1.1 This note is the seventh in a series of papers to be issued by the Treasury Taskforce providing practical guidance on key technical issues which arise from the implementation of the Private Finance Initiative (PFI). Each note focuses on a specific area of the procurement process where experience has shown that project managers would value assistance. It has been endorsed by the Commission for Architecture and the Built Environment, the Construction Industry Council and the National Audit Office.
1.2 The note is intended to assist public sector procuring bodies to ensure that the highest quality design solutions for buildings or equipment are submitted and delivered within bids for PFI projects. While the advice it contains may be relevant to non-PFI projects, its focus is on the management of the PFI procurement process, and in particular:
• the management of relationships with bidders;
• the provision of clear information early in the competition about what is required and how bids will be evaluated; and
• ensuring that design requirements are consistent with the budget available for the project.
1.3 The note does not indicate what are good design solutions to meet specific needs, which are a matter for individual departments, agencies and NDPBs. It is advisory rather than mandatory, providing guidance on good practice. However, Accounting Officers may wish to take the guidance into account in accordance with their responsibilities for value for money.
1.4 Both procurers and private sector bidders should be aware that Government procurement policy is that Ôvalue for money' is not the 'lowest price'. Instead, the optimum combination of whole life costs and quality to meet users' requirements is required. Procurers should state the criteria for the most economically advantageous tender in advertisements and in tendering documents. Clearly, with awards made on this basis, it is essential that a project audit trail showing how all aspects of design considerations have been handled should be recorded and maintained.
1.5 This note should be read in conjunction with The Treasury Taskforce's Step by Step Guide to the PFI Procurement Process (Revised November 1999), How to Follow EC Procurement Procedure and Advertise in the OJEC (June 1998), How to Account for PFI Transactions (Revised June 1999), How to Appoint and Manage Advisers (August 1998), How to Appoint and Work With a Preferred Bidder (July 1999), and How to Construct a Public Sector Comparator (October 1999), together with any departmental guidance on design issues.
1.6 The text of the note is also available at
• http://www.treasury-projects-taskforce.gov.uk and, later in 2000 at