4.5. How to Calculate the PSC?

The steps that need to be followed to arrive at the PSC are explained below.

It is important that the scope of the PSC and the scope of the bid are equal. The output specification sets out the range of services to be delivered and the performance levels required for each of those services. It should focus on the end result rather than the means of delivery.

If the adjusted net cost for the PSC is higher than the net cost for the PPP then the value test is positive and the PPP is expected to provide value to the public entity.