In order to improve the flexibility of service provision, the range of services included in PF2 projects will be reduced. Services excluded from the contract can be provided separately through shorter-term contracts to provide the public sector with the flexibility to alter service specifications over time: • soft services, such as cleaning and catering, will be removed from all future contracts, other than where exceptional integration benefits exist which are essential to achieving project outcomes; • procuring authorities will have discretion over the inclusion of certain minor maintenance activities, such as redecorating, at the project outset. There will also be additional flexibility to add or remove certain elective services once a contract is in operation; and • to provide flexibility at contract expiry, authorities will be able to adapt their requirements in relation to the condition of assets at the end of the contract. To improve the transparency of the provision of services and the associated expenditure, measures will be taken to ensure the public sector understands exactly what it is paying for and that any aggregate lifecycle surpluses are shared with the procuring authority. These reforms include: • an open book approach to lifecycle costs will be adopted between the procuring authority and the contractor; and • a gain share mechanism for surplus lifecycle provision will be introduced to ensure that any surplus lifecycle funding is shared at the end of the contract. To improve the efficiency of service delivery throughout the life of the contract and to avoid the unnecessary duplication of bespoke service-related documentation during procurement: • a standardised services output specification template and payment mechanism will be developed; and • periodic efficiency reviews of service provision will be introduced in the contract. |