Sourcing
PFI / PPP
The Private Finance Initiative (PFI) and Public Private Partnership (PPP) are both used to describe a procurement or outsourcing arrangement where a “partnership” is established between a public sector body and a private sector organisation to deliver public services. Importantly, the private sector party risks its own funds against non-delivery, but the profit rewards can be significant.
These deals are typically large and complex, requiring additional capabilities in addition to the activities, skills and experience normally required for other types of procurement. Cornwell consultants are highly experienced in PFI and PPP projects and are familiar with the challenges they present:
- The need to demonstrate unambiguously that the PFI/PPP approach will deliver the best overall value for the public sector.
- The importance of accurately assessing who is best placed to carry which risk.
- The need to understand the business environment and key motivators of the other party to identify the most appropriate settlement for both sides.
- The need for trained and experienced negotiators to help reach the most successful conclusion.
- The importance of quantifying the concept of “partnership” between two very different organisations.
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