2.43 Both parties to the contract have identified a number of lessons arising from their experience on this deal. We endorse these lessons for other departments who are either procuring new PFI deals or managing existing ones.
2.44 These lessons include the need for a department to show clear vision and strong leadership both during the procurement and subsequently during the construction and service delivery phases of the contract. Defence Management told us that it considers that the Department and College had shown these qualities on this project. The department and contractor also need to devote sufficient resources to the management of the contract, especially at the start of the service delivery phase when teething problems are inevitable, and, if possible, ensure continuity within their project teams from the project's procurement to the early stages of service delivery.
2.45 In the College's opinion, the contractor needs to ensure that the interfaces within its own organisation and with its sub-contractors are well managed so that the department receives the service required. The College considers that the service delivery problems (paragraph 2.33) were exacerbated by the services in question being sub-sub-contracted (Figure 7). This made the communication of the Department's expectations about the standards of performance in these areas more complex. The College also considers that these problems were, in part, due to its output specifications not being sufficiently tightly defined to reflect the true level of service it required.
2.46 Finally the College considers that the successful operation of this PFI contract has required a significant shift in culture from both the College and Defence Management. The College has had to stand back and allow Defence Management to deliver the required services, while Defence Management has had to recognise the particular needs of a military training establishment.