Author: Great Britain: National Audit Office
Publisher: The Stationery Office
ISBN: 0102937699
Category : Business & Economics
Languages : en
Pages : 56
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Book Description
In 1998, the Department of Trade and Industry (DTI) and Laser, a special purpose company jointly owned by Serco Group plc and John Laing plc, signed a 25-year long Private Finance Initiative (PFI) contract. Laser would build and manage new facilities for the National Physical Laboratory (NPL), comprising 16 linked modules, containing over 400 laboratories, and replacing many existing buildings. The planned cost of the new buildings was approximately £96 million. The DTI would pay Laser a unitary charge, of £11.5 million (1998 prices) a year once the new buildings were ready, the charge increasing annually based on the increase in retail prices. The project suffered considerable construction delays and difficulties in achieving the specification for some parts of the buildings, mainly due to deficient design. In December 2004, it was agreed to terminate the PFI contract. The DTI paid Laser £75 million for its interest in the new buildings. This was the first termination of a major PFI contract involving serious non-performance. This report examines the problems that led to the termination, why these problems arose, how the Department managed them and the value for money consequences of the termination. The report finds that the DTI successfully transferred risk in the PFI contract to the private sector, but that the project risks could have been reduced with firmer control and better communication. Up to and including the termination, the Department's investment in the new facilities was about £122 million (March 2005 prices). In return, the Department secured an asset valued at £85 million and for which all but eight of more than 400 laboratories should be capable of being made to meet its specification in full. The private sector reported a loss of at least £100 million.
Author: Great Britain. Parliament House of Commons. Committee of Public Accounts
Publisher:
ISBN: 9780215032959
Category :
Languages : en
Pages : 29
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Book Description
The National Physical Laboratory (NPL) occupies a disparate collection of buildings on its Teddington site. By the early 1990s many of the buildings could only with difficulty provide the conditions required for the NPL's scientific work. In 1998, the Department of Trade and Industry (the Department) and Laser, a special purpose company jointly owned by Serco Group plc and John Laing plc, signed a 25-year long Private Finance Initiative (PFI) contract, under which Laser would redevelop the NPL facilities. The redevelopment of the NPL involved the replacement of many existing buildings and the construction in 16 linked modules of over 400 laboratories, many of which had to meet exacting environmental requirements. The project suffered considerable construction delays and problems, the most serious of which involved 30 laboratories in which stringent temperature and/or sub-audible noise requirements had to be met. In July 2004, Laser recognised that it did not have the financial capacity to complete the project to the required specification and proposed either revision of its contract or termination. After negotiations, the PFI contract was terminated in December 2004 and the Department paid Laser £75 million for its interest in the new buildings. The termination was the first for a major PFI contract involving serious deficiencies in contractor performance. This report examines the problems that led to termination, and considers lessons that might apply to future PFI projects.
Author: Norman Flynn
Publisher: Sage Publications (CA)
ISBN: 9781412929929
Category : Business & Economics
Languages : en
Pages : 334
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Book Description
The Fifth Edition of this popular textbook provides students and practitioners with a jargon-free description, analysis and critique of the management of the public sector by the UK government. Fully revised and updated, it assesses the policies and performance of the second and third Blair administrations with completely new material on Public-Private Partnerships, Private Finance Initiative and the management of the railways and London Underground. Written in a highly accessible yet analytical style, The Fifth Edition includes chapter summaries, thematically organized further reading, and a website with resources for students and lecturers.
Author: Carol Harlow
Publisher: Cambridge University Press
ISBN: 0521197074
Category : Law
Languages : en
Pages : 881
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Book Description
A contextualised study setting out the foundations of administrative law, with discussion of case law and legislation to show practical application.
Author: Great Britain: Parliament: House of Commons: Committee of Public Accounts
Publisher: The Stationery Office
ISBN: 9780215037350
Category : Business & Economics
Languages : en
Pages : 44
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Book Description
Under the Private Finance Initiative (PFI) there are now 800 contracts with private sector suppliers for services worth in total £155 billion up to 2032. To achieve value for money, all stages of a project have to be managed effectively, including in the tendering process. The Committee, in a 2003 report highlighted a number of issues regarding the PFI tendering process (HCP 764, session 2002-03, ISBN 9780215011244). This report re-examines the tendering and benchmarking in PFI, finding that the Treasury had done little to apply what it had learned from the large number of PFI deals signed; that there has been no improvement in tendering times and significant risks to value for money continue to be taken when public authorities make late changes to deals. The Committee has set out 7 conclusions and recommendations, including: that since 2004, the proportion of deals attracting only two bidders has more than doubled with the risk of no competition; one third of public sector teams made changes to PFI projects after they had selected a single, preferred bidder; benchmarking and market testing have increased prices by up to 14%; public authorities have found it difficult to find appropriate data to benchmark PFI service costs; there is evidence that public authorities, faced with price increases have had to cut back services in hospitals, including portering, to keep contracts affordable; that there is a continuing lack of PFI experience and skills within public procurement teams.
