Many lessons learned on PFI apply to other forms of procurement

1.8  Many aspects of PFI are relevant to other forms of procurement, as they are not related to any particular financing method. These include:

•  identifying long-term service needs. This will often require careful modelling and allowing some flexibility for those needs changing;

•  considering alternative solutions and alternative forms of procurement. This requires rigorous evaluation of alternatives both at the outset and as the project develops;

•  handling complexity. This is not just in the intricacy of the contract terms but also in the complex set of outcomes sought by the various users of the asset;

•  managing the interface between central government and local bodies;

•  establishing good contract management procedures. This is critical to avoiding the erosion of value for money during the service period; and

•  pursuing efficiencies. There are opportunities both in individual projects and through economies of scale arising from Government's purchasing power.

1.9  The remaining parts of the report consider the key enablers for acting as an intelligent customer 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).