ACHIEVABILITY 

Significant transaction costs are involved in a PFI project.  In particular, the procurement process can be complex and significant resources, including senior management time, may be required for project development and ongoing monitoring.  Client capability will have direct consequences for procurement time.  Perceptions of this capability will also affect the level and quality of market interest.  PFI and other contract-based approaches should maximise the benefits of a competitive process - but the structure of proposals and the choice of procurement route should be informed by an assessment of the likely market appetite. 

Issue 

Questions

Observations

Transaction costs and client capacity

Is there sufficient client-side capability to manage the procurement process and appraise the ongoing performance against agreed outputs?

Refer to client-side PFI experience and waste specific knowledge.

Can appropriately skilled procurement teams be assembled in good time?

Refer to historic experience and level of importance attached to the project.

Competition

Is there evidence that the private sector is capable of delivering the required outcome?

Refer to findings of soft market sounding.

Is there likely to be sufficient market interest for the project?

Refer to findings of soft market sounding11

How is it expected that the market will receive the proposed risk profile?

 Refer to increased standardisation in the integrated waste management PFI market.  

 Refer to precedents (e.g. Northumberland, Shropshire etc).  

 Authorities should commit to work closely with other waste PFI schemes to transfer best practice and lessons learned.

OVERALL ACHIEVABILITY

Overall is the accounting officer satisfied that a PFI procurement programme is achievable, given client side capability and the attractiveness of the proposals to the market?