The Department as a mature user of PFI
1.9 The first PFI contract signed by the Department covered the provision of non-combat vehicles (known as the "white fleet") in 1996. The Department has since signed a steady stream of deals. As well as the 47 projects in our census of the Department' s PFI operational projects in 2007 (Figure 8 on page 20) the Department has now signed further projects. These include the Future Provision of Marine Services and the £13 billion contract for Future Strategic Tanker Aircraft. It is also currently procuring further PFI projects such as the helicopter Search and Rescue project (SAR) and tri-service Defence Training Rationalisation project. A timeline for the Department's PFI projects is at Appendix 3.
5 | The four categories of the Department's PFI contracts |
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Source: National Audit Office analysis of Ministry of Defence projects database | |
6 | The Ministry of Defence PFI portfolio | |||||||||||||
| Project | Description | OJEU/ Contracts Bulletin Date | Date of financial close | Initial service date | Full service date | Capital Value (£m) | Term (Years) | End Date | Unitary Charge Est 2006-07 (£m) | Balance sheet treatment | Public Sector Survey received | Private Sector Survey received | Case Study |
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1 | Allenby/Connaught | Redevelopment of Aldershot Garrison, and the garrisons in the. Salisbury Plain Area. Construction of new barracks will give military staff brand new/refurbished living and working accommodation. | Feb 02 | Mar 06 | Jul 06 | Jan 16 | 1,257.1 | 35 | 2041 | 134.8 | On |
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2 | Bristol Bath And Portsmouth Family Quarters | Serviced accommodation for 317 service families. | Jul 99 | Nov 01 | Jul 02 | Oct 03 | 78.0 | 25 | 2026 | 8.9 | Off |
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3 | Central Scotland Family Quarters | Services accommodation for 164 houses. | Jan 97 | Aug 99 | Jan 01 | Mar 02 | 24.0 | 20 | 2019 | 3.4 | Off |
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4 | Colchester Garrison | Redevelopment and refurbishment to provide accommodation and associated costs. | Feb 97 | Feb 04 | Jun 04 | Oct 08 | 539.4 | 35 | 2039 | 33.2 | Off |
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5 | Defence Animal Centre | Redevelopment of new office and residential accommodation, animal husbandry and training support. | Nov 96 | Aug 00 | Jan 02 | Jan 02 | 11.2 | 25 | 2025 | 3.8 | On |
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6 | Devonport Support Services - Armada | Provision of Support Services and Fleet Accommodation Centre services at Devonport Naval Base (HMS Drake) for 25 years. | Sep 00 | Jul 04 | Oct 04 | Mar 08 | 44.5 | 25 | 2029 | 10.9 | On |
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7 | Main Building Redevelopment (MBR) | Development and refurbishment of the main MOD building, and temporary accommodation to other buildings, as well as upkeep of Old War Office Building. | Dec 96 | May 00 | Sep 04 | Sep 04 | 439.0 | 30 | 2030 | 75.8 | On |
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8 | Northwood Headquarters Project | Integrated provision of support services, facilities management and capital works improvement, to meet requirements at the Northwood headquarters. | Exempted | Jul 06 | Oct 06 | Oct 06 | 161.5 | 25 | 2031 | 9.7 | On |
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9 | Portsmouth Housing 2 | Proposal for 148 Officers' houses. | Mar 02 | Oct 05 | May 06 | Jun 07 | 27.0 | 25 | 2030 | 0.0 | Off | -2 | - | - |
10 | RAF Cosford - RAF Shawbury Family Quarters | Accommodation for 145 service families. | Jun 97 | Mar 99 | Dec 99 | Jun 00 | 15.0 | 25 | 2024 | 2.2 | Off |
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11 | RAF Lossiemouth Family Quarters | Redevelopment and provision of 279 married quarters. | Dec 96 | Jun 98 | Apr 99 | Sep 99 | 33.5 | 20 | 2018 | 4.6 | On |
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12 | Wattisham & Woodbridge Married Quarters | Provision of serviced accommodation for 250 service families. | Sep 99 | May 01 | May 02 | Mar 03 | 13.0 | 25 | 20281 | 3.8 | Off |
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13 | Yeovilton Family Quarters | Accommodation at Yeovilton for 88 aircrew of 2 Lynx squadrons moved under Project Movit from HMS Osprey at Portland. | Jan 97 | Jul 98 | Jun 99 | Mar 00 | 8.0 | 30 | 2028 | 1.1 | Off |
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14 | C Vehicles | Procurement, maintenance, repair and management for approx 4,000 items of earthmoving plant machinery and material handling equipment. | Jun 99 | Jun 05 | Jun 05 | May 06 | 114.4 | 15 | 2020 | 41.8 | Off |
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15 | commercial Satellite Communication Service - INMARSAT | Replacement of the INMARSAT terminals and airtime contract for Royal Navy ships. | Oct 98 | Apr 01 | Apr 01 | Novated May 2005 | 2.5 | 5 | 2006 | 0.0 | Off | -2 | - | - |
