Part 1  The deal gives MOD what it set out to procure

1.1  This part of the report shows that the project will bring MOD significant benefits and has the appropriate features of a PFI deal. It should enable MOD to achieve its objective of accommodating a reduced number of head office staff in two buildings allowing it to reduce the size of its London estate. The deal provides incentives to Modus to complete this major project on time, without varying the cost to MOD, and to then provide the specified standards of service. The contract with Modus allows MOD flexibility on reducing the space it occupies but MOD identified that there were a further 1,000 non-Head Office staff who should remain in London, and signed a separate deal to accommodate them.

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