VfM Assessment Guidance Wash Up Session

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VfM Assessment GuidanceWash Up Session
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Appraisal Process new VfM Guidance

• Stage 1 Programme Level Assessment
• Stage 2 Project Level Assessment
• Stage 3 Procurement Level Assessment
• Qualitative and Quantitative elements
• Use of Evidence and Judgement

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Issues to Watch For

• Evidence base (PFI PSC)
• Optimism bias
• Reference project definition
• Double-counting
• Model limitations
• Capital receipts
• Return differential

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VfM Workshop - Databases

• Generic HMT Guidance
• VfM Assessment Guidance (August 2004)
• Quantitative Assessment User Guide (August 2004)
• Supplementary Guidance
• Optimism Bias (Revised Green Book)
• Tax receipt differential (KPMG paper 2nd July
  2002)
• Optimism Bias Studies
• Mott MacDonald (Review of Large Public
  Procurement in the UK - July 2002)
• DFT (Procedures for Dealing with Optimism Bias
  in Transport Planning - June 2004)
• DoH (Calculating the Adjustment for Optimism
  Bias)
• PFCU website HDL(2003)13