5. HMT guidance identifies the nature and maturity of the evidence required to support the VfM argument at each of four key decision points. This has translated into a four decision point IAB approvals process for PFI projects as follows (see diagram at Section 3 paragraph 1 for linkage to VfM stages):
• Decision 1 - Initial Gate - Pursue a PFI procurement strategy into Assessment Phase.
• Decision 2 - Review Note - Industry Engagement (formal engagement of industry in a competitive tendering exercise).
• Decision 3 - Main Gate Part One (MG1) - End the competition and select a Preferred Bidder.
• Decision 4 - Main Gate Part Two (MG2) - Commit to the contract.
6. As with the wider guidance on MOD Approvals, these points will be tailored to meet the particular needs of the project/business.
7. Detailed guidance on the approvals process for PFI projects is contained in Sec EC's SMART Approvals Guidance which is available on the Defence Intranet.