Policy Statement No. 2
Public Sector Comparators and Value For Money

Section 2 of this statement sets out the role of comparators in public procurement highlighting the importance of Parliament's expectation of Value for money. It distinguishes between lowest cost and best value for money and between use of a comparator as a financial management exercise and the use of a comparator as a means of demonstrating saving.

Section 3 examines the impact of the type of project and the availability of conventional funding on the basis of the Public Sector Comparator (PSC).

Section 4 looks at the determinants of the level of complexity required in PSC. Other policy issues relating to the use of comparators are explored in Section 5 and sources of further information are detailed in Section 6.