HC Deb 25 February 2002 vol 380 cc1040-2W
Richard Younger-Ross

To ask the Chancellor of the Exchequer what has been the total expenditure of his Department on IT systems and support in each year from May 1997 to date; how many IT contracts have been let in each of those years; of the other main contracting party in each of those contracts, how many have been(a) companies whose registered office is in (i) England and Wales, (ii) Scotland and (iii) Northern Ireland and(b) foreign companies; and what are the names of the companies falling within category (a). [33689]

Ruth Kelly

The information is as follows:

HM Treasury
£ million
IT expenditure
1997–98 3.1
1998–99 3.9
1999–2000 3.8
2000–01 3.5
2001–02 3.1

The Treasury has let the following IT contracts over this period:

  • Star Computers: for the supply of IT desktop and portable equipment. Contract awarded in December 1997.
  • Mitech Europe Ltd.: network support. Contract awarded in December 1999.
  • Computacenter Ltd.: for the supply of servers, software and networking equipment. Contract awarded via the Office of Government Commerce (OGC) using a GCAT agreement in January 2000.
  • Rebus HR Ltd.: provide personnel software. Contract awarded in January 2000.
  • Diagonal Solutions Ltd.: software maintenance. Contract awarded in June 2000.
  • Anite Public sector Ltd.: moving IT equipment into new Treasury building. Contract awarded in November 2001.
  • Lynx Technology Ltd.: software support services. Contract awarded in January 2002.
  • Centerprise International: for the supply of IT desktop and portable equipment. Contract awarded in January 2002.

All companies mentioned are registered in England.

  • Microsoft Ltd.: software maintenance. Contract awarded in December 2000. The company is registered in the United States of America.
  • Decision Support Systems Ltd.: accounting software. Contract awarded in October 2001. The company are registered in New Zealand.

Customs and Excise
£ million
IT expenditure
1997–98 8.2
1998–99 31.8
1999–2000 11.7
2000–01 3.3
2001–02 4.8

The decline in spend on computer equipment and maintenance over the last four years can be explained by the implementation of a PFI contract in HM Customs and Excise, which means that we no longer purchase our IS infrastructure equipment but pay a service charge for its provision by our PFI provider. The Department has one main IS provider through a PFI, this being ICL. This is a 10 year contract awarded on 25 August 1999 with a TOU issued on 31 March 2000. We are currently novating nearly all our IT contracts (including software licences obtained through various local offices) into this contract. The number is around 182 although it is expected to grow. ICL is an English registered company.

Debt Management Office (DMO)
£ million
IT expenditure
1998–99 0.7
1999–2000 1.4
2000–01 2.0
2001–02 1.6

The DMO has an on going contract with Computacenter Ltd. who have provided the Department with IT equipment since 1999. Computacenter is registered in England.

Inland Revenue

The Department currently has three major contracts in place to provide its IT systems and support. We have two strategic technology partners, EDS and Accenture, who provide support, development and maintenance of our IT systems and one framework contract (with Computacenter) for the supply of IT equipment.

The IT Services contract was let to EDS in 1994 for 10 years.

The NIRS 2 contract for operational services was awarded to Andersen Consulting (now Accenture) in May 1995 and runs to 2004.

In November 1994 the Department let the IROS contract for the supply of desktop equipment to CSC/Computacenter. This was replaced in June 2000 by the e-IROS contract with Computacenter. Total annual expenditure under these contracts from April 1997 to January 2002 is as follows:

£ million
IT expenditure
1997–98 25.1
1998–99 31.9
1999–2000 32.3
2000–01 29.8
2001–02 38.5

All of the companies mentioned have registered offices in England.

The parent companies of CSC and EDS are US based.