Source · Select Committees · Public Accounts Committee
Recommendation 20
20
Accepted
Rainbow Programme suppliers lack integrated delivery plan despite procurement completion milestone.
Conclusion
NS&I told us it had now successfully completed all the procurement stages and secured all the suppliers for the Rainbow Programme, meaning it was moving into the delivery phase. Despite meeting this milestone, NS&I still described the Rainbow Programme as a “big, complex programme” with many moving parts and challenges. NS&I explained that the three successful suppliers had developed their plans in isolation, meaning there was currently only a “loose plan” for the Rainbow Programme. NS&I added that it was going through a process of creating an “integrated plan” with the three suppliers.36 We questioned NS&I on the revised timeline for the Rainbow Programme and whether there are contingency plans for any further delays. NS&I told us it expected the Rainbow 31 Qq 65, 68; C&AG’s Report para 2.14, Figure 7 32 Qq 68–69; C&AG’s Report para 3.25 33 Q 69 34 Qq 70, 88 35 Q 82; C&AG’s Report, para 3.25 36 Qq 85–86, 90 Managing government borrowing 15 Programme to be delivered in 2024–25, but should there be any further delays the Atos contract can be extended beyond the current extension by a further 12 months to April 2025.37 Skills, experience and institutional knowledge
Government Response Summary
The government states it agrees with and has implemented the 'recommendation', even though the original item was a conclusion. It confirms NS&I is actively working with its suppliers to formulate an integrated transition plan, which will be shared with the Committee, and is seeking a further contractual extension with Atos for contingency.
Government Response
Accepted
HM Government
Accepted
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.