Date | Stage |
1988 | The Monopolies and Mergers Commission recommended that the Post Office should replace its existing mainly annual service agreements with its major clients with longer-term contracts. Such a longer-term contract with the Department of Social Security was eventually signed to support the Benefits Payment Card project. |
| Feasibility stage |
February 1994 | The joint development group report recommends that benefit payment should be automated. |
1994 | The Government's Green Paper on the future of the Post Office states that "automation is the best way of securing a future for the business, its employees and agents." |
May 1994 | Secretary of State announces to the National Federation of Sub-Postmasters the intention to move towards a new automated system for paying benefit. |
| Procurement stage |
19th October 1994 | Request for statement of capability issued to bidders - nine subsequently received. The timetable projects contract award by December 1995. |
December 1994 | Announcement of the five shortlisted suppliers. |
Late 1994 to 6th March 1995 | Development of the two purchasers' Statement of Service Requirement |
March to April 1995 | Five-week delay while Department of Social Security and Post Office Counters Ltd agree a Memorandum of Understanding for proceeding with the project, (13th April). |
13th April 1995 | Issue of Statement of Service Requirements (SSR) to shortlisted suppliers. |
8th June 1995 | Five responses received to the Statement of Service Requirement. Pathway consortium became a special purpose vehicle comprising ICL, De La Rue and Girobank. |
July 1995 | Evaluation board selects the shortlist and negotiations commence with three remaining bidders, Pathway, IBM and Cardlink (Andersens). |
June to September | Risk Registers are drawn up and issued to each bidder, and used during later procurement, as each strove to resolve or eliminate the risks of their proposals. |
October 1995 | Secretary of State publicly states that the Benefits Payment Card will be introduced in 1996. |
November 1995 | The procurement team postponed detailed negotiation with bidders on requirements and solutions until after selection of the contractor. Negotiations focused on contract clauses and schedules. |
29 February 1996 | Invitations To Tender issued to three bidders. Bids received, on 21 March, were all priced above the level acceptable to the purchasers and only one bid was compliant in terms of risk acceptance. |
16th April 1996 | Invitations To Retender issued to all three bidders in order to obtain affordable and compliant bids. The retenders were received on 22nd April. |
29th April 1996 | Project Evaluation Board accepted that to proceed with Pathway implied a degree of risk but agreed that such risks were acceptable and manageable. |
15th May 1996 | Pathway are awarded the contract on basis that operational trial is to be completed by June 1997 and roll-out to be completed by 1999. Secretary of State for Social Security announces award at National Federation of Sub-Postmasters conference. |
| Implementation stage |
February 1997 | Major replan of the project on a "no-fault" basis. Both the purchasers and Pathway had missed the dates required to meet the initial contract date for completion of the operational trial. |
July 1997 | Senior Social Security officials propose an independent review of the project including Pathway, the Department of Social Security and Post Office Counters Ltd. |
September 1997 | DSS Ministers bring slippage to the attention of Treasury and Trade & Industry colleagues. PA Consulting employed to carry out a three party review of the project |
November 1997 | The Benefits Payment Card system is extended to a further 205 post offices in the north-east and south-west of England, but still only to pay Child Benefit. |
21st November 1997 | Contractual deadline for the completion of the operational live trial is missed, and the purchasers allege that Pathway is in breach of contract. Pathway denies liability. |
December 1997 | Pathway inform the purchasers that they require improved terms if the project is to be completed. Development of the Card system continues in the meantime. |
1998 | Ministers commission an inter-departmental working group to review the project - to include a review by an Independent Panel of experts chaired by the Chief Executive of the Treasury Task Force on Private Finance. |
April 1998 | Majority of the functions of joint BA/Post Office Counters Ltd project team transferred to the two sponsor bodies. Joint team retains contract management role. |
May 1998 | The Department of Social Security issue a "notice of cure" to Pathway to protect their negotiating position. |
July 1998 | Interdepartmental working group report to Ministers states that the project is feasible but dependent on successful renegotiation with ICL based mainly on extension of contract period. |
September 1998 | Ministers authorise Mr Graham Corbett to facilitate discussions between the purchasers and ICL, while officials prepare a fall-back position if talks are unsuccessful. Department of Trade and Industry request strengthening of Post Office Counters Ltd' management of the project. |
October 1998 | Mr Corbett informs ministers that discussions with ICL have proven unsuccessful. |
October - November 1998 | Discussions between ICL and Post Office Counters Ltd. |
1999 January-May 1999 | Negotiations proceed to agree terms on which the Benefits Payment Card may be removed from the project. |
24 May 1999 | Announcement of agreement that Department of Social Security's contract has been terminated and that Post Office Counters Ltd and Pathway have agreed in principle to set up a new conventional (non-PFI) contract to continue the project to automate the national network of post offices. |
July 1999 | Post Office Counters Ltd and Pathway signed an agreement to automate post offices |
Position as at June 2000 | Department of Social Security and Post Office Counters Ltd have signed an agreement to extend the use of the order book control system to reduce order book fraud as post office automation is rolled out. Post Office Counters Ltd have accepted the automated system, national roll-out has started and implemented in 5,000 post offices. |