UNITED KINGDOM

The decision to use PFI for the procurement of public infrastructure and services follows a rigorous investment decision process. The latter involves individual Departments deciding upon a capital investment strategy, with specific investment options being appraised using the UK's Green Book guidance. Capital projects are then prioritized within a Department's overall capital programme, and following that those project areas which may be suitable for the asset and service requirements to be procured through PFI, are identified.

A three-stage value for money assessment - covering both qualitative and quantitative assessment - is then initiated to ensure projects selected for PFI procurement are only chosen where this represents value for money. The Competitive Dialogue procedure is a new procurement procedure introduced in the EU Public Sector Procurement Directive (2004/18/EC). This was implemented into UK law via the Public Contracts Regulations (SI 2006/5) with effect from 31 January 2006. Following the incorporation into English Law of the EU Public Sector Procurement Directive, it is considered that the competitive dialogue process will be the relevant procurement procedure for the majority of PFI projects. The diagram below details how the competitive dialogue procedure is envisaged to work for a PFI project:

Figure 3. Procurement Process under Competitive Dialogue for a PRFI Project