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We felt that, in setting thresholds, we needed a mechanism that allowed us to pick up exceptional cases below the threshold. With the best will in the world, there will always be the exception.
I agree with Sarah Boyack that the issue is at least on the agenda and I hope that it will be built into the new NHS structures. In that respect, the response is very positive.
One requirement for PSOs is that, once the service specification has been set, the contract should be awarded on the basis that provides best value for money. The competitive process must be seen to be transparent and equitable.
However, although I agree that we must go to the sharp end and take evidence on some of those issues, perhaps the best course of action is to take evidence first from the accountable officers.
Section 11(1B) does not create a new delegated power but, in introducing new section 1AA into the 1993 act, it will have an indirect bearing on a rule-making power in section 20 of that act.