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Report cover showing Greenwich penisula

The Regeneration of the Greenwich Peninsula: A Progress Report

“The Greenwich Peninsula is an ambitious regeneration, highlighted by the landmark O2 venue. The pace of house building is already two years behind schedule, though better progress has been made on community and commercial space. English Partnerships needs to safeguard returns to the taxpayer, both by addressing the effects of delay, and by delivering the return which is due from the success of the O2.”

Published:
16 Jul 2008
Report cover showing a motorway

The Procurement of the National Roads Telecommunications Services

“The Highways Agency’s procurement identified the risks to the National Roads Telecommunications Services project and successfully transferred them to the private sector, conducting negotiations with the preferred bidder well. It did however take a lot longer than planned and only two bidders remained through to the end of the competition. There are good practice lessons both for the Agency and for other major public procurements”

Published:
4 Apr 2008
Report cover showing people discussing documents

Making changes in Operational PFI Projects

“PFI deals have proven to be flexible to change and, when considering that these deals will span a number of decades, that is essential. Now that an increasing number of PFI deals are in their operational stage, and change will inevitably be needed over time, the public sector has to raise its game to get a better outcome and use the guidance and resources available, particularly as changes made to operational projects have not always provided value for money.”

Published:
17 Jan 2008
Report cover showing a pilot flying an aircraft

The privatisation of QinetiQ

“The move to privatise QinetiQ was effective in safeguarding the viability of a business of national importance and secured half a billion pounds for the taxpayer. However, I believe more money should have been secured for the public purse.

“And it is of concern that the Ministry of Defence did not seek specialist advice on the incentive scheme, which resulted in the top ten managers owning shares worth £107m. This level of return exceeded what was necessary to incentivise management.

“The MoD must now be proactive in managing the remaining risks to deliver the long term value for money from the deal.”

Published:
23 Nov 2007
Report cover showing kitchen utensils

Benchmarking and market testing the ongoing services component of PFI projects

“It is important that public officials test the cost and quality of facilities services to get value for money during the life of a PFI contract. My report highlights lessons in how value-testing should be carried out. In particular, public officials must have the necessary skills, must promote vigorous competition when value testing, and they must have a full understanding of whether and how the private sector’s price and service proposals offer value for money.”

The report recommends that the recent Treasury guidance be taken up by departments and that the Treasury should continue liaising with departments to identify suitable cost data to use in benchmarking. The NAO also urges that further steps should be taken to compare the cost and quality of facilities services under the PFI with conventional outsourcing experience.

Published:
6 Jun 2007
Report cover image of doctor at work

Dr Foster Intelligence: A joint venture between the Information Centre and Dr Foster LLP

“Bringing together the best of the public and private sector has clear benefits in improving the quality of public sector services. But in such cases attention must be paid to protecting government spending and value for money for the taxpayer. By taking the decision not to carry out a formal competitive tender process in this instance, the Department cannot demonstrate that the joint venture was the best structure to meet its needs or that it represents good value for money.

Published:
6 Feb 2007
Report cover showing a model of The Paddington Health Campus scheme

Department of Health – The Paddington Health Campus scheme

“A hospital development of this scale and ambition was always going to be a challenge but the original business case was inadequate, the lack of a single sponsor was a fatal flaw and the final scheme was not deliverable. The cancellation of the Paddington scheme at a cost of £15 million has left patients, staff and visitors to the hospitals with outdated facilities.

“The Department of Health should draw on my report’s conclusions and recommendations when deciding how best to initiate and manage its £7 billion to 9 billion capital investment programme in order to provide value for money to taxpayers, patients and staff.”

Published:
19 May 2006