Position statement on IBM £254m Variant Bid in South West One contract (signed 2am late Sep 2007)

Dave Orr made this Freedom of Information request to Somerset County Council

The request was successful.

From: Dave Orr

21 August 2012

Dear Somerset County Council,

I have recently received minutes and notes from the Joint Members
Advisory Panel (JMAP) together with Bid Risk Logs (in traffic light
format) under a prior FOI disclosure.

In the JMAP meeting minutes for 2nd May 2007 under the heading
"Transformation Update - Procurement" the meeting notes state:

"[Councillor] Paul Buchanan sought assurance that all projects
named in the IBM Variant Bid would be part of the contract not just
the 5 named above. [Officer] Fiona [Catcher] asked JMAP to note
that we cannot do Full Business Cases for all 40 projects before
contract sign. We will be signing up for the 5 main projects to be
delivered contractually and for them to be priced, but the rest of
the projects in the bid will be plugged in and worked up post
contract.

[Councillor and JMAP Chair] Sam Crabb requested a full explanation
of the 40 projects. Fiona handed out a copy of the Variant Bid
Project Summary (attached to these notes below as a 'Variant Bid
Project Summary worksheet')."

===========================================================

From a previous FOI disclosure, we also know that IBM were the
highest bidder by a considerable margin with the IBM Variant Bid of
£253.82m.

The massive and costly winning IBM bid was £33m higher than the BT
Standard Bid and £6m higher than the BT Variant Bid.

With the SW1 contract renegotiated by SCC and the Leaders "SW1 is
failing" statement to Full Council in Feb'2012:

http://www.thisissomerset.co.uk/Failing-...

then it is of genuine public interest to know how many of the IBM
Variant Bids from the highest bidder, have been successfully
delivered, after almost 5 years in contract; also whether they were
included in the original IBM contract price of £253.82m.

1a. Please supply the final copy of the "Variant Bid Project
Summary worksheet" before contract signing with IBM for South West
One (2am on a Saturday at the end of Sep'2007).

1b. Please supply the final copy of the ISIS Project Risk log (in
traffic light format as per JMAP FOI disclosure) before contract
signing with IBM for South West One.

2. Please list all IBM Variant Bids (40 stated) that were in the
contract at the time of contract signing with IBM for South West
One.

3a. For each & every project that was in the IBM Variant Bid (40
stated) that were in the contract at the time of contract signing
with IBM for South West One, then please list for each project in
the IBM Variant Bid as of this date: the percentage of completion;
the date of sign off; the authorising Officer(s) and Councillor(s).

3b. For each & every project that was in the IBM Variant Bids (40
stated) that were in the contract at the time of contract signing
with IBM for South West One that has not been 100% delivered, then
please list: percentage delivered; reason for non or short
delivery; financial value of non or short-delivery; contract
dispute or penalty actions taken (including any financial
recompense by IBM/SW1 to SCC for short or non-delivery).

Yours faithfully,

Dave Orr

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Dave Orr left an annotation (21 August 2012)

Quote-marks IBM Variant Bids are here:

http://www.scribd.com/DavidMOrr#

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From: Somerset Direct - FOI
Somerset County Council

21 August 2012

Dear Dave

Thank you for contacting Somerset County Council. I have logged your FOI request with the relevant department. Your reference number is 2145223. If you require any further assistance please do not hesitate to contact us again

show quoted sections

Robert Taylor

show quoted sections

The Deane House
Belvedere Road
Taunton
TA1 1HE

show quoted sections

Southwest One - working in partnership with
Somerset County Council, Taunton Deane
Borough Council & Avon and Somerset
Police.

show quoted sections

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From: Information Governance
Somerset County Council

21 August 2012

Dear Mr Orr

 

Thank you for your request made under the Freedom of Information Act
(FOIA) 2000.

 

We are currently dealing with your request and will be in touch shortly
concerning disclosure of the information you have requested.

 

The legislation obliges us to provide you with this information within 20
working days, so our response will be sent to you by 19-09-2012.

 

Please be aware that we now publish all responses to requests for
information made under the FOIA, without any details of the requestor, on
the Council’s website.

 

Please see:

 

[1]http://www.somerset.gov.uk/disclosurelog

 

Yours sincerely

 

Information Governance Team

Client Services Team /  A2W

County Hall

Taunton

Som

TA1 4DY

 

Tel: 01823-357194

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From: Dave Orr

21 August 2012

Dear Information Governance,

For clarification re:

3a. For each & every project that was in the IBM Variant Bid (40
stated) that were in the contract at the time of contract signing
with IBM for South West One, then please list for each project in
the IBM Variant Bid as of this date: the percentage of completion;
the date of sign off; the authorising Officer(s) and Councillor(s).

