Date | Development |
October 1995 | Consultants commissioned by DVTA conclude that major improvements to vehicle testing could only be achieved through the introduction of new, automated testing equipment. |
October 1996 | Economic appraisal concludes that the introduction of an Integrated Test Lane concept would deliver best value for money, and highlights potential for procurement of this under the Private Finance Initiative (PFI). |
November 1996 | DFP approves an Outline Business Case for the replacement of DVTA's vehicle testing equipment, with an Integrated Test Lane concept, to be procured under the Private Finance Initiative. |
May 1997 | Preliminary Interest Notice placed in the Official Journal of the European Union. Estimated value of contract stated as £5 million, based on the initial economic appraisal. This grossly underestimated the cost of items such as civil works and the transfer of risk, and did not take account of necessary items such as IT systems, replacement of test hall doors, painting, lighting, flooring, equipment maintenance and replacement, software updating and training. |
June 1997 | Notices placed in Official Journal of the European Union and the local press inviting interested parties to register an interest in bidding for the project. Information seminar held to provide prospective bidders with background on the project. |
July 1997 | Information Memorandum issued to contractors who expressed an interest in the project. Closing date for submission of these is August 1997. |
September 1997 | Shortlist of three applicants prepared. |
October - November1997 | Invitation to Negotiate documentation issued to three shortlisted bidders. One of the shortlisted bidders withdraws. |
January 1998 | Closing date for initial bids. Bids submitted by two remaining contractors. |
February 1998 | DVTA seeks clarification on initial bids. |
March 1998 | Best and Final Offers received from two remaining bidders, and assessed by suitably qualified assessment panels. Only one of the two bids considered to be fully PFI compliant. |
April 1998 | Preferred bidder for PFI contract appointed. Net Present Value of preferred bidder's solution estimated to be £18.8 million. |
April - December 1998 | Post-tender negotiations. |
December 1998 | Preferred bidder has to change funder, as bank which had initially agreed to finance the project was unwilling to accept DVTA's terms for compensation in the event of the contractors defaulting on the contract. |
January 1999 | Initial full business case for the project approved by DFP. Net Present Value of project now estimated to be £24.57 million, with total cash outflow of £40.8 million. This also confirms PFI as the optimal value for money solution. |
June 1999 | Contractors appoint new IT provider after initial supplier withdrew from the project. |
November - December 1999 | Project costs now greatly increased (Net Present Value now £29.6 million and cash outflow of £47.6 million). Negotiations on costs with IT provider. Re-evaluation of Best and Final Offers submitted by both bidders concludes that the preferred bidder would still have been appointed, even if the project cost increases had been apparent at the time of the initial evaluation. |
February 2000 | Contractors have to change IT supplier again after funder expresses reservations. |
April 2000 | Addendum to full business case for project which takes account of project cost increases is approved by DFP. |
May 2000 - March 2001 | Final negotiations with contractors. |
March 2001 | Contract signed. Final financial model indexed to take account of inflation in accordance with terms of contract. Total contract value in cash outflow terms now £57 million. |