2.24 The Agency selected GeneSYS as the preferred bidder in November 2004. The procurement team's preparations for the ensuing negotiations included acquiring extensive knowledge of GeneSYS's cost model and the base costs within it.
2.25 The preferred bidder stage lasted nearly 10 months, which was five months below the average for PFI projects that closed between 2004 and 20063. During this stage, GeneSYS's bid price fell £2 million after allowing for differences between the scope of the Revise and Confirm bid and the negotiated final offer. The major change in scope was the Agency's removal of the optional service relating to the management of its camera masts (Figure 14). There were a number of substantial price movements associated with changes in responsibilities and financing but the net effect was a £2 million reduction in the bid. (Figure 14). The outcome of the Agency's negotiations demonstrates that price rises during the preferred bidder stage of a PPP procurement are not inevitable.
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3 Figure 9 in the National Audit Office's report Improving the PFI tendering process, (HC 149, Session 2006-2007).