3.9 Over the life of the contract the Department has sought to improve its understanding of risks and assess options for the future using legal, property management, and economic advisers to advise on risks, the implications of contract termination, extended lease and rental deals, use of flexibility provisions, and Mapeley's solvency. It has not always been clear whether the Department has considered the recommendations and taken action where necessary. For example, several advisers have recommended that the Department should have in place a full business continuity plan to cover the risks of Mapeley default. The Department carried out some work in 2003 but did not keep it up to date. In January 2009 it began to construct a full revised business continuity plan to cover the risks of Mapeley default.15 The Department has not always provided advisers with complete information or sought data from Mapeley that may have informed the reviews.
3.10 The Department has also sought to manage risk by monitoring Mapeley's position and performance. It has set up a Commercial Stability Analysis Function to monitor and report on the financial viability of all its estates contractors. While the Department has access to Mapeley STEPS Contractor Limited's accounts, the contract does not include provisions for access to Mapeley's full financial information and financing arrangements. It monitors Mapeley through publicly available information such as annual accounts, movements in share price, and press articles. Under Treasury guidance for standard private finance initiative contracts, revised in 2007, departments should obtain full access to financial information.
3.11 The contract sets out the circumstances in which the Department or Mapeley could terminate the contract. The Department has no right to voluntarily terminate the contract. Voluntary termination rights were not included in the original PRIME contract, but the Department for Work and Pensions negotiated them as part of the expansion. Voluntary termination rights would give the Department more flexibility to respond to changing circumstances, although negotiating these rights would come at a significant cost.
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15 It has plans for individual buildings to cover risks such as fire and flood.