3.  ANNUAL SERVICES REPORT AND ANNUAL SERVICES PLAN

3.1.  Without prejudice to any other provision in this Contract the Contractor shall, at its own cost, provide to the Authority a written report (the "Annual Services Report") in accordance with the requirements of the Service Requirements and the Best Value Assistance and Reporting Method Statement.60

3.2.  The Contractor shall upon a written request from the Authority promptly provide such written evidence or other supporting information as the Authority may reasonably require to verify and audit the information and other material contained in the Annual Services Report.

3.3.  If, in the Authority's reasonable opinion, the provision, performance or delivery of the Services (or any part) may be more effective, efficient and economic having regard to the Annual Services Report and the Best Value Duty, then the Authority may serve a written notice upon the Contractor (a "Best Value Services Change Notice") stating the nature and timing of the changes to the provision, performance or delivery of the Services (or the relevant part) which the Authority desires.

3.4.  The Contractor shall, within [             ] Business Days of the date of receipt of the Best Value Services Change Notice, provide the Authority at its own cost with a written statement (the "Annual Services Plan") containing the [Services Delivery Proposals] to achieve the change to the Services (or the relevant part) in accordance with the Best Value Services Change Notice.

3.5.  As soon as practicable after the Authority receives the Annual Services Plan, the Parties shall discuss and agree the issues set out in the Annual Services Plan.  In such discussions the Authority may modify the Best Value Services Change Notice, in which case the Contractor shall, as soon as practicable, and in any event not more than [             ] Business Days after the receipt of such modification, notify the Authority of any consequential changes to the Annual Services Plan.

3.6.  If the Parties cannot agree on the contents of the Annual Services Plan then the dispute will be determined in accordance with the Dispute Resolution Procedure.

3.7.  As soon as practicable after the content of the Annual Services Plan has been agreed or otherwise determined pursuant to the Dispute Resolution Procedure the Authority shall:

(a)  confirm in writing the Annual Services Plan; or

(b)  withdraw the Best Value Services Change Notice.

3.8.  If the Authority does not confirm the Annual Services Plan within [             ] Business Days of the Annual Services Plan having been agreed or otherwise determined pursuant to the Dispute Resolution Procedure then the Annual Services Plan shall be deemed to have been withdrawn.

3.9.  If the Authority confirms the Annual Services Plan the Authority shall submit an Authority Change Notice.

3.10.  The Contractor shall take all reasonable steps to mitigate any costs and maximise any savings arising as a consequence of a Best Value Services Change Notice and an Authority Change Notice served pursuant to paragraph 3.9 (Annual Services Report and Annual Services Plan).

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60  Interface with the Authority's Requirements.