1.1 This guidance is designed to support public sector PFI contract managers in achieving value for money through the processes of benchmarking and market testing of soft services. It has been prepared by the Operational Taskforce, whose creation was announced in the policy document PFI: Strengthening Long Term Partnerships published by the Treasury in March 2006. The Operational Taskforce aims to provide guidance and assistance to the public sector in managing operational PFI projects, it acts on behalf of the Treasury and is currently located in Partnerships UK. Its remit however, does not extend into advising the private sector, or to mediating between public and private sector partners. In preparing this guidance, the Government has consulted with the National Audit Office, and has taken account of the findings of its own research into benchmarking and market testing.
1.2 Operational Taskforce Note 1 is intended to cover all PFI contracts where benchmarking and market testing are relevant. This will include NHS Local Improvement Finance Trusts (LIFT) and Local Education Partnerships (LEP), where benchmarking or market testing are described in the contract.
1.3 This note is generic in nature, in order to cover the broad range of PFI contracts. It divides the benchmarking and market testing processes into the following stages:
• planning the process - chapter 2;
• managing the benchmarking process - chapter 3;
• managing the market testing process - chapter 4; and