3. The MOD PFI Project Agreement version 1 (MOD PAv1) provides a standard template draft contract for all MOD acquisition teams pursuing an acquisition involving private finance. It reflects the HMT's Standardisation of PFI Contracts version 3 (SoPC3) and incorporates HMT approved derogations to SoPC3 reflecting MOD's experience in PFI for defence.
4. Although SoPC4 has since been published, no revision has yet been made to MOD PAv1 to reflect this. Therefore in addressing derogations to MOD PAv1 acquisition teams should work with the MOD Private Finance Unit (PFU) to incorporate any impact SoPC 4 has on the derogations sought.
5. MOD PAv1 contains Core Clauses 1 and Optional Clauses 2 . If, in developing the draft contract, an acquisition team considers it necessary to make amendments3 to either the Core Clauses, or any Optional Clause that are considered relevant for a particular project, these amendments must be discussed with and submitted to the PFU, through the acquisition team's PFU Project Support Officer, for approval.
6. The procedure for obtaining this approval consists of 2 phases the details of which are set out in the flowcharts at Annexes A (for Phase 1) and B (for Phase 2) supplemented by the text below.
7. Once the draft contract based on MOD PFI PAv1, and incorporating any approved derogations, has been issued as part of an ITT/ITN it should be non-negotiable, except where it allows customisation or where the ITT/ITN expressly invites bidders to submit variant bids4.
______________________________________________________________________________________________________________
1 Core Clauses - these compulsory clauses, as described in the MOD PAv1 Guidance Note
2 Optional Clauses - these can be deleted if inappropriate to a particular project, as described in the MOD PAv1 Guidance Note
3 except where customisation is specifically allowed
4 Any proposal to invite variant bids requires the prior approval of the PFU.