We questioned the Cabinet Office about how we can be assured that it had the capacity to ensure that contractors deliver. The Cabinet Office said that it is fairly confident it has the right expertise and capacity to manage the contract, and that the contract management team is significant in size, with around 60 FTEs overseeing outsourced pension arrangements.32 We inquired further how the Cabinet Office can be sure that MyCSP’s performance will not get worse towards the end of its contract, and that Capita will avoid getting into difficulties. The Cabinet Office stressed the importance of making a success of the transition. It asserted that it had made changes to the way in which it transitions as a result of previous lessons learned, and that it would impose financial penalties on Capita from December in cases of underperformance. The Cabinet Office said that it will reset its transition plan in September, and that it would not go through with the transition if it was not confident that the service levels would be maintained.33 TUPE negotiations and staff concerns