16 | Field Electrical Power Supplies (FEPS) | Provision of generator sets to support operational electrical requirements in the field. | Oct 96 | Jun 02 | May 03 | Apr 05 | 73.4 | 20 | 2022 | 10.1 | On |
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17 | Heavy Equipment Transporters (HET) | Service to move battle tanks and other heavy equipment during peacetime and on operations. Reserves making up one third of the manpower required to deliver the service. | Feb 97 | Dec 01 | Jul 03 | Jul 04 | 65.0 | 20 | 2021 | 13.1 | On |
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18 | Marine Support To Range & Aircrew Services (MSRSS) | To bring the management, operation and maintenance of air support crew and range safety craft into one contract. | N/A3 | Dec 01 | Apr 02 | Apr 02 | 11.9 | 10 | 2011 | 5.6 | Off |
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19 | Materiel Handling Equipment (MHE) - (Follow On) | Provision of tri-service materiel "Pathfinder" handling equipment for Army, Navy and RAF storage depots. One of the MOD's Pathfinder PFI projects. | Oct 00 | May 02 | Aug 02 | Aug 02 | 12.3 | 8 | 2010 | 6.5 | Off | -2 | - | - |
20 | Roll-On/Roll-Off (RORO) Strategic Sealift | Provision for a 6 ship transport service. | Jan 97 | Jun 02 | Aug 02 | Mar 03 | 195.0 | 25 | 2027 | 25.2 | Off |
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21 | Skynet 5 | Range of satellite services, including management of existing Skynet 4 satellites. | N/A3 | Oct 03 | Mar 07 | Mar 09 | 1,079.0 | 17 | 2020 | 141.6 | Off |
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22 | Tri Service Materials Handling Service | Provision of equipment, maintenance, training and IS for MHE fleet, comprising of 2,200 commercial lift trucks and associated handling equipment located worldwide. | N/A3 | May 00 | Feb 01 | N/A3 | 35.0 | 10 | 2010 | 8.4 | Off | -2 | - | - |
23 | Tri Service White Fleet | Standard commercial production vehicles used for non-operational administrative and support functions. | Dec 98 | Jan 01 | Apr 01 | Sep 01 | 40.0 | 10 | 2011 | 54.0 | Off |
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24 | VLF Naval Communication Service | Provision of communications service for submarine fleet. | Exempted | Jun 00 | Apr 04 | Apr 04 | 58.5 | 30 | 2030 | 7.2 | On |
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25 | Army Foundation College (AFC) | Provision of facilities and services including vocational education. | Jun 97 | Feb 00 | May 00 | Nov 02 | 65.2 | 30 | 2030 | 17.2 | Off |
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26 | Astute Class Training Services (ACTS) | Provision of a 36 year service to deliver operator and maintainer training for Astute Class submarines. | Mar 97 | Nov 01 | Nov 06 | Jan 08 | 72.8 | 36 | 2037 | 1.1 | Off |
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27 | Attack Helicopter Training Service | To provide training services to support the British Army's Apache AH1 Attack helicopter. | Exempted | Aug 98 | Jul 00 | Apr 04 | 232.3 | 19 | 2017 | 47.0 | Off |
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28 | Defence Sixth Form College (DSFC) | Design and construction of the Sixth Form college which will help in the future to recruit Armed Forced and MOD Civil Service. New living accommodation will cater for 340 MOD selected students and teaching staff. Will be a principal source in Technical Officer recruitment to all UK armed forces and MOD civil service. | Oct 01 | May 03 | Sep 05 | Sep 05 | 50.5 | 30 | 2033 | 11.3 | Off |
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29 | Fire Fighting Training Units (FFTU) | Provision of fire fighting training facilities for Naval Recruiting & Training Agency (NRTA). | N/A3 | Apr 99 | Jan 01 | Jan 01 | 21.8 | 20 | 2019 | 7.5 | Off |
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30 | Hawk Synthetic Training Facility | Synthetic training service on Hawk T1 aircraft for refresher and ab-initio fast jet pilots. | Dec 95 | Dec 97 | Dec 98 | Feb 00 | 20.2 | 13 + 5 yrs Potential extension | potentially to 2015 | 2.9 | Off |
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31 | Joint Services Command And Staff College (JSCSC) | Project merger between three MOD senior defence colleges into a single facility combining education and accommodation. | Mar 96 | Jun 98 | Aug 00 | Sep 00 | 93.0 | 30 | 2028 | 16.8 | On4 |
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32 | Lynx Mk 7/9 Aircrew Training Service (LATS) | Aircrew training for Lynx pilots at a purpose built facility known as 'School of Army Aviation'. | Apr 98 | Jul 00 | May 02 | Oct 03 | 15.0 | 13 + 12 yrs Potential extension | potentially to 2025 | 3.7 | Off |
