Source · Select Committees · Public Accounts Committee
Recommendation 21
21
NS&I's continued reliance on distressed supplier Atos necessitates improved contract management practices
Conclusion
NS&I will continue to rely on Atos, which suffered financial distress in 2024, until at least 2028. NS&I told us it now has a contract management framework to manage Atos and the contracts with new suppliers. NS&I will need to be much better at managing supplier contracts to maximise the benefits of transformation.61 NS&I told us it now had an additional 75 to 80 people with technical skills from the system integrator.62 When asked how it was judging supplier performance, it said it was paying based on interim milestones, which were being met although it also knows that these will need to be reset in future.63 56 Qq 3, 22 57 Q 7 58 Qq 22-33 59 Qq 36, 79 60 Qq 23-24 61 C&AG’s Report, paras 11, 17 62 Q 22 63 Qq 23, 58-59 14 3 Governance Improving Programme governance and financial reporting
Government Response
Response Pending
HM Government
Response Pending
The Treasury and NS&I acknowledge these concerns and are committed to addressing them through robust planning, risk management, and governance. NS&I is working to develop a comprehensive integrated plan that includes clear timelines, cost estimates, and resource allocation. NS&I has strengthened its systems integration capabilities and is ensuring that decisions are based on sound evidence and analysis.