4.14 The original contract was for ten years with the option to extend it for a further five years. NS&I and SBS signed a Letter of Intent in August 2002 indicating both sides' willingness to commit to a further contractual period, potentially making a commitment15 on 1 April 2004 to last until 31 March 2014. Such an extension, if it were to be mutually agreed would allow SBS to consider it effectively has a 15-year contract with NS&I and to continue to invest in the business with the prospect of improving its financial results.
4.15 NS&I will also benefit from a 15-year contract, as it will pay a lower unitary charge from years 10 to 15, regardless of SBS's costs ensuring that the risks remain with SBS. A longer term should also ensure SBS completes the business transformation in full, before the return of the business to NS&I or transfer to another provider.
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15 This commitment is subject to a variety of provisions including ministerial consent in 2004, satisfactory service delivery, government policy and the discretion of the Director of Savings.