Affordability and Risk How will the MOD ensure it gets value for money?
It should be noted that expenditure is spread over a 35-year period and needs to be considered in that context. The annual cost of this project is less that 1% of the Defence budget. A Public Sector Comparator (PSC) was prepared which represented what the MoD would do if a PFI were not an option. The PSC has been used as a benchmark against which the bids from the private sector have been compared to ensure that best value for money is being achieved. Also the contract has been negotiated such that services are periodically benchmarked throughout the life of the contract, thus ensuring continuous value for money.
