Memorandum by Chris Corbin
I welcome the decision of the Communities and
Local Government Select Committee to undertake a review on the
impact of the recommendations made in the House of Commons Transport,
Local Government and the Regions Committee (Hoc TLR-C)Ordnance
Survey, Tenth Report of Session 2001-02 published on 22 June 2002
and the opportunity to submit evidence to the Committee.
PERSONAL BACKGROUND
TO SUPPORT
SUBMISSION
During 2002 as Chair of the Association for
Geographic Information (AGI) I submitted supplementary evidence
regarding a number of European Union (EU) Directives and initiatives
to the Ordnance Survey Inquiry.[47]
I am no longer a member of the AGI[48]
and as such the views expressed in this submission do not represent
those of the AGI.
I have been involved with public sector information
and in particular geographic information for over 40 years and
I am currently employed as an analyst in the European Union eContentplus
funded project ePSIplusTowards the 2008 review of the
Directive on PSI re-use.[49]
I have been employed in a number of other EU projects that relate
to public sector information policy and geographic information.
These projects have included:
GINIE: Geographic Information Network in Europe,
duration 2001 to 2004.[50]
MEPSIR: Measuring European Public Sector Information
Resources, 2005-2006.[51]
I have also been involved and provided evidence
to:
ePSINet: Towards the implementation of the Directive
on PSI re-use, 2002 to 2005.[52]
SPREAD: Stimulate and promote good practice
in the field of digital content in Eastern and Western Europe,
2004 to 2005.[53]
OECD Working Party on the Information EconomyPSI
Information and Content 2006.[54][55]
1. SUMMARY
1.1 Legal frameworks brought in through
EU legislation have complemented the HoC TLR-C Conclusions published
in June 2002. One consequence of these legal frameworks has been
the establishment in the UK of a new Regulator (OPSI) that has
Memorandums of Understanding in place with two other regulators
namely the OFT and the ICO which enables complaints to be moved
between the Regulators. An appeal process has also been established
via APPSI. Both the OPSI and the APPSI have received and processed
complaints related to the OSGB. Further changes as a result of
recent EU laws (INSPIRE) will be required which will have a direct
bearing on the Committee's review.
1.2 The Government's response to the HoC
TLR-C Conclusions was in some cases not in accordance with the
legal frameworks and Guidelines that existed when the Government
responded. Subsequent legal frameworks have not supported the
conclusions the Government reached nor have the assessments reached
by the Regulators especially those related to market competition.
1.3 A number of the HoC TLR-C conclusions
have been enacted upon by the combination of the Department (DTLR,
ODPM, DCLG) and the OSGB. In implementing the HoC TLR-C conclusions
the Department has not complied with the law related to the conduct
of Public Sector bodies or the Guidelines related to the establishment
of Advisory bodies. The Department has in some cases recently
corrected their earlier actions and they now comply with the law
(Reference the PGA2 procurement). As a consequence both the geographic
information market in the UK and Government initiatives related
to improving the efficiency of government through the exploitation
of ICT have been affected and or set back.
1.4 The OFT has reported on their Market
Study on The Commercial Use of Public Sector Information (CUPI)
which has reported on potential competition infringements
by the OSGB. The Government has failed to respond to the OFT CUPI
report within the statutory timeframe, which is regrettable as
this indicates that the Government and its supporting administration
place themselves above the laws in force within the UK. Such delays
have a direct impact on the geographic information market.
1.5 The European Commission Regulatory body
related to ensuring the principles of the Single Market, public
sector procurement, and subsidies are complied with has also processed
complaints related to actions taken by the Department and the
OSGB.
1.6 The number of questions related to the
actions of the Department and the OSGB have continued to be asked
in both the HoC and the HoL which is in itself an indicator that
issues exist that have an impact on the geographic information
market and other Government led initiatives.
1.7 Within Government and its administration
there still exists genuine confusion regarding the role of the
OSGB as to whether it is acting in the public good or acting commercially.
