The information provided pertains to the central Department and does not cover executive agencies, other arm’s length bodies or NHS Connecting for Health.
The five largest information technology (IT) contracts agreed with outside suppliers over the last five years are:
The information management services agreement-Computer Sciences Corporation (CSC)
The annual support charge for the CSC agreement has fluctuated from the initial estimated charge but this has been a reflection of the introduction of new services, for example, new remote working facilities, wireless connectivity services and new collaborative tools. Ongoing charges over five years are as follows:
£ million 2002-03 7.65 2003-04 8.85 2004-05 8.77 2005-06 7.47 2006-07 17.60 1 Forecast charges.
1 Forecast charges.
Transformation of the infrastructure formed a separate part of the agreement. The original estimate was £9.1 million. The estimate was revised to £12.6 million to include the cost of commissioning and implementing the new services. The outturn cost was £12.6 million.
A total of £88.42 million has been spent with CSC over the five years since the contract was let. The support charges and transformation form part of that figure. The remainder has included expenditure which CSC administer on behalf of the Department, for example BT costs for the wide area network and business ports, and audio conferencing and mobile telephone costs. The remainder of the costs over the five years have been apportioned to project work in support of the integrity and resilience of the infrastructure in line with changing technologies. These project and pass-through costs are listed as follows.
£ million 2002-03 12.88 2003-04 18.32 2004-05 20.06 2005-06 21.82 2006-07 121 1 Forecast charges. £2.72 million invoiced so far.
1 Forecast charges. £2.72 million invoiced so far.
Finance system agreement-Cap Gemini
The original estimate for the project was £6.1 million. The revised estimate and actual cost was £5.6 million.
Corporate software agreement-IBM
The agreement was for a three year deal with three annual payments totalling £1.4 million. The original estimate and actual costs were the same.
Web content management service-Xansa
This contract was awarded early in 2006 and the estimated costs over the next five years are £5.11 million. The outturn is expected to remain the same as the estimated costs.
External applications hosting-BT
This annually renewable contract was for a hosting provision designed to be scaleable to meet the requirements of the Department. The charges represent the fluctuation in these requirements. The annual charges were:
£ million 2002-03 0.306 2003-04 0.5 2004-05 0.374 2005-06 0.3 2006-07 0.3