GLOSSARY

Agenda for Change

The new NHS grading and pay system for all NHS staff (with the exception of doctors, dentists and some managers). It harmonises staff pay scales and career progression arrangements across traditionally separate pay groups by evaluating their jobs against national job profiles. This also impacts on outsourced staff.

Authority

A public sector body which lets a PFI contract. This may be a government department or an agency of a department.

Benchmarking

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.

BCIS

Building Cost Information Service.

DCSA

Defence Communication Services Agency (DCSA) is responsible for the delivery of Information and Communication Services across the Ministry of Defence.

Dispute Resolution Process

A process described in the contract through which disputes can be referred to a third party or some other form of tribunal ultimately leading to a resolution.

DFTS

Defence Fixed Telecommunications Service.

DoH

Department of Health.

ERIC

Estates Returns Information Collection – the DoH database of cost data.

FCO

Foreign and Commonwealth Office.

FTN

Foreign and Commonwealth Office Telecommunications Network.

Hard FM

Facilities management services such as building refits or life-cycle maintenance.

HMRC

Her Majesty's Revenue & Customs.

Market Testing

The retendering by the PFI contractor of the relevant soft service to test the value for money of that service in the market.

NS&I

National Savings and Investments.

ONS

Office for National Statistics.

PCT

Primary Care Trust.

Private Finance Initiative (PFI)

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.

Private Finance Unit (PFU)

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.

PUK

Partnerships UK. A joint venture between the public and private sectors working solely for the public sector to promote high quality public services and the efficient use of public assets.

RPI

Retail Prices Index.

Special Purpose Vehicle (SPV)

The project company who is party to the contract with the Authority and who normally is responsible for managing the benchmarking and market testing process.

SoPC

Standardisation of PFI Contracts. Introduced by the Treasury in 1999 (since updated) to allow for a consistent approach to be taken across departments entering into a PFI contract.

Soft FM

Facilities management services with a high labour content delivered to building occupants e.g. cleaning, catering, portering and security.

TUPE

Staff who transfer between different employers (such as to winning contractors of a market test) have certain rights safeguarded according to The Transfer of Undertakings (Protection of Employment) Regulations 1981.

UHND

University Hospital of North Durham.

Unitary Charge (UC)

The payment from the Authority to the consortium in respect of the provision and operation of the asset. This includes the provision of soft services and hence the Unitary Charge may well change following the benchmarking or market testing of the services.

Value for Money (VFM)

The achievement of the optimum combination of whole life cost and quality to meet the user's requirements.

Value Testing

This is the process used to test the cost and quality of services being provided in a PFI contract. The means by which this process can be achieved includes benchmarking and market testing.