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1. PFI Case Study: Regional Police HQ Thursday 27th October 2005
2. Picture of the past Public Private partnership = generic term
PFI = a British model of PPPPublic Private partnership = generic term
PFI = a British model of PPP
3.
To a Vision of the future Started slowly in 1992.
Kicks of in 1997 with the new labour government:
Simplification of payment mechanisms
Standardisation of contractsStarted slowly in 1992.
Kicks of in 1997 with the new labour government:
Simplification of payment mechanisms
Standardisation of contracts
4. Value for money through a better whole life costing of a project � Linked to the PSC
Innovation from the private sector
Value for money through a better whole life costing of a project � Linked to the PSC
Innovation from the private sector
5. Issues for Consideration Reducing costs and better introduction of planned maintenance
Location
New requirements for
Police Operations
Comparison with
traditional procurement
6. Options for Procurement:
Refurbishment � traditional contract
Design & Build � new build
PFI � new build + risk
apportionment + FM
7. Aims and Objectives of Police Authority
Spread costs over the term
Private sector expertise for innovation
Private sector expertise for cost control
Transfer of risk for cost & programme
Maintain the building efficiently & economically
8. Traditional Procurement
It is important to understand that the construction period is only for a couple of years and hence, easier to manage, even though problems usually happen.
Running costs are extremely important and the private sector will carefully look at the way they build the physical asset to provide the required service, as the PS itself will have to maintain it throughout all the life of the project.It is important to understand that the construction period is only for a couple of years and hence, easier to manage, even though problems usually happen.
Running costs are extremely important and the private sector will carefully look at the way they build the physical asset to provide the required service, as the PS itself will have to maintain it throughout all the life of the project.
9. Public Private Partnerships
No payments until the project becomes operational.
Payments based on availability = important concept. Prisons case.
Overpays on usage.No payments until the project becomes operational.
Payments based on availability = important concept. Prisons case.
Overpays on usage.
10. PFI selected because:
Appropriate risk transfer
Use of Output Specifications
Integrated Design, Build and Operations
Benefits of whole-life costing
Linking management with performance initiatives
Maximising scope for innovation
11. New Facility
12. New Facility �10m capital cost with PFI contract over 30 years worth �95 million. It contains:
Custody Suite
Victims of Crime Suite
Traffic Police Suite
13. New Facility Rapid Response Team
Anti Drug Squad
Scenes of crime
Rapid response Team
ID Parole
C.I.D. detectives
14. New Facility First Floor
Coroners Office
County Court Admin and Process
Conference Facilities
Major Incident room
15. New Facility
16. New Facility
17. Procurement Process
Clear output specification
Performance criteria
Realistic risk transfer
Public sector value for money comparator
Proposed contract
Project timetable
18. Achieving Value for Money
19. Appointing Advisors Understanding of requirements
Benefit of Lead Advisor Role
Consistency of team
Familiarity of Advisory bodies
Value for Money
20. Conclusion Successful way of procuring facilities for the Police Authority
Authorities need to predict what their requirements will be for the next 20-30 years
Delivery of more & better Police Authority services
21. Thank You