12. At the time the C&AG's Report was published, the Departments and Mapeley were still negotiating a number of outstanding claims arising from the procurement process, such as discrepancies in property information. Data on the estates had changed throughout the procurement process as the Departments moved in and out of properties and service delivery altered. Only when the estates had been brought together under the STEPS deal had Mapeley concluded that there were discrepancies in the information provided by the Departments. 12
13. Seven months into the deal, Mapeley had asked the Departments for an additional £27 million, based around some of the changes that had occurred in the estate. When this request was refused, Mapeley decided to fund the shortfall itself, and was now in further discussions with the Departments over variations and changes in the contract. Unless service delivery levels changed or the Departments decided to remain in buildings they had expected to vacate, Mapeley assured us that it would not ask for additional money again.13
14. The contract had not been put together in a completely satisfactory way and that was why negotiations were still ongoing. The Departments expected, however, to resolve the outstanding issues by the time HM Revenue and Customs comes into existence in Spring 2005.14
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12 Q 100