39.4  Comprehensive Area Assessment

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

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

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

39.4.4  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 Contractor on any proposals to change the Services (or any part) to enable the Authority to comply with its Best Value Duty.

39.4.5  If in the Authority's reasonable opinion the results of the Comprehensive Area Assessment disclose that the provision, performance or delivery of the Services (or any part) 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 Contractor stating the nature and timing of the changes to the provision, performance or delivery of the Services (or the relevant part) which the Authority desires.

39.4.6  The Contractor 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 Contractor's Proposals to achieve the change to the Services (or the relevant part) in accordance with the CAA Change Notice.

39.4.7  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 Contractor 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 the CAA Plan.

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

39.4.9  As soon as practicable after the content of the CAA Plan has been agreed or otherwise determined pursuant to the Disputes Resolution Procedure the Authority shall:

(a)  confirm in writing the CAA Plan; or

(b)  withdraw the CAA Change Notice.

39.4.10  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 pursuant to the Disputes Resolution Procedure then the CAA Plan and the CAA Change Notice shall be deemed to have been withdrawn.  

39.4.11  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) in accordance with the Change Protocol.

39.4.12  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 clause 39.4.11 would result in a decrease in the costs of the Contractor, the Unitary Charge shall be revised downwards by [♦] per cent ([♦]%)151 of the decrease in costs of the Contractor;

(b)  to the extent that the implementation of the Authority Change Notice referred to in clause 39.4.11 would result in an increase in the costs of the Contractor, the Unitary Charge shall be revised upwards in accordance with the provisions of the Change Protocol.152

39.4.13  [The Contractor shall take all reasonable steps to mitigate any costs [and maximise any savings]  arising as a consequence of a CAA Change Notice and, for the avoidance of doubt, the corresponding Authority Change Notice served pursuant to clause 39.4.11.]

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151 Bid back item.

152 Authority to consider whether the cost/savings of a CAA Change should be different to the regime set out in the Change Protocol