Conclusion

The procurement process can be lengthy. More than two years elapsed between placing the advertisement in the recognised European trade journal, OJEC, and completing the negotiation process. Twenty applications were received, and at the end of the process, FOCSA Services Ltd was selected as the ‘preferred partner’.

The arrangements for payment by Hereford and Worcester local authorities were included in the contract. These payments were based on the tonnage of waste processed with a supplement for recycling and recovery. Additional concerns to the local authorities include the threat of protestor action and whether a PFI provides a cost-effective solution.

The completion of the PFI means that Hereford and Worcester were the first local authorities to negotiate a PFI for a fully-integrated waste management service. The contract is now in place to run for 25 years.

The Financial Advisory Services at PricewaterhouseCoopers advised the local authority and managed the procurement process for the PFI. Advisers at PricewaterhouseCoopers are experienced in representing the public and private sectors and in all cases are committed to establishing the best deal possible for their clients.

Case 11.6. «Costing aircraft components»

A British Aerospace case study

Introduction

When we think about the cost of an aircraft, we tend to think of the cost of buying the product rather than the costs of running it! British Aerospace’s service to the customer does not stop at the aircraft acquisition stage, when the aeroplane is sold to the customer. If anything, this is when the customer relationship begins.

This case study focuses upon the processes involved in costing aircraft components. Given the high specifications to which designers have to work, it is important to develop a price for customers which provides ‘Customer Satisfaction at Competitive Cost.’ British Aerospace is a major player in the world aviation industry. Its Military Aircraft Division aims ‘to remain number one in Europe and World Leader in the Military Aircraft Business.’

<== попередня сторінка	\|	наступна сторінка ==>
The contract and the risks	\|	The design challenge

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