Delivering Value-for-Money in the Operating Phase of Public Private Partnership: Interview Findings

Abstract

Although it is the responsibility of private consortia to deliver agreed services under Public Private Partnership arrangements, government is accountable to tax payers for achieving Value-for-Money. The public partner must therefore provide effective contract management oversight during the operating phase to ensure intended outcomes are attained. Literature review is used to identify issues relating to Value-for-Money achievement. These are then explored through interviews with 34 senior public and private partner industry representatives from Australia and the United Kingdom. Key interview findings relate to the adoption of a flexible approach for achieving Value-for-Money; techniques for assessing Value-for-Money during the operating phase; and the importance of improving public employee capability and expertise in delivering Value-for-Money outcomes. Effective oversight by the public partner in managing Public Private Partnership contracts will increase the likelihood that intended Value-for-Money outcomes are achieved in practice.