Box 1.3: Summary of key measures from Chapters 7 to 9

To improve the assessment of value for money, and provide for greater transparency, the Government will:

•  embed value for money appraisal at three key stages of the procurement process;

•  reform the Public Sector Comparator as the second stage of that process;

•  reassess the role of PFI, given the evidence, in projects with small capital values and in the IT sector;

•  investigate potential new areas where PFI could offer value for money - such as the management of the existing prisons estate, urban regeneration, waste management and new application in social housing; and

•  confirm that to ensure that value for money in PFI does not come at the expense of employees' terms and conditions, Departments have the option of not transferring soft services staff in a PFI project, where they believe their transfer is not essential.

To improve delivery in PFI and other procurement routes, the Government will:

•  rigorously enforce contract standardisation to reduce bid costs;

•  enhance the role of the Project Review Group in monitoring PFI procurement by local authorities;

•  set up a system of accreditation of public sector advisers and introduce an information resource accessible to all public authorities to ensure quality in external advisers;

•  create vehicles to coordinate procurement in particular areas to put in place, support and share best practice; and

•  research the public sector's record in bid evaluation and securing contract flexibility, to ascertain whether and what steps may be required.

To ensure value for money and flexibility in privately financed projects, the Government will:

•  explore the provision of framework funding, to make available a faster, cheaper funding solution for bundled small schemes;

•  pilot an additional means of funding PFI projects that combines the benefits of private sector risk-taking with the Government's comparative advantage in securing funds; and

•  help ensure that the involvement of private finance does not lead to unnecessary inflexibility by consulting on the role of the Spens clause in the termination of bond-funded PFI projects and the continuing value in the private sector hedging interest rate risk.