This is an area that requires urgent attention as it has and continues
to have a major impact on the geographic market here in the UK
to the detriment of UK plc. As a consequence considerable resources
are being diverted to non-productive activities both within the
public sector and private sector to address the issues that arise.
It is notable that other Countries in recent years have either
separated out the public task and the commercial task into separate
legal public sector entities or abandoned the principle of acting
commercially with respect to public sector information.
1.8 Research and evidence is building that
indicates that when ever a public procurement for geographic information
complies with the EU law that results in an outcome that is not
favourable to the OSGB (not all lots are awarded to the OSGB)
that excessive delays occur for example the Local Government Mapping
Service Agreement (MSA) and the PGA2. Delays have also occurred
in other areas that involve the OSGB for example the time taken
to reach agreement and publish the current OSGB Framework document.
1.9 The Department's decision not to renew
NIMSA but to let specific open competition contracts where necessary
is correct.
1.10 Despite all of the developments outlined
above there remain real issues with respect to the OSGB and its
responsible Department that are damaging both the geographic information
market and the public sector. As such the five-year review by
the Committee is timely.
2. PERTINENT
LEGISLATIVE CHANGES
SINCE JUNE
2002
Re-use of PSI
2.1 The EU Directive 2003/98/EC[56]
on the re-use of public sector information came into force within
the EU on 31 December 2003 and within EU Member States on 1 July
2005. The UK transposition Statutory Instrument 2005 No 1515 The
Re-use of Public Sector Information Regulations 2005 came into
effect on 1 July 2005. The Office of Public Sector Information
(OPSI) was established during May 2005 and is in effect the Regulator
appertaining to the re-use of Public Sector Information.
2.2 SI 20051515 established a formal
complaints process within OPSI with an appeal process via the
UK Advisory Panel for Public Sector Information (APPSI). Furthermore
the OPSI established Memorandum of Agreement's with the UK Office
of Fair Trading (OFT) and the Information Commissioners Office
(ICO) and as such established a unified interface for the processing
of complaints.
2.3 The above combination of the framework
legislation together with the complaints and appeals process met
in outline HoC TLR-C Conclusions (a), (c), (e) and (f).
INSPIRE
2.4 The EU Directive 2007/2/EC on establishing
an Infrastructure for Spatial Information in the European Community
(INPSIRE) came into force within the EU on 15 May 2007 and is
due to come into force within the UK by 15 May 2009 at the latest.
2.5 The INSPIRE framework requires a national
co-ordinating structure to be put into place and as such relates
to HoC TLR-C Conclusion (g).
Public Sector Procurement
2.6 The EU Directive 2004/18/EC on the coordination
of procedures for the award of public works contracts, public
supply contracts and public service contracts came into force
within the EU on 30 April 2004 and within EU Member States on
31 January 2006. The UK enforcement body is the Office of Government
Commerce (OGC).[57]
Directive 2004/18/EC replaced the EU procurement laws that were
in effect within Member States when the HoC TLR Committee published
its Conclusions in June 2002.
2.7 The Public Sector procurement Directive
applies to HoC TLR-C Conclusions (d).
Financial Transparency
2.8 The EU Directive 2006/111/EC on the
transparency of financial relations between Member States and
public undertakings as well as on financial transparency within
certain undertakings came into force in all Member States on 20
December 2006.
2.9 Directive 2006/111/EC is a codified
version that consolidates Directive 80/723/EEC and the subsequent
amendments into one updated document and as such repeals all previous
versions. As preamble (1) states this has been done in the interests
of clarity and rationality. Directive 80/723/EEC was published
in the Official Journal of the European Communities on 29 July
1980 and came into force into all Member States on 31 December
1981. As such the Public Procurement laws were in force when the
HoC TLR-C published its Conclusions in June 2002. Within the UK
the Department of Trade and Industry has responsibility for implementing
the Directive.[58]
2.10 The Financial Transparency law applies
to HoC TLR-C Conclusions (c).
