The Department of Health Investment guidance routemap⁵ indicates that the following steps are involved
in procurement:

1. Strategy and planning.
   
2. Outline business case (OBC).
   
3. Procurement.
   
4. Full business case (FBC).
   
5. Implementation.
   
6. Post-project evaluation and benefits management.
   

An equivalent process is prescribed for the development of partnership projects, for example in LIFT projects, which recognise that the skills of the partners should be used from the start in lieu of a new procurement competition on each occasion. For LIFT, the following process applies:

1. Strategic service development plan – based on a “whole service” approach rather than individual
   projects.
   
2. Stage 1 Business case – establishing defined outputs and affordability cap.
   
3. Stage 2 Business case – equivalent of OBC.
   

The business case for each project should be based on the detailed criteria of the “five case model”⁶.

1. The strategic case – strategic fit.
   
2. The economic case – options appraisal.
   
3. The financial case – affordability.
   
4. The commercial case – commercial aspects.
   
5. The management case – affordability.
   

These steps also relate to the Gateway project review process (OGC, 2006), The Green Book (HM Treasury, 2003) and the Common Minimum Standards (OGC, 2006b).

Economic evaluation can sometimes be seen as a barrier to undertaking environmental improvements. However, recognising that cost implications need to be taken into account in decision making is part of good corporate governance. Indeed The Green Book and the Common Minimum Standards give guidance on the requirement to make business cases on the basis of best value for money, which is defined as the optimum combination of whole life cost and quality to meet user requirements. Chapter 5
of this guide gives more details on whole life costs and life cycle costs.