When PFI may be appropriate for Defence
8. In addition to the generic criteria above, a contract may be suitable in the delivery (in whole or part) of a defence capability (subject to demonstration of value for money) where:
• the service can be implemented without constraining the delivery of military operational objectives (see table below);
| IN "FRONT-LINE"/DEPLOYED OPERATIONS
If the project is to operate or directly support deployed operations, the following should also be considered. Military powers
Are the functions nominally within the service boundary currently free from the need to exercise special military powers or privileges? Transition to war and conflict
Is the delivery of the service (in terms of management or operation) likely to be unchanged (in terms of function and volume) in moving from peacetime operations to transition to war and conflict? Security
Is the service free from any impact on the safety or security of the UK and/or Armed Services personnel? Operational perform a nee/effectiveness
Is there confidence that the performance/availability of a contractor delivered service will be able to meet the operational effectiveness targets defined by the requirement under all scenarios or situations? Operational flexibility
Is there confidence that the performance/availability of a contractor delivered service will be able to meet the requirement for operational flexibility? Performance Risk
Could any shortfalls in service performance/availability/flexibility be managed without a significant performance/operational impact on ? Loss of core skills
Would the contractor delivered service provision be free from causing any loss of core skills that have strategic and/or long term importance to the Services ? Other organisational inter-dependencies
Would the operation of the service by private sector contractors be free from material inter-dependencies with other operations or agencies ? |
• the Department has the capability and desire to focus the necessary skills and resources needed to manage and deliver a acquisition through life;
• good previous experience of similar type requirements or projects being delivered by is a useful indicator, although has also successfully delivered a number of pathfinder . The effort and commitment needed to deliver projects in new areas should not however be underestimated; and
• where in addition to all the above characteristics, the project can adequately address the critical success factors outlined in Section 5.