Some Questions and Answers
Is Public Private Partnerships (PPP) the first step towards contracting out responsibility for the provision of education?
No. Public Private Partnerships are about placing risk where it is best managed. By contracting with the private sector for the provision of ancillary services schools can concentrate on the core business of education. Teaching and the delivery of the curriculum remain the responsibility of the public sector.
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What does a school’s PPP project really involve?
School PPP projects involve buying asset related services for schools from the private sector. PPP projects can involve design, build, finance and operation of a package of services for a single school or a number of schools. A key difference from conventional procurement is that PPP normally involves school authorities specifying outputs (such as minimum and maximum temperatures for classrooms), as opposed to inputs (such as the number and type of heaters). This enables the private sector to develop innovative and cost effective solutions within the public sector.
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Can all schools get PPP contracts?
PPP is not an appropriate method of procurement in all circumstances. Smaller capital projects, particularly some in the primary sector, do not lend themselves to PPP as the relative costs of bidding for capital investment make it difficult to achieve deals that represent value for money (VFM). There is scope, however, for bringing smaller projects together to create a single project group (called a cluster) which will represent better VFM, whilst at the same time meeting the full educational needs of the schools.
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Who advertises for PPP bids and where are the advertisements placed?
The School Authority places an advertisement in the Official Journal of the European Union (OJEU) and usually also in the local press.
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What sort of companies are involved in PPP?
Primarily, construction and facilities management companies, banks and other financial institutions have been involved. This is generally organised through the establishment of a Special Purpose Vehicle (SPV).
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The PPP process takes too long.
The Department now has standard procurement documentation that is designed to speed up the competitive process. A continuous review is in place. The Strategic Investment Board has produced guidance on standardisation of Private Finance Initiative (PFI) contracts in Northern Ireland (NI).
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Who decides the schools opening hours and teaching staff hours in PPP projects?
School opening hours are determined by each individual school and are written into the terms of the PPP contract. Teachers are required to fit in with curriculum hours set by the Principal or Board of Governors.
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How does the Department ensure that PPP operators do not make windfall profits from the sale of surplus land?
Surplus land deals are not a feature of all PPP projects. Surplus land only becomes an issue when the PPP operator is able to provide the full range of educational facilities required to deliver the Northern Ireland Curriculum on a portion of the available site. Any land not required for educational purposes is valued at current market rate by the Valuation and Land Agency and the value is included as part of the wider PPP deal. Contracts may provide for the sharing of profits above a specified level between the operator and the school authorities.
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