1.2 In 2003 the Public Accounts Committee published a report8 that highlighted common problems in obtaining value for money from the PFI and expressed concerns that:
■ Procuring authorities did not have staff with the right skills critical to good project management. There was a need for authorities to give much greater emphasis to developing such skills and to adopt best practice more widely.
■ The cost of employing advisers was very high and in many cases exceeded budgets by a substantial margin. Procuring authorities needed to drive down advisers' costs and ensure that sensible budgets were adhered to. They also needed to be mindful of costs to bidders. Imposing excessive costs on bidders was likely to result in higher charges in the long run and risked deterring firms from bidding.
■ Many procuring authorities had appointed a preferred bidder even though important issues remained unresolved. Negotiations with preferred bidders needed to be kept to a short and tight timetable.
The Committee concluded that the taxpayer was not always getting the best deal from PFI contracts because good procurement practice was not being followed.
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8 28th report from the Committee of Public Accounts, Delivering better value for money from the Private Finance Initiative (HC 764, Session 2002-2003).