Expected market cost
The Sourcing Playbook, Government Guidance on service delivery, including outsourcing, insourcing, mixed economy sourcing and contracting, was produced by the Cabinet Office and published in May 2021. The Sourcing playbook emphasises that the delivery of public services is a collaborative endeavour involving colleagues from commercial, finance, project delivery, policy and other professions. It proposes to capture best practices from across the Government within 11 key policies that all central departments are expected to follow.
Expected market cost is defined in the Sourcing playbook as, ‘the expected whole life cost of procuring a service from an outside supplier. It includes the cost of additional market factors such as risk and profit.’
For more information see: The Sourcing Playbook.
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