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PFI Case Study: Regional Police HQ

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PFI Case Study: Regional Police HQ

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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

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