6.2 As illustrated by this guidance note, a sensible way of managing the transition might be to consider it as two work streams running in parallel:
• a future delivery work stream which identifies and puts in place the arrangement for maintaining service delivery after the current Contract expires; and
• an exit work stream which ensures that the current contractual relationship is brought to an end efficiently and that there is a smooth transition into the new arrangement.
6.3 This does not imply that there needs to be two distinct teams; depending on the complexity of the project one team could deal with both work streams.
6.4 There must be open and frequent communication between the two workstreams to ensure that they both continue to progress towards the same timescale objective. Both will also need to provide for risk assessment, issue management, maintaining an audit trail and to have robust governance arrangements. Box 3 sets out the type of issues Authorities will need to consider as part of the plan.
6.5 The main objectives of the plan will be to implement the replacement arrangement without disruption to ongoing service delivery. In all exit options, maintaining this service continuity through the transition period will be a critical requirement and needs to be a condition of defining and approving all project plans. This is especially important if the services are business critical or if the incumbent Project Company does not expect to win follow-on business. Even if there is no wilful loss of the Project Company's motivation it may be tempted to begin reallocating key resources prior to the end of the term; the Authority needs to be alive to such possibilities and take preventive action where necessary.
6.6 Although the Authority's priority should always be to achieve the timescales set out in the plan such that the new arrangements are in place to start at the natural end of the existing Contract's term, the Authority should also consider what options it has to extend the current term should it need to do so, this issue is discussed further in the Appendix.
Box 3: Managing the plan As with any plan, the Authority should identify and periodically review: • activity timescales based on experience; • dependencies between activities; • external dependencies; • risks to the achievement of a successful and timely transition; • issues that need to be addressed prior to completion of transition; • contingency allowances, especially to cater for high risk activities and/or those which commonly over-run (e.g. approvals); • resource requirements – especially on the Authority side – and a process to secure those resources; and • budget required – and a process to secure it. |