Public-Private Partnerships: Background Papers for the U.S.-U.K. Conference on Military Installation Assets, Operations, and Services

By Ellen M. Pint; John R. Bondanella et al. | Go to book overview

Appendix D: Case Studies of Two
PFI Contracts
Two specific examples of PFI projects completed in the United Kingdom involve the Army Training and Recruiting Agency and the Medium Support Helicopter Aircrew Training Facility.148
THE TAFMIS MANAGEMENT INFORMATION SYSTEM
The Army Training and Recruiting Agency (ATRA) is responsible for recruitment and delivery of officer and enlisted training. A PFI deal was used to provide a training administration and financial management information system (TAFMIS). The agency actively sought a strategic partner to help it through a process of major change and beyond. Selection criteria included technical competence, quality of service, flexibility, a willingness to establish a partnership culture, and the capability to manage a program of major change. The contract was awarded to EDS Defence Ltd in August 1996.Three key lessons were learned during the procurement process. Ideally, ATRA would have liked to have three bidders and would seek this number in future procurements, compared to the two bidders for this contract. The Publicsector Comparator (i.e., cost estimate) was released partway through the negotiations. This was viewed as the correct decision; it set bidders' expectations realistically at the optimum stage in the procurement. Initially, the TAFMIS team included a form of transfer payment in the PFI offer. During the negotiations it became clear that this payment would not contribute to risk transfer and value for money, and it was dropped.Since the award of the contract, a number of unforeseen or totally new issues have had to be resolved. The experiences of the TAFMIS team suggest four major factors for success.
Procurement priorities. Effort spent on developing the pricing model and defining service levels was worthwhile; more rigorous quality assurance of the meaning of the contract would have achieved better understanding.
Contract terms. The contract achieves flexibility and places emphasis on IT service delivery; however, the detail of planning information and service acceptance testing could be improved.
Partnership. A strong working relationship was established from the outset, and personnel involved in the project have been retained.
Managing change. There have been some difficulties introducing the business changes resulting from contract implementation.

However, the principal objective of the contract has been realized; a positive spirit of partnership developed between the organizations and the individuals

____________________
148
Based on case study material in Ministry of Defence, PFI Guidelines for MoD, op. cit.

-117-

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Public-Private Partnerships: Background Papers for the U.S.-U.K. Conference on Military Installation Assets, Operations, and Services
Table of contents

Table of contents

  • Title Page *
  • Preface iii
  • Contents v
  • Figures ix
  • Tables xi
  • Summary xiii
  • Abbreviations xxiii
  • 1 - Introduction 1
  • 2 - U.K. Overview 3
  • 3 - Housing 33
  • 4 - Base Operations 51
  • 5 - Logistics 75
  • 6 - Comparisons and Conclusions 103
  • Appendix A - Conference Participants 107
  • Appendix B - Short Definitions of Key U.K. Initiatives and Terms 111
  • Appendix C - Mod Pfi Contracts 115
  • Appendix D - Case Studies of Two Pfi Contracts 117
  • Appendix E - Mod Executive Agencies 121
  • Appendix F - Privatization of Mod Married Quarters Housing 123
  • Appendix G - Mod Initiatives in Construction and Property Management 129
  • Appendix H - Privatization of the Royal Dockyards 133
  • Bibliography 139
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