69. A PFI reference model should be developed and maintained by the project team from the inception of the project. The PFI reference model should be constructed on the basis of a 'Should Cost Model', where it represents the Department's interpretation of what a potential PFI for the stated requirement may look like in terms of cost.
70. The PFI reference model serves two main purposes:
∙ To provide the basis of a realistic affordability calculation based on a PFI profile;
∙ To provide a tool for bid evaluation purposes.
Please note the PFI reference model is not to be used as a VFM benchmark or public sector comparator.
71. To achieve these aims, the reference model should be developed at the earliest opportunity and to an appropriate level of detail to make informed decisions. The inputs for the reference model can be derived from the best value for money conventional option identified at Stages 1 and 2. However, assumptions for PFI financing and risk transfer will need to be reflected in the model to convert the inputs into a PFI profile. The inputs to the PFI reference model can also form the basis of an alternatively funded fallback solution, which could be adopted should PFI fail.
72. DASA DESA will provide support and advice on preparation of the PFI reference model and fallback solution. Further guidance on constructing the PFI reference model is being developed and will be issued in due course.