NAO audit framework

Commercial strategy

1. Is there an overarching commercial strategy, with a clear rationale and linkage to organisational strategy, and which targets VFM?

1.1  Is there a clear and consistently held view of what the contract is producing, the type of commercial relationship desired, the basic contract structure and how it will be managed?

1.2  Has there been an assessment of strategic drivers, including policy drivers, and the internal and external environment?

1.3  Has the commercial strategy been based upon the assessment

Examples of relevant guidance

NAO good practice contract management framework

1.1  There is a planned transition from tendering/contract award to contract management. The cost of contract management is included in the business case and budgets.

1.3  There are well defined processes and a clear contract management plan, with a focus on outputs and a 'whole life' approach to performance.

Government's guide to assessing business cases sets out expectations for business cases, including the strategic and commercial case. The commercial case should answer whether "the proposed solution can be effectively delivered through a workable commercial deal or deals?". As such, the proposed solution, and how it may be impacted by commercial considerations needs to be clear.