Select Committee on Public Accounts Minutes of Evidence


Supplementary note from the Department for Transport Question 102 (Mr Alan Williams)

USE OF CONSULTANTS TO AUDIT LIGHT RAIL PROPOSALS

  Since 1999 the Department has used independent consultants to supplement its own review of certain aspects of the appraisal process:

    —  Modelling, demand, patronage, and monetised benefit forecasts.

    —  Capital costs and risks.

  On both of these areas the specialist knowledge and independence that an external audit could bring were thought to be an advantage.

  The Department has commissioned this work through two call-off contracts. The first contract was set up specifically for this work, and three firms successfully bid:

    W S Atkins

    Ove Arup

    Steer Davies Gleave

  On later schemes the Department has used and continues to use TRL through another technical services call-off contract.

  The table below sets out which firms have been used for each aspect of the external audit.
SchemeDate Cost AuditModelling Audit
Manchester2000Ove Arup Ove Arup
Midland Metro Extensions OBC2000 Ove ArupOve Arup
Leeds Supertram2001 Ove ArupOve Arup
Merseytram Line 1 OBC2001 Ove ArupOve Arup
South Hampshire Rapid Transit2001 Ove ArupOve Arup
Blackpool2002W S Atkins W S Atkins
Merseytram Line 22003 TRL*
Nottingham Line 22004 SDGSDG
Merseytram Line 1 FBC2005 TRL*

Footnotes:

* On-going

OBC—corresponds to the business case before Provisional Approval/Approval in Principle granted.

FBC is the term used for the business case after Provisional Approval/Approval in Principle.

Merseytram Line 1 has not been subject to a further cost audit as the FBC will contain the costs from actual bids.

Merseytram Line 2 is still under consideration.


 
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