2.66 Delivering Libra is now estimated to cost £390 million, comprising £318 million in contract costs and £72 million in other project costs. The contract costs include £232 million for the infrastructure contract with ICL, £7 million already paid to ICL for the core application, and an estimated £79 million for the core application services with STL and a systems integrator. In the business case for the procurement of the deal, the Department estimated its cost of managing the contract at £10 million. It now estimates that these costs will total £12 million as it will be managing three contracts instead of one. A further £60 million will be needed for staff, legal and procurement advisers, Magistrates Courts' Committee costs for migration and other activities, extended legacy system costs and other enhancements to the infrastructure service.
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| Cost and contract length of the current Libra project compared with earlier contracts |
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| Date | December 1998 original contract | May 2000 revised contract | Current proposal |
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| Contract costs | £184m | £319m | £318m (note 1) |
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| Internal project costs | £10m | £18m | £12m (note 2) |
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| Additional enhancements and other costs | See note 3 | See note 3 | £60m (note 3) |
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| Total costs | £194m | £337m | £390m |
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| Contract length | 10.5 years | 14.5 years | 8.5 years |
| NOTES 1. Contract costs include £232 million for the infrastructure contract with ICL, £7 million already paid to ICL for the core application, and an estimated £79 million for the core application services with STL and a Systems Integrator. The number of PCs included in ICL's costs increased from 5,000 to 11,000 from the December 1998 contract to the current proposal, with corresponding increases in the number of printers and the associated support costs. 2. Contract and project management costs only. 3. A range of additional enhancements and costs have been identified as part of the current plans, including Government Secure Intranet implementation, integration of existing applications (in addition to the three main applications) as well as Magistrates Courts' Committee costs for migration and other activities, and extended legacy system costs. These were not included in the earlier costings, but would have been identified as the project developed. Source: Lord Chancellor's Department | ||||
2.67 Figure 17 compares the cost and contract term of the current proposal with earlier contracts. The figures show that the Department will be paying a great deal more for a shorter contract term although the scope of the requirement has expanded. The Department estimates that the contract cost of the current proposal (£318 million over 8.5 years) would be £557 million over a contract life of 14.5 years. This figure cannot be compared directly with the £319 million over 14.5 years for the first contract revision agreed in May 2000, as the new agreement includes the provision of 2,500 additional PCs and associated printers as well as a number of enhancements to the office automation service such as Internet browsing.