PFI Programme Support

The Isle of Wight Council (“the Authority”) invites Tenders from suitably qualified suppliers (“Potential Suppliers”) for the provision of PFI Programme Support.

The Authority is seeking assistance for its Highways Team with several outstanding issues relating to the management of its highways PFI contract. Successful delivery of the contract, now approaching the end of its core investment period, is a key priority for the Authority.

The Authority entered into a twenty-five-year Highways PFI Contract with Island Road Services commencing 1st April 2013 for the maintenance and upgrade of the Island’s publically maintainable highways. The contract is worth £0.72bn over 25 years and is supported by £430m of non-repayable grant from the Department for Transport (DfT).

Due to on going budgetary pressures the Authority needs to make financial savings from the PFI contract of c£2m pa. It has identified several possible options for reducing the cost of the contract through a current consultant support arrangement. These savings and others are required to be implemented without impacting on the integrity of the contract. Several PFI contractual disagreements have arisen that need to be resolved alongside delivery of cost reductions.

The Authority requires the Service Provider to enable successful resolution of the contractual disagreements and the continuation of work to agree a deliverable cost reduction programme. Legal advice will be available to the Service Provider having been procured under a separate arrangement.

The Authority requires support led by an individual Consultant for 3 days a week for a period of up to 12 months depending on completion of the project and the Authority’s needs. Therefore the term of the contract will be no longer than 12 months. The contract is due to commence on 1 March 2019.