by the Chancellor of the Duchy of Lancaster and Cabinet Minister
for Public Service
The Government is re-inventing Britain. We want all Government services to be of the
very highest quality, efficient, responsive and customer-focused.
We are working with the private sector through competition to achieve this. What
matters to the citizen, and therefore to the Government, is quality for the customer at
the most reasonable cost to the taxpayer. If these are right, the distinctions between
public and private are not so important. We want to encourage business to play a fuller
role in providing public services. That is why we stress Public Private Partnerships.
The key is the energy, commitment and skill of people. Nurturing commitment, consulting
staff and their representatives, training people and supporting them through change is
what is expected of senior managers in Departments and of our private sector
partners.
We also stress partnership with staff and their recognised trade unions or other
independent representatives. The challenge for all of us is to remove the fear of change,
so that together we can ensure better quality services for the customers and users of
Government services at optimal cost to the taxpayer. Following this handbook will help in
doing all this, so that, together, we fulfil our obligations to customers, taxpayers and
citizens as a whole.

CONTENTS
Foreword by the Chancellor of the Duchy of Lancaster
Introduction
12 Guiding Principles in Using Market Testing and Contracting
Out
1. Overview
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Government policy |
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Reviewing services and activities |
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Key steps |
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Key messages |
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Sources of further information |
2. How to Succeed
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Managing change |
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Success in achieving objectives |
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Improving quality |
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Minimising process costs |
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Organisation |
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Key messages |
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Sources of further information |
3. Managing Staff
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Developing an effective human resource strategy |
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Transfer of Undertakings (Protection of Employment) Regulations TUPE |
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Anticipating retendering |
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Releasing information about staff |
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Keeping staff informed about TUPE |
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Trade union consultation |
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Health & safety |
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Key messages |
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Sources of further information |
4. Preparing the ground scoping and assessing
feasibility
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The scope for competition |
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Nature of the relationship |
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Assessing feasibility |
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Key messages |
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Sources of further information |
5. Inviting bids
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Bidders |
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Advertising impending competitions |
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Pre-qualification |
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Invitation to tender |
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Handling incoming bids |
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Key messages |
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Sources of further information |
6. Responding to invitations to tender
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Dealing with the requirements |
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Preparing in-house bids |
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Key messages |
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Sources of further information |
7. Evaluating bids
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Evaluation |
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Criteria |
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Making decisions |
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Publicising results |
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Debriefing and feedback |
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Key messages |
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Sources of further information |
8. Contracts
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Contracts and SLAs |
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Award procedures |
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Contents of contracts and SLAs |
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National Audit Office |
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Access for internal auditors |
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Contract management |
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Key messages |
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Sources of further information |
9. Retendering
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Basic principles |
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Evaluating the efficiency exercise and the contract |
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Reviewing service requirements |
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Appraising options |
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After the evaluation, the service review and the option appraisal |
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Key messages |
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Sources of further information |
Glossary