in comparison with those identified in the contract;

•  Assess the current user requirement;

•  Identify improvements that can be made to enhance the performance of the contract for the mutual benefit of both the Authority and the Service Provider;

•  Calculate Project IRR as specified in contract (see Annex A for a definition of Project IRR);

•  Assess the project's readiness for the future.