Author: Great Britain: National Audit Office
Publisher: The Stationery Office
ISBN: 0102938288
Category : Medical
Languages : en
Pages : 68
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Book Description
The National Programme for Information Technology in the NHS (the Programme) is a ten year programme to use information technology (IT) to reform the way the NHS in England uses information, and hence to improve services and the quality of patient care. The core of the Programme will be the NHS Care Records Service, but other elements include x-rays accessible by computer, electronic transmission of prescriptions, and booking of first outpatient appointments. The Programme was launched in 2002, and is now run by an agency, NHS Connecting for Health. This report examines: the progress made in delivering the systems against the original plans and costs (part 1); steps taken by the Department of Health, the agency and the NHS to deliver the Programme (part 2); how the IT systems have been procured (part 3); how the NHS is preparing to use the systems (part 4). The NAO estimates the gross cost of the Programme will be £12.4 billion to 2013-14. Although the pilot NHS Care Records Service will not be in place until late 2006, almost two years late, and other milestones have been deferred, the NAO reports substantial progress with the Programme. Management systems are in place, contracts were placed quickly and achieved large reductions in prices from bidders, and contract terms include important safeguards to secure value for money. Deployments of operational systems have begun, and several additional tasks have been delivered that were outside the original brief. Three key areas are identified which present significant challenges to the successful implementation of the Programme: ensuring IT suppliers continue to deliver systems that meet the needs of the NHS, to agreed timescales without further slippage; ensuring NHS organizations play a full part in implementing the systems; winning the support of NHS staff and the public in making the best use of the systems to improve services. The NAO report makes a number of recommendations for future management of the Programme.
Author: Great Britain: Parliament: House of Commons: Public Administration Select Committee
Publisher: The Stationery Office
ISBN: 9780215532251
Category : Political Science
Languages : en
Pages : 264
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Book Description
Incorporating HC 983-i-iv, session 2007-08
Author: Great Britain: Parliament: House of Commons: Committee of Public Accounts
Publisher: The Stationery Office
ISBN: 9780215036155
Category : Business & Economics
Languages : en
Pages : 48
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Book Description
This particular report follows on from an earlier NAO report on the same topic, see (HCP 255, 06/07 ISBN 9780102944518), published February 2007. The Shareholder Executive was established in 2003, to act as an effective owner of businesses that are owned or part-owned by government. It is now an operational group within the Department of Trade and Industry, with a portfolio covering 27 businesses and a combined turnover of £21 billion. The Committee notes that the role of the Executive marries both public and private objectives, setting out to both achieve public policy objectives through the most cost effective means and provide a satisfactory return on the public money invested through the shareholder value. The Committee states that the Executive has delivered value for the taxpayer by adopting a business criteria through a framework that sets out clear priorities for the businesses, alongside performance monitoring and, with management held to account for their delivery. The Committee sets out a number of conclusions and recommendations, including: that the Department of Trade & Industry is setting up a Board to provide direction and accountability for the Executive; that there should be a presumption that all government businesses come within the Executive's portfolio; that the Executive should market its services comprehensively and seek to be more visible across government; that the Executive should be given an explicit responsibility for advising sponsor departments on the investment needs of their businesses; that the performance management of the Executive needs to include wider measures that are based on the results of individual businesses; also, that the Executive needs sufficient pay flexibility to continue to recruit high calibre staff; that the Executive's responsibility for the postal services industry extends beyond shareholder value issues, and the Committee believes the Department should identify options for relieving the Executive of responsibility for Royal Mail policy; that the Executive should set business-level dividend targets, which take into account the risks faced by the business and the Executive should systematically undertake valuations of the businesses in its portfolio.
Author: Great Britain: Parliament: House of Commons: Committee of Public Accounts
Publisher: The Stationery Office
ISBN: 0215034929
Category : Sports & Recreation
Languages : en
Pages : 56
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Book Description
Following on from the NAO report (HCP 252, session 2006-07; ISBN 9780102944273) published in February 2007, the Committee has examined the progress that has been made in preparing for the London 2012 Olympic and Paralympic Games and the areas of risk that will need to be managed. The report highlights seven main areas of risk including: i) the governance and delivery structures needed to co-ordinate the multiplicity of organisations and groups involved in the Games; ii) given the immovable deadline of the Games, any slippage in the delivery programme risks rising costs or a reduction in quality; iii) as the ultimate guarantor of funding for the Games, the Government needs to ensure the budget for the Games is clearly determined and effectively managed, given that the costs of the Games were seriously underestimated at the time of the bid; iv) the need for clarity in planning to ensure a lasting legacy for venues after the Games are over; and v) planning to minimise the impact of funding the Games on other National Lottery good causes.
Author: Great Britain: Parliament: House of Commons: Committee of Public Accounts
Publisher: The Stationery Office
ISBN: 0215035062
Category : Medical
Languages : en
Pages : 52
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Book Description
The Department of Health established the Information Centre in April 2005, in order to centralise the collection and dissemination of information across the NHS to support their health reform agenda. In February 2006, 'Dr Foster Intelligence' was launched, a joint venture between the Information Centre and Dr Foster Ltd (a private company already successful in health data dissemination) with the aim of developing information products and services which would encourage senior, strategic NHS staff to make effective use of information. The Committee sets out a number of recommendations, including: without a competitive tender, the joint venture seemed to offer an advantage to one company; also without competition, the Information Centre cannot demonstate that it paid the best price for its 50% share; the joint venture deal did not follow established good practice in public sector procurement; the cost of professional advice rose from an initial estimate of £248,000 to between £1.75 and £2.5 million; that the Department and the Information Centre could have made use of wider government experience on forming public private partnerships; it is unclear what benefits the Information Centre will receive from the joint venture; the first year saw a loss of £2.8 million.
