Some thoughts on a system for the performance audit of the operational stage of long term partnerships with the private sector for the provision of public sector services

Increasingly, governments use the private sector to deliver public services, creating a significant need for a method of evaluation. While there is copious detailed guidance on contract design, contract negotiation and contract completion and even the early operational stage of these 'private provision of public service' arrangements, there is little to no guidance on the mature operational stage. This paper considers the development of a theoretically and empirically based post project evaluation model. In developing a model, the researchers firstly find that Economy, Efficiency and Effectiveness (the 3Es) are key for assessing value for money in private provision of public service arrangements and these concepts are central to any performance audit. The nature of the 3Es is, however, dependent on the context of the activity under review. In order for evaluation to be effective, the 3E and their context must be defined and outlined in the initial contract phase. Secondly, two audit roles need to be recognised and undertaken. These are the watchdog, in which information is provided to parliament and the public to establish accountability, and the sheepdog, in which public bodies are shepherded towards improved performance. These two roles must both be present in undertaking performance audits. These audit roles require dialogic evaluation in which the auditor acts as a 'critical interpreter', involved in active discourse with the actors, concerned about the success of the project being evaluated but, at the same time, able to 'interpret' and 'confront'.