2.42 In addition to the £26 million PFI fee Defence Management also passes on directly to the Department, with no mark-up, the costs of certain other items, mainly utilities, that it purchases on the College's behalf. This reflects the arrangements on other PFI contracts we have examined where the contractor has only been willing to provide such items at cost since it has had no control over its public sector client's usage of these items. These items cost the College £2 million a year at 2000 prices. The College considers that these costs offer it the only opportunity for making its required efficiency savings as there is no scope for such savings in the other payments it makes (paragraph 1.15). While the PFI contract does require Defence Management to take all reasonable steps to ensure that it pays the lowest available price for these cost pass-through items, the company has no direct financial incentive to help the College to control these costs. The College is currently considering how it can provide Defence Management with such an incentive.