5.14 All PFI procurements should follow the approach set out in SoPC3 14 and the relevant implementation letters issued by HM Treasury on Standardisation of Contracts. The overall aim of this approach is to establish the use of SoPC3 and sector specific contracts in order to frame a risk profile for the PFI procurement which provides proper incentives for the private sector to perform efficiently. VfM judgements should be made on the basis that the risk allocation is given in this context.
5.15 It is government policy to use SoPC3 and the risk profile that is sets out in all circumstances and procuring authorities should avoid alterations as this is likely to impact transaction costs. Procuring authorities should also note the Dear Accounting Officer letter on tax planning and tax avoidance15.
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14 HMT http://www.hm-treasury.gov.uk/media/2CF/CA/PPP_SoPC_implementation _ver3_apr04.pdf
15 HMT http://www.hm-treasury.gov.uk/media/1EF/41/dao0803.pdf