The following addresses the project's potential to deliver value for money under PFI.
1. What possibilities exist for cost savings under a private sector PFI arrangement (e.g. through lower manpower rates, more efficient/flexible working practices etc.)?
2. Are there opportunities for exploiting economies of scale through the provision, operation or maintenance of other similar services to other customers (not necessarily utilising the same assets)?
3. Are there opportunities to improve the level of utilisation of the assets underpinning the service (e.g. through selling, licensing, commercially developing for third party usage)? What impact would any boundary and procurement options have on the opportunity for third party income generation?
4. Does the private sector have relevant experience/expertise in the delivery of this service?
5. Where is there scope for innovation in the design of the solution or the provision of the services and what would constrain your ability to innovate?
6. Is the private sector likely to be able to manage the generic risks associated with the project design, production, implementation, maintenance or operation more cost-effectively than MOD? Does the private sector inherently have lower risk working practices/solutions or more effective risk controls? Is it able to manage and control long term issues, such as obsolescence, effectively?
7. What is the minimum length of contract that the private sector would wish to see to make the opportunity both commercially viable and capable of delivering good value for money service to MOD?
8. If required, is the private sector likely to be able to borrow capital at competitive rates given the scale and nature of the project?
9. Are there issues relating to the transfer of existing MOD assets at contract start? What is the likely need for the assets on completion?
10. In your opinion, what should be the length of any transitional period for service delivery and why? What measures would you put in place to ensure continuity of service/availability during the transitional period and how could MOD assist you to ensure the success for this?