4.13 PFI allows the public sector to harness the efficency that can come from contestability in public procurement. It is important then that the PFI market retains the capacity to deliver healthy competitive tension.
4.14 Data on PFI competitions from the HM Treasury research showed that deals averaged four bidders each. This figure was relatively consistent across sectors. Four bidders represents strong competition for these contracts, and any significantly greater number of serious bids would probably be difficult to manage effectively enough to drive competition any further.
4.15 Although this research provides some evidence of healthy competition, the Government intends to continue to take steps to improve public sector procurement skills, give greater certainty for deal flow and so, as well as improving value for money in the public sector, ensure a healthy market of PFI in the private sector. Measures intended to strengthen public sector procurement and encourage private sector bidders are detailed in Chapter 8.