1 This report examined whether, based on our recent experience of PFI, the Treasury and departments acted as intelligent customers in overseeing procurement and management of PFI projects and programmes to deliver value for money. We draw on the findings from the five most recent National Audit Office PFI reports examined by the new Committee of Public Accounts (see Appendix Two).
2 We analysed the five National Audit Office and subsequent Committee of Public Accounts reports to identify the issues which were common to all reports. On the basis of the themes which emerged from our initial review of reports, we set out to analyse whether departments and the Treasury had acted as an intelligent customer in overseeing the procurement and management of PFI projects and programmes. A framework of questions was developed in order to analyse this question. These included whether the Treasury and departments had:
• accurate data needed to make informed choices; provide accurate estimates of time and cost; get 'better outcomes for less'; and secure value for money;
• skills, capacity and experience to assess whether complex major projects represent a good deal over the life of the contract;
• effective accountability and project assurance with appropriate empowerment to ensure that projects and programmes only go ahead where they will deliver value for money; and
• challenged the method of procurement, the scope of the deal and the business case assumptions to identify opportunities for better deals.
3 We used these themes within a framework to assess the National Audit Office's past reports to see if this was a common finding across Government. We also used this method to identify best practice and lessons learnt.
4 We also drew on other National Audit Office reports on non-PFI projects to further illustrate issues relevant to all projects:
• The Efficiency and Reform Group's role in improving public sector value for money, Session 2010-11, HC 887.
• The BBC's management of three major estate projects, Comptroller and Auditor General's Report to the BBC Trust's Finance and Compliance Committee, January 2011.
• Assurance for high risk projects, June 2010.
• A review of collaborative procurement across the public sector, National Audit Office and the Audit Commission, May 2010.
• The Building Schools for the Future Programme: Renewing the secondary school estate, Session 2008-09, HC 135.
• Preparations for the London 2012 Olympic and Paralympic Games, Progress report 2008, Session 2007-08, HC 490.
• Central government's management of major service contracts, Session 2007-08, HC 65.
• Delivering successful IT-enabled business change, Session 2006-07, HC 33.
• The Paddington Health Campus Scheme, Session 2005-06, HC 1045.