3  Stage 1 Approval

Development of Draft Business Case by the Service Provider

3.1  The Authority shall submit a written request to the Service Provider requiring the Service Provider to produce outline proposals for any Further Services (a Draft Business Case).  The written request shall include:

(a)  indicative funding proposals setting out the maximum available capital and/or revenue the Authority is able to commit to those Further Services (the Target Cost); and

(b)  identify any requirements in relation to the Further Services that must be satisfied as part of a Draft Business Case (Authority Requirements).

3.2  The Service Provider shall confirm in writing within twenty (20) Business Days of receipt of the request referred to in paragraph 3.1 whether or not it will submit a Draft Business Case to the Authority. If the Service Provider confirms it shall not submit a Draft Business Case or fails to comply with this paragraph 3.2 the Authority shall be entitled to procure such Further Services from a third party.

3.3  The Service Provider shall submit a Draft Business Case to the Authority within three (3) months of its request issued in accordance with paragraph 3.1 above. Subject to paragraph 7, the Draft Business Case shall contain at least the following information in sufficient detail to enable the Authority to make an informed decision about whether to approve the Draft Business Case:

(a)  any impact on the provision of the Services;

(b)  any impact on the Service Provider's ability to meet its obligations under this Agreement;

(c)  an explanation of the effect (if any) on any employees and/or contractors of the Authority, including any potential transfer of any such employees to the Service Provider;

(d)  any amendments required to any Assets and an implementation plan for such amendments;

(e)  a detailed cost estimate for the Further Services;

(f)  the Further Services Implementation Plan;

(g)  details of any proposed Sub-Contractor which the Service Provider wishes to appoint to perform part or all of the Further Services;

(h)  evidence of how the Further Services meets the Authority Requirements (as defined in paragraph 3.1(b)).

Liaison between the Service Provider, the Authority and relevant end users

3.4  In developing a Draft Business Case the Service Provider shall liaise with the Authority and relevant end users as the Authority in consultation with the Service Provider considers appropriate. The Authority shall provide to the Service Provider such information as to its requirements as the Service Provider may reasonably require and shall assist the Service Provider in the review of any draft proposals in relation to the Draft Business Case.  Any and all information and other input or feedback provided by the Authority to the Service Provider shall be provided without warranty pursuant to clause 39 (Exclusion of Warranty) and shall be without prejudice to the Authority rights under this Schedule 15.

Consideration of a Draft Business Case by the Authority

3.5  The Authority shall consider in good faith the Draft Business Case provided by the Service Provider pursuant to paragraph 3.3.

Authority response to a Draft Business Case

3.6  If the Authority approves a Draft Business Case (subject to any amendments to it agreed with the Service Provider), then the relevant Further Services shall be referred to as Stage 1 Approved Further Services or as having received Stage 1 Approval.

Service Provider's costs in relation to a Draft Business Case which is not approved

3.7  If a Draft Business Case submitted in accordance with this paragraph 3 does not receive Stage 1 Approval then the Service Provider's costs in relation to the proposal shall be borne by the Service Provider.

Exclusivity in relation to a Further Services submission which is not approved

3.8  If a Draft Business Case submitted in accordance with this paragraph 3 does not receive Stage 1 Approval, then the Authority shall be entitled to procure the Further Services from a third party..