For "as of this date" I meant as at today's date (21/8/2012) but if
the SCC Client Management Team has a Variant Project
status/progress report (or similar) from end of March 2012 onwards
(from their normal contract & project oversight) that satisfies the
request, then I would accept that.

Hope that helps....

Yours sincerely,

Dave Orr

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From: Information Governance
Somerset County Council

22 August 2012

Dear Mr Orr

Thank you for the clarification.

Information Governance Team

Tel: 01823-357194
No mobile access

Web : www.somerset.gov.uk

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From: Information Governance
Somerset County Council

18 September 2012

Dear Mr Orr

 

I am aware that the 20 working day deadline for this request, numbered
2145223 by Somerset Direct, expires today.

 

We apologise for the delay in responding to you in time, and plan to make
a full response to you in the next few days.

 

Yours sincerely

 

Information Governance Team

Client Services Team /  A2W

County Hall

Taunton

Som

TA1 4DY

 

Tel: 01823-357194

No mobile access

 

Web : [1]www.somerset.gov.uk

 

 

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This email, and any attachments is intended solely for the individual to
whom it is addressed. It may contain personal and / or sensitive material
and should be handled according to the principles of the Data Protection
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From: Dave Orr

18 September 2012

Dear Information Governance,

Thank you for keeping me informed on progress.

Yours sincerely,

Dave Orr

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From: Business Development - Resources
Somerset County Council

11 October 2012


Attachment Pre contract Combined Risk Register for ISIS updated 070508.pdf
217K Download View as HTML

Attachment Variant Bid Project Summary Worksheet in IBM RFC 16 Final REDACTED.doc.pdf
32K Download View as HTML


Dear Mr Orr

 

I am writing in respect of your recent request for information from
Somerset County Council, which has been dealt with under the provisions of
the Freedom of Information Act 2000.

 

Firstly, I apologise, on behalf of Somerset County Council, for the delay
in returning our response to you.

 

Secondly, I can confirm that we hold some of the information that you are
seeking and we are able to provide it to you.

 

Our response is detailed in bold format underneath your questions as
follows.

 

Q1a. Please supply the final copy of the "Variant Bid Project Summary
worksheet" before contract signing with IBM for South West One (2am on a
Saturday at the end of Sep'2007).

 

A1a.  Please see the final version in the attached document entitled
‘Variant Bid Project Summary Workshop in IBM RFC 16 Final
(REDACTED).doc.pdf’.

 

Q1b. Please supply the final copy of the ISIS Project Risk log (in traffic
light format as per JMAP FOI disclosure) before contract signing with IBM
for South West One.

 

A1b.  Please see attached document, which is the pre contract combined
risk register.  Being a live document, this has been updated post contract
signature.  However, earlier versions of the spreadsheet are not
available.

This document is entitled ‘Pre contract Combined Risk Register for ISIS
updated 070509.pdf’.

 

Q2. Please list all IBM Variant Bids (40 stated) that were in the contract
at the time of contract signing with IBM for South West One.

 

A2.  There was only one IBM variant bid.  As a part of this variant bid
there were a series of potential transformation projects included that
Somerset County Council could procure through Southwest One.  Somerset
County Council procured the following Transformation projects:-

 

o SAP Back Office Project
o SAP Technology Enablement
o Customer Access Initiative
o Procurement
o People Excellence Model

 

Q3a. For each & every project that was in the IBM Variant Bid (40 stated)
that were in the contract at the time of contract signing with IBM for
South West One, then please list for each project in the IBM Variant Bid
as of this date: the percentage of completion; the date of sign off; the
authorising Officer(s) and Councillor(s).

 

For Q3a you provided clarification which stated: For "as of this date" I
meant as at today's date (21/8/2012) but if the SCC Client Management Team
has a Variant Project status/progress report (or similar) from end of
March 2012 onwards (from their normal contract & project oversight) that
satisfies the request, then I would accept that.

 

A3a.  At the time of contract signing Somerset County Council procured the
above five transformation projects.  These are largely as included in the
variant bid project summary worksheet; however changes would have been
made as the requirements were further defined and the transformation
implementation contracts were drawn up.

 

The five transformation projects procured along with their rate of
completion, date of signoff and the authorising officer are shown below.