EU Treaty Article 82
2.11 EU Treaty Article 82[59]
trading organisations in a dominant position may not abuse that
position. Article 82 has been in force since 1957 and was in force
when the HoC TLR-C published its Conclusions in June 2002. The
enforcement body (Regulator) within the UK is the Office of Fair
Trading (OFT).
2.12 The above raises a number of points
that the committee may wish to consider and note.
1. Guidelines and Processes that existed
at the time the HoC TLR-C published its report in June 2002 complement
the legal frameworks outlined above in the EU & UK. Over the
past five years a number of these guidelines (good practices)
have been reviewed via open consultation by the Government and
improved or adapted to current conditions. In particular the processes
related to HoC TLR-C Conclusions (c), (d) and (g). The Guidelines
are published and available on the Cabinet Office web site. These
Guidelines have been developed through practical experience as
well as open and democratic processes using public funds and the
taxpayer would rightly expect Departments and Executive Agencies
to abide by these Guidelines. For example the process of establishing
the Geographic Information Panel (GIP) was not in accordance with
the Cabinet Office Guidelines on public appointments. It is not
at all clear why the Department (DTLR, ODPM, DCLG) did not follow
the set down processes and guidance. It is interesting to note
over the same period that Her Majesty's Stationery Office (HMSO)
now known as the Office of Public Sector Information (OPSI) established
the Advisory Panel for Public Sector Information (APPSI) in accordance
with the Cabinet Office procedures and as such the APPSI has a
level of credibility that the GIP has not managed to achieve due
in part to the process of establishment, appointment and maintenance
that is the rotation of appointed members and the publication
of the financial accounts (financial transparency). Both panels
report to Ministers and both panels have an advisory role.
2. The legal frameworks that now exist on
the statute book endorse a number of the Conclusions reached by
the HoC TLR-C in particular Conclusions (a), (c), (e), (f) and
(g). The Government's response[60]
to the HoC TLR-C Conclusion (c ) is not in alignment with the
legal frameworks.
3. A number of the legal frameworks existed
at the time the HoC TLR-C published its report in June 2002 and
as such the HoC TLR-C report was indirectly indicating (as the
report made no direct reference to the existing EU and UK laws)
that the combination of the Department of State (DTLR, ODPM, DCLG)
and the Executive Agency (Ordnance Survey of Great Britain (OSGB))
that the Department has responsibility were not being complied
with in particular Conclusion (c).
4. The above brief summary would suggest
that rather than generate yet further legal frameworks and guidance
there is an urgent need for compliance to be enforced with respect
to the existing laws and frameworks combined with a more rigorous
scrutiny both by Parliament and bodies such as the National Audit
Authorities.
3. PAN-GOVERNMENT
AGREEMENT(CONCLUSION
D)
3.1 The Pan-Government Agreement was established
but the process did not comply with the EU Procurement law in
that it was not open to competition. The basis for not complying
with the EU Directive was that both the Department of State concernedthe
procurer (DTLR then ODPM) and the Ordnance Survey of Great Britainthe
supplier, are public bodies under the Crown (confirmed by the
fact that Crown Copyright applies in both cases). As such these
two bodies are exempt from the EU Public Procurement Directive
as they are part of the same family of public bodies.
3.2 However the Pan Government Agreement
supplied a substantial number of other public bodies that were
not under the Crown for example the Environment Agency. It is
the latter aspect that resulted in non compliance with the EU
Public Procurement Directive.[61]
3.3 The European Commission (EC) Internal
Market and Services Directorate's Public Procurement Policy enforcement
Unit received a complaint in July 2003 and the decision reference
number 2003/4786 upheld the complaint that the Pan-Government
Agreement did fall within the remit of the EU Public Procurement
Directive due to the wide range of public bodies and their sub
contractors being beneficiaries under the Pan-Government Agreement.
