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Contract and Privatisation Failures
- 105 public sector ICT contract failures
- The Research Report identifies the scope of major cost overruns, delays and terminations in 105 outsourced public sector ICT projects in central government, NHS, local authorities, public bodies and agencies in the last decade. There has been wide reporting of individual and department or authority-wide project failures in the national and ICT press but little analysis of the overall scope and evidence. The value of contacts is nearly £30billion with an average cost overrun of 30.5%.
- 247 Cancelled and Distressed PPP and Privatisation Projects in Developing Countries
- World Bank Private Participation in Infrastructure Database: Two tables providing sector and regional analysis by value and number of projects of 247 cancelled and distressed PPP and Privatisation projects in developing countries between 1990-2007.
- 37 Failed Privatisation Projects in Water Supply and Sanitation
- A global list of failed privatisation projects in water supply and sanitation by country, date started and ended, companies, reason for failure and outcomes such as renationalisation. From Water: Private, Limited: Issues in Privatisation, Corporatisation and Commercialisation of Water Sector in India, 2007, by Gaurav Dwivedi, Rehmat and Shripad Dharmadhikary.
- Flawed, Failed, Abandoned: 100 P3s: Canadian and International Evidence
- By Natalie Mehra, Ontario Health Coalition, with research and support from: BC Health Coalition, Canadian Health Coalition, Council of Canadians, Canadian Union of Public Employees, Friends of Medicare/Alberta and National Union of Public and General Employees. March 2005. Analysis of 100 failed projects.
- Strategic Partnership terminated by Bedfordshire County Council
- The Strategic Service-delivery Partnership (SSP) between Bedfordshire County Council and HBS Business Services was terminated by the County Council in August 2005. Nearly 550 staff were transferred from HBS back to the County Council. The report ‘Strategic Partnership in Crisis’ prepared by the Centre for Bedfordshire UNISON, published in April 2005, is available in the section on Strategic Partnerships in this library. The council took over all HBS services, all the staff and assets involved in the delivery of those services. It paid HBS £6.75m to purchase assets such as IT, furniture and fittings and to acquire goodwill, contracts and services provided by HBS, including to schools and other organisations. This document sets out the rationale for terminating the contract and the terms of the agreement.
- West Berkshire Council Terminates Strategic Partnership
- In June 2005 West Berkshire Council terminated a £168m Strategic Service-delivery Partnership with Amey plc. The contract, for IT and corporate services, had only completed three of the ten year contract period. Amey plc agreed to pay £3m to the Council as part of the settlement agreement. The document includes the Council resolution and press releases.
- Strategic Partnership Significantly Reduced by Redcar & Cleveland Council
- Following a 'strategic review of services' HR and Payroll, Finance and Accounting, ICT, Public Access and Business support will be brought back in-house by September 2006 after only 3 years of the 10 year Liberata contract. Only 120 of 650 staff will be retained by company to continue to provide Council Tax, Revenues, Housing Benefits and Consumer Direct (Government business).
- Scope of Strategic Partnership Reduced by Swansea City Council
- The City Council signed a £83m contract with CapGemini in 2006 to transform IT services and promising £70m savings over ten years. However, a year later the contract was reduced to a £40m project with the abandonment of phase 2.
- Leisure Trust Failure Alternative Option for East Hertfordshire District Council
- East Hertfordshire’s Leisure Services contract with Enfield Leisure Centres Ltd (Aspire Trust) has a major financial crisis. It was £500,000 in the red in the first year of a five-year contract. Resignations of senior staff and the liquidation of the Enfield Trust added to the scale of the crisis – a crisis in the making during the evaluation of the market testing bids in 2005. An in-house bid ‘disappeared’ at the evaluation stage and despite the Enfield Trust bid being based on an 8% increase in leisure income and a 10% cut in staffing costs, they were awarded the contract. But the contract was not signed until five months after staff were transferred and large sections on monitoring and staffing issues were removed.
- Overview of Leisure Trust Performance
- This section compares the performance of leisure trusts with local authority directly provided sport and leisure services between 2000-06.
- Education: Individual Learning Accounts - failed marketisation of training
- Failure of Capita's contract to administer Individual learning Accounts
- Privatisation failures
- Examples of the failure of privatisation and outsourcing public services.
- National Air Traffic Control PPP has to be refinanced
- NATS was privatised in July 2001 but had to be refinanced in 2003 because the company’s financial position was not strong enough to continue with capital investment and the airline group was unwilling or unable to invest additional funds.
- Restructuring of Royal Armouries PPP/PFI project
- The Royal Armouries moved from the Tower of London to a new museum in Leeds in 1996. The £43m PPP/PFI deal with Royal Armouries International (RAI - led by 3i Group plc,) included £20m from the museum and £8.5m from Leeds City Council and Leeds Development Corporation. However, visitor numbers were a fraction of those projected leading to two refinancings of the project and eventually ceased to be a PPP project.
- Sale and lease-back of government buildings offshored
- The New Labour government, keen to establish a market in the sale and lease-back of government buildings, announced a A$9 billion (£3.6 billion) private finance initiative deal with Mapeley Group in March 2001. It included 700 buildings of the Inland Revenue, HM Customs and Excise, and the Valuation Office Agency in the Strategic Transfer of the Estate to the Private Sector (STEPS) project. Mapeley immediately transferred the freehold and long-lease properties to Bermuda.
- Savings greater if IT kept in-house
- The majority of companies that have outsourced IT operations would have saved more money had they kept the services in-house, acc-ord-ing to a study of contracts worth more than £3bn. The outsourcing industry is facing a mid-life crisis with some "high-profile outsourcing deals being taken back in-house" and employers starting to question the value of long-term savings, research by Compass Management Consulting found. www.ft.com/cms/s/0/c314d2dc-f136-11db-838b-000b5df10621.html
This document was last modified by
Dexter Whitfield
on
2008-11-15 16:16:09.
European Services Strategy Unit, Duagh, Camp, Tralee, County Kerry, Ireland.
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