Signing off a gov't IT contract? Don't move a muscle

All major public sector IT purchases should receive the government CIO's stamp of approval before being signed off, according to the government Digital Britain report.

The report, published today, comes after a series of government departments that signed off IT projects then later exceeded their budgets by millions of pounds. These include 20 projects undertaken by the Ministry of Defence that are set to cost £3bn more than originally planned, and a Department for Transport shared services initiative that aimed to save £57m but will now cost the taxpayer £81m.

"Currently, final sign-off for all new internal system procurements rests with individual departmental Accounting Officers; the government CIO is consulted but it is not his decision. The Digital Britain Report recommends that the government take the necessary steps to secure that the government CIO has a 'double lock' in terms of accountabilities and sign off for such projects. That will secure government-wide standards and systems," the report said.

Government procurement is also dogged by long lead times, according to the report, and "typical IT procurement can take three years from initial approval to tender to the contract being signed".

The report also highlights that smaller companies can be deterred from taking part in tenders due to the complexity of the tender process - leading to government becoming dependent on incumbents.

Rigid relationships with suppliers can also lead to "bespoke" contracts, which effectively act against a government drive towards common IT infrastructures across the public sector, as recommended by the government's Operational Efficiency Programme report, conducted by Martin Read in April.

As a result, the government should tailor the tender processes to encourage more SMEs, the report noted.

"The Digital Britain Report therefore recommends that the CIO Council agree a small number of potential areas for tender, and ensure the availability of a simplified, fast-track process (consistent with EU procurement rules) aimed at allowing such innovative companies to participate at the main contractor level rather than seeking sub-contractor status with incumbent bidders who may not wish to fit the particular innovation into their wider procurement bid," it said.