9.23 Fitting IM&T into a larger PPP procurement involving the provision of services and facilities is a complex and difficult task. It has not been successful to date in UK PPP. NHS bodies should only proceed with this if they are confident that they will be able to address the additional complexities that arise at the same time as dealing with the larger procurement. Factors which should first be considered include:
• the economic life of IM&T assets is likely to be considerably shorter than that of the facilities and technological development is at a fast rate;
• the IM&T to be provided in the new facility may not be procured for several years yet, as it will not need to be available until the facilities are completed;
• how the provision of IM&T services will affect the availability of other services and facilities through the payment mechanism and how such risks will be allocated between members of the project company and the financiers to the scheme;
• the degree of likely competition during the procurement process between IM&T service providers in order to ensure best value for money for the NHS.
9.24 Because of the rapid pace of technological development in the field of IM&T, where IM&T is to be included within the main project agreement, NHS bodies should explicitly limit the length of the IM&T element of the main contract to seven to 10 years. Typically, this is expressed as a seven or eight year subcontract with optional extension periods of up to three years to give some flexibility at the end of the contract term.
9.25 At the end of the term of the IM&T subcontract, the NHS body should retain a free hand to act according to procurement regulations that will be in force at the time. The NHS body should consider the following options:
• to competitively re-tender the service (and the incumbent project company could bid as well as other IM&T suppliers) for a further seven to eight year period;
• to take the service back in house.
The NHS body will also need to address what will happen to any equipment which has a residual value at the contract end. It should reserve the right to purchase the IM&T equipment or to have a new supplier who wins a tender to purchase the IM&T equipment.
9.26 The Full Business Case for a project must include a reference to the interface of the NHS body's operations with IM&T. This reference should include a summary of the NHS body's IM&T strategy and how it relates to the project. The FBC should also address the benefits identification and realisation process resulting from the implementation of IM&T services. It should specifically identify where the main scheme relies on benefits generated through the IM&T component and the implications if they fail to be realised. The project's benefit realisation plan must include benefits which will result directly from the IM&T element of the main project contract.
9.27 Where IM&T is included within the main project then a separate business case is not required, provided the IM&T element falls within delegated limits. Where IM&T is to be procured separately, then this should be treated as a separate project and the processes outlined in the Scottish Capital Investment Manual should be followed with a separate business case. Where the main (construction and services) project falls within delegated limits, but the IM&T element is above delegated limits, then approval will be required for the IM&T element. NHS bodies should agree with the SGHD whether a single or separate business cases would be required on a case-by-case basis.