Supplementary memorandum submitted by
the Capita Group plc
There were a number of issues raised by members
of the Committee which required additional evidence from the witnesses.
You have received a letter dated 30 March from
Leigh Lewis, Permanent Secretary at The Home Office in which he
addresses some of the issues on behalf of all the witnesses. There
are some further aspects of the inquiry which I believe it would
be helpful to clarify.
1. OPERATIONAL
ASSUMPTIONS AND
CHANGED AGENCY
REQUIREMENTS
Capita's bid for the contract to support the
CRB Agency complied with the key assumptions made by the Agency
and its specification at the time about how the public would access
the service.
The Agency had presumed that over 80% of Disclosure
applicants would use a telephone-based process. Following contract
award, the Agency introduced an applicant led paper-based process.
After the service became operational, 80% of applications were
made in this way. A delay in processing built up as over 50% of
these applications contained errors or omissions by applicants
and these applications had to be returned for correction and /or
additional information to ensure the integrity of the checking
process.
When the Agency took the decision to introduce
a bulk paper channel Capita warned that this could lead to operational
difficulties and delays because the business processes, the supporting
IT system and staff recruitment had been based on the Agency's
original assumed channel mix as set out in the tender specification.
The different channel mix required different processes and system
design. However, Capita recognised that the Agency was under pressure
from its customers and that it took an understandable decision
to agree the bulk paper channel. Because of this significant process
change by the Agency, it was necessary to fundamentally amend
the business processes and system.
This altered the operational requirements and
consequentially the operating costs, and the alignment of the
contract, to the service.
2. CONTRACT RENEGOTIATION
TO MEET
CHANGED REQUIREMENTS
Following the Independent Review Team's report
a new contract was negotiated between the CRB Agency and Capita
recently to reflect the changes to the service.
Capita delivered a cost effective solution as
the company would deliver the service itself rather than relying
on working with other partners and consultants. It is certain
that the other bidders, which were more expensive than Capita
in their original bids would also have had to renegotiate their
original prices in light of the actual channel mix.
Even so, the bids were evaluated by the Agency
so that annual running costs could be compared directly whatever
the assumptions on channel mix or volumes. This demonstrated that
Capita offered better value whatever the assumptions and at any
demand volume. Even following the contract renegotiation, Capita
is still markedly cheaper than the other original bids. However,
it is most probable that these prices would also have increased
to reflect the changed requirements of the Agency.
3. ROLES AND
RESPONSIBILITIES
The Criminal Records Bureau is a complex partnership
between the CRB Agency—formerly the Passports and Records
Agency—and Capita, with additional operational activities
being undertaken by local police forces and registered bodies.
The operational success of the service is dependent on all parties.
The Agency is responsible for:
— managing or running the service,
and reporting to Home Office Ministers;
— client management of Capita including
specifying and awarding the contract;
— conducting confidential checking,
including PNC matching;
— managing the Registered Body and
police interface; and
— monitoring the overall service.
Capita is responsible for:
— delivering and managing the technical
solution in accordance with the Agency's wishes;
— running the call centre;
— receiving and processing applications;
and
— printing and dispatching the Disclosure
document.
Paul Pindar
Chief Executive
14 April 2004
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