Press Release - New IT systems for Magistrates' Courts: the
Libra project
29 January 2003
A national standard IT system for magistrates’ courts has been
under development for over ten years but is still not complete, Sir
John Bourn, head of the National Audit Office, reported to
Parliament today. The cost of the project has increased
substantially since a PFI deal was signed in 1998.
IT systems in magistrates’ courts have been inadequate for many
years. Current systems do not allow information to be shared
electronically with other courts and electronic information
transfer to other enforcement agencies is piecemeal. After two
failed projects in the early 1990s, the Lord Chancellor’s
Department decided in 1996 to procure a PFI contract for a national
standard IT system called Libra.
The Department recognises that the design of a best business
process model should normally come before seeking an IT solution.
The Department decided, however, to support and improve the
efficiency of existing processes rather than redesign the processes
in parallel with the development of the new IT system.
By the end of the procurement there was effectively only one
formal bidder, which meant that the Department was unable to
maintain competitive tension throughout the procurement process.
When ICL (now Fujitsu Services) was chosen as the preferred bidder
in July 1998, its bid was £146 million (over 11 years) but this
rose to £184 million (over 10.5 years) by the time the contract was
signed in December 1998. The contract was renegotiated twice. On
the first occasion this was on the grounds that ICL had
overestimated revenues and underestimated costs and that without
additional funding it would be unable to continue with the
contract. In May 2000 a price of £319 million was agreed for a new
14.5 year contract.
On the second occasion ICL and the Department entered into
further renegotiations of the contract in October 2001 but could
not reach agreement for ICL to continue with the whole project. ICL
was in breach of the contract because it had been unable to deliver
the core application to the first site by July 2001. But the
Department did not terminate the contract because it considered
that this would have triggered potentially costly litigation and
counter claims from ICL, and would have jeopardised the timely
delivery of much needed improvements to IT systems in magistrates’
courts.
In July 2002, after considering the options available, the
Department signed a variation to the contract with ICL to deliver
only the national IT infrastructure and office automation
facilities, including a number of enhancements, at a price of £232
million for an 8.5 year contract. The Department expects in January
2003 to sign a separate contract with STL to provide the core
software application to support court work. A systems integrator
will then be appointed towards the end of 2003 to roll out and run
the application. The cost of these contracts is estimated at £86
million, bringing the total cost to £318 million over 8.5
years.
The equivalent contract cost of the current proposal over 14.5
years is estimated to be £557 million. This figure cannot be
directly compared with the contract cost of £319 million for the
contract agreed in May 2000 as the new agreement includes the
provision of a greater number of PCs and other enhancements.
Sir John Bourn said today:
"There are a number of lessons that other departments
can learn from the problems that the Lord Chancellor’s Department
has experienced with the Libra project. Departments should take it
as a warning sign that their proposed PFI projects may not be
workable if few bidders show initial interest and others withdraw
as the procurement process continues. In a single tender situation,
Departments need to take special care to safeguard value for money,
for example by developing a should cost model to assess the
reasonableness of a bid. Up to date contingency plans should be in
place on all major contracts so that there is a fallback position
if and when a contract goes wrong."
Notes for Editors
- The 42 local Magistrates’ Courts Committees are responsible for
the effective administration of the magistrates’ courts in their
areas. Magistrates’ Courts Committees are independent bodies
answerable for their performance to the Lord Chancellor. The Lord
Chancellor’s Department has a role in monitoring the performance of
Committees but it remains for each Committee to decide on how best
to provide an efficient and effective service within its area.
- Libra consists of IT infrastructure and office automation
facilities (PCs, printers and standard office software including
e-mail), together with a core application to support court work
(case management, accounting and administration).
- Press notices and reports are available from the date of
publication on the NAO website at http://www.nao.org.uk/ Hard copies can
be obtained from The Stationery Office on 0845 702 3474.
- The Comptroller and Auditor General, Sir John Bourn, is the
head of the National Audit Office employing some 750 staff. He and
the NAO are totally independent of Government. He certifies the
accounts of all Government departments and a wide range of other
public sector bodies; and he has statutory authority to report to
Parliament on the economy, efficiency and effectiveness with which
departments and other bodies have used their resources.
Press Notice 04/03
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