This audit examined whether the processes for awarding the first privately financed schools contracts were adequate to maximise the potential for value for money.
The audit scope and focus covered the Department of Education and Training's New Schools Privately Financed Project - specifically the:
■ work leading up to the award of the first contract for 9 schools
■ experience with that contract
■ experience of similar work delivered through traditional public sector delivery
■ work leading up to the second contract for 9 schools.
In particular, we looked for:
■ a clearly defined business case to explain how DET had chosen the PFP approach (see chapter 2)
■ genuine competition between bidders, followed by sound evaluation (see chapter 3)
■ adequate performance standards and monitoring, to assure quality and timeliness of services (see chapter 4).
The audit was informed by, and wishes to acknowledge the value of, the Research and Information Paper New Schools Privately Financed Project Post Implementation Review, December 2005, which summarises Treasury's and DET's review of the first contract.
An explanation of the terms used in this report can be found in Appendix 1. Further information on the scope, criteria and approach of the audit can be found in Appendix 2.