12. As described in Section 3 there is a specific process that project teams must follow during the procurement phase, in addition to the standard investment appraisal process, to assess whether the project represents value for money.
13. It is also important to ensure that the contract makes suitable provision for periodic value testing of the soft services delivered through the PFI contract, preferably through a market testing exercise.
Relevant Government policy/guidance:
• MOD PFU Guidance Note - Assessing Value for Money for PFI Projects
• MOD PFU Guidance Note - MOD Standard Project Agreement v1 for PFI Projects
• MOD PFU Guidance Note - VFM reviews
• JSP 507
• HMT Value for Money Assessment Guidance, dated Nov 2006
• HMT Value for Money Quantitative Assessment Guide, dated Nov 2006
• HM Treasury: Standardisation of PFI contracts (SoPC) Version 4
• Value Testing HMT/PUK guidance
• OGC Getting Value for Money from Construction Projects through Design
• Operational Taskforce Note 1: Benchmarking and Market Testing Guidance
• HM Treasury: The Green Book, Appraisal and Evaluation in Central Government
• OGC Best Practice - VFM - Evaluation in Complex Procurement