We summarise below the Department's progress on implementing recommendations in the Committee of Public Accounts report on The STEPS deal, Twentieth Report of Session 2004-05, June 2005.
PAC Recommendations | Progress | Reference |
Negotiations between the Department and Mapeley on outstanding claims arising from the procurement process have still to be concluded. It is important that they should meet their objective of concluding negotiations by Spring 2005. | The Department concluded negotiations on outstanding claims in December 2005. | |
They should aim to agree a performance measurement system that balances rewards and reductions in payments. | The Department and Mapeley began operating the revised performance measurement system in April 2005. It has not yet been incorporated into the contract. | |
It was a very serious blow for the Inland Revenue to have entered into a contract with tax avoiders. Departments should as far as possible discount gains from tax avoidance that may be factored into a PFI bid, since any price advantage to the Exchequer is likely to be offset by lower tax revenue. | HM Treasury guidance is that generally tax avoidance schemes should not be used. | |
Departments need to ensure that they retain a real option to terminate a deal in the event of contractor default. | The Department has sought to understand its termination rights. There are also implications from potential contractor default that the Department began assessing at the end of 2008. |