NAO audit framework

Termination & 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.

CIPS - contract management guide

The guide sets out that the end of a contract should have been considered during the pre-contract award stages, but also highlights the importance of allowing for risk of failure to agree and a period of time for the contract to be re-let in order to ensure smooth transition (p. 34 and 35).

National Outsourcing Association manual for the effective exiting of outsourcing agreements

The guidance suggests that the provisions of detailed exit management plans at a certain point should be specified in a contract, alongside requiring regular updates (p. 11).

Government Commercial Function - Government Commercial Operating Standards Iteration ii

2.2  Creating a comprehensive commercial pipeline (minimum of 18 months) of high risk contracts.