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CP3P Value for Money & Procurement Process Flashcards

6 cards from real CP3P practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. What is 'Value for Money' (VfM) in the context of P3 procurement?

    Answer: The optimal combination of whole-life costs and quality that meets the public's requirements

    VfM is achieved when the P3 delivery method provides the best whole-life combination of cost, quality, risk transfer, and service outcomes compared to traditional public procurement.

  2. Which tool is most commonly used to assess whether a P3 delivers better value than conventional public procurement?

    Answer: Public Sector Comparator (PSC)

    The Public Sector Comparator (PSC) estimates the risk-adjusted cost of public delivery and is compared against P3 bids to determine which option delivers better value for money.

  3. In P3 procurement, what does 'competitive dialogue' mean?

    Answer: An iterative procurement process where the authority discusses project details with shortlisted bidders to develop best-fit solutions

    Competitive dialogue allows the procuring authority to refine complex project requirements through structured, iterative discussions with shortlisted bidders before final bids are submitted.

  4. What is the purpose of a 'Request for Qualifications' (RFQ) in P3 procurement?

    Answer: To shortlist bidders based on technical capacity and financial strength before detailed proposals are requested

    An RFQ narrows the bidder pool to the most qualified teams, reducing procurement costs and ensuring final proposals come from capable, credible organizations.

  5. Which factor is NOT typically part of a quantitative VfM assessment for a P3?

    Answer: Background of the private partner's CEO

    Quantitative VfM focuses on lifecycle costs, risk transfer, and financing costs—personal backgrounds of executives are not part of the financial VfM calculation.

  6. What is a 'shadow bid' in P3 procurement?

    Answer: A government estimate of what a reasonable P3 bid should look like, used to assess bid competitiveness

    A shadow bid is the government's internal estimate of a realistic P3 bid price, used to benchmark actual bids and verify they are competitive and represent good value.