 

SAP including SAP BOP, SAP Tech and Customer Access

 

            94% complete/delivered. 

 

The percentage complete/delivered reflects how many of the functional
elements have been delivered and accepted rather than being a reflection
of Somerset County Council’s satisfaction with SAP or its functionality.

 

Procurement

 

Somerset County Council are in disagreement with Southwest One about the
quality of the procurement service and what payments Southwest One is
entitled to as a result of savings made by getting better deals through
the joint venture.

 

As set out in the terms of the contract, we had hoped we would be able to
settle this issue through mediation and negotiation.  It is now apparent
that this will not be possible and it is disappointing that we are in the
position of going to court.

 

It is paramount that we look after the best interests of tax payers and
take action when standards of performance and quality are not being met.

 

We will therefore robustly defend our position and make counter-claims
where we believe we have suffered losses.

 

Somerset County Council will not be commenting any further on this issue
at this stage.

 

However details of delivery and the level of savings achieved are already
publicly available.

 

People Excellence Model (PEM)

 

            100% complete/delivered.

            Authorising officer/signed off by - Richard Crouch

            Date of sign off - 2009

 

Q3b. For each & every project that was in the IBM Variant Bids (40 stated)
that were in the contract at the time of contract signing with IBM for
South West One that has not been 100% delivered, then please list:
percentage delivered; reason for non or short delivery; financial value of
non or short-delivery; contract dispute or penalty actions taken
(including any financial recompense by IBM/SW1 to SCC for short or
non-delivery).

 

A3b.  Only the five transformation projects listed above have been
contracted and paid for.  The information requested has been listed below.

 

SAP – including SAP BOP, SAP Tech and Customer access

 

94% delivered - The percentage delivered reflects how many of the
functional elements have been delivered and accepted rather than being a
reflection of Somerset County Council’s satisfaction with SAP or its
functionality.

 

Somerset County Council has raised a number of issues regarding
performance and functionality of the SAP system, which Southwest One has
been asked to address, as reported in various committee reports (already
in the public domain).  In addition Somerset County Council and Southwest
One are in ongoing discussions regarding these issues and will continue to
hold Southwest One to account for those deliverables outlined in the
supplement.

 

Procurement

 

Somerset County Council are in disagreement with Southwest One about the
quality of the procurement service and what payments Southwest One is
entitled to as a result of savings made by getting better deals through
the joint venture.

 

As set out in the terms of the contract, we had hoped we would be able to
settle this issue through mediation and negotiation.  It is now apparent
that this will not be possible and it is disappointing that we are in the
position of going to court.

 

It is paramount that we look after the best interests of tax payers and
take action when standards of performance and quality are not being met.

 

We will therefore robustly defend our position and make counter-claims
where we believe we have suffered losses.

 

Somerset County Council will not be commenting any further on this issue
at this stage.

 

PEM

 

100% delivered.

 

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Peter Grogan, Information Governance Team, Client Services

Somerset County Council, A2 West, County Hall, Taunton, Somerset, TA1 4DY
or email [1][email address]

 

Please quote the reference number 2145223 in any future communications.

 

An internal review will then be carried out and we will write to you with
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Finally, please be aware that your response will appear, without your
contact details, on the Council’s website at:

 

[3]http://www.somerset.gov.uk/disclosurelog

 

Yours sincerely,

 

Communications Team

FOI / EIR co-ordinator

Tel: 01823 355584,

Email: [4][email address].uk 

Somerset County Council, County Hall, Taunton, TA1 4DY

URL: [5]www.somerset.gov.uk

 

FOI Disclosure Log URL: [6]http://www.somerset.gov.uk/disclosurelog

 

This email, and any attachments is intended solely for the individual to
whom it is addressed. It may contain personal and / or sensitive material
and should be handled according to the principles of the Data Protection
Act 1998. If this email carries a protective marking of PROTECT or
RESTRICTED in the header it should be handled according to HMG guidelines,
if not protectively marked it can be regarded as UNCLASSIFIED.

If this Email has been misdirected, please notify the author immediately.
If you are not the intended recipient you must not disclose, distribute,
copy, print or rely on any of the information contained in it or attached,
and all copies must be deleted immediately. 

Whilst we take reasonable steps to try to identify any software viruses,
any attachments to this email may nevertheless contain viruses which our
anti-virus software has failed to identify.  You should therefore carry
out your own anti-virus checks before opening any documents.  Somerset
County Council will not accept any liability for damage caused by computer
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email.

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