Yes. Both are subject to the fair tender process, in the case of the current system government money goes directly to Not Dodgy Company R Us Ltd.
Under PFI, the government borrows money from commercial entities (at very high interest rates and great terms for the bank) to give to Not Dodgy Company R Us. The government, in effect, ends up spending twice as much as the contract is worth for the same result, but lines the pockets of more commercial entities along the way.
Both circumstances are awful, the first is slightly less awful.
The problem with fair tender, under the current government, is that it wasn't "fair" and contracts went to friends and cronies. There needs to be more oversight to whom the contacts are given, and any commercial interests members of the government may have in them.