The Detailed Business Case (DBC) recommends a preferred option that optimises value for money and seeks approval from decision-makers of the delivery strategy of the investment.
A DBC follows on from the approval of an Indicative Business Case (IBC). The DBC:
- revisits and confirms the rationale for the investment developed in the IBC
- identifies the preferred option which optimises value for money, by undertaking a more detailed analysis of the costs, benefits and risks of the short-listed options
- prepares the proposal for procurement
- plans the necessary funding and management arrangements for the successful delivery of the project (which may include preparing for a bid through the Budget process)
Cabinet approval of the DBC
Cabinet approval of the DBC provides confirmation of the preferred option and delivery strategy.
Decision-makers may put conditions on the approval, making it subject to the results of an approach to market. For instance:
- Decision-makers may delegate approval of the final planning stage – Implementation Business Case (ImBC) to a subsidiary body (such as council committee, or Joint Ministers), if costs remain close to the DBC estimates.
- Decision-makers may require that, if the scope or costs finalised through a Request for Proposal (RFP) differ from the DBC scope costs by more than a specified amount or proportion, the agency must come back to Cabinet for a new approval.
The next step will depend on whether the agency will seek new funding for the investment:
- If the agency has funding for the investment (e.g. baseline funding), the agency can approach the market to procure services for delivery
- If funding is required through the Budget process, Cabinet will indicate when the agency will be invited to submit an initiative for potential Budget funding (which does not necessarily guarantee funding).
The agency also starts work on the ImBC, which documents finalised arrangements and costs, to be able to seek approval to award the contract and commence delivery.