2.37 In order to gain independent assurance that contract prices are reasonable, we commissioned Mason Communications to compare the service prices in the contract with other prices for telecommunications services for large organisations. Taking into account the Department's unique security and resilience requirements contract prices contain a premium for the delivery of these requirements so comparisons with other organisations are not straightforward.
2.38 Mason Communications prepared their comparators from a database of their clients' prices on major telecommunications projects between May 1997 and October 1998. They found that most of the monthly prices in the contract compared on average very favourably with their comparators; for example, site charges averaged 46 per cent less than the comparators. The lower prices reflect the fact that the Department are a very large customer and could negotiate volume discounts. Voice call charges are also favourable, at around 40 per cent less for local calls than the comparators and ranging from equivalent rates to the comparators to around 40 per cent less for national calls.