Source · Select Committees · Public Accounts Committee

Recommendation 8

8 Not Addressed

Home Office acknowledges £140 million wasted on Motorola due to past decisions

Conclusion
We asked whether the Department could have acted sooner to remove Motorola, and the Department acknowledged that, in hindsight, it wished different choices had been made when Motorola bought Airwave in 2016.21 The Department said it had been aware of a possibility of that Motorola might leave ESN following delays, but had been surprised by Motorola’s “extreme and swift” reaction to the CMA investigation.22 It also acknowledged 10 C&AG’s Report, paras 4, 9, 19 11 C&AG’s Report, para 19 12 Q 13 (27 March) 13 Q 80 (27 March) 14 Q 14 (27 March) 15 Qq 2, 4 (26 April) 16 Qq 26, 99 (27 March) 17 Qq 31, 100 (27 March) 18 Qq 101–103 (27 March) 19 Q 84 (27 March) 20 Qq 26, 68, 99 (27 March) 21 Q 104 (27 March) 22 Qq 92, 96 (27 March) 10 The Emergency Services Network the programme could have been delivered faster had it been able to solve issues with Motorola.23 The Department estimates it has paid some £140 million to Motorola without the taxpayer getting full value.24
Government Response Summary
The government agrees but responds by detailing current programme progress, the role of the Independent Assurance Panel (IAP) in oversight, and the competitive global market for alternative suppliers, without addressing the specific historical observations or financial estimates.
Government Response Not Addressed
HM Government Not Addressed
1.1 The government agrees with the Committee’s recommendation. Target completion date: end of June 2024 following Lot 2 award 1.2 The Independent Assurance Panel (IAP) has worked with the programme for several years and produced a number of reports. It is tasked by, and reports directly to, the Home Office (the department’s) finance and investment committee on behalf of the Permanent Secretary. 1.3 The department is fully focussed on the programme challenges and will commission an overall report after the new supplier has been appointed. The department will task the IAP on specific topics based on the programme’s progress as it develops. 1.4 The last IAP review endorsed the Emergency Services Mobile Communications Programme (ESMCP) strategic direction and concluded that it represents far superior value for money than delaying, pausing, restructuring, or ending the programme. 1.5 The IAP review confirmed that nearly all countries are on the same journey as the UK, that the global marketplace is now sufficiently diverse, and that the competition to find an alternative supplier to Motorola will attract bids from a wide range of companies. This conclusion reinforces the programme’s own international comparative research. 1.6 The Home Office has delivered a large proportion of the technical programme of work required to start mass transition. The technical solutions for aircraft use between 500 and 10,000 feet has been proven. A successful coastline survey of Great Britain has proven the solution up to 12 miles out to sea. Over 700 of the 1000-plus new masts required have been built and are in operation; the programme is on course for completing 292 rural and remote masts by the end of 2024. Coverage has been provided in 71 special locations, and the programme is on track to provide coverage in the London Underground by the end of 2024. 1.7 The IAP will continue to provide critical assessment and challenge throughout the life of the programme. 1.8 There will be a number of progress reports at various stages through the procurement process.