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33 | Medium Support Helicopter Aircrew Training Facility (MSHATF) | Synthetic training service for aircrew of Chinook, Merlin Mk3 and Puma helicopters. | Aug 95 | Oct 97 | Aug 99 | Mar 01 | 114.0 | 20 + 20 yrs Potential extension | potentially to 2037 | 19.9 | Off |
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34 | RAF Sentry E3D Aircrew | Synthetic training service for flightdeck aircrew of Sentry E3D aircraft. | N/A3 | Jul 00 | Oct 01 | Oct 01 | 5.5 | 25 + 5yrs potential extension | potentially to 2030 | 1.3 | Off |
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35 | Tornado GR4 Synthetic Training Service | Synthetic training service for aircrew of Tornado GR4 aircraft. | Dec 96 | Jun 99 | Nov 02 | Jan 03 | 54.2 | 22 + 10yrs Potential extension | potentially to 2031 | 9.7 | Off |
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| Other |
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36 | Defence Fixed Telecommunications Service (DFTS) | A fully managed telephone service designed to service 200,000 plus telephone users making 2.5 million calls a day, across 2,445 UK sites. Facilities include voicemail, data switching and video conferencing. | Mar 95 | Jul 97 | Dec 97 | Jul 00 | 200.0 | 15 | 2012 | 143.6 | Off |
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37 | Defence Housing Executive - Information Systems (DOMIS) | Provision of IT/IS infrastructure services to around 200 DHE sites. | Jun 98 | Sep 01 | Oct 01 | Oct 01 | 11.0 | 9 | 2010 | 7.6 | Off |
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38 | Electronic Messaging System (Armymail) | Project to provide email connectivity between MOD IS networks. | Sep 96 | Apr 97 | Oct 97 | Oct 97 (Novated during 2006) | 0.0 | 10 | 2007 | 2.0 | Off | -5 | - | - |
39 | Hazardous Stores Information Systems | Provision of a Hazardous Stores information system across whole MOD for 10.5 years. | Mar 96 | Feb 97 | Dec 97 | Dec 97 | 1.0 | 10 | 2007 | 0.2 | Off | -5 | - | - |
40 | MOD - Wide Water & Wastewater (Project Aquatrine) Package A | Provision of water and wastewater services at over 4,000 MOD sites in 3 geographic packages. Covers Wales, Midlands and South West England. | Mar 00 | Apr 03 | Dec 03 | Dec 03 | 153.9 | 25 | 2028 | 31.8 | Off |
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41 | MOD - Wide Water & Wastewater (Project Aquatrine) Package B | Provision of water and wastewater services at over 4,000 MOD sites in 3 geographic packages. Covers Scotland. | Dec 00 | Sep 04 | Mar 05 | Mar 05 | 48.7 | 25 | 2029 | 11.7 | Off |
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42 | MOD - Wide Water & Wastewater (Project Aquatrine) Package C | Provision of water and wastewater services at over 4,000 MOD sites in 3 geographic packages. Covers North & East of England. | Dec 00 | Oct 04 | Mar 05 | Mar 05 | 174.3 | 25 | 2029 | 32.3 | Off |
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43 | RAF Fylingdales Power Station | Provision of guaranteed power supply to the missile early warning system. | N/A3 | Dec 98 | Apr 99 | Apr 99 | 8.0 | 25 | 2023 | 2.5 | On |
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44 | RAF Lyneham Sewage Treatment | Refurbishment of existing facilities to meet regulatory standards. Population served 7,000. | N/A3 | Jul 98 | Jul 98 | Jul 98 | 4.0 | 25 | 2023 | 0.5 | Off |
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45 | RAF Mail | Informal messaging services for RAF. | Exempted | Nov 98 | Nov 98 | -6 | 12.0 | 10 | 2008 | 2.0 | Off | -2 | - | - |
46 | TAFMIS (IT) | Training administration and financial management information system. | Aug 95 | Aug 96 | Mar 97 | Dec 97 | 41.0 | 10 | 2006 | 23.1 | Off |
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47 | Tidworth Water & Sewerage | Provision of water and sewage services in Tidworth Garrison. | May 95 | Feb 98 | Sep 98 | Sep 98 | 0.0 | 20 + 5yrs optional extension | potentially to 2023 | 0.7 | Off |
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NOTES 1 The contract end date is calculated from the date that the service provided under the contract becomes fully operational. 2 Survey returns were not received from these project despite the intervention of the Department's PFU. 3 Information not available from the Ministry of Defence. 4 Part of this project is off balance sheet. 5 A survey was not sent to these projects as the contracts were being subsumed into another contract at the time of our study. 6 Actual not available, contractual target was five months after contract signature. |
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7 | The capital value of the Department's currently operational PFI contracts |
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Source: National Audit Office analysis of Ministry of Defence projects database | |
8 | The volume of current operational PFI contracts signed by the Department |
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Source: National Audit Office analysis of Ministry of Defence projects database | |
