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The Project Control Framework

On 1st April 2008 we launched the Project Control Framework. The Framework sets out how we, together with the Department for Transport, manage and deliver major improvement projects.

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About DBFO's

Public Sector Comparator and Contingent Schemes

Public Sector Comparator

For each DBFO project, the Agency needs to decide whether the proposed contract offers value for money compared with conventional procurement. To assist in this decision the Agency prepares a Public Sector Comparator (PSC), which is calculated by costing what the public sector would have had to pay to procure the construction of the relevant schemes and the operation and maintenance of the project road over 30 years by traditional means. The calculation includes an assessment of the risk resting with the Agency under conventional procurement.

The Agency prepares an assessment of Net Present Value (NPV) of the PSC, and compares this with the NPV of the projected payment under the DBFO contract (although the Agency has also to take into account other value for money considerations which may not be quantifiable but may be significant, for example, environmental considerations or other policy objectives).

Taking into account all these considerations, the Agency's Accounting Officer (the Agency's Chief Executive, who is answerable to Parliament for the Agency's commitments) needs to be satisfied that value for money is best achieved by means of the DBFO contract.

Contingent Schemes

A Contingent Scheme is a National Road Scheme, an improvement scheme or any other scheme in respect of the Project Road which will not have completed the Statutory Process at the time of issue of the Invitation to Tender. For these purposes "Statutory Process" means all steps required by law to make any necessary Line, Side Road, Detrunking and Compulsory Purchase Orders and other Orders in respect of the scheme (including the elapsing of any period for appeal, objection or other challenge and the exhaustion of the applicable procedures in respect of any challenge) and to authorise construction of the scheme and the acquisition of such land as is necessary to construct and operate the scheme. The risks associated with a Contingent Scheme vary depending on the stage in the Statutory Process the scheme has reached at the execution of the Contract.