Increasing government scrutiny of supplier performance takes its toll
In a sign that suppliers to the UK government are entering a period of increased scrutiny of their performance, US defense and security contractor Raytheon has had its contract with the Home Office canceled due to project overruns and an overall dissatisfaction with the standard of progress to date. Raytheon, as the prime supplier of the Trusted Borders consortium, is three years into a ten-year contract to develop the IT systems for the Home Office’s £750 million eBorders program. The controversial program involves the collection, profiling, and monitoring of electronic passenger details for all people entering the UK and cross-checking this against police, security services, and immigration databases. To date the government has spent £188 million on the project but has found that Raytheon has consistently been in breach of contract and late with deadlines.
Increased scrutiny of supplier performance
With this climate of increased scrutiny of every IT contract and a need for every amount to be spent in the most efficient and productive way, the pressure is on more than ever for suppliers to deliver. It is no longer enough to fall back on incumbency or to be reliant on complacency of government agencies. The coalition government is shaking things up and appears not to be afraid to go for the big contracts.
Technology will continue to play a key role in securing our borders
Security remains a priority investment. National security and counter-terrorism strategy remain top priorities for the new government and the work of eBorders will go ahead. While those sub-contractors in the Trusted Borders program are expected to re-sign their contracts for their part in the program, the role of prime contractor will be available, and we can expect a number of suppliers to be vying for this space. Other members of the Trusted Borders consortium could step up to this; both Capgemini (having been working with the Home Office since the concept and planning stages of the program) and Accenture (with its expertise gained with the US Department of Homeland Security and the US VISIT scheme) could feasibly take on the role of prime contractor.
IBM is a likely winner having built the pilot for this scheme in Project Semaphone, as well as being the systems integrator partner for the Immigration Case Work Programme. However, IBM is not the only vendor with strong identity management capabilities. Atos Origin, which was also involved in the initial bid process for the program, is another possible contender; it project managed the design, build, and support of the UK passport biometrics trial. Whoever succeeds in taking Raytheon’s place will have to take over a project that has been struggling to meet deadlines and will face unrelenting scrutiny of its project management and performance. Similarly, the Home Office should review its work on this project to find out if there was anything that it could have done better – for example, project management or delivery of its part of the requirements. It should capture the lessons learned from this project so that the same mistakes are not repeated in the next project.
Expect further shake-ups
This is likely to be the first of many steps the new government takes in a bid to shake up the status quo and push both the supplier market and the agencies & departments themselves to cut margins and drive out crucial efficiencies.
The recently announced proposed changes to the UK police force, for example, reflect the desire to better coordinate regional, national, and international police work. But they also reflect the government’s commitment to an increasingly integrated approach to providing services. Through the creation of a new National Crime Agency it hopes to see improved data collection, analysis, and dissemination, with the goal of promoting greater collaboration across departments and agencies that historically have worked in a siloed way. Furthermore, the integration of processes and shared resources will bring economies of scale and is a decisive move to push agencies to take a more serious view of achieving the necessary savings, and a more efficient way of working. Suppliers should expect to see more of the same.
With Thanks to Ovum
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