Authorities need to create scope for innovation

3.10  Innovation is recognised as a key factor which can contribute to better value for money in PFI solutions8. These opportunities are likely to be maximised when there is full scope for the private sector to develop innovative ways of delivering the outputs the authority requires. For this to be achieved, it is important that authorities ensure that any restrictions they may impose on innovation are justified. Over the life of a PFI project contractors also need to show continuous commitment to bringing innovation to the project.

25

 

Co-location leads to a good relationship

 

 

 

 

 

Good lines of communication 

 

 

Army Mail
'Project is managed by a co-located joint authority/partnership team.'

Flying Training for University Air Squadrons
'Co-location of contractor and customer ensures daily contact and intimate partnership arrangements.'

OSIRIS
'We share the same accommodation and communication appears to be good.'

 

 

Scope for improving lines of communication

 

 

RAF Mail
'The contractor has been offered a desk at the authority premises, but has yet to take up the offer.'

TAFMIS
'Part of the problem with communication has been that the parties are not co-located despite offers from the authority.'1

Defence Fixed Telecommunications Service
'Informal lines of communication exist, but these are hampered by the limited co-location of staff.'2

 

 

NOTES

1. Since completing our survey, the contractor to TAFMIS spends two days a week at the authority's site and the authority spends two days a week at the contractor's site.

2. Since completing our survey, the Defence Fixed Telecommunication Service has adopted an integrated management structure, with 91 BT staff colocated with MOD staff.

Source: National Audit Office survey of authorities

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8   Partnerships for Prosperity (Treasury Taskforce 1997)

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