PFI Assurance Issue:

12 Contract management and industry relationships

…to provide assurance that the PFI contract will be (or continues to be) achievable where the contract management arrangements and industry relationships are effective and in accordance with mandated policy and best practice.

Commercial/Financial Assurance Guide Ref:

DE&S Commercial Assurance Guidance: 22. Contract Management & Project Review/Evaluation

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 - Contract Management of PFI Projects

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

• OGC Best Practice - How Major Service Contracts Can Go Wrong

• HMT Technical Note 6: How to Manage the Delivery of Long Term PFI Contracts

• OGC Best Practice - Managing partnering relationships

• OGC Best Practice - Forming partnering relationships with private sector in an uncertain world

Evidence Required for each Procurement Phase

All phases:

• Contract Management plan

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 Award39:

• Liaison schedule(s) in PA

• Relationship management plan - if any

• Monthly project reports/briefs to TLB & stakeholders (where available)

• Evidence of contract management being implemented in accordance with the plan

• Systematic user satisfaction assessment results, project evaluation or Learning from Experience reports

• Contract user guide

• User guide to services provided

• Relationship management plan & results of any formal relationship measurement (e.g. SCRIA and/or SMCPM) - if any

• Partnering Principles Agreement (if any)

• Evidence of contract management meetings being held with Contractor (e.g. via minutes and/or PFU attendance)

• Evidence of issue resolution and any Disputes

• Evidence of any step-in rights being exercised

• Evidence of SPV accounts, records and insurances being reviewed annually

• Evidence of any annual re-certification exercises

• Evidence of any annual insurance reviews conducted

• Monthly project reports/briefs to TLB & stakeholders (where available)

• Evidence that collocation of MOD & Contractor staffs (where applicable) is facilitating better working relationships

• Tender evaluation plan

• Tender evaluation report

• Evidence of consortia/bidder behaviour & cohesion

• Tender evaluation report

• Evidence of consortia/bidder behaviour & cohesion

• Partnering Principles Agreement (if any)

• Contract user guide

• Evidence of consortia/bidder behaviour & cohesion

• Partnering Principles Agreement (if any)