PFI Assurance Issue:

2. Requirements (commercial articulation in an output based specification and demonstration/certification of it)

…to provide assurance that the PFI contract will be (or continues to be) viable where the requirement (can be / is) suitable for the principles of PFI (e.g. stable and long term) in accordance with mandated policy and best practice and is articulated in a manner that is clear, robust, legally enforceable, output based, is able to be demonstrated, certified & verified using objective criteria traceable forwards/backwards to the commissioning tests/solution/SRD/URD/KURs and where ongoing performance is monitored, and delivery of the requirement is appropriately incentivised by aligning it fully with the payment and incentive mechanism.12

Commercial/Financial Assurance Guide Ref:

DE&S Commercial Assurance Guidance: 1. Commercial scope/Requirement & 19. Acceptance Criteria

Relevant MOD policy/guidance used as measure for assurance:

Relevant external policy/guidance used as measure for assurance:

• MOD PFU Guidance Note - MOD Standard Project Agreement v1 for PFI Projects

• MOD PFU Guidance Note - Demonstration & Certification of PFI Services

• [MOD PFU Guidance Note - Output based Requirements for PFI Projects]13

• HM Treasury: Standardisation of PFI contracts (SoPC) Version 4

• OGC Achieving Excellence Guide 9 - Design Quality

• OGC Achieving Excellence Guide 10 - Through Health and Safety

• OGC Common Minimum Standards

• HMT Technical Note 7: How to Achieve Design Quality in PFI Projects

Evidence Required for each Procurement Phase

All phases:

• Key User Requirements14

• User Requirement Document

• Historical data and trend analysis to support requirement15

Up to Initial Gate:

Up to Market Engagement:

Up to close dialogue and Preferred Bidder appointment:

Up to Main Gate:

Up to Contract Award:

Post Contract Award:

• Service/System Requirements Document16 (SRD) (as a schedule in Project Agreement)

• Requirement traceability matrix (mapping KURs-URD-SRD-solution-demo/cert)

• Description of Service Levels up to full service and Mechanism for transition to full service

• ITN/ITT (instructions to bidders)

• Design review process/mechanism (as a schedule in Project Agreement)

• Demonstration/certification mechanism (as a schedule in Project Agreement)

• Independent Certifier deed of appointment (as a schedule in Project Agreement)

• Evidence of Customer/Sponsor sign-off of SRD

• Design review process/mechanism (as a schedule in Project Agreement)

• Demonstration/certification mechanism (as a schedule in Project Agreement)

• Independent Certifier deed of appointment (as a schedule in Project Agreement)

• Bidders acceptance of SRD (as a schedule in Project Agreement)

• Evidence of Customer/Sponsor sign-off of SRD

• Demonstration/Certification/Commissioning Test programme plan

• System Demonstration Schedule(s)

• Demonstration/Certification/Commissioning Test programme plan