Managing risks: summary
2.53 The Department has generally managed risks well in the PFI projects we examined. Our analysis above shows that risk has also been managed well in six out of the eight case study projects evaluated and that out of ten risk categories nine show either a low or some potential risks to value for money (moderate risk). Figure 18 below summarises our assessment:
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18 |
Assessment of Risk Performance for the Eight case Studies |
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Procurement phase |
Management of the contracts |
Procurement phase |
Construction or service implementation phase |
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Overall assessment of current risk to the Department: |
Significant risks to value for money |
Some risks to value for money |
Some risks to value for money |
Low level of current risk to value for money |
Low level of current risk to value for money |
Low level of current risk to value for money |
Some risks to value for money |
Low level of current risk to value for money |
Some risks to value for money |
Low level of current risk to value for money |
Some risks to value for money |
Some risks to value for money |
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Heavy Equipment Transporter |
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Field Electrical Power Supplies |
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Medium Support Helicopter Aircrew Training Facility |
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Armoured Vehicle Training Service |
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N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
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N/A |
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Main Building Refurbishment |
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Defence Animal Centre |
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Defence Fixed Telecommunications System |
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Tidworth Water and Sewerage |
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Source: NAO review of case studies |
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