3.5 Prior to the Information Memorandum stage, National Savings consulted its advisers and potential bidders on how the deal could best provide value for money. At the Information Memorandum stage, National Savings sought to establish, in detail, from the four remaining bidders their thoughts on the likely benefits of a public-private partnership and how the project could best be implemented to maximise those benefits. The Information Memorandum was designed as an open-ended document to encourage creative proposals and National Savings regarded it as a consultative process, although indicative prices were required as part of the bids. Following this process, National Savings judged that there were a number of key commercial drivers affecting the ability of the private sector to deliver a high quality and value for money operational service. The commercial drivers were:
a) to maximise the potential for efficiencies and economies of scale, a single integrated package of services comprising all of National Savings' current operational processing should be transferred to a single private sector provider, along with all of the staff and other assets of the operational service;
b) the private sector's ability to use surplus capacity for third party work could help to minimise the human and financial costs of future reductions in staff and offered the prospect of additional income for National Savings if such work was profitable; and
c) the private sector would require a long-term contract to allow time for the management of change, the development of third party business and to payback the investment made, while keeping within National Savings' annual budgets.