The Department transferred the estate in return for reduced rentals over the contract's life

1.30  The Department transferred the estate to the successful bidder in return for reduced rentals over the contract period rather than requiring an up-front payment. The Contributions Agency informed this decision by inviting the last three bidders to submit bids both with and without a payment. The Agency found that the winning bidder, NEP offered a payment of around £66 million (in present value terms), but that this payment would increase the Department's annual payments to NEP by £78 million (in present value terms) over the life of the contract. They therefore decided, in agreement with the Department and Treasury, not to require an up-front payment.