Question

Service Concession Arrangements (SCAs) allow governments to enter into an agreement with another entity in the public or private sector, in which the external entity, the operator, provides public services through the use of the asset, to the transferring government. This allows the government to generate income and cash flows from its capital assets and possibly improve the efficiency of public services. Under an SCA, the government essentially transfers the rights and obligations of an asset to the external entity. What are the two measures that help protect a government from the failure of a contractor to comply with the terms and specifications of that agreement? Describe each measure and its main purpose.

NOTE: Could you please don't use your handwriting to answer this question to be easy for me to solve

Answer 1

Ans) Service Concession Arrangements (SCAs) takes place time to time whenever the Federal Government is in need of doing any infrastructural work by contractual basis(example; building roads,dams,highways etc) or they need to run their assets with any third party's help, so its obvious that this process takes place regularly. But sometimes the private or the public contractors try to take undue advantages on the provided opportunity to them by the government.

To cut short their unethical attempts, the federal government takes some measure if the contractor doesn't follow the terms and conditions of the agreement. They are as follows-

a; Auditing- The Government holds the right to audit the contractor's whenever they want and they also possess the power of revocation of the contract if they are found guilty.

b; Subcontracting Plan- Beside the auditing part the government also adheres the subcontracting plan wherein the contractor needs to make a monthly report or as asked for by the government and also keeping them updated about the position of their assets.