1.18 Local Authorities are responsible for planning local projects, finding a private sector partner, managing the transition to new buildings, and managing the contracts (Figure 7 on page 17). Local Authorities can choose their procurement approach, but are strongly encouraged to establish a LEP (except where PfS deems the Local Authority's programme is too small for a LEP to work or it has a better alternative already in place).
1.19 The Department and PfS introduced LEPs as a new procurement model for BSF because (i) they saw the scale of BSF as an opportunity to support improvements to Local Authority procurement; (ii) they wanted to promote better partnering between the public and private sectors, and to enhance the efficiency of procurement; and (iii) they thought BSF might be too large for the bidding capacity of the private sector if every project was competitively tendered.
1.20 A LEP is a joint venture between a Local Authority and BSFI (who together hold 20 per cent of the shares) and a private sector partner (holding 80 per cent of the shares). The Local Authority guarantees that the LEP may undertake all its major school capital projects for ten years, subject to the LEP meeting agreed standards. It is able to procure and manage any type of contract, normally with an integrated supply chain, on behalf of the Local Authority, including PFI, design and build, ICT and Facilities Management contracts.