The details and the decision related to Complaint 2003/4786
Ordnance SurveyPan-Government AgreementPublic
Procurement are available from the EC Enforcement Unit in
Brussels.
3.4 As a result of the EC intervention the
Office of the Deputy Prime Minister (OPDM) placed a notice in
the Official Journal of the European on 25 August 2005. The process
that was initiated by the notice resulted in only two lots being
met both of which are provided by the private sector data providers.
The procurement is still in process.
3.5 The above raises a number of points
that the committee may wish to consider and note.
1. It is assumed that the HoC TLR-C in publishing
Conclusion (d) in June 2002 was not implying that the DTLR did
not need to comply with the EU and UK Public Procurement laws,
procedures and good paractice.
2. The Pan-Government agreement did not cover
the procurement of Aerial Photography due to the complaints and
Court Injunction between Get Mapping plcOrdnance Survey
of Great Britain. (Conclusion (f)). It was apparent that there
were at least three private sector companies able to provide aerial
imagery.
3. The Pan-Government agreement[62]
although entered into for a fixed period is still running in that
it has been extended more than once by the OPDM and its successor
DCLG. As the procurement did not comply with the EU Public Procurement
law this in effect means that the geographic information market
has been impacted (distorted).
4. The second Pan-Government agreement (PGA2)
that did abide by the EU Public Procurement laws (even though
at the current time it has not been concluded) has demonstrated
that other suppliers do exist within the geographic information
market both within the public and private sectors and that given
the opportunity to bid that they do so. Thus value for Money can
be demonstrated but only if open competition exists.
5. The second Pan-Government agreement (PGA2)
includes a lot for Address data that maybe sourced from at least
two public sector bodies or their agents. The first from Local
Government via Intelligent Addressing for the National Land and
Property Gazetteer. The second from OSGB for MasterMap Address
Layer 2.[63]
Both of these come under the DCLG and are also the subject of
a complaint under the PSI Regulations[64]
and the OPSI Information Fair Trader Scheme (IFTS).[65]
The OFT Market Study report The Commercial Use of Public Information
(CUPI) also refers and raises potential competition issues.
The Intelligent Addressing complaint remains open even though
it was upheld. The UK Government has not responded within the
90 calendar days to the OFT CUPI report and as such remains open.
One result of the above is that competition within the geographic
information market has been distorted.
4. THE NATIONAL
INTEREST MAPPING
SERVICE AGREEMENTNIMSA
(CONCLUSION C)
4.1 The HoC TLR-C Conclusion (c) was not
met throughout the lifetime of NIMSA. The published Annual Accounts
of the OSGB have not complied with the legal requirement for financial
transparency in that only the total amount of the NIMSA subsidy
received each year has been reported. The NIMSA payment in the
context of the OSGB Annual Profit & Loss accounts is significant
as TABLE 4.1 shows and as such demonstrates the need for financial
transparency with respect to any cross-subsidisation that maybe
taking place.
Table 4.1
NIMSA DETAILS OBTAINED FROM OS-GB PUBLISHED
ANNUAL REPORTS
|
NIMSA Year | Year
| Received for
NIMSA
| Accumulated
Total
| Operating
Surplus*
| OS Total
Turnover
| Less NIMSA |
|
1 | 1999-2000
| £14,616,800 | £14,616,800
| £12,484,000 | £99,586,000
| £84,969,200 |
2 | 2000-2001
| £13,454,136 | £28,070,936
| £27,342,000 | £98,558,000
| £85,103,864 |
3 | 2001-2002
| £15,987,245 | £44,058,181
| (-£7,562,000) | £102,631,000
| £86,643,755 |
4 | 2002-2003
| £12,546,480 | £56,604,661
| (-£2,213,000) | £108,042,000
| £95,495,520 |
5 | 2003-2004
| £12,820,427 | £69,425,088
| £5,582,000 | £116,280,000
| £103,459,573 |
6 | 2004-2005
| £13,179,461 | £82,604,549
| £9,177,000 | £114,738,000
| £101,558,539 |
7 | 2005-2006
| £10,925,516 | £93,530,065
| | | |
| Total to date
| £93,530,065 |
| £44,810,000
| | |
|
* Surplus/Deficit(-) on ordinary activities before interest and exceptional items.
