1 We examined the original PFI deal signed by the Royal Armouries in 1993 and the subsequent events which led to financial problems for the Armouries' private sector partner, RAI, and the re-negotiation of the deal in 1999. We also considered whether current guidance on good practice on PFI deals would have strengthened the Armouries' and the Department's position in coping with RAI's financial problems, and whether there were any lessons which could be learned from this particular deal for future contracts.