2.23 NS&I set more challenging performance targets, shown in Figure 6, for SBS as the contract progressed on the assumption that SBS delivered the full business transformation by December 2000. The failure to achieve this has had serious implications for SBS. In Part 4 of the report we show how NS&I and SBS are addressing this issue.
2.24 In the first four years of the contract, SBS achieved 98 per cent of the performance targets NS&I set. In the fourth year of the contract SBS paid performance deductions of £454,900 compared to £1.3 million in the third, £0.7 million in the second and £0.1 million in the first (Figure 7).