9.28 Equipment provision in PPP schemes has many of the same characteristics as IM&T and therefore many of the same potential pitfalls.
9.29 The FBC should confirm that an equipment audit has been undertaken which has confirmed the assumptions used in the FBC for the amount of equipment which can be transferred to the new build and/or transferred to the private sector operator.
9.30 For equipment to be supplied under the PPP contract, the NHS body should confirm to its satisfaction that the PPP partner has involved the necessary equipment suppliers in the process to date. In particular, payment mechanism requirements must be addressed.
9.31 For equipment to be provided outside of the PPP contract, the NHS body should identify how it will be financed and what the timescales for procurement are. The NHS body should also ensure that requirements of major medical or scientific equipment have been taken into account in designs and sufficient time has been allowed for procurement and delivery lead times.
9.32 The decision on whether medical and scientific equipment should remain as part of the main project agreement for its full term (i.e. usually 25-30 years) or whether there should be a shorter contract length or break points at the NHS body's discretion should be made by the NHS body depending upon the circumstances of the individual scheme.
9.33 NHS bodies should not lock themselves into a sole supplier for the whole contract term. The contract should allow the NHS body to specify that equipment from alternative suppliers can be sourced (through the project company) which meets the output specifications.
9.34 Where a PPP transaction can be broken down into separate components, these must be considered separately for the purposes of accounting treatment. An element of the PPP scheme may be considered separable for a number of reasons, for example because the contract for that element run for a different length. This should be taken into account when deciding the balance sheet treatment of IM&T and equipment. The accounting treatment of proposals may change following the 2008 introduction of IFRS and suitable advice should be sought.