4.2.6 Managing service delivery means ensuring that the service as contracted is delivered, and to the required performance standards. The PPP contract will have defined the service levels and terms under which a service is provided. Typically, under the PPP contract, the PPP provider will self-monitor its performance and submit monthly performance forms (which must also be issued during the PPP tender and be incorporated as part of the PPP contract) to the GPE.
4.2.7 Service level management is about assessing and managing the performance of the PPP provider to ensure value for money. Besides the GPE's contract management team doing periodic audits on the PPP provider's service performance, the GPE contract management team should also educate and involve the public officers working at the PPP facility (such as a school or a stadium) to help monitor the service performance of the PPP provider. Specifically, when the public officers detect a service failure (e.g. the lights do not work, or there is a spillage), they should call up the one-stop helpdesk of the PPP provider and report the service failure. If the PPP provider fails to take remedial measures to correct the failure within the agreed response time limits as specified within the PPP contract, the contract management team should invoke the deduction of the PPP provider's unitary payments as agreed under the PPP contract. This though pre-supposes that the contract management team knows that the PPP provider has failed to respond to the failure. The contract management team may thus wish to consider how it can mobilise the public officers working at the PPP facility to bring to its attention instances when the PPP provider has not responded to service failure on time.
4.2.8 Managing risk is another important aspect of managing service delivery. Business continuity plans and contingency plans help the GPE to prepare for situations where the PPP provider cannot deliver. Generally, contingency events can be divided into the following three categories:
a) events that interrupt service delivery but do not involve default by the PPP provider - for example, force majeure events;
b) events that interrupt service delivery and involve a default by the PPP provider -for example, the PPP provider fails to maintain the facility as required by the contract; and consequently fails to deliver services meeting the output specifications; and
c) defaults of the PPP provider that do not result in an interruption to service delivery - such defaults could include failure by the PPP provider to maintain professional indemnity insurance as required by the contract, and subsequently insolvency of the PPP provider because of a negligence claim.
4.2.9 Given the long tenure of the PPP contract and to periodically renew the partnership, the contract should allow for periodic value for money review during the service delivery phase, such as every 5 years. As part of this review, questions such as the following should be explored between the management of the GPE and the PPP provider:
a) Is the PPP contract still meeting the objectives of the GPE?
b) Is the contract delivering the expected value for money benefits?
c) Is the partnership working out well?
d) What are the expected changes which the GPE may request for in the next few years?