1. This guidance note applies to all members of the acquisition community involved in PFI projects. It supplements existing MOD policy and guidance on risk management. This guidance should be read in conjunction with the following policy and guidance:
(a) The EC Public Procurement Regulations apply to MOD contracts unless the nature of the work qualifies for an exemption. Reference must be made to the detailed policy and guidance on the mandatory procedures to be followed - available on the Acquisition Operating Framework (AOF),
(b) In addition HM Treasury mandates the use of standardised terms and conditions for PFI contracts. Therefore all PFI projects/programmes shall comply with HM Treasury's Standardisation of PFI Contracts version 4 ("SoPCv4") and the MOD Standard PFI Project Agreement version 1 (including subsequent Addendums) unless explicit authority to derogate from them has been obtained from HM Treasury1 (via MOD PFU) and MOD PFU2,
(c) The AOF policy and guidance on risk management (in the tactical layer of the AOF),
(d) HM Treasury Appraisal and Evaluation in Central Government "The Green Book" and JSP 507 MOD Guide to Appraisal and Evaluation, and
(e) Other relevant MOD PFU Guidance Notes.
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1 For SoPC4 derogations.
2 For MoD PAv1 derogations.