|
4.2 Over the lifetime of NIMSA the Department (DTLR,
ODPM, DCLG) has only published five NIMSA annual reports.[66]
The Department published these reports towards the end of the
period.
TABLE 4.2 shows that the financial reporting improved following
the publication of the HoC TLR-C report. The financial information
provided however, is not sufficient to meet the requirement of
transparency with respect to cross-subsidisation between the public
task and the commercial activities.
Table 4.2
|
Financial Year | Financial Information included
|
|
NIMSA Annual Report 2005-06 | Financial breakdown provided
|
NIMSA Annual Report 2004-05 | Financial breakdown provided
|
NIMSA Annual Report2003-04 | Financial breakdown provided
|
NIMSA Annual Report 2002-03 | Financial breakdown provided
|
NIMSA Annual Report 2001-02 | Financial totals only
|
NIMSA Annual Report 2000-01
Not published on the DCLG
web site.
Available via FOI Request to OSGB
| Financial totals only |
|
4.3 The National Interest Mapping Service Agreement signed
between the Customer (DETR) and the Supplier (OSGB) has not been
placed in the public domain even though this is not a commercial
arrangement but a National Interest (Public interest) agreement.
The signed Agreement provides the basis for assessing whether
the services defined in the Agreement have been delivered in accordance
with the Agreement. The Agreement (Released by the OSGB in respect
to an FOI request Number 41577) shows that the Agreement was still
being varied even though the Agreement had come into force as
shown in TABLE 4.3. Schedule D of the Agreement documents the
Profile of proposed NIMSA services and costs 1999/00 to 2005/06
is shown in Annex A of this submission. Schedule D highlights
the need for financial transparency in respect of cross subsidisation
as a number of entries will be common to the OSGB computerised
databases for example Corporate Data Management, Technical security.
Table 4.3
|
Version | Date
| Description |
|
1.0 | October 1998
| First issue |
1.1 | February 2000
| Replacement pages E.1 and E.2*
|
1.2 | February 2001
| Complete reissue |
|
* Schedule E: Terms of Reference for the NIMSA review group.
|
4.4 NIMSA was for a seven year period from April 1999
through to the end of March 2006. The DCLG in the October statement
on NIMSA states that NIMSA funding will end on 31 December 2006an
overrun of eight calendar months. The trend within Government
to extend supply agreements and contracts that are not open to
competition distorts the market.[67]
4.5 The Government's response to the HoC TLR-C report
recommendation (c) states:
"NIMSA charges are audited every year and have never
been the subject of adverse audit comment since NIMSA was established
on 1 April 1999".
4.6 However the Annual NIMSA reports published contain
no official Audit statement to corroborate the above statement.
It is not clear from the published NIMSA annual reports what the
Audit process involves. It is also not clear how the Department
was ensuring value for money. Information released under the FOI
Act, and in response to lettersrefer Annex B; would indicate
that the formal NIMSA Audit process was part of a much larger
Audit process and that NIMSA itself was not subject to a specific
Audit. The information provided indicates that the Department
was not part of the Audit process.
4.7 Evidence on the Value for Money can be ascertained
from at least two parts of NIMSA for example the metadata service
(GIgateway) and the update or Rural Addresses. The metadata service
was subcontracted to the Association of Geographic Information
(AGI) in 2001. The AGI employed up to six people to manage and
deliver the metadata services. A comparison of the AGI Annual
Accounts published at Companies House with those of the NIMSA
Annual reports published by the Department shows that the OSGB
overhead of managing this contract was on average 33% even when
the alignment of the financial years is taken into account.
