48. Once a preferred bidder has been selected it will be important to ensure that value for money is maintained in the absence of competition tension. Market abuse can be defined as a situation where the bid offered is out of the market, that is to say above the PFI market price for similar projects or where the risk profile has been substantially eroded relative to other similar recent PFI projects at this price. The project team can carry out a high level check of underlying costs against an appropriate range of benchmarks, but this must not involve any reference or return to the quantitative assessment conducted as part of Stage 2.
49. If there is market failure or abuse, this is likely to lead to a poor value for money transaction and the process should therefore be halted and either procured conventionally or cancelled. Bidders should be aware that in the absence of a valid competition this is a real possibility. Bidders should also be aware that projects may be withdrawn for reasons other than value for money.