3 Service Provider Stage 1 Response

3.1 Subject to paragraph 2 of Part 1 (Limits on Changes) of this Change Protocol, within the agreed period specified in the Authority Initial Confirmation Notice (or if no time is specified, within thirty (30) Business Days), the Service Provider shall submit a report (a Service Provider Stage 1 Response), which shall (where applicable) include, but not be limited to, the following information which shall contain sufficient detail to enable the Authority to make an informed decision pursuant to paragraph 4 and shall take account of the Authority's affordability thresholds set out in the Authority Change Notice:

(a) an outline programme for implementation of the Change, including time periods for design development, Authority review of the design, anticipated dates of any applications for Necessary Consents (including planning applications) and time periods for the provision and training of staff;

(b) a broad indication of the impact of carrying out and implementing the High Value Change on the provision of the Service and, in particular, whether relief from compliance with any obligations set out in this Contract is likely to be required, including the obligations of the Service Provider to meet the performance regime during the implementation of the High Value Change;

(c) an outline of the Estimated Change in Project Costs that will result from implementing the High Value Change, taking into account any Capital Expenditure that is required or no longer required as a result of the High Value Change;

(d) any Capital Expenditure that is required or no longer required as a result of the High Value Change and where the Authority has specified in the Authority Change Notice that the Service Provider shall use its reasonable endeavours to raise financing for the Authority Change, the steps the Service Provider has or will take to secure such financing;

(e) an estimate of any loss of or increase in, third-party revenues that may result from the High Value Change;

(f) the proposed Project Management Fee to develop a Service Provider Stage 2 Response which shall be a capped fee calculated in accordance with paragraph 2.4;

(g) a budget (or budgets) together with a capped or fixed fee for Third-Party Costs and details of the third-party activity likely to be incurred by the Service Provider, such as third-party advice, the carrying out of surveys, obtaining Necessary Consents, the Senior Lender carrying out due diligence and independent certification that may be required to be completed prior to agreement of the High Value Change in relation to the development of a Service Provider Stage 2 Response, together with a proposed process for approval of such costs by the Authority before they are incurred;

(h) a summary of any amendments required to this Contract or any Project Document or the Financing Agreements as a result of the Change;

(i) a value for money assessment explaining why the Service Provider's proposals represent value for money taking into account both the proposed Capital Expenditure and Whole Life Costs; and

(j) an estimate of the time period required by the Service Provider to develop a Service Provider Stage 2 Response for the High Value Change should the Authority notify the Service Provider pursuant to paragraph 4.2(a) of its requirements for a Service Provider Stage 2 Response.

3.2 In preparing the outline Estimated Change in Project Costs, including the calculation of any Capital Expenditure, the Service Provider shall, as specified by the Authority in the Authority Change Notice) either comply with the:

(a) provisions of paragraph 8 if the Competitive Tendering Process is to apply; or

(b) provisions of paragraph 9 if the Benchmarking Process is to apply; or

3.3 The Service Provider shall ensure that the performance risk involved in implementing the High Value Change and any interface risks involved in linking new services with the Service are reflected (depending on the risk profile of the High Value Change) in the Estimated Change in Project Costs and not priced separately over and above the Estimated Change in Project Costs. The Service Provider shall not include any separate charge or fee payable to the Service Provider or any sub-contractor of the Service Provider in the costs included in the Estimated Change in Project Costs.

3.4 In developing a Service Provider Stage 1 Response, the Service Provider shall liaise with the Authority [and relevant end users (being such persons or organisations as the Service Provider, in consultation with the Authority, 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 designs in relation to the Service Provider Stage 1 Response. Any and all information and other input or feedback provided by the Authority to the Service Provider shall, unless expressly stated otherwise by the Authority, be provided without warranty and shall be without prejudice to the Authority's rights under this Change Protocol.