20 There are a number of features to long-term partnering contracts which we have seen reflected in Aspire. There can be significant benefits in longer-term relationships including a degree of flexibility and joint working in solving complex, technical challenges over time. Conversely, the relationship can get too accommodating, and cease to offer performance challenge or to create price tension. We believe that some of both of these elements arose in HMRC's Aspire contract.
21 HMRC faced complex, long-term technology challenges, and Aspire provided, in our view, an appropriate means of working them through and limiting risk at the same time. On the other hand, there are a number of instances set out in this report of lack of challenge in objective setting, re-scoping and renegotiation which illustrate a lack of rigour in HMRC's commercial management of the contract. This was exacerbated by the need to repeatedly renegotiate annual spending to meet budget constraints.
22 We see it as essential in any contract that the client retains the independent expertise to challenge the supplier. We welcome the fact that HMRC has recognised this part way through the Aspire contract and is now seeking to rebuild its capability. HMRC now needs to work with pace to meet the conditions of success we set out in this report. The support and collaboration of the Cabinet Office will be an important factor in ensuring the success of HMRC's future technology strategy and transformation to digital operations and services.