PPP Strategic Partnership Database

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.

Executive Summary

  • 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.