Supplementary memorandum submitted by
HM Customs and Excise
Question 76 (Mr Gerry Steinberg): Supplementary
information on additional needs met by amendments to the HM Customs
and Excise PFI Contract (Infrastructure Services Agreement) with
Fujitsu
As noted in paragraph 2.22 of the NAO Report,
the increase in the value of the HM Customs and Excise PFI contract
with Fujitsu is accounted for by additional or enhanced services.
These additional needs are met (and costs incurred) by Contract
Change Note 30 (CCN30) (£241 million) and a range of additional
changes prior to that (£180 million). As made clear in oral
evidence, there were two factors which led to the change in need:
change in the volume of activity; and new projects requiring enhanced
or additional infrastructure. The Committee may find it useful
to have a detailed breakdown of the expenditure:
1. CONTRACT CHANGE
NOTE 30 (CCN30)
The following are the additional features and
services being delivered under CCN30 and their approximate cost
over the lifetime of the contract.
| £ million
|
| New resilient internet connection: greater reliability and improved access to Department's web services by public internet users.
| 15 |
| New network throughout the Department, increasing capacity, resilience and mobility.
| 115 |
| New desktop roll-out (migration to Windows XP).
| 5 |
| New hosting data centre for web services; application releases.
| 46 |
| Improved infrastructure security—technical support for design and configuration of new system components.
| 14 |
| Improved productivity centre; centralised service desk support with 24/7 capability.
| 13 |
| Improved integration of Customs and Fujitsu in the delivery and support of services, including enhanced service levels.
| 33 |
CCN30 Additional Services Total
| 2411 |
| |
1 Variations to existing services, for example continued use
of legacy software and operating systems, total a further £8
million. This brings the overall total cost of CCN30 to £249
million.
2. EXPANSIONS TO
THE PFI CONTRACT
PRIOR TO
CONTRACT CHANGE
NOTE 30
Contract changes prior to CCN30 were used to meet the following
needs:
| £ million
|
| New or enhanced services, including development of Electronic Folder system (paperless files), the National Co-ordination Unit (NAO case study) and out-of-hours IT support to all offices.
| 72 |
| Increases in work volumes and staffing levels followed the award of the PFI contract, though it had been drawn up on the assumption of reductions.
| 32.4 |
| The extent of re-organisation and estates changes (eg moves; offices closing) along with locally-generated change needs was greater than that assumed when the PFI contract was drawn up.
| 43.2 |
| Specialist equipment for staff with disabilities and protection against RSI (Repetitive Strain Injury)
| 10.8 |
| Need to retain critical legacy systems on their original Novell operating platforms for longer than planned.
| 10.8 |
| Changes to requirements for programme for IT renewal (desktop rollout)
| 10.8 |
Additional Services purchased prior to CCN30 Total
| 180 |
January 2004
| |
| 
