Outline Business Case Stage

45.  The OBC should be supported by both a Design Brief and Planning Statement (or a single document) for the site(s) in question.

46.  The Design Brief at Outline Business Case stage would comprise Outline Proposals and be informed by relevant scheme and site specific technical studies and analysis, to the appropriate level of detail, with balance between desk and field data, relevant generic information and professional advice. This approach will allow the provision of appropriately evidenced and referenced design proposals and costs.

47.  The Planning Statement may be adopted, thereby forming part of the LPA's Development Plan Documents. However it may be more appropriate to have a draft Planning Statement at OBC stage, which is supported by the LPA, but which is subject to consultation with bidders and adoption by ISDS stage.

48.  For a Single Solution approach Outline Planning Permission (OPP) is not required at Outline Business Case stage and is not a scheme development or procurement requirement. Full or Detailed Planning Permission can be obtained at Preferred Bidder stage without interim Outline Planning Permission. However an acquisition team may decide that the nature of its PFI scheme, where the scheme reflects a standard development or lends itself to design development led by the MOD and acceptance by bidders of a commonly-agreed solution. The related obtaining of Outline Planning Permission by OBC stage by the MOD may also be considered to make the project subsequently more attractive to the market. In such circumstances it is suggested that the acquisition team:

a.  if it considers seeking OPP at OBC stage, ensures and demonstrates thorough market consultation in order to firm up its design proposals and secure potential bidder 'buy-in' before obtaining OPP and OBC submission / approval; or

b.  if it is seeking OPP by ISDS stage, consults with bidders at ISOS stage in order to firm up its design proposals and secure bidder 'buy-in' before obtaining OPP.

49.  Option a) may provide more cost certainty at OBC stage though restrict bidder input and design flexibility whilst Option b) will allow for greater bidder input and design flexibility though should be accompanied by appropriate contingency provision at OBC stage.

50.  For a Different Solutions approach, where appropriate a professionally prepared and robustly costed draft base Masterplan that complies with the Design Brief and Planning Brief should be produced by the acquisition team. The purpose of such a Masterplan, in addition to helping to underpin the affordability of a project, is to provide a basis for design and commercial solutions to be developed by bidders, within local authority set parameters. (An estate or area masterplan for this purpose can be developed to different levels of completeness or detail depending upon a local authority's perspective on their requirements and its use).

51.  The Masterplan should be supported by all relevant stakeholders, and therefore have been subject to stakeholder and local resident consultation, and also be supported by the LPA and comply with the Development Framework. However the Masterplan should not have any formal LDF status.

52.  For a Different Solutions approach, complex or major schemes should not have OPP at OBC stage as this would limit market flexibility and creativity in developing solutions (as well as being expensive in terms of both cost and time and with a likelihood of being abortive). Where an MOD project has obtained OPP or considers obtaining OPP during the procurement process before Preferred Bidder stage, an acquistion team must demonstrate to MOD PFUs satisfaction that such Planning Permission would provide a sound basis for procurement.

53.  For a Different Solutions approach, acquisition teams are strongly recommended not to seek OPP for complex or major schemes. It is advisable for acquisition teams to review and confirm the acceptability of seeking OPP with the MOD PFU and Defence Estates at the earliest opportunity before submission of a formal OBC.

54.  Any proposed material change in the planning and design procurement approach following OBC endorsement will require MOD PFU approval.

OBC Base Requirements