To ask the Chancellor of the Duchy of Lancaster what computerisation or IT failures have occurred in projects managed by the Cabinet Office in each year since 1997; what the contracted cost of the project was in each case; and what estimate he has made of the direct and indirect costs of failure in each case.
There are two cases of information technology (IT) failures in projects managed by the former Office of the e-Envoy within the Cabinet Office, since 1997.
The first project, which was terminated in 2000, was the contract with IT supplier Compaq for provision of consultancy services and IT asset purchases, for the development of the Government Gateway. The contracted cost was £6.7 million, under an Instruction to Proceed notices which would have led to a multi year contract.
The direct cost of termination was £5.6 million, which was payment for assets relating to work completed. There were no indirect costs for the termination. The cost of the replacement, including the £5.6 million, was within the original budget.
The second IT failure was with the data centre and hosting management service to be provided by ITNET whose contract was terminated in 2004. The original contract value was £84 million. A total of £5 million was paid up to the point of termination of the contract.