PAPER F2

EXECUTIVE - 10 MAY 2001

FUTURE IMPLEMENTATION OF THE UNICENTRE SYSTEM

REPORT OF DIRECTOR OF FINANCE AND INFORMATION

To present a Business Case relating to the further implementation of the Unicentre System procured in 1997 and to recommend that the system not be implemented.

BACKGROUND

In 1997, the Isle of Wight Council signed a contract for a complex piece of software designed to help the IT department manage the organisation's file servers, data networks and desktop PCs. After an initial pilot project, implementation of the software stalled and then came to a halt in mid 1998.

The project was reviewed by the new Head of ICT in August 1998 and on subsequent occasions and the outcome in each case was that the project should not be progressed. A formal recommendation to this effect was reached in a Business Case prepared in October 2000 although publication of that Business Case was withheld pending the publication of the District Auditor's investigation into the original procurement.

The District Auditor's report has now been published and the purpose of this paper is to publish that Business Case and to make the formal recommendation that the system should not be implemented.

OUTCOME OF CONSULTATIONS

The independent report by the District Auditor into the original procurement of the system is dealt with elsewhere on the agenda.

FINANCIAL IMPLICATIONS

The total value of the Unicentre contract is �139,445, of which the Council has paid �85,667 to date. This leaves an outstanding balance of �53,778 payable in two instalments of �26,889 in June 2001 and June 2002 respectively from the ICT Department's revenue budget.

LEGAL IMPLICATIONS

The Authority is contractually committed to pay the outstanding amounts. The suppliers of the system have fulfilled their contractual obligations fully and properly and the Council therefore has no form of redress in that respect.

It has not proved possible to negotiate an alternative form of settlement.

OPTIONS

The Business Case looks at the available options for addressing the problems that the original Unicentre procurement was intended to address and considers seven options:

� Do Nothing - �54k (recommended)

� Employ additional staff - �154k

� Implement 'point solutions' - �54k+ - not viable to cost fully

� Implement existing Unicentre contract - �125k

� Minimally extend the Unicentre contract - �193k

� Broadly extend the Unicentre contract - �200k

� Full scope Unicentre implementation - �540k

RECOMMENDATIONS

1. That the Authority accepts the do-nothing option

2. That the Authority accepts its obligations to pay the outstanding amounts for the Unicentre system for the next two years at a cost of �27kpa

3. That the Unicentre project be formally laid to rest

BACKGROUND PAPERS

ICT Systems Management Business Case - published 28/10/00

Contact Point : David Price, 823502

JOHN PULSFORD

Director of Finance and Information