A public sector body that lets a PFI contract. This may be Government Department, Agency or Local Authority. | ||
Best and Final Offer: the bid containing final pricing and deliverables submitted by bidding contractors based on the outcome of the negotiations conducted during the initial bid stage. | ||
Whether the asset is recorded on or off the balance sheet of the Government Department. | ||
The process of comparing performance against one or more other relevant comparators. In PFI this refers to the process by which the PFI contractor compares either its own costs or the costs of its subcontractors providing services against the market cost of such services. | ||
The cost of building the asset as opposed to delivering the service. | ||
The competitive dialogue procedure is a new procedure introduced in the public sector procurement directive, which has been implemented in the Public Contracts Regulations with effect from 31 January 2006. It is for use in the award of complex contracts, where there is a need for the contracting authorities to discuss all aspects of the proposed contract with candidates. | ||
Ongoing monitoring and management of the provision of services in line with the agreed terms and conditions. | ||
A construction contract in which the customer pays the contractor as the works are progressed. Such projects are fully paid for on completion. Maintenance is dealt with in separate contracts. | ||
The time when the credit agreement is signed by all parties concerned. First drawdown of funds follows financial close and the satisfaction of any conditions precedent specified in the credit agreement. | ||
Full Service Date: The date when the new PFI asset is completed and the contractor delivers all the services. | ||
The phase of the contract when services are being delivered. | ||
Invitation to Negotiate: a formal invitation, from a procuring public body to prospective contractors, to present bids (including pricing) for a contract. | ||
Initial Service Date: The date the service delivery begins. This may be prior to the delivery of the new PFI asset if the contractor is taking over existing services. When the asset is completed there will be a full service date when the contractor delivers all the services. | ||
Intellectual Property Rights: The rights of an inventor or assignee to develop and commercialise an invention and license it, usually for a fee, to other manufacturers. | ||
In risk management terms, used to refer to a risk that has already occurred. | ||
A defect on the property/equipment that is not readily apparent but which may impact the future fair market value or service. | ||
A process or procedure for averting a risk, or reducing the possibility of its occurrence. | ||
Official Journal of the European Union: The publication in which contract notices appear, to which interested suppliers respond - previously the Official Journal of the European Community (OJEC). OJEU is commonly used as an abbreviation of the official notice that appears in the Supplement to the Official Journal of the EU. | ||
The situation where a public organisation and a private one work together to provide a service with some sharing of risk and reward, usually over a period of time. | ||
A PFI project that is unique or innovative which may be followed by future similar deals. | ||
The contractual mechanism that quantifies the payment due to the contractor for the service provided. | ||
Contractual penalties which may be imposed by the authority if the contractor does not perform the level of services specified. | ||
A policy introduced by the Government in 1992 to harness private sector management and expertise in the delivery of public services, while reducing the impact of public borrowing. | ||
Each major department has a unit set aside to provide advice and assistance to PFI project teams, to act as a central PFI project information resource, and develop departmental PFI policy and guidance. | ||
A formal lessons learned exercise. | ||
The bidder that the Authority has selected and with whom they intend to negotiate a contract. | ||
Second place short-listed bidder after the final bid stage. Reserve bidders may be invited to keep bids on the table in order to maintain competitive pressure on the provisional preferred bidder. | ||
A hazard, or factor likely to cause loss or danger (such as a chance of loss or injury; the degree of probability of loss) that may occur in the future. | ||
The allocation of responsibility for dealing with the consequences of each risk to one of the parties to the contract, or agreeing to deal with the risk through a specified mechanism which may involve sharing the risk. | ||
The systematic application of management policies, procedures and practices to the tasks of identifying, analysing, evaluating, treating and monitoring risk. The culture, processes and structures that are directed towards the effective management of potential opportunities and adverse effects. | ||
Additional sum the contractor allows in its pricing or return to compensate a party for adopting a particular risk. | ||
A file that holds all information on identifying and managing a risk, such as the owner and manager of the risk, and the mitigation procedure. | ||
The passing of risk normally borne by the customer to the service provider. | ||
Sponsored reserves are individuals whose employers are contractually committed to provide specific operational capability to the Services. During front line operations these personnel are called up and serve as Army Reservists alongside regular Army personnel. | ||
Additional income generated by third parties such as commercial organisations and the public. | ||
A self accounting unit which, while remaining under the control and management of a Minister, has greater freedom to manage its financial and other affairs. In particular, it is able to use its income to settle its liabilities and retain any cash balances at the year end. | ||
The PFI unitary charge is an annual payment made throughout the lifetime of the contract, which covers the cost of capital expenditure, private finance and the services needed to run and maintain that asset. | ||
The achievement of the optimum combination of whole life cost and quality to meet the user's requirements. | ||
Whole life costing is a systematic approach of balancing capital costs with revenue costs to achieve an optimum solution over a projects whole life. | ||