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Improving PFI procurement

  • Document type:
    Publication
  • Author:
    Department of Health
  • Published date:
    21 March 2002
  • Primary audience:
    Professionals
  • Product number:
    0113218656
  • Gateway reference:
    2002
  • Pages:
    4
  • Copyright holder:
    Crown Copyright

This guidance sets out a number of initiatives that are designed to speed up PFI procurement and ensure that the NHS obtains the best value from the current market. In many instances, these measures amend and supersede current guidance contained in Public Private Partnerships in the National Health Service: The Private Finance Initiative, issued by the NHS Executive in 1999.

The contents of this circular are mandatory for all NHS Trusts currently preparing to issue OJEC notices. For the avoidance of doubt, this guidance applies to build schemes (which may include an element of IM&T) but not pure IM&T schemes. Where Trusts are preparing to go to market, they should ensure that appropriate legal advice has been obtained prior to implementing this guidance.

The guidance addresses six main areas:

  • Changes to the procurement approach itself (paras 4-6);
  • The reimbursement of bid costs (paras 7-8);
  • The development of standard procurement documentation (paras 9-10);
  • Amendments to existing delegated approval limits (paras 11-12); and
  • An outline of future developments within the Department of Health Private Finance Unit to enable appropriate advice and support to be channelled towards those Trusts which need it (paras 13-14);
  • Requirements to demonstrate sound post-project evaluation arrangements prior to approval (paras 15-17).

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