1.1 HM Treasury announced the creation of the Operational Taskforce within Partnerships UK in the policy document "PFI: Strengthening Long Term Partnerships" published in March 2006. The Taskforce provides guidance and assistance to the public sector in managing operational PFI projects.
1.2 "Operational Taskforce Note 4: Guidance on PFI Contract Expiry is designed to assist public sector Contract Managers in managing the transition from a PFI Contract to whatever new arrangement may be set up to succeed it.
1.3 This guidance is generic in nature in order to cover the broad range of PFI Contracts and sets out the key considerations in planning for the end of an operational project's Contract term.
1.4 The exact nature and duration of the activities required to wind down, and optionally to replace, an operational project can vary considerably depending on the Contract, on future service requirements and, where appropriate, on the future procurement strategy. In particular there are different issues to be considered depending on whether the project assets are:
• property/infrastructure, where the assets are likely to survive the end of the current contract; or
• equipment/information technology, where any continuation of service after the end of the current contract is likely to involve a major refresh and possibly wholesale replacement.
1.5 Wherever these differences are significant they are highlighted in this guidance.
1.6 Despite these differences, in most cases the key issues will be the same for all projects. The over-riding consideration must always be to ensure that the Authority allows itself sufficient time to plan and implement whatever form of exit/transition is required.
1.7 It is recognised that for most projects, the natural expiry date is still many years into the future, although there are some, mostly IT related, contracts that have already expired or are due to do so in the near future. This guidance will be reviewed on a regular basis as experience in managing the exit from a contract is built up.