Back in February 2013, the BBC ran a story about a PFI for a relatively small police station that was costing Dyfed & Powys Police 18% of their entire estates budget. The build cost was £2.7m, yet by the end of the contract the total cost would amount to more than £20m.
The article quoted the Police and Crime Commissioner:
The article quoted the Police and Crime Commissioner:
I know I've inherited it and I know it's very expensive and it takes up a lot of my estates budget. I know that what we've ended up with somehow is a state-of-the-art police station in the wrong place for the wrong price. It's deeply disappointing and particularly frustrating when obviously the police service is facing tough financial times as many public services are, we have this contract that we appear to be tied into that does cost us a lot of money.
It went on to say that, whilst attempts had been made to renegotiate the deal, these had been unsuccessful, and that whilst the project did not provide the public with value for money; there was no basis upon which they could vary the terms of the contract in the absence of the agreement of the contractors.
The Commissioner was reported as saying, however, that he would make sure that “no stone is unturned” to see if the issue could be addressed in future.
Intrigued by the story, and taking the Commissioner at his word, P2G wrote to him offering our services. We explained that we operated on a contingent basis and that there would be no payment without results. P2G is a Social Enterprise. We are not driven to maximise our revenue but, specifically, to deliver savings to the public sector.
Over a period of some months, we convinced the Commissioner that savings could be generated and we were eventually successful in winning a tender.
P2G led the review and were aided by Fenwick Elliott (legal), WSP (technical), and Clubfinance (financial modelling).
On 18th June 2015, some 28 months after the initial news report, the PFI was terminated by agreement. Total net savings to the Police Authority will amount to £7.7 million, with a net present value of £3.1 million.
We thank the Commissioner for his support and hope that other public sector authorities take note that significant savings can be made from the effective management of PFI contracts.
Press:
BBC News
Police & Crime Commissioner press release
The Commissioner was reported as saying, however, that he would make sure that “no stone is unturned” to see if the issue could be addressed in future.
Intrigued by the story, and taking the Commissioner at his word, P2G wrote to him offering our services. We explained that we operated on a contingent basis and that there would be no payment without results. P2G is a Social Enterprise. We are not driven to maximise our revenue but, specifically, to deliver savings to the public sector.
Over a period of some months, we convinced the Commissioner that savings could be generated and we were eventually successful in winning a tender.
P2G led the review and were aided by Fenwick Elliott (legal), WSP (technical), and Clubfinance (financial modelling).
On 18th June 2015, some 28 months after the initial news report, the PFI was terminated by agreement. Total net savings to the Police Authority will amount to £7.7 million, with a net present value of £3.1 million.
We thank the Commissioner for his support and hope that other public sector authorities take note that significant savings can be made from the effective management of PFI contracts.
Press:
BBC News
Police & Crime Commissioner press release
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