Supplementary memorandum submitted by
DWP (SC 04C)
AN OVERVIEW OF ARRANGEMENTS WITH THE DWP'S
1. The Department for Work and Pensions
uses a range of contractual vehicles to meet its requirements
for new IS/IT work, choosing the most appropriate contracts depending
on the specific requirements. For existing business requirements,
including the development and delivery of IT operational services,
the main contractual vehicles are those let as PFI arrangements
by the former Department for Social Security (DSS) and the Employment
Service (ES) (ACCORD and ITPA respectively). The following paragraphs
(2-13) describe these arrangements in more detail. The Department
also has access to other Office of Government Commerce agreements
and the Inland Revenue's E-IROS Agreement which are used in some
circumstances to meet IS/IT requirements which are better met
through non-PFI arrangements.
THE ACCORD PROGRAMME
2. In 1996 the DSS initiated a Change Programme
to streamline and improve Departmental business. An IS/IT Strategy
was developed to enable the fundamental business process re-engineering
required under the Change Programme and the ACCORD (ACcess
to CORporate Data) Project was established to put in place
a PFI compliant delivery vehicle for the necessary new IT. PFI
was the accepted Government procurement vehicle at this time.
3. Under ACCORD, DSS awarded PFI contracts
in 1999 to three companies that headed the short-listed consortia
(Note: the contracts are with the lead members not the consortia,
as the latter are not legal entities)
EDS for the Affinity consortium;
BT Syntegra for the Arcway
ICL (now Fujitsu) for the
1 ACCORD consortium.
4. The Prime Contractor of this group is
EDS with specified sub contractors:
PWC Consulting (now part of IBM).
5. Under these arrangements, EDS was selected
the Lead Service Provider, under
which EDS is required to co-ordinate and manage all Service Provider
activity and to perform certain cross-cutting operational services
(eg help desk); and
the IT Provider of Choice when the
Department intends to procure services via the ACCORD Agreements
and subject to detailed contracted provisions.
6. The ACCORD IS/IT Services Agreement with
EDS enabled the Department to award Business Allocations to EDS.
7. Examples of Affinity Awards include:
various awards relating to the Department's
Early Office Infrastructure (EOI) projectthe project to
introduce a new modern desktop infrastructure to the Department.
Child Support Reform under which
EDS are contracted to design, build, finance and operate a range
of IT services for the Child Support Agency.
New Tax Credits covered the development
and delivery of the DWP-end changes and IT infrastructure needed
to support the Government's NTC Programme.
8. The Prime Contractor of this group is
BT with specified sub contractors Bull Information Systems Limited
and SchlumbergerSema Group UK Limited. BT was also selected as
the Network and Office Service Provider.
9. The ACCORD IS/IT Services Agreement with
BT enabled the Department to award Business Allocations to BT.
10. Examples of Arcway awards include:
Advanced Telephony has modernised
telephone systems in the Child Support Agency, Pension Offices
EOI Distribution, Implementation
& Disposal was part of the programme to modernise the Department's
existing computer systems, where BT worked alongside EDS.
11. The Prime Contractor of this group is
Fujitsu with specified sub contractors Accenture, Experian Limited,
Ferret Information Systems Limited, Microsoft Limited and Rand
Information Systems Limited.
12. The ACCORD IS/IT Services Agreement
with Fujitsu enabled the Department to engage consultants to provide
13. An example of 1ACCORD award is the Provision
of Advisory Services which enables the Department to engage specialist
IT PARTNERSHIP AGREEMENT
11. This PFI Agreement with EDS was made
by ES prior to the creation of DWP, and these contractual arrangements
remain in force.
12. Under the ITPA, EDS provide Jobcentre
Plus with core IT services that support client facing, employer
and some corporate business processes. These include:
application systems development,
implementation and maintenance;
wide area network infrastructure
development and maintenance;
provision of desktop and mid-range
datacentre hardware and maintenance;
webhosting and e-business services;
associated support services.
The ITPA also provides telephony in the form
of fixed and mobile services and advanced telephony in contact
13. The Department also makes use of agreements
set up by the Office of Government Commerce for IT services, available
for all Government Departments; these include S-Cat Frameworks,
G-Cat Frameworks and Government Telephony Contracts (GTC). The
Department uses these agreements for some telephony services and
for IT consultancy. S-Cat is also currently being used to source
some of the Department's IT development related requirements,
in advance of the award of the DWP specific Framework Agreements
currently being established.
14. This agreement was set up by the Inland
Revenue (IR) to provide IT hardware and software and some IT Services.
By arrangement with IR, the Department has used this agreement
with Computacenter to source IT hardware and software for over
100,000 PC systems under the Early Office Infrastructure programme.
15. The Department provides suppliers with
information throughout the procurement process, but the principal
when seeking expressions of interest
from suppliers to take part in a procurement;
when requesting proposals from suppliers
selected to bid; and
in the invitation to tender.
16. At the "expressions of interest"
stage suppliers will be provided with:
background information on the Department,
and particularly the business unit(s) to which the procurement
an indication of the scope of work
envisaged under the contract; and
general details of the dependencies
relating to the work.
17. When seeking proposals from the selected
suppliers they are issued with a Statement of Service Requirement.
This document includes:
details of existing services which
will be impacted by the contract;
functional and service requirements
to be met under the contract that is being negotiated (including
both mandatory and desirable requirements);
output requirements of the systems
to be provided;
where appropriate, significant timescales
that need to be met; and
an indication of the general terms
18. At the "invitation to tender"
stage suppliers are provided with the full terms and conditions
which will apply to the contract and detailed instructions on
how they need to respond to the invitation to tender to ensure
that their tender is capable of being accepted by the Department.
The invitation to tender will also confirm the criteria being
used to assess the tenders and their relative importance.
Department for Work and Pensions
15 December 2003