5  Comprehensive Area Assessment

5.1  Not less than three (3) months before the commencement of each Payment Year, the Authority shall notify the Contractor of the proposed CAA Date for the forthcoming [Payment Year].

5.2  The parties agree that any Comprehensive Area Assessment shall be carried out in accordance with the applicable Law and Guidance.

5.3  The Authority shall carry out the Comprehensive Area Assessment at its own cost.

5.4  In carrying out the Comprehensive Area Assessment, the Authority may take into account the results of any:

(a)  Annual Service Reports; and/or

(b)  Customer Satisfaction Survey,

and shall consult with the Service Provider on any proposals to change the Service to enable the Authority to comply with its Best Value Duty.

5.5  If, in the Authority's reasonable opinion, the results of the Comprehensive Area Assessment disclose that the provision, performance or delivery of the Service (or any part of the Service) may be more efficient, effective or economic having regard to the Best Value Duty then the Authority may serve a CAA Change Notice on the Service Provider stating the nature and timing of the changes to the provision, performance or delivery of the Service (or the relevant part of the Service) which the Authority desires.

5.6  The Service Provider shall, within [twenty (20)] Business Days of the date of receipt of a CAA Change Notice, at its own cost provide the Authority with a written statement (the CAA Plan) containing the Service Provider's proposals to achieve the change to the Service (or the relevant part) in accordance with the CAA Change Notice.

5.7  As soon as practicable after the Authority receives the CAA Plan the parties shall discuss and agree the issues set out in the CAA Plan.  In such discussions the Authority may modify the CAA Change Notice, in which case the Service Provider shall, as soon as practicable, and in any event not more than [twenty (20)] Business Days after the receipt of such modification, notify the Authority of any consequential changes to CAA Plan.

5.8  If the parties cannot agree on the contents of the CAA Plan then the dispute shall be determined in accordance with the Dispute Resolution Procedure.

5.9  As soon as practicable after the content of the CAA Plan has been agreed or otherwise determined in accordance with the Dispute Resolution Procedure the Authority shall:

(a)  confirm in writing the CAA Plan; or

(b)  withdraw the CAA Change Notice.

5.10  If the Authority either withdraws the CAA Change Notice or does not confirm the CAA Plan within [twenty (20)] Business Days of the CAA Plan having been agreed or determined in accordance with the Dispute Resolution Procedure then the CAA Plan and the CAA Change Notice shall be deemed to have been withdrawn.

5.11  If the Authority confirms the CAA Plan then the Authority shall issue an Authority Change Notice (which shall contain the information set out in the CAA Change Notice and the CAA Plan) and the provisions of the Change Protocol shall apply.

5.12  Notwithstanding any provision to the contrary in the Change Protocol the following provisions shall apply to the cost of a CAA Change:

(a)  to the extent that the implementation of the Authority Change Notice referred to in paragraph 5.11 would result in a decrease in the costs of the Service Provider, the Unitary Charge shall be revised downwards by [♦] per cent ([♦]%)5 of the decrease in costs of the Service Provider;

(b)  to the extent that the implementation of the Authority Change referred to in paragraph 5.11 would result in an increase in the costs of the Service Provider, the Unitary Charge shall be revised upwards in accordance with the provisions of the Change Protocol.6

5.13  The Service Provider shall take all reasonable steps to mitigate any costs and maximise savings arising as a consequence of a CAA Change Notice and, for the avoidance of doubt, the corresponding Authority Change Notice issued pursuant to paragraph 5.11.

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5 Bid back item.

6 Authority to consider whether the costs/savings of a CAA Change should be different to the regime set out in the Change Protocol.