What do PFI consultants cost the MoD?

#1
The answer is.........

The specific information is not held centrally and could be provided only at disproportionate cost.
Haven't I heard this quote used somewhere before , during the "Who is authorised to wander willy-nilly round the Purple Puzzle Palace" row I think?

From Hansard - 180507

Departments: Consultants
Mr. Hoban: To ask the Secretary of State for Defence which external consultants were used by (a) his Department and (b) each of its agencies in relation to private finance initiatives in 2005-06; and what the (i) nature and (ii) cost of the work was in each case. [123013]

Mr. Ingram: The specific information is not held centrally and could be provided only at disproportionate cost.

The Department uses external consultants to provide specialist commercial, financial and legal services to Integrated Project Teams to assist in the delivery of services (both PFI and non PFI). In addition, ad-hoc specialist technical consultants are engaged in particular areas where in-house expertise is not available.

During 2005-06 the MOD spent £47.2 million on external consultancy services to support teams seeking to engage industry in the delivery of public-private partnerships (PPP) including PFI and wider markets.

Summaries of MOD expenditure on external assistance, of which public-private partnerships (PPP) including PFI and wider markets is a part, are available in the Libraries of both Houses for the years 1995-96 to 2005-06.
£47.2 Million spent in asking Industry to get into PFI with the MoD?
 
#2
MOD pays quite low rates for consulting services, it's not a particularly attractive market to get into unless you're a big body-shop or one of the niche firms with lots of ex-service who're quite cheap to employ.

Tech support to DPA projects is generally between £900 and £1800 per day, per consultant, although the day rate reduces if you contract the firm for a longer period or have a framework contract in place.

When you think that some projects have got a high proportion of contractors body-shopped in because you can't get civil servants to fill the jobs; DFN IPT have got hordes of BT-badged independents, DII have a lot, CSIS, Astute, CVF and T45.

I'd say that £47M is probably quite low, but then again if you didn't pay for it in support you'd pay for it on the wage bill.
 

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