The Challenge
The challenge facing the public sector is to deliver year-on-year improvements in services at the same time as demonstrating cashable and non cashable efficiency gains. This demands a systematic examination of the way services are currently provided and how resources are procured, as well as an appraisal of feasible options for doing things differently. Typically, significant opportunities for improving the value for money of services come from procuring a private sector partner under a Public Private Partnership (PPP) or through procuring infrastructure such as accommodation, plant or equipment under the Private Finance Initiative (PFI). The challenge for the procurement process is to ensure that competition is maximised, that bidders are treated fairly and that the appointed supplier delivers the maximum possible benefit to the public sector, whilst adhering strictly to European Procurement Directives.
The Way Forward
HM Treasury is fully supportive of PFI and wider PPPs as a means of delivering value for money to the public sector. However, it is recognised that there is room for improvement in relation to the time taken to complete procurement exercises and in the benefits that are actually delivered through the contract. As part of your wider procurement team, PKF contributes its past experience, attention to detail, technical knowledge and drive and enthusiasm to ensure that every project we are involved in delivers the maximum benefit possible to the optimum procurement timetable. We also contribute nationally to the preparation of guidance documentation and standardised bid documentation that benefits the wider public sector in precisely the way that HM Treasury is seeking.
How PKF can help
PKF has extensive experience of supporting vehicles, accommodation, waste and other PFI/PPPs that have been procured using the Negotiated and other EU procurement routes and is now supporting a number of procurements using Competitive Dialogue. We are able to advise on the most appropriate procurement strategy as well as on the most beneficial partnering and delivery vehicle structures. Throughout the procurement process, our advisory support covers the preparation of bid documentation, evaluating the financial standing of potential bidders, evaluating the financial and commercial elements of bidder submissions, negotiating with bidders, preparing commercial elements of the contract (such as the performance and payment mechanisms) and providing specialist financial and accounting advice. We are very proud of our achievements on the procurements that we have supported. Recently closed deals that we have supported include the Lincolnshire Fire and Rescue Service fully managed vehicles contract, 8 Regional Control Centres, the FiReControl Infrastructure Services Contract and preferred bidder status for the Fire Services Integrated Clothing Project. For these and other deals that we have supported through to close, we can clearly show how our involvement drives down price, contributes to achieving the desired outcomes, reduces risk and drives up value.
Further information
Please contact Tom Roberts for further information.
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