3.27 Co-operation between the parties exists not just at operational level; it can also be seen in the charging for the services. Radio Spectrum International and the Agency realised shortly after the start of the partnership that the charging structure for providing computer services at the desktop was too rigid to accommodate the rapid technological advances to computer hardware and software. The constant stream of technology improvements, while continually re-setting the standard in the market of what constituted a basic service, were, under the contract, classified as enhancements for which Radio Spectrum International have the right to levy a flat-rate charge. This rate was in many cases considerably greater than the cost of supplying and maintaining the enhancement. Where this was the case Radio Spectrum International, with CMG's agreement, waived the flat rate, agreeing instead, a charge for each enhancement that allowed them to recover the cost of providing that enhancement. In cases where the cost was small Radio Spectrum International provided the enhancement free of additional charge.
3.28 The Agency wanted to firm up this arrangement and commenced negotiations with CMG in late 1999. The concluded deal, which was effective from 1 January 2000, should result in savings of approximately £1million a year (in cash terms at 1999 prices), providing there are no volume changes to the services. This agreement was reached without the Agency having to consider invoking their right to test the value of the services.
3.29 Also the Agency demonstrated good will to CMG. The Agency extended, from 12 months to 18 months, the period for reaching agreement on service levels. This extension facilitated more amicable negotiations for introducing workable, measurable and realistic levels. The Agency also delayed the implementation of their right to obtain credits from Radio Spectrum International in circumstances where the supply of IT services was not meeting the requisite levels and clarified their policy relating to the application of service credits, stating that they would only exercise this right in exceptional circumstances. These include performance failures that have either caused the Agency a significant and quantifiable loss or result from Radio Spectrum International not co-operating in efforts to re-establish the service to the specified levels.
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| Major projects successfully completed by Radio Spectrum International |
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| Year 2000 technical compliance |
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| Under the agreement Radio Spectrum International took over responsibility for the ongoing work ensuring that the Agency’s systems were able to cope with the year 2000-date change. The Agency reported that they were able to work closely with Radio Spectrum International to develop solutions that suited the relative importance of the systems involved. This was helpful in terms of managing not only the work, but also costs. |
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| Implementing of new systems |
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| The Agency have a major office automation project (EROS) underway. The success achieved to date is, to a significant extent, attributed to Radio Spectrum International’s commitment to a harmonious relationship with users and a shared approach to problem solving and management. |
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| Relocation to new headquarters |
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| The budget for the relocation to the Agency’s refurbished headquarters building was placed under considerable strain in 1999-2000. It became apparent in the final quarter that there were incompatibilities between work that Radio Spectrum International wished to take forward and the Agency’s financial provisions for IT. Radio Spectrum International were involved in developing pragmatic and mutually acceptable solutions to managing priorities and budgets. |
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| Source: The Agency |