NAO audit framework

Termination and transition

7. Is the Department ready to move into a new contract?

7.1  Has market management been undertaken to support new contracts?

7.2  Has the end of the contract been managed efficiently and effectively to allow re-bid or handover?

7.3  Are insights from the operation of the contract brought to bear in developing the new contract?

Examples of relevant guidance

NAO good practice contract management framework

7.4  Contingency plans are developed to handle supplier failure (temporary or long-term failure/default); exit strategies are developed and updated through the life of the contract.

7.5  Contractual terms around termination are understood and monitored by the contract manager.

NAO principles on supplier failure

Sets out principles to consider when planning for and managing failure. This includes:

•  Setting out a definition for failure

•  Developing contingency plans

•  Appropriate oversight arrangements

•  Monitoring failure

•  Considering market impact

•  Learning lessons