Reductions in perceived value for money

10.  The 23 per cent of authorities surveyed by the NAO which considered that value for money was not as good as at contract letting gave a variety of reasons including high charges for additional services, user dissatisfaction and expected benefits not being realised.13 The OGC said that in some cases a common understanding of what was really required and what each party had to deliver only became apparent after the award of the contract. In some cases the authority might have made a mistake and had selected the wrong partner. Projects such as the Armed Forces Pay and Administration Agency PFI project and RAF Mail had experienced initial difficulties, but had subsequently improved as a result of redefining the relationship between the authority and the contractor.14




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13  C&AG's Report, para 3.39

14  Qs 28-34