In order to maximize the value for money and risk transfer to be provided through a Privatization arrangement, each Work Team entering into a Privatization contract shall develop clear and concise performance specifications for each Privatization contract. The performance specifications shall be an appropriate mix of input, output, and outcome specifications that on balance are sufficient, comprehensive and clearly structured so that the project services will be delivered in accordance with expectations.
While certain aspects of a Privatization project may require the Work Team to utilize input specifications in the Privatization contract (traditional procurement specifications that are prescriptive in nature and specify in great detail what the private sector party must deliver, for example, specifying the use of specific proprietary technology, system or solution), the Work Team should prioritize the use of output specifications (specifications that detail the desired output of the private sector party's activities rather than precisely how the private sector party will achieve the project, for example, a requirement that the project achieve a level of service availability or efficiency whose performance can be measured and verified by the Entity).
Where possible, a Work Team should also consider use of outcome specifications (specifications that detail the desired outcomes of the project, for example, improving certain socio-economic aspects of a specified community), however, the Work Team should consider the difficulty of measuring outcomes, and identify verifiable means for confirming outcomes, before imposing such requirements.