Source · Select Committees · Public Accounts Committee
Recommendation 19
19
Acknowledged
Rainbow Programme behind schedule due to non-compliant bids in digital experience procurement process.
Conclusion
However, the Rainbow Programme is already behind schedule. NS&I’s contract with Atos was due to expire in 2024, but delays to the Rainbow Programme resulted in NS&I extending the contract until April 2025. We asked NS&I about the reasons for this delay. In response, NS&I explained that one particular procurement process, which related to finding a company to provide the “digital experience” component of the Rainbow Programme (one element of the multiple provider model) was the main cause of the delay. It added that while the procurement process generated “good competition” with multiple bidders of the “right type of quality”, all the bids submitted were “non-compliant” and did not meet NS&I’s requirements. NS&I described this as “highly unusual” and that it had carried out a lessons learned exercise to understand why this happened. NS&I told us it had subsequently changed the procurement process, including giving bidders more flexibility around the project’s security requirements.35
Government Response Summary
The government acknowledges the committee's findings on the Rainbow Programme delays, stating it is working with new providers to formulate an integrated transition plan and improve governance, which it will share with the Committee upon completion.
Government Response
Acknowledged
HM Government
Acknowledged
4.1 The government agrees with the Committee’s recommendation. Recommendation implemented 4.2 Developing a transition plan is a complex process reflecting the technical and cultural complexity of changing a structure that has been in place for 25 years. This involves NS&I balancing a range of factors, some of which stem from the historical structure of NS&I. Others relate to commercially sensitive matters (relating to providers) that add complexity to the development of the integrated plan. 4.3 NS&I is currently working with Atos, NS&I’s incumbent provider and preferred bidder for its core banking system, along with IBM and Sopra Steria, as the providers of its new service packages, to formulate an integrated transition plan. The plan will provide key project milestones (e.g. the launch of a transactional customer mobile app), ensuring that the transition is orderly and does not disrupt services to customers. 4.4 NS&I will share this integrated transition plan with the Committee when it is finalised. As requested by the Committee, NS&I will also share updated plans on a six-monthly basis. 4.5 Transforming NS&I is a £2.2 billion programme. As set out in evidence to the Committee, an additional 12 months of termination assistance services was agreed with Atos to March 2025, the cost of which is encompassed in the total cost of the programme. The contract enables NS&I to utilise this provision for a further 12 months beyond March 2025 if needed. Commercial terms, which would then determine the subsequent costs, would be agreed at point of extension with Atos. Should Atos not agree to extend, NS&I would seek to ensure an orderly transition to a new supplier in a manner that does not disrupt services to customers. There are a range of approaches NS&I could take, all of which at this time are commercially sensitive. 4.6 NS&I’s programme governance has been audited and assured by the Government Internal Audit Agency (GIAA) over the last year. A representative from GIAA’s Project and Programme Management Assurance practice and a representative of the Infrastructure and Projects Authority are standing attendees at the Transformation Programme Board. NS&I is also in the process of adding a member of the executive team of another government department to the programme board to provide additional insights and experience from another public body. It is also working with the Cabinet Office’s complex transaction team to provide additional expert support.