A term used generally in this report to refer to the PFP service provider. Usually for a PFP a consortium of private sector interests establishes a special purpose company to make the bid. Typically each consortium comprises financiers, construction and facilities management companies. | |
NSW Department of Education and Training | |
In general, people value $1 received today more highly that $1 received at a future date. To reflect this in project costings and appraisals, amounts due to be paid or received at future dates are discounted to provide a present equivalent value expressed as a single sum. | |
A point is reached in the contract bidding process where one bidder emerges as best qualified to meet DET's requirements in terms of its educational, financial, legal, technical and facilities management criteria. At this stage it is nominated as preferred bidder and negotiations continue with it alone until the deal is concluded. | |
A form of public-private partnership. PFPs involve the creation of an asset through private sector financing and ownership control for a concession period. They also involve the delivery of some services associated with the asset for a defined, but typically very long, period. | |
A general term for projects involving both the public and private sectors (with varying levels of involvement and responsibility). PFP is one variant of a PPP. | |
The hypothetical risk-adjusted whole-of-life cost of government delivering the project output specifications. The PSC includes an adjustment for competitive neutrality and is used as the benchmark for assessing the potential Value for Money of private party bids in PFP projects. | |
The agreement between the parties to a public/private finance deal or concession which defines which parties or party is responsible for minimising the chance that a particular adverse event should arise, for mitigating the impact of that event, and for bearing the financial or other consequences of that event occurring. | |
The passing of risk normally borne by the customer to the service provider. | |
The traditional procurement approach adopted by DET uses individual school construction contracts and multiple short-term service and supply contracts. Such projects are generally for a short period. | |
The achievement of the combination of cost over the whole life of a project and quality that best meets an organisation's requirements. |