The Department chose the third option (ICL infrastructure and STL software)

2.54  The third option was the cheapest (Figure 14), although the cost was based on a number of major assumptions. The Department recognises the possibility that the price for the STL option may turn out to be higher than estimated as a consequence of the Department choosing to negotiate a price with STL through a single tender and procure a systems integrator in competition. The Department's cost estimates for this option were based on data and estimates from many different sources. An independent review of these estimates considered that the assumptions applied were sensible and provided a reasonable appraisal of costs. As well as being better on price, the Department considered that STL's enhanced legacy system could be delivered at much lower risk as it was based on tried and tested software. It would provide a national, standard core application which the Department estimates could be achieved by early 2005 compared with ICL's estimate that it could complete the implementation of the core application by July 2005. The selection of this option was endorsed by a Gateway Review conducted in February 2002.