Table 4.7
|
Year | AGI received
(Jan to Dec)
| OS-GB Received
(Apr to Mar)
| OS-GB Handling |
Percentage
Overhead
|
|
2001 | £263,000
| £393,333 | £130,333
| 33.14% |
2002 | £278,000
| £396,526 | £118,526
| 29.89% |
2003 | £251,938
| £403,775 | £151,837
| 37.60% |
|
4.8 The above raises a number of points that the committee
may wish to consider and note.
1. The requirement for financial transparency has not
been met.
2. The Department's management of NIMSA improved with
time which maybe in response to the HoC TLR-C report as well as
the ongoing external pressures for greater transparency.
3. The financial audit process is far from clear and as
a result it is not proven that the value for money was being achieved.
4. NIMSA overran the seven year period which has an impact
on the market.
5. The NIMSA consultation was not conducted in accordance
with the Cabinet Office Consultation guidelinesrefer Annex
C of this submission.
6. In light of the above the Departments conclusions on
the future of NIMSA in the October 2006 statement is correct in
that requests for financial transparency have not been met, the
value for money is questionable, NIMSA distorts the market. The
Department decision in effect ensures compliance with the law.
The Department then has the freedom to procure services that it
deems are required in the National Interest via open competition.
7. The OSGB views NIMSA as a commercial contract as many
of the documents held and referenced by the National Audit OfficeRefer
to Annex B that originate from the OSGB are marked Commercial
in Confidence. If separate accounts were produced for the public
task role and the commercial role then the necessity felt by OSGB
to mark their documents as Commercial in Confidence would not
be required.
5. OSGB ANNUAL REPORT
AND FINANCIAL
ACCOUNTS
5.1 The OSGB Annual Report and Financial Accounts are
not transparent as required by EU legislation and HM Treasury
requirements. In response to an FOI Act request HM Treasury states
(Refer Annex D of this submission) that Trading Funds must ensure
that their accounts are transparent with respect to subsidies
received. The HM Treasury also states that it is down to the responsible
Department (DTLR, ODPM, DCLG) to ensure that the Financial Accounts
comply with the HM Treasury guidance.
5.2 With respect to HoC TLR-C Conclusion (a) pricesthe
OSGB Annual Report for the past six plus years contains an Adverse
report from the National Audit Office regarding the value of the
database. The Adverse report makes the point that this affects
the price. In response to an FOI Act Request (Annex E) the National
Audit Office states that has is still to be resolved.
6. COMPLIANCE WITH
PSI REGULATIONS SI 15152005
(EU DIRECTIVE 2003/98/EC)
6.1 The PSI Regulations 2005 came into force on 1 July
2005. In January 2006 (seven months after the PSI Regulations
came into force) the OSGB published a document titled Licence
Exceptions (D03800.doc Jan 2006) that did not comply with the
Regulations in a number of areas. For example:
"Please note that we may refuse a licence in certain
circumstances including the following:
1. We may refuse to grant certain applications if:
your request to reproduce Ordnance Survey mapping
falls outside Ordnance Survey's standard licensing terms and conditions;
or
you want to market a product whose intended use
is the same as, or comparable to, that of any product marketed
by Ordnance Survey itself or any product which Ordnance Survey
intends to market."
"7. We will only licence Ordnance Survey published
products. We will not licence mapping information which is used
as part of our production flowline."
6.2 The OPSI has subsequently taken the matter up with
the OSGB with respect to ensuring compliance.
6.3 The above raises a number of points that the committee
may wish to consider and note.
1. Where are the OSGB boundaries documented and set? The
OSGB Framework document does not define them and the potential
re-user of OSGB data according to Licence Exception Clause 1 bullet
2 has to guess where the OSGB boundaries are.
