An annual report and tables on PPP strategic partnerships in ICT and corporate services, planning, education, police, fire and rescue, property, highway services and waste management.
- The number of PPP strategic partnerships has increased 35% in just two years with 18 additional contracts valued at £8bn.
- 65 strategic partnership contracts have been awarded since 1998 worth £14.2bn and employed over 28,600 staff when the projects commenced.
- Strategic partnerships originated in ICT and corporate services, but have extended into planning, education, police, fire and rescue and property services.
- 60 contracts are currently operating, four were terminated and one completed the contract term, but was not renewed. A further two are being terminated in 2014.
- The new Strategic Partnership Performance Ratio is 22.0% (combining contract terminations, major reductions in the scope of contracts, and significant problems in contracts).
- Three companies – Capita, BT and Mouchel have a 58.9% market share of operational contracts by contract value and 63.2% share of staff employed.
- 67.6% of staff were TUPE transferred with a further 2.5% transferred under TUPE Plus. In addition, 26.8% of staff were seconded or transferred to a joint venture company between the authority and contractor.
- Just over 38% of operational contracts are in the North (the North East, North West and Yorkshire and Humberside regions) with 32.8% of contract value and 38.4% of jobs. The North had a 50% share of contracts in 2011 and the shift southwards illustrates significant increases in the value of contracts in the West Midlands, London and the South East/South.
- Fifteen local authorities developed strategic partnership projects, in many cases reaching the procurement stage, but ultimately rejected this approach. One of these authorities later retendered and established a strategic partnership. One local authority (Newcastle City Council) submitted an in-house bid, which was successfully implemented.
- Four ‘whole service’ twenty-five year highway services contracts are operational worth £6.1bn and employ 1,015 staff.
- 45 waste management contracts are in operation, virtually all PFI projects valued at £29.8bn, of which nine include household waste collection and other local environmental services.
Seven-year trends: A comparison of the 2012/2013 and 2007 PPP Databases reveals:
- The number of strategic partnerships increased 80% in a seven-year period.
- The level of contract terminations and problems has remained at the same high level at over 22%.
- The total value of contracts increased 87.7% and the number of staff involved increased by 88.9%.
- Capita, BT and Mouchel retain their position as the three largest contractors by number of contracts, value and number of staff, but their share by value declined from 65.4% in 2007 to 58.9% by the end of 2013. Their share of the number of staff employed in operational strategic partnerships fell from 70.2% to 64.1% in the same period.