Shortlisted options (including minimum’; three or four is ‘do the recommended number) and a description of how these have been shortlisted Consideration should be given to a public sector comparator (PSC) as part of the option appraisal where appropriate The basis of costs and assumptions should be set out Have all relevant capital and relevant costs been identified and properly assessed in line with Her Majesty’s Treasury (HMT) Green book? Have sunk costs, transfer payments, VAT, capital charges and depreciation been excluded from the net present cost (NPV)? Is the appraisal period appropriate to the life of the Benefits Have appropriate and credible cash and non-cash releasing benefits been identified? Risk Have the risks been quantified and costed? Have the assumptions and impact of risk been explained? NPV, optimism discounted cash flow model should be used, such as the bias and generic economic model (GEM) to calculate an NPV as part sensitivity of the economic appraisal analysis Have costs, benefits and risks been adjusted for optimism bias? Has an appropriate sensitivity analysis been included? Summary Is there a clear conclusion and clear recommendation for a preferred option? Tables 5 to 9 are examples that can be included in the recommendation report as appropriate. Describe the long-list options and how they were developed, by completing Table 5. Table 5: Summary of long list of options
Shortlisted options (including ‘do minimum’; three or four is the recommended number) and a description of how these have been shortlisted Consideration should be given to a public sector comparator (PSC) as part of the option appraisal where appropriate The basis of costs and assumptions should be set out Have all relevant capital and relevant costs been identified and properly assessed in line with Her Majesty’s Treasury (HMT) Green book? Have sunk costs, transfer payments, VAT, capital charges and depreciation been excluded from the net present cost (NPV)? Is the appraisal period appropriate to the life of the Benefits Have appropriate and credible cash and non-cash releasing benefits been identified? Risk Have the risks been quantified and costed? Have the assumptions and impact of risk been explained? NPV, optimism bias and sensitivity analysis discounted cash flow model should be used, such as the generic economic model (GEM) to calculate an NPV as part of the economic appraisal Have costs, benefits and risks been adjusted for optimism bias? Has an appropriate sensitivity analysis been included? Summary Is there a clear conclusion and clear recommendation for a preferred option? Tables 5 to 9 are examples that can be included in the recommendation report as appropriate. Describe the long-list options and how they were developed, by completing Table 5. Table 5: Summary of long list of options
NHSI_Capital_Regime_Investment_Annex_10_final_v2.docx