Source · Select Committees · Public Accounts Committee
Recommendation 12
12
We asked the IPA what assurance it could give that local authorities would be properly...
Conclusion
We asked the IPA what assurance it could give that local authorities would be properly supported and resourced to manage the expiry of their PFI contracts without having to fill gaps with potentially expensive consultants. The IPA accepted that procuring expertise from the private sectors was not the best value for money solution. It told us that it would be essential to provide additional resources to deal with technical, financial, commercial and legal issues and that it was developing a central pool of people that could provide these skills. It explained that this team so far consisted of 17 people, and it expected to recruit additional staff in the next financial year, and aimed to bring the team to 21 in total. It explained that it was working on further plans and proposals about how to develop additional resources and whether this would be best done by departments or through regional hubs.32 Written evidence from Wiltshire Council told us that it specifically appointed a PFI contract lead with a broad range of skills, covering contract and project management experience as well as legal, commercial and procurement expertise which will help eliminate the need for consultancy support.33
Government Response
Acknowledged
HM Government
Acknowledged
1.1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2021 1.2 The Infrastructure and Projects Authority (IPA) will publish a plan for supporting all authorities with PFI contracts. The plan will also set out a timetable for the publication of guidance notes on contract expiry and other matters. The Treasury and the IPA will jointly write to departments to encourage them to develop sector specific guidance where it will add value and to take part proactively in the PFI Contract Management programme.