2. The Licence Exception may infringe EU Treaty Article
82 in that it is an abuse of dominant position.
3. The Licence Exception can be used to control the market,
which is explicitly prohibited within the PSI Regulations. In
this example the potential re-user of the OSGB data has to divulge
their business plans and only then discovers whether the OSGB
will licence the data, which it may refuse on the grounds that
the OSGB is considering entering the same market!
4. The Licence Exception clause 7 defines the base line
with respect to the PSI Regulations regarding refined and unrefined
data from the OSGB's perspective, a point that the OFT CUPI report
also considers.
5. zPublic sector resources have to be devoted to correct
the situation, which should not have arisen in the first place.
Whilst the matter is resolved the geographic information market
is impacted.
6. The example is but one that demonstrates that the OSGB
can introduce such documents without notice and in a time scale
that verges on the instantaneous, yet the correction and or withdrawal
takes an inordinate amount of time. This is visible (transparent)
with respect:
To the OPSI Information Fair Trader Scheme (IFTS)
reports where the OPSI requires the OSGB to change licences and
other conditions that do not conform to the IFTS.
Resolving complaints upheld by the OPSI under
the PSI Regulations.
7. MARKET IMPACTLOCAL
GOVERNMENT MAPPING
SERVICE AGREEMENT
7.1 An analysis of the Local Government Mapping Service
Agreement procurement clearly shows that the OSGB actions delayed
the procurement. The difference between the timescales published
in the Official Journal of the European Communities (OJEC) notice
and the actual timescales are shown in the TABLES 7.1A and 7.1B.
Table 7.1A
MSA OJEC NOTICE
|
Event | Date
|
|
Reference | 74274100
|
Type of Contract | Restricted Procedure
|
Period of Contract | 1.04.04 to 31.03.07
|
Publication date of Notice | 17.06.03
|
Closing date for obtaining document | 14.07.03
|
Closing date for Expression of Interest |
25.07.03 |
Dispatch of Tender document | 10.10.03
|
Closing date for tender | 21.01.04
|
|
Table 7.1B
MSA TIME ANALYSIS
|
Date | Elapsed
Days
|
Event |
|
17.06.2003 | 1
|
OJEC Notice Call for expression of interest |
05.11.2003 | 141
|
Invitation to Tender issued |
16.12.2003 | 182
|
Bids received (Tender closed) |
20.02.2004 | 248
|
Preferred bidders announced |
26.05.2005 | 709
|
Announcement MSA has been signed between the three suppliers and I&DeA |
31.05.2005 | 714
|
LGIH dispatch LA MSA Agreements |
31.07.2005 | 775
|
Deadline for LA's to return MSA 70% of fees threshold must be met |
02.09.2005 | 808
|
I&DeA announces 99.46% of LA's had signed the MSA |
|
7.2 The above raises a number of points that the committee
may wish to consider and note.
1. The procurement was divided into Lots (as is recommended
by UK OGC). Different lots were awarded to three supplierstwo
from the private sector and one from the public sector (OSGB).
Agreement was reached at an early stage with the two private sector
companies that covered the duration of the contract but protracted
with respect to the public sector supplier (OSGB). Due to the
construct of the procurement all three suppliers had to have reached
agreement with the Local Government procurement body before the
MSA could be presented to the individual local government bodies
for signing. The cost of the procurement alone is estimated to
be in the region of £10 million plus.
2. While the procurement process was under way the previous
Local Government Service level Agreement where the OSGB provided
all the data productsthat was not awarded under open competition;
continued in force, ie the OSGB continued to receive income. In
contrast the private sector companies awarded the other lots could
not proceed or receive income!
3. During the procurement process the OSGB announced new
products that were not available at the time of the announcement.
The products announced were competitive products to those already
awarded to the private sector companies that the Local Government
procurement authority had reached agreement.
