18

Department's reliance on separate negotiations for IT integration carries risks.

Conclusion
Integrating digital systems is a common source of contractual failure and dispute. Contractors can use difficulties in the roll-out of a new system as justification for not 27 Q 32 28 Q 42; Civil Service People Survey 2022: Benchmark Scores, table 3 29 Qq 2, 37, 43 30 Qq 6, 21 31 C&AG’s Report, para 2.7 32 Q 62; C&AG’s Report, para 18 14 Revising health assessments for disability benefits performing to the contract.33 The National Audit Office identified three sources of this integration that the Department will need to successfully manage: rolling out an IT system for its interim service contractors to use, working with contractors to test its new Health Assessments services using the case management system it is developing, and then rolling out the Health Assessment Service and IT system into new contracts in 2029. The Department told us that it had included sufficient flexibility in its contacts with providers to allow it to change them to include the scaling of the service, testing, and integration of systems that it needs. However, the NAO found that the Department is using standard service contracts and each change will need to be negotiated separately, which can be time consuming and introduces the risk of both cost increases and delay.34
Government Response

A response document is linked to this report, dated 8 March 2024. Response attribution to this conclusion has not been verified. Read the response document.

Addressee Bodies
HM Treasury
Timeline
Recommendation age 2.8 yrs
Report published 29 Nov 2023