Richard Ford, Home Correspondent
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A multimillion-pound government project to give greater protection to the public by managing offenders more closely is threatened with collapse because of financial problems, The Times has learnt.
Ministers have halted all further development work on the project while officials conduct an emergency review of the costings and capabilities of the £244 million programme. The crisis is the latest setback to an IT system that underpins the whole of the Government’s strategy to manage offenders from conviction and during their prison sentences to supervision in the community by the Probation Service.
About £155 million has already been spent on the project but this year it was revealed that there was a £33 million shortfall on capital funding.
It is understood that it has now been discovered that the initial costings did not include VAT and that cancelling the project will cost the Ministry of Justice £50 million in fees to EDS, the private contractor in charge of developing the system.
A leaked letter from Roger Hill, the Director of the Probation Service, discloses the scale of the problem.
“Many of you will be aware that, in light of subsequent developments, the original costing for the C-NOMIS programme has proved to be optimistic. We have advised ministers that we will need to undertake a fundamental review of the work, to return to an affordable programme,” the letter said.
The emergency review is to be completed by next month, but Mr Hill admitted that the ambitions of the original project would be scaled back. “We expect that the revised programme will inevitably involve a reduction in the planned functionality and scope of the sysem.” Mr Hill’s letter also discloses that David Hanson, the Prisons Minister, has demanded a full audit trail of the programme since it was set up by the National Offender Management Service, which oversees both prisons and probation. His letter added: “Whilst we are reviewing the programme we had instituted a moratorium on further development work.”
Under the project more than 200 disparate Prison and Probation Service databases would consolidate into a single, accurate profile of an offender.
More than 80,000 users within the criminal justice system, including courts, Prison and Probation services, police forces and other partner organisations, would share up-to-the-minute information on an offender such as his or her conviction records, addresses and problems.
It would allow prison and probation staff to know that a particular offender needed help with housing, or tackling drug or alcohol abuse, on leaving jail. The aim was to help to reduce their risk of reoffending by tracking them through the system and providing what ministers describe as “end-to-end offender management”.
But the project being introduced by the National Offender Management Service (NOMS) has faced growing delays and mounting financial costs. It has been introduced as a pilot in three jails in the Isle of Wight and a planned introduction to a further 30 prisons has been frozen.
The Isle of Wight trials were delayed by six months and the date of a full implementation slipped from the end of next year to 2009 as problems grew. There is now doubt if it will ever be available to any of the 43 local probation services in England and Wales, which have become increasingly frustrated at the delays in implementation.
The Ministry of Justice insisted that it remained committed to an “affordable programme”, which would allow probation officers access to the records of all offenders in custody and the community so that they could help to track and manage offenders from conviction, through sentence and on release.
Harry Fletcher, the assistant general secretary of the National Association of Probation Officers, said: “The whole project appears to have been badly managed since its inception. The Ministry of Justice must come clean and tell the public how much money has been spent on this sytem and what the consequences are for assessment of offenders and public protection of any decision to go forward with a system with a reduced capacity.”
Charles Bushell, the general secretary of the Prison Governors’ Association, said: “This news is bitterly disappointing. Many of us who have been critical of the extravagant expenditure of the National Offender Management Service had seen C-NOMIS as the one real benefit on the otherwise bloated National Offender Management Service agenda. If C-NOMIS is now threatened we see no good reason to perservere with the conspicuous expenditure which NOMS represents.”
Mr Hanson said in a statement: “I have requested a rapid review of the C-NOMIS programme to be carried out with immediate effect. This review will consider the affordability of the overall programme and will report in the autumn with recommendations for a revised programme.”

Systems down
— Cost of Libra IT system for magistrates’ courts rises from £146m in 1998 for 10-year contract to £232m for 8-year contract
— £118 million Integris computer system for Probation Service completed late and £22 million over budget
— IT system aimed at speeding up asylum applications abandoned in 2001 after £77 million contract with Siemens fails to deliver
— IT system at Passport Agency unable to cope, leading to backlog of passport applications in 1999
— In 1999, £1 billion IT project involving Post Office, Benefits Agency and ICL to create swipe card for benefits collection collapses
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The failure of this project like so many other IT projects should be viewed from the type of governance and the methodologies employed. No one buys a car or has their home remodeled without appropriate research, alternatives evaluation, reference checking, etc. I am certain that if you were to review the project start up data, there would be no project management, system development management or even software development management. Someone said - "let's do it" and off they went without appropriate planning. Oh, well - when will management learn that planning is what it is all about, and the financial responsibility they have to stockholder or citizens is an important part of that process?
Kyle Jones, Bainbridge, GA, USA
Are there any EDS directors working for Brown?
Roger Jones, kettering,
Callum is absolutely right. The fiasco is a failure of management to recognise the truth. They totally ignored the advice given to them on both costs and the suitability of the solution. It is dissappointing that they, and the Gateway reviewers who should know better, only saw what they wanted to see.
Having got here it is of course somebody elses fault and a joke that Roger Hill, Director of the Probation Service, is now claiming that the costs were 'optomistic'.
Colin, Woking, UK
It boggles the mind that when this government contracts for an IT system they cant seem to hold the companies responsible to deliver on target, on budget and meeting the specifications. I can't think of any Labour inspired IT project that works as spec'd out and certainly not on time or budget. Companies like EDS must love this bunch of incompetents in power as I suspect the project is really a moving target as Ministers keep changing their minds about what they want from it. This gives the contractor a legal excuse to bump up costs, charge for cancellation or re-write the terms every time a minister sneezes. Nice earner if you can get it but at least it keeps thousands of programmers off the dole even if they never finish their work !!!
Mike, Alicante, Spain
Take two public sector bodies, one, among the sharpest performing public sector organisations and another that consistently fails to meet expectations and targets. Now amalgamate these organisations and then choose your management team overwhelmingly from the latter. No, this would never happen.........think again. Enter NOMS.
NOMS encompasses a Prison Service, that despite the very best efforts of polititians to put more and more people away without funding additional prison places, still meets the vast majority of key performance targets set and an ailing Probation Service. NOMS is mainly run by people originally from the upper echelons of the Probation Service who have plenty of wooly ideas and no idea of how to implement them.
The Offender Management Model sounded great on paper, but people working at the "coal face", both prison and probation staff, warned that it would be an unmitigated and expensive distaster. And so it has come to pass.
Callum, Bury, Lancashire
How does the Government keep getting away with these "collapses"? If any other company kept scrapping multi-million pound computer systems, shareholders etc would be throwing themselves off cliffs. Either that or throwing the management off cliffs.
Oliver Hancock, Pulborough, W. Sussex
It's about time that the Government put in place some decent general management/project management professionals at the client interface to make sound judgements on selection / appraisal of proposals instead of relying on the expertise of the companies vying for contracts. There is something fundamentally wrong in the civil service these days and it must be systemic. What has happened to the Civil Service? Why is it so appalling or was it ever thus and we have had the wool pulled over our eyes all these years by politicians who are never prepared to admit they couldn't manage a welks stall,
John P Green, Wokingham, Berks
It has been a major faliing to not include VAT in the costings. Why was it not picked up earlier? The Civil Service does not have a pool of project manager experts that they need to run all the IT projects that the Government give them.
I wait with bated breath for the monumental cock-up that will be the ID card IT project.
Neil Walton, Bicester, Oxon
Government (and Civil Servent) handling of these projects is awful with sloping shoulders everywhere, and the 'Gateways' that are meant to help control such projects do little more than confirm that documentation exists. The big companies that always win these projects, like EDS, Cap Gemini, Siemens, IBM, Atos Origin etc. fill whole floors of offices with bums-on-seats that do nothing but make work for each other, while charging them out at £1000 or £2000 a day.
If the contracts were awarded to medium-sized or small companies, companies that have to live on their reputations, the chances of success would be much greater. It would also help if the end-users took the time and effort to hammer out their requirements precisely, to have their own in-house Project Manager(s), and to have top class lawyers draw up water-tight contracts, preferably awarded on a fixed price basis.
Tom, Copenhagen, Denmark
Waste