4. Whilst the procurement was in process the OSGB together
with the Department (DTLR, OPDM, DCLG) announced the National
Spatial Address Infrastructure (NSAI). The Department on 1 June
2007 made an announcement that it will not proceed further with
the NSAI!
5. The Department (DTLR, ODPM, DCLG) has experienced a
similar delay with respect to PGA2. Whilst the delay continues
PGA1 has been extended. ie the OSGB continues to receive income.
6. Although the market perception on the delays is one
of anti competitive behaviour on the behalf of the OSGB it can
also be taken as an indicator that the OSGB places contractual
conditions on Customers that are unacceptable to their real world
business requirements and as such indicates that the OSGB maybe
abusing its dominant position.
7. In both the MSA and PGA the OSGB was the incumbent
supplier to other parts of the public sector and as such the OSGB
is in a position to not only maintain the income through delay
but also able to use its relationship with the Minister and the
Department (DTLR, ODPM, DCLG) to influence events. This clearly
is not a level playing field with respect to the private companies
that are OSGB's competitors. As such there is a market distortion.
This situation is further distorted when the Director General
serves a Chair of the GIP and previously was a member of the Departments
board.
8. The same delaying technique is also apparent when Regulators
require the OSGB to comply with their decisions.
8. LACK OF
TRANSPARENCYQUINQUENNIAL
REVIEW STAGE
2
8.1 Although the conclusion of the OSGB quinquennial
stage 2 pre dates the HoC TLR-C report publication it is notable
that the OSGB quinquennial review stage 2 report produced by National
Economic Research Associates has not been placed in the public
domain even though quinquennail review stage 1 report has been.
The review process was undertaken in the public interest using
public funds and as such the document should be publicly available.
8.2 The lack of transparency with respect to the quinquennial
review is yet another example of the lack of transparency and
delays mentioned elsewhere in this submission. This demonstrates
that there has been little change by the OSGB and the Department
since the publication of the HoC TLR-C report. This not only impacts
the geographic information market, public sector initiatives but
as importantly that of accountability which weakens the democratic
processes.
NOTE: Further supporting information
can be provided to support the submission if required.
47
Tenth Report (HC481) OS13 (a) & (b) pages Ev 88 and 89. Back
48
I served as an elected member of the AGI Council from 1 January
1995 through to the 31 December 2004. Back
49
http://www.epsiplus.net/epsiplus/contacts/epsiplus_network_team_analysts/chris_corbin Back
50
http://www.ec-gis.org/ginie/documents.html Back
51
http://ec.europa.eu/information_society/policy/psi/library/index_en.htm#MEPSIR_Study,_2006_(PDF-files) Back
52
http://www.epsigate.org/index.htm Back
53
http://www.ubique.org/spread/ Back
54
http://www.oecd.org/document/17/0,3343,en_2649_201185_36860241_1_1_1_1,00.html Back
55
http://www.oecd.org/dataoecd/34/42/37865140.pdf Back
56
http://www.opsi.gov.uk/advice/psi-regulations/eu-directive-on-psi.htm Back
57
http://www.ogc.gov.uk/procurement_policy_and_application_of_eu_rules_european_procurement_directives.asp Back
58
www.dti.gov.uk/files/file37723.pdf Back
59
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:12002E082:EN:NOT Back
60
Cm 5641 November 2002 ODPM. Back
61
HoC TLR-C Tenth Report, page 10 paragraph 15 "...500 government
bodies". Back
62
http://www.iggi.gov.uk/pga2.php Back
63
http://www.ordnancesurvey.co.uk/oswebsite/products/osmastermap/layers/addresslayer2/ Back
64
http://www.opsi.gov.uk/advice/psi-regulations/reports.htm Back
65
http://www.opsi.gov.uk/ifts/index.htm Back
66
http://www.communities.gov.uk/index.asp?id=1144581 Back
67
The Future of the National Interest Mapping Services Agreement
Beyond 2006. October 2006. Product Code: 06FAD04203. Back
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