3. This guidance provides advice on how the planning (consent) process and design development and completion of PFI projects might be managed under the Competitive Dialogue procedure and provides specific guidance at different stages of that procedure. It has been developed from guidance issued by Local Partnerships and is used with their kind permission. It should:
a. ensure greater awareness and consistency across the acquisition community of the need to establish a coherent and 'straight-line' procurement approach by Initial Gate and certainly before proceeding to market;
b. avoid premature and unduly high bid requirements by of bidders and consequently high bid costs which can threaten both competition and value for money;
c. avoid uncertain, inappropriate and prolonged procurement approaches that can undermine procurement as well as threatening competition and value for money.
4. This guidance also sets out the principles which apply when land and building assets are included in PFI deals, It has been developed from guidance issued by the National Health Service Private Finance Unit and is used with their kind permission. It addresses the following issues:
a. the overriding principles governing the inclusion of land and buildings in PFI deals;
b. the criteria for judging whether or not to include land in a PFI deal;
c. the sale of surplus MOD land to the private sector for subsequent sale in exchange for a reduction in annual unitary payments;
d. land or buildings leased to the private sector;
e. the use of assets donated by third parties to effect a reduction in annual unitary payments.