7 This report mainly draws on findings from our five recent PFI reports examined by the Committee of Public Accounts in 2010, which between them considered 162 projects with a capital value of £18 billion. The five PFI reports (see Appendix Two) are:
• Procurement of the M25 private finance contract
• Financing PFI projects in the credit crisis and the Treasury's response
• The performance and management of hospital PFI contracts5
• Delivering multi-role tanker aircraft capability6
We also also refer to other National Audit Office reports on non-PFI projects (see Appendix One on scope and methodology) to further illustrate issues relevant to all projects.
8 In order to secure the best value for money, public sector bodies need to act as intelligent customers across the three phases to a capital project: specifying the requirements; negotiating the contract and arranging finance; and managing the asset and service delivery. In a PFI project these phases are dealt with in a single contract. As well as taking care over the contracts that are entered into, public officials need, in the current economic environment, to give greater emphasis than previously to effective service contract management to obtain best value.
9 This report is in four parts which focus on the issues which need to be considered as a capital project passes through its three phases. Part One highlights the characteristics of PFI projects and the aspects that are relevant to other forms of procurement. The remaining parts consider the key enablers of successful projects in the context of:
• Making informed decisions where there are alternative courses of action (Part Two);
• Ensuring the intended outcomes from projects and programmes are delivered (Part Three); and
• Pushing the boundaries of existing commercial arrangements to get better outcomes from projects and programmes for less (Part Four).
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5 Referred to as PFI in hospitals.
6 Referred to as Future Strategic Tanker Aircraft.