In 2008, the Labour leadership remains committed to using Private Finance Inititative, and this is clear by the approach taken by the UK Defence industry. It is seen that together with private investment, public sector investment is delivering improvements to capital assets across the public sector.
In 2005-2006, apm supported the Amey Lex Consortium (ALC) through the tender process of the Ministry of Defence (MoD) C Vehicle Capability Private Finance Inititative programme, providing Commercial Management, Financial & Cost Modelling, Performance Modelling and Risk Management.
Primarily, we developed a Cost and Payment Mechanism Model used to optimise the delivery of military vehicles during peacetime, with the ability to increase the level of service to meet war time operational requirements. We modelled over 200 different asset types including capital and operating expenditure over 15 year contract period. Modelling accounted for:
- Purchase, depreciation and disposal of assets
- Costing of planned and reactive maintenance including spares and labour
- Allocation of overheads costs
- Calculation of vehicle availability and usage charges