Case studies

The National Savings & Investments (NS&I) operational services contract with Atos has a range of key performance indicators covering areas of the business, from accounting and complaint handling to call centre and internet performance. NS&I can reduce the amount paid to Atos where performance indicators are missed with deductions escalating if targets are repeatedly missed. However, instead of automatically applying maximum deductions where an indicator is missed, NS&I prefers to discuss with Atos the circumstances of the failure, waiving or reducing the deduction if they are satisfied with the action taken. This protects the customer by ensuring the supplier continues to focus on service quality and continuity in areas where a key performance indicator target is likely to be missed.

In 2015 we visited the facilities management service run by Amey at the National Physical Laboratory. We found that the contract, which was coming to an end, was out of date. The contract included over 80 key performance indicators although scientists told us that what mattered most to them- the availability of laboratory time - was not reflected. Client contract managers worked closely with the supplier, helped through being based in the same location as the supplier, and being able to receive regular feedback from service users. Given the focus of service users, Amey established regular drop-in sessions to allow scientists and other users to engage with its staff and develop their understanding of current user priorities.

The Ministry of Defence told us that some of its contracts include a 'reward fee' where a share of the agreed profit is awarded if the supplier has demonstrated some of the softer factors required in managing the contract. Using an agreed framework, the Ministry of Defence will use its discretion in making payment. It has been positive about the benefits of this approach.