SBS is unlikely to make its projected returns

2.5  The deal, under a fixed price regime, transferred appropriate risks, as shown at Appendix 4, to SBS who considered that it had more control over this project than its previous public sector projects, as NS&I transferred all of its staff and assets to the private sector. The Committee of Public Accounts in its report on the partnership expressed concern about SBS's ability to achieve the business transformation by the target date of December 2000. By May 2002, SBS had delivered 87 per cent of NS&I's total requirements. As a result, SBS has incurred greater capital expenditure. This and the crystallisation of other risks - employing more staff, creation of fewer third party jobs, and maintenance of the three sites - have had a significant impact on SBS's ability to make its projected return of 8.7 per cent, and it is more likely to make a loss.