FSTA-When?
Joined: Nov 2000
Posts: 715
Likes: 0
From: Far far away
The reports on the NAO's statement about PFIs and the public sector being overcharged by the private sector under PFI contracts makes me shiver.
http://www.timesonline.co.uk/tol/new...cle3200990.ece
http://www.timesonline.co.uk/tol/new...cle3200990.ece
Joined: May 1999
Aviation Qualifications: ATP+Mil
Posts: 27,400
Likes: 857
From: Quite near 'An aerodrome somewhere in England'
Indeed.....
PFIs should, by definition, cost the tax payer more than 'traditional' procurement. Because - and this may come as a shock to some - the PFI provider does expect to make a profit. They're not charities!
PFIs are supposed to make things fiscally easier by spreading the cost over the whole period of the contract. Whereas (in simple terms) conventional procurement would involve a lump sum which may be out of reach.....
It's a bit like replacing a car. If you only have £10000 available, you can't buy a £50000 car immediately. You could try hire purchase over 4 years, but that'll increase the cost because of interest - although at least the car will be yours after 4 years. Or, instead of acquiring your own 'asset' you contract your 'transport service' from a car rental firm; cheap for a few years, perhaps, but eventually a lot more expensive - and the car will never be yours.
Or take the VC10 approach and keep trying to keep your old Ford Zephyr patched up for another 12 years......
. Because you haven't even got £10000 to spare as some thief has used it to pay for a war he can't afford himself.
But rip-off prices paid for simple tasks? Hasn't MoD often paid silly prices in the past for basic items? Remember the Mini alternator saga - cost to MoD was 5 times the price at Unipart, if I recall correctly.
PFIs should, by definition, cost the tax payer more than 'traditional' procurement. Because - and this may come as a shock to some - the PFI provider does expect to make a profit. They're not charities!
PFIs are supposed to make things fiscally easier by spreading the cost over the whole period of the contract. Whereas (in simple terms) conventional procurement would involve a lump sum which may be out of reach.....
It's a bit like replacing a car. If you only have £10000 available, you can't buy a £50000 car immediately. You could try hire purchase over 4 years, but that'll increase the cost because of interest - although at least the car will be yours after 4 years. Or, instead of acquiring your own 'asset' you contract your 'transport service' from a car rental firm; cheap for a few years, perhaps, but eventually a lot more expensive - and the car will never be yours.
Or take the VC10 approach and keep trying to keep your old Ford Zephyr patched up for another 12 years......
. Because you haven't even got £10000 to spare as some thief has used it to pay for a war he can't afford himself.But rip-off prices paid for simple tasks? Hasn't MoD often paid silly prices in the past for basic items? Remember the Mini alternator saga - cost to MoD was 5 times the price at Unipart, if I recall correctly.
Joined: Jul 2004
Posts: 816
Likes: 0
From: Devon, England
There have been some CBY boys wanting to cross the Atlantic all week this week (Yes i have been listening to my scanner).
After several days they really thought they were going yesterday but then i had a TriStar orbiting the area with problems eventually RTB.
Up just now, had the Tonkas come back overhead to RV with another Tristar and again the crew have just had to shut down an engine and RTB.
The pilots words said it all when he had to tell the Tonkas...
Any European country care to lend the MoD a serviceable tanker?
After several days they really thought they were going yesterday but then i had a TriStar orbiting the area with problems eventually RTB.
Up just now, had the Tonkas come back overhead to RV with another Tristar and again the crew have just had to shut down an engine and RTB.
The pilots words said it all when he had to tell the Tonkas...
Any European country care to lend the MoD a serviceable tanker?
