What analysis is performed against the selected preferred option to establish value for money?

The analysis performed against the selected preferred option to establish value for money is sensitivity analysis. This type of analysis evaluates how the outcome of a project or investment might change based on variations in key assumptions or variables. By understanding which factors have the most significant impact on results, decision-makers can assess the robustness of the preferred option in terms of value for money.

Sensitivity analysis helps identify potential risks and provides insight into how changes in cost, benefits, or other assumptions could affect overall value and feasibility. This makes it essential for ensuring that the selected option remains viable under various scenarios, thereby supporting informed decision-making based on expected performance and budget considerations.

In contrast to other types of analysis such as cost-benefit analysis, which focuses on quantifying benefits relative to costs, or risk analysis, which assesses potential adverse outcomes, sensitivity analysis specifically helps in determining value by showing the effects of uncertainty in assumptions. Market comparison analysis is used to benchmark against similar offerings but does not directly establish value for money within the context of the specific selected option.