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%.
- 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.
- Leisure Trust Failure Alternative Option for East Hertfordshire District Council
- ast Hertfordshire’s Leisure Services contract with Enfield Leisure Centres Ltd (Aspire Trust) has a major financial crisis. It is £500,000 in the red in the first year of a five-year contract. Resignations of senior staff and the possible liquidation of the Enfield Trust add 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.
- Privatisation failures
- Examples of the failure of privatisation and outsourcing public services.
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