IT Contracts (Hansard, 18 March 2004)

§ Mr. Browne

This question covers periods prior to the establishment in June 2001 of the Department for Work and Pensions, formed from the Employment Service (ES) and the Department for Social Security (DSS).

This information relates to contractual arrangements made by the Department for Work and Pensions, as well as the former ES and DSS.

On the question of de-bugging, the view is that no system is completely free of "bugs". However, the Department deals with these according to priority, working in partnership with private sector providers to eradicate on an on-going basis.

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Contracts identified in relation to this question
Contract	Description	Inception date	Date fully functional	Cost over-runs
IT Partnership Agreement	Employment Service outsourced its IT work through a partnership agreement with Electronic Data Systems (EDS) This agreement was revised to reflect major new investment in IT and telephony to improve services for jobless people and employers in the Modernising Employment Service (MES) Project. This project was further revised from August 2003, and re-named Digital Office Infrastructure Completion—DOI(C), bringing former ES staff a desktop PC consistent with the rest of the DWP estate.	August 1998(original outsourcing) October 2000(MES) August 2003(DOI (C)	August 1998 DOI-C estimated to be complete by May 2004	None
ACCORD Strategic Outsourcing Business Allocation	The DSS awarded a contract to outsource its IT provision. This contract also encompasses business outsourced previously in 1995 under FOCUS 95 arrangements and is concerned with the maintenance, development and operation of the Department's existing IT systems.	August 2000	September 2000	None
Child Support Reforms	The DSS awarded the contract to provide new IT systems in support of the Child Support Agency. The system became functional on 27 January 2003, for new child support claims processed under old scheme rules. Processing claims under new rules began on March 2003. Further work is still required before the system will be fully functional. Within the terms of the PFI based contract, the primary responsibility for the quality of the computer service lies with EDS. They have pledged to bear the costs of completing their obligations and bringing the service to an agreed level. The Department is currently retaining around 15 per cent. of each monthly payment due to the service provider.	August 2000	Functional from January 2003	The amount DWP will pay is currently forecast to rise by 7 per cent. over the term of the contract.
New Tax Credits NTC	This contract is for the delivery of new and amended DWP IT to enable joint working with the Inland Revenue and their Tax Credits system and to reflect the changes in benefit rules resulting from the introduction of NTC.	December 2000	April 2003	None
Pensions Forecasting	This contract is for the delivery of a new pensions forecasting system, providing individuals with clear and accurate information about their retirement pension and raising awareness of the importance of making adequate provision for retirement.	June 2002	September 2004	Unable to identify any cost over-run at this stage as the project is not yet complete.
Pensions Credit Front End	This contract is for the delivery of a tele-application to support the processing—and administration—of claims to Pensions Credit.	April 2003	October 2003	None
Corporate Curam Licences	This contract relates to the use of a perpetual software licence and provision for support, initially for arrangements for the Customer Management System, but will be extended to other projects over time.	May 2003	N/A—this is a licensing contract.	None
Customer Management System Release 1	This contract represents a front-end information gathering system for working age customers. Support arrangements are to be provided under the Corporate Curam Licence contract.	December 2002	September 2003	None
Customer Management System Release 2	As above.	August 2003	This release is still under development.	Unable to identify any cost over-run at this stage as the Project is not yet complete.
Digital Office Infrastructure (DOI) (formerly known as Early Office Infrastructure(EOI))	These are a series of contracts to replace the desktops and associated equipment for the Department's employees and eventually, the support arrangements for that kit		These are IT service contracts and not development. There have been a number of contract changes to build volumes and functionality.	Unable to identify any cost over-run at this stage as the project is not yet complete.
	(i) Mobilisation contract to build the infrastructure for the support;	January 2001
	(ii) Roll out contracts to manage the implementation of the kit and associated equipment;	July 2001
	(iii) Distribution, Implementation and Disposal Services.	July 2001
FOCUS Lots B, C and D	These are outsourcing contracts let for the support and implementation of Office Services to SEMA Group UK Ltd (Lots B and C) and International Computers Ltd. (Lot D).	June 1995 Contracts transferred to Arcway in August 2000 under the ACCORD framework.	June 1995; these are IT service contracts.	None

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Contracts identified in relation to this question
Contract	Description	Inception date	Date fully functional	Cost over-runs
Stand Alone Support Applications	This contract was let for the development, implementation, and support of the former DSS stand-alone support application systems.	August 1997	Development has been undertaken on a system-by-system basis, as and when required. Support arrangements are on-going for the duration of the contract.	None
Network and Office Service Provision—Wide Area Network	This contract has been let to replace the Wide Area Network across the former DSS estate. There have been a number of contract changes to meet additional requirements.	November 2000	Estimated to be June 2004.	Unable to identify any cost over-run at this stage as the project is not complete.
Advanced Telephony	This is a contract with BT plc for contact centre services, encompassing the provision, installation, support and maintenance of telephony and associated IT infrastructure.	March 2003	Some of the services are operational; others are in the implementation phase	None

A list of IT contracts current at the time of FOCUS 95 outsourcing has been placed in the Library. It is not possible to provide information Prior to 1995, as this could be obtained only at disproportionate cost.