DFP | Economic Appraisal Guidance | Expert Advice, Use of Consultants and Training

Economic Appraisal Guidance

NI Practical Guide to the Green Book

12.		Expert Advice, Use of Consultants and Training
12.1		Expert Advice
12.1.1		Appraisal and evaluation often require and generally benefit from a multi-disciplinary approach, calling on the expertise of a range of specialists. It is important that the right skills and advice are sought and applied as appropriate to the case in hand.
12.1.2		Departmental economists can provide general advice on economic appraisal and evaluation. DFP Supply Officers can advise on general issues concerning approval procedures. Advice and support is also available on certain aspects from a variety of other experts.
12.2		Use of Consultants
12.2.1		Project sponsors should first consider using internal resources to complete appraisals. If the necessary skills are not available within the Department or Agency, internal consultancy services including Departmental economics branches should be approached before considering the use of external consultants. If, having investigated these possibilities, the Project Sponsor is satisfied that internal resources and consultancy services cannot complete the appraisal to the necessary level of technical quality and/or within an acceptable timescale, the use of external resources such as economic consultancy firms may be considered. The overriding objective in deciding whether to use internal or external consultancy services must always be to secure value for money.
12.2.2		Previously, some Departments provided funding to project sponsors to employ consultants to undertake appraisals. It is now considered that a more independent appraisal will be obtained if the funders rather than the sponsors employ the consultant. For instance, this should encourage greater objectivity and allow more direct control over the quality of the appraisals provided by consultants. This approach is now generally recommended.
12.2.3		Extensive guidance on how to go about the employment of consultants is given in DAO (DFP) 03/05 (opens in new window). Further guidance should be sought from the appropriate centre of procurement expertise or from DFP's Central Procurement Directorate (CPD).
12.2.4		Among other things, the DAO letter explains the nature of the business case that is required to support proposed external consultancy assignments. Section 4.2 of the attachment to the letter explains that such business cases should set out: The purpose of the assignment. A reasoned assessment of the alternatives to external consultancy and justification for using external consultants. The immediate and long-term outputs and benefits expected from the external consultancy service, and when they are likely to accrue. The proposed project management arrangements, including management of deliverables, expectations and risks. The means by which skills/expertise will be transferred to 'in-house' staff if appropriate. The proposed division of work between the external consultant and any in-house staff who will be assisting them. The expected costs of the external consultant and the in-house effort. The performance review arrangements. How the results of the consultancy will be implemented and monitored. Any other considerations specific to the assignment.
12.2.5		All business cases for external consultancy assignments should cover these issues in appropriate detail, with effort proportionate to the expenditure involved.
12.2.6		Additional guidance in relation to private finance is provided in HM Treasury Taskforce Technical Note No. 3 How to Appoint and Manage Advisors.
12.2.7		Departmental economists can assist to draft the terms of reference for external economic assignments and to monitor and quality assure their implementation and completion.
12.3		Training Courses in Appraisal and Evaluation
12.3.1		Departmental economists can supply general advice on training in appraisal and evaluation. They can provide informal training in appraisal and evaluation, and may undertake formal briefings, seminars and courses on demand.
12.3.2		The BDS Centre for Learning and Development (CLD) provides training courses in appraisal at two levels: an Awareness Course (1 half-day) offering a management awareness of the subject, and a Practitioners' Course (2 days) designed to give staff a basic working knowledge of the practical application of appraisal methods. A 2-day Practitioners' Course in Assembling an IT Business Case is also available. In addition, CLD can offer tailor-made courses for particular groups of staff or to cover specific subject areas.
12.3.3		Client training in project management skills (for example, the roles of the Investment Decision Maker, Project Owner and Project Sponsor; Value Management; and Risk Management) is also available through BDS. A number of Project Management Consultants specialise in providing such training. General advice on client training in project management skills is available from DFP's Central Procurement Directorate (CPD).
12.3.4		For further details of relevant BDS courses and seminars, contact your Departmental Training and Development Officer (TDO).

²⁰Obtainable, together with several updates issued since the original DPS letter was circulated, from Departmental Permanent Secretaries' offices.