§ Dr. GodmanTo ask the Secretary of State for Social Security what assessment he has made of the value for money achieved to date by the national insurance records 2 system; and if he will make a statement. [29371]
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§ Mr. HealdWhen considering schemes under the private finance initiative it is a fundamental principle that overall best value for money in providing a service is assessed by taking into account all aspects of design, finance and operation as a unified whole. During the NIRS2 evaluation process, tenders from suppliers were compared with a fully costed in-house option to confirm that a PFI procurement represented value for money; and were compared with each other to establish the most economically advantageous option.
Under the NIRS2 contract, Andersen Consulting will receive no payment until the system is fully accepted and operational. Andersen Consulting has therefore incurred the development costs to date that would otherwise have fallen to the public sector.
§ Dr. GodmanTo ask the Secretary of State for Social Security what measures he has taken to ensure that the delay in the delivery of the national insurance records 2 system will not be repeated in other private finance initiative projects undertaken by his Department and its agencies; and if he will make a statement. [29372]
§ Mr. HealdVariations to implementation timetables are not uncommon when procuring computer systems of the size and complexity of, for example, NIRS2. They can occur for a variety of reasons; and in both publicly and privately financed projects. Under private finance initiative principles, service providers are required to take the responsibility, and the risks, for the design, development and delivery phases of projects. The Department will continue to employ vigorous contract management and service monitoring on all of its PFI procurements to ensure that contractual obligations are met.