HM Treasury


Procurement and contract management

The Efficiency and Reform Group (ERG) in the Cabinet Office leads on Government procurement policy. The guidance provided on this page is complementary to this and is specific to PFI/PPP arrangements.

Project governance guidance

This guidance looks at a number of aspects of project governance. The intention is not to set out a rigid template but to provide a framework for Authorities to think through the issues and how best to resolve them.

Also included is a consideration of the roles of independent reviews (such as the OGC Gateway reviews), the links to the formal project approval processes (such as Project Review Group (PRG) for some Local Authority projects), and the impact of public sector issues.

OGC/HM Treasury joint guidance on using the competitive dialogue procedure

This OGC and HM Treasury joint guidance aims to assist contracting authorities with the competitive dialogue procedure, which is used when procuring complex projects. The new guidance aims to clarify a number of issues, with a view to lead to a reduction in the time and cost of many public sector procurements.

HM Treasury review of competitive dialogue

HM Treasury has a historical commitment to the Committee of Public Accounts (PAC) to review the impact of the competitive dialogue procurement process. Colleagues in the Cabinet Office’s Efficiency and Reform Group are currently undertaking a Lean Procurement Review to uncover the causes of delay in the procurement process and to suggest actions to rectify them.

It is hoped that the findings of this 18 months study will complement and contribute to this valuable piece of work and this report has been submitted as evidence to the ERG Review for their consideration.

Managing complex capital investment programmes using private finance

This model provides guidance to Departments on the Treasury’s and NAO’s expectations of how they should manage their programmes involving PPP and PFI projects.

Operational savings guidance

This guidance is the final version of the draft guidance by the same name which was published in January 2011. It is  intended to help government departments and local authorities identify opportunities to reduce the cost of operational Private Finance Initiative (PFI) contracts.

It highlights the need for strong contract management to achieve optimum performance from a PFI contract and suggests options public sector bodies may consider to reduce the cost of a contract.

It also includes sources of support and emphasises the importance of protecting value for money. The guidance draws on engagement with central and local government and the findings of savings pilots at Queen’s Hospital in Romford and Ministry of Defence projects.

Operational taskforce guidance

Improving the operational performance of projects.

Opinion letters

This OGC note explains why Government departments should not in future, as a matter of general policy, issue "opinion letters" on the powers of a particular department or authority to enter into a contract (usually a PFI contract) or on the authority of a particular official to sign the contract.

Joint venture guidance

This note looks at the issues associated with the creation and use of joint venture entities across the wider procurement spectrum.

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