Part 2 How GCHQ set about the PFI process
This part of the Report examines how GCHQ selected its preferred PFI bidder, IAS. It shows that there was wide market interest in the proposal and that GCHQ engaged experienced private sector advisors to help its team specify the output requirements and assess the bids. It describes how there was an additional stage in the competition when four bidders were reduced to a shortlist of two before IAS was selected in September 1998.
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- GCHQ's option appraisal indicated a single site solution
- GCHQ tested the market extensively to judge the level of interest in the project
- GCHQ set up a management structure to oversee and manage the project
- The Invitation to Tender was generally output specified, with a strong emphasis on flexibility
- The selection process appears to have been sensible and rigorously applied
- To maintain competition an extra two bidder procurement stage was introduced