Dear Ms Evans

APPLICATION UNDER THE FREEDOM OF INFORMATION ACT (FOI)

I refer to your email dated 16 May 2010, requesting the following information under the FOIA.

“I would like to request the performance targets for Capgemini IT services. I would
like the targets that are key performance indicators to be labelled as such.

I expect there to be around 500 performance targets and 200 key performance
indicators, according to section 12 of the following document:

http://www.whatdotheyknow.com/request/31518/response/82808/attach/html/5/PAC%20Report%20on%20ASPIRE%20competition.pdf.html

An applicant's right in section 1 Freedom of Information Act 2000 (FOIA) is to be informed if a public authority holds the information described in the request and, if that is the case, to have it communicated subject of course to other provisions of the Act such as costs and exemptions.

I am writing to confirm that HMRC has completed its search for the information you requested.

In March 2010, there were 309 service applications subject to contractual performance monitoring under the Aspire contract. Those services are measured using 555 Performance Indicators (PIs) which are reported against agreed contractual monthly service levels. Of those measures, 156 designated Key Performance Indicators (KPIs) may generate service credits if the supplier fails to deliver against contractually agreed quarterly targets. The potential liability is very significant but in practice service credits currently run at approximately £800k per annum. There are no provisions to reward performance for exceeding IT Service Requirements (ITSRs).

The service levels are based on IT events such as availability, accuracy, completeness, reliability, responsiveness and timeliness. These levels are raised each year by a small percentage where actual service levels exceed the target. In addition, the Department has rights to change service levels, giving 30 days written notice to the supplier, and to introduce new service levels for new & existing services.

The performance monitoring regime is underpinned by service reporting on a daily, weekly and monthly basis for specified live services.

The actual performance targets for the service levels are agreed via negotiation with Capgemini, based on industry standards. We are unable to supply contract pricing and funding information that may prejudice the commercial interest of Capgemini and / or its material subcontractors, Fujitsu and Accenture and / or HMRC. This information is exempt under s.43 FOIA.

Section 43(2) FOIA 2000

Information is exempt from publication under s.43(2) if its disclosure under the Act would, or would be likely to prejudice the commercial interests of any person (including the public authority holding it).

It is considered that disclosure of contextual details about HMRC contract pricing and funding information would prejudice the commercial interests of HMRC as a contracting authority and our ability to deliver best value. It is also considered that release of such information would weaken our supplier's position in a competitive environment by revealing market-sensitive information or information of potential usefulness to its competitors

Public interest

Section 43(2) is a qualified exemption and therefore, HMRC has to consider the extent that, the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

There is a public interest in knowing that public money is being used effectively and that HMRC is getting value for money when purchasing goods and services and that the Department's procurement processes are conducted in an open and honest way as it provides transparency as to the public's view of the effectiveness, or otherwise, of our Department.

However, there is also a public interest in withholding information where disclosure would be likely to prejudice the commercial interests of the Department by affecting adversely its bargaining position during contractual negotiations which would result in
the less effective use of public money. Disclosure of future intent could adversely affect:

On balance it is considered that the public purse is better positioned by ensuring that

contract pricing and funding information remains commercial in confidence and that this commercial upper hand outweighs any public interest request in terms of how HMRC intends to buy IT services in the future. It is also judged that the commercial risk of disclosing contextual detail about the authority, its business objectives and plans is too great and far outweighs the benefit or public interest of disclosing or placing in the public domain this information

The attached annex to this letter sets out the exemption in full.

The information supplied to you continues to be protected by the Copyright, Designs and Patents Act 1988. You are free to use it for your own purposes, including any non-commercial research you are doing and for the purposes of news reporting. Any other re-use, for example commercial publication, would require the permission of the copyright holder. Most documents supplied by HMRC will have been produced by government officials and will be Crown Copyright. You can find details on the arrangements for re-using Crown Copyright on HMSO Online at:
http://www.hmso.gov.uk/copyright/licences/click-use-home.htm

Information you receive which is not subject to Crown Copyright continues to be protected by the copyright of the person, or organisation, from which the information originated. You must ensure that you gain their permission before reproducing any third party (non Crown Copyright) information.

If you have any queries about this letter, please contact me. Please remember to quote the reference number above in any future communications.

If you are unhappy with the service you have received in relation to your request and wish to make a complaint or request a review of our decision, you should write to:

The Freedom of Information Team

HMRC

Room 1C/25.

100 Parliament Street

LONDON

SW1A 2BQ.

If you are not content with the outcome of the internal review, you have the right to apply directly to the Information Commissioner for a decision. The Information Commissioner can be contacted at:

Information Commissioner's Office
Wycliffe House
Water Lane
Wilmslow
Cheshire
SK9 5AF

Yours sincerely

Eileen Tully

HM Revenue and Customs

Information Management Services

Freedom of Information Manager

Annex A

Exemptions