2.1 This was one of the earliest PFI projects on this scale in Northern Ireland. Consequently, the project team established in 1997 by DVTA to oversee the procurement process did not have the benefit of the extensive good practice guidance that has been developed more recently. At the time, there was a limited pool of knowledge, skills and experience in the field, and many of the general lessons learned from PFI procurement had yet to emerge. For example, the Public Accounts Committee (PAC) had only considered, and reported on, a small number of individual early PFI projects at this stage.
2.2 The project was innovative and complex in nature, primarily because the vehicle testing process and methodologies being proposed by the preferred bidder had not been fully proven, or even tested, in a live environment. In addition, the fact that the operation of the equipment was to remain the responsibility of DVTA presented it with key responsibilities and risks.
2.3 The project was also challenging because the new vehicle testing equipment was to be installed on a phased basis and, although the contractors achieved the challenging target of completing the phased refurbishment of all test centres between September 2001 and September 2003, this process required two of the 15 test centres to be closed at any one time, with overall testing capacity reduced accordingly.
2.4 In addition to the specific challenges of the project itself, DVTA faced a difficult operational environment, and a number of factors external to the project also impinged upon performance in delivering vehicle testing services since the project commenced:
• new road safety and road tax initiatives - new initiatives aimed at improving road safety and reducing motor tax evasion in Northern Ireland (including mobile camera detection and Statutory Off-Road Notification) had been launched in 2002 by Driver and Vehicle Licensing Northern Ireland, another Agency within the Department of the Environment. These initiatives caused an increase of over 20,300 applications (10.5 percent) in vehicle applications received in the five-month period between May and September 2003, compared with increases of approximately 8,000 applications (4 percent) for the corresponding period in previous years, and resulted in particular peaks in vehicle test applications; and
• Civil Service industrial action - the extensive participation of DVTA staff in a Civil Service-wide strike during 2004 had a major impact on operational capability, with nine test centres completely closed and others partially affected. This resulted in the cancellation of almost 100,000 test appointments in the period May to August 2004.