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Benefits Guidelines

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Purpose:

Benefits guidelines ensure that benefit is counted in a consistent manner across government. Without a standard approach it would not be possible to compare the benefit of one opportunity against another. In the case of pan-government collaborative procurement the standard used is Procurement Efficiency.

Efficiency forecasts for Pan-Government collaborative projects work to a pipeline principle that supports management information provided to the Strategic Stakeholder Forum (SSF).

Description:

Benefits guidelines define what types of benefit can be counted, and what cannot. The methodology also stipulates when a benefit must fall and what qualifies as a benefit.

Considerations that are normally addressed include:

  • Does the benefit need to free up budget (cashable) or can be an increase in quality or quantity for the same price (non-cashable) to be claimed?
  • Does the gain need to be sustained or can it be a one off?
  • What type of money is acceptable? Balance sheet / capital savings? Or only cash flow items?
  • When does the benefit need to occur in order to be counted?
  • Are benefits cumulative? Are they compound?
  • Do benefits require net present value adjustment?

For information on 'Efficiency' as a measure of pan-government collaborative procurement please go to the "Shared Tools & Templates" part of this section and refer to the "Procurement Efficiency and Value for Money Measurement" document.

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