NAO audit framework

Contract management

5. Is the contract being managed well, with costs and benefits being realised as expected?

5.1  Do the department and the contractor have comprehensive knowledge of service performance?

5.2  Is the contractor providing a service in accordance with the contract and are they actively managed by the department to meet or exceed requirements?

5.3  Is the department meeting its obligations?

Examples of relevant guidance

NAO good practice contract management framework

5.1  Service management is well structured; baselines are understood by both parties, and suppliers understand the service they are required to deliver. The contract manager ensures that the customer organisation provides the supplier with the information and contacts needed to deliver the service.

5.2  A performance management framework is in place when the contract is signed. The framework is comprehensive, objective and provides incentives for the supplier to meet or exceed agreed performance standards.

6.7  Where open-book or similar financial/pricing mechanisms are used, the process is managed professionally and fairly.

Crown Commercial Service open book guidance

Sets out aims, objectives and expected approaches for open book contract management.

HM Treasury guidance to making savings in operational PFI contracts

Information Commissioner's Office roadmap for transparency in outsourcing