PFI Assurance Issue:

8. Flexibility for variations and changes

…to provide assurance that the PFI contract will be (or continues to be) viable where the change (incl exit) strategy/mechanism is based on a sound understanding of potential future changes and historical trends and is in accordance with mandated policy and best practice.

Commercial/Financial Assurance Guide Ref:

N/A

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 - Change Management in PFI

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

• Operational Taskforce Note 3: Variations Protocol for Operational Projects

Evidence Required for each Procurement Phase

All phases:

• Analysis of potential future changes

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 Award32:

• Historical trend analysis (e.g. volume and type of past changes)

• Change mechanism in Project Agreement

• Historical trend analysis (e.g. volume and type of past changes)

• Project Agreement (to check exit strategies/termination break points, termination provisions (incl related IPR), change in law provisions etc)

• Process for change management & control of customer requirements

• Process for change management & control of customer requirements

• List of proposed/planned changes (including all nil costed, Authority proposed, urgent, and/or Contractor proposed changes)

• List (e.g. change register) & copies of all agreed changes33 (including all nil costed, Authority proposed, urgent, and/or Contractor proposed changes) Evidence of changes being processed and agreed with the contractor in an efficient and timely manner

• Bidders (and lenders) acceptance of change mechanism

• List of changes to the customers requirement and any proposed/planned changes