3 Figure 15 sets out the results showing all variables of interest. This model explained 38 per cent of the variation in the length of the tendering period (adjusted R2). The table indicates that the only factor that was statistically significant (at the five per cent level) was project sector. Health PFI deals took longer all else equal than PFI schools, and the 'other' PFI deals took longer still. Project preparation time was not significantly associated with reduced tendering time, though the variable had a negative coefficient. The Prior Experience variables were similarly not significant at the five per cent level, but are suggestive of a tendency for greater experience to be associated with shorter tendering times. The size variables were not significant, (net present value providing a better fit than capital value). This may be consistent with the greater use of resources on larger PFI deals.
15 | Multiple regression coefficients and significance values to explain PFI tendering lengths | ||||||
Model | Unstandardized Coefficients | Standardized Coefficients |
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| B | Std. Error | Beta | t | Sig. | ||
1 | (Constant) | 108.718 | 38.458 |
| 2.827 | 0.014 | |
| Other sector | 25.861 | 8.944 | 0.771 | 2.891 | 0.013 | |
| Hospital | 16.848 | 6.128 | 0.720 | 2.749 | 0.017 | |
| Net present value | 2.98E-009 | 0.000 | 0.455 | 1.972 | 0.070 | |
| One or two prior deals, but no SRO experience | - 7.781 | 7.534 | - 0.194 | -1.033 | 0.321 | |
| One or two prior deals and SRO experience | - 6.160 | 5.343 | - 0.294 | -1.153 | 0.270 | |
| Three or more prior deals | - 25.402 | 14.661 | - 0.460 | -1.733 | 0.107 | |
| Project preparation time (months) | - 0.356 | 0.258 | - 0.385 | -1.380 | 0.191 | |
| Strength of competition (number of bidders at ITN) | - 2.510 | 4.599 | - 0.109 | - 0.546 | 0.594 | |
Source: National Audit Office |
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