6. The ITN represents the foundation for the PFI procurement process and should set out the MOD's initial negotiating position such that:
• the non-negotiable elements of service requirements, contracting terms, and risk allocation are clearly stated;
• there is a mandatory framework (governing, for example, MOD's proposals for risk allocation, the payment/performance mechanism and contract management structures) upon which bidders can build compliant bids whilst encouraging alternative solutions that may offer advantages in terms of improved efficiency, effectiveness and/or overall value for money;
• there is sufficient flexibility in the requirement (expressed in output terms) to encourage innovation in the proposals.
7. Authors of the ITN - especially those responsible for the Statement of Service Requirement - should seek explicitly to identify areas where innovation or suggestions are sought from the private sector. Such areas may be where the nature or scope of the Requirement is legitimately uncertain or where there are known - or suspected to be - alternative approaches to those traditionally taken by MOD.