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HMRC 'complacent' about Aspire contract

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27th Jan 2015
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The Public Accounts Committee (PAC) said that HMRC faces an "enormous challenge" in moving to a new contracting model by 2017, in relation to its Aspire contract with Capgemini. 

Speaking at the publication of a report into managing and replacing the Aspire contract, MP Richard Bacon added that the Revenue appeared "complacent" given the scale of the transformation needed.

Revenue head Lin Homer, CIO Mark Dearnley and Andrew Levitt, CEO of Aspire, appeared before the PAC to answer their questions. 

The current contract accounts for 84% of the Revenue's spend on ICT. The Revenue agreed to move to a new contracting model last year after the Cabinet Office announced new rules to limit the value, length and structure of ICT contracts.

However the PAC expressed concern that the department has not yet got a detailed business case for moving to the new model by 2017. It is expected to publish this before next Spring.

Bacon was concerned about the "substantial" risk to tax collection of the transition fails. 

“It is surprising that HMRC is still unable to assess properly the value and risks attached to a long-term contract such as Aspire and is therefore unable to evaluate this approach against newer government approaches to limit the value, length and structure of ICT contracts," he said.

The PAC recommended that HMRC and the Cabinet Office should jointly agree key milestones and warning flags leading up to the end of the contract in June 2017, with contingency plans that manage the risks to the stability of the tax collection system.

The Revenue however hot back at this, saying it is making "significant progress" in preparing for a smooth and effective transition from the Aspire contract, which will give HMRC control over the development and delivery of digital services and enable us to make efficiencies of up to 25% by 2021.

A spokesperson said: "We have already opened one new HMRC digital delivery centre in Newcastle, and have plans for others to increase our in-house digital capability, and in December we agreed an amendment to Aspire which allows us to contract services directly with major IT suppliers.”

Elsewhere, the Public and Commercial Services Union (PCS) said it had signed an industrial relations agreement with Capgemini. It said that the framework deal with Capgemini "contains commitments to engaging positively, granting recognition for bargaining, providing facilities for our reps, and a new dispute escalation process."

The organisation said it has more than 800 members at the France-based company, the majority of whom work on HMRC's current Aspire contract.

PCS Capgemini representative and national executive member Chris Morrison said: "This agreement is at an opportune time because the potential break-up of the Aspire contract has serious implications for us. 

"On this basis we have some shared interests with the company so there is potential to work constructively with them to promote and protect our members' interests."

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