Part 3 Why the Inland Revenue decided to extend the NIRS 2 contract and the steps they have taken to minimise the risk of further difficulties

3.1 This part examines the options available to the Inland Revenue for carrying out the additional work, how the Department evaluated them, and how they have used the extension to change the way the contract is managed.

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The Inland Revenue considered a number of options for supporting the legislative changes
The Inland Revenue identified three contractual options for procuring the additional development work
The Inland Revenue assessed the value for money of a contract extension with Accenture against industry comparators
The Inland Revenue concluded that a contract extension provided the best option for delivering the additional requirements in the timescale required
The contract extension risked being open to legal challenge
Certain risks previously borne by each party are shared under the contract extension
The Inland Revenue have taken steps to ensure that issues which arose on the original contract do not recur
The new arrangements are achieving results