2.2. Final Assessment

The objective of the final analysis is to help the public entity to ascertain the value proposition achievable through the bids submitted by the private bidders.

When assessing the value offered by projects developed under the PPP framework, one must not rely solely on a straight comparison of a preferred bid to its PSC (explained later in the module). This comparison should never be regarded as a pass/fail test, but instead as a quantitative way of informed judgment. This is especially important where bids are very close to the value of the PSC. The assessment should also consider all the other relevant factors of bid evaluation including (but not exhaustively):

1. The value to the public sector of the risk the private sector accepts through the proposed PPP arrangement;

2. Any differences in service deliverables between the PSC and PPP bid; and

3. The wider consequences to the public sector of first receiving service from a different date under the PPP as compared to that in the PSC.

Qualitative factors become particularly important either where the lowest private bids are close to the PSC or where an important consideration cannot be quantified for the PSC. Where Value Proposition of Projects decisions reflect the consideration of qualitative factors, these must be fully documented to leave a verifiable decision trail which can be used by the parties involved in the decision-making process.

To this end, it is important that the procurement team compiles a list of all the qualitative factors at an early stage. This may be developed in conjunction with the PSC to identify costs that could not be meaningfully quantified in the PSC.