23. A Joint Working Group (JWG), established by DVTA and the contractors in May 2002, achieved little tangible progress in resolving the difficulties being experienced (paragraphs 4.2 to 4.4). In September 2002, DVTA formally notified the contractors that it intended to make limited deductions on the basis that they were failing to meet the 18-minute contract test time at the Larne test centre. However, DVTA did not proceed with this course of action, in light of increased commitment by the contractors to the JWG, and made no further moves to implement deductions (paragraphs 4.2 to 4.4 and 4.6 to 4.7).
24. Consultants have estimated that full testing, which DVTA introduced in March 2006, could result in tests increasing to between 25 and 29 minutes. Such an outcome would result in capacity becoming exhausted in some test centres as early as 2006-07, and at 10 of the 15 centres by 2010-11 (paragraphs 4.8 to 4.10).
25. DVTA estimated that a move to a 27-minute booking slot would result in additional expenditure of between £26.8 million and £39.8 million. However, there has been a subsequent improvement in test times, and we estimate that the total additional costs are likely to be in the region of £33.3 million (paragraphs 4.11 to 4.15).
26. In our view, it is important that DVTA moves quickly to prepare a complete and accurate estimate of both the total additional expenditure required as a result of the failure to achieve the 18-minute test, and the proportion which it will seek to recover from the contractors (paragraphs 4.16 to 4.18).
27. If DVTA is unable to determine the reasons for the variable productivity across its test centres, it is unlikely that it will be able to demonstrate that the contractors bear any liability for the failure to achieve the 18-minute test. Consequently, it will be poorly placed to implement deductions and will also be unable to terminate the contract. DVTA would then be faced with the likelihood of having to fund the significant costs of providing additional capacity, and having to increase test fees accordingly (paragraphs 4.24 and 4.25).
28. When negotiations on the current contract have been concluded, and before committing itself to any further significant expenditure, we recommend that DVTA undertakes a revised business case for the MOT2 project, which takes account of all additional costs incurred to date, together with any revised estimates for possible future expenditure that it may incur. In order to obtain a fully objective opinion, we consider that this reassessment should be carried out by a party fully independent of those involved in the initial appraisal and procurement processes. The potential for capacity to be exhausted at some centres by 2006-07 means that negotiations with the contractors, and this business case, should both now be completed as a matter of urgency (paragraph 4.26).