In the context of ever evolving requirements, and to ensure the best value solution is provided, Infrastructure investment needs to be reviewed comprehensively and continuously.
For example, this can consider the future balance of trials ranges to reflect evolving equipment mixes or training facilities to match changes to personnel policies.
Arke has assessed various infrastructure projects, typically considering the definition of, and distribution between, fixed and variable cost components. A clear definition of fixed and variable is required to ensure there is clarity in how costs may vary within a change programme.
Generally, infrastructure investments are large value programmes which require consideration of various approaches to their long-term procurement and operation. Options such as Private Finance Initiatives (PFI), Government Owned Contractor Operated (GOCO), Public Private Partnerships (PPP), Government Owned Government Operated (GOGO) have all been tested in the Defence domain and all have their merits.
Going forward, these approaches must be continuously examined to ensure the best balance of affordability, flexibility and Value for Money is obtained.