2.11 Value testing presents a good opportunity for the Authority to review the specifications of soft services. The Authority can, of course, seek to change requirements at any time, but linking changes to a market test gives the Authority the chance to re-scope requirements in a competitive environment.
2.12 Reviewing specifications may result in adjustments to service levels that more closely meet the Authority's objectives and the needs of users. Such a re-balancing of the contract will help the Authority obtain optimum value from the exercise. As part of this review, the Authority may decide to bring services back in-house, but will need to be aware that this will involve a full risk assessment, a renegotiation of the contract and potential costs associated with such actions.
Box 2.3 Two Examples of Identifying Changing Needs |
1. In a hospital project, the Authority decided that the frequency of some office cleaning activities and the twenty four hour provision of porters were no longer necessary, and obtained cost savings by reducing the requirements. These savings were used to partially fund increased levels of laundry provision, because of an increase in the number of beds. 2. In an office accommodation project, it became apparent after the contract had become operational that, at peak times, the reception area and security system were unable to cope efficiently with the flow of visitors. In revising the output specification for these services, the Authority was able to encourage innovative approaches to solving this problem. |