Step By Step Guide to The PFI Procurement Process
The Private Finance Initiative (PFI) presents public sector service providers with a novel method of procurement. The object of this guidance note is to provide a short overview of the process of procuring services under PFI. It describes each stage of the process, including what appraisal needs to be done and what decisions have to be taken. A sound procurement requires a robust business analysis. The business case for a PFI project, or equivalent appraisal of the project, will develop through the procurement process. But it is important to know what to do at each stage.
This note is an outline. It does not consider in deal specific issues which are dealt with in other documents issues or endorsed by the Treasury Taskforce, but it does provide a frameworks which other guidance notes can be related. It also points to other existing sources of assistance. The guidance is not mandatory; it is intended to be helpful, not prescriptive.
This note is aimed principally at managers in the public sector contemplating a PFI procurement- hereafter referred to as "the Client". But we hope it will also be useful for those in the private sector seeking to provide services under PFI.