Transition refers to the changeover from one contractor to another, from one contractual arrangement to another, or the continuation of an existing arrangement on a different basis. The transition phase will generally involve:

•  undertaking a new tender process;

•  re-negotiating the contract with the current contractor; or

•  taking up options in the current contract to extend its life, based on an assessment of value for money.

The foundations for managing the transition to new contractual arrangements should have been addressed in the initial contract or in plans to manage the procurement. This may entail the contractor preparing a transition-out strategy or plan at a specified time for approval by the acquiring entity.109 The contract or transition-out strategy should cover the transfer of records, information or equipment.

In complex arrangements, the transition can extend over a significant period of time. This needs to be considered in undertaking a new procurement process so that all the necessary processes are completed prior to the original contract ending. In cases where a new contractual arrangement has not been completed, acquiring entities may seek to continue to operate with the original contractor. If this is being considered, the arrangement should be consistent with the principles of open competition and value for money.

In complex arrangements, the transition can extend over a significant period of time.

Tender processes will often need to be conducted for a new service provider in parallel with the continued provision of services by the existing contractor. The existing contractor must be treated n the same way as any other tenderer, to the extent possible, and actual and perceptions of bias in the treatment of tenderers should be avoided. The acquiring entity needs to assume responsibility for such things as briefings to the market, the development of the request for tender and the provision of any information regarding the process. To give effect to the principles of fairness and equity, these tasks should not be undertaken by the existing provider.

Particular care needs to be exercised by the acquiring entity to ensure a systematic and disciplined approach to re-tendering to ensure probity of process and equal access to information by all potential tenderers. Where the existing contractor has access to the acquiring entity information systems it is important that the tender evaluation process is undertaken in such a way that they do not have access to any material related to the tender process. This may necessitate the use of a separate computer and other facilities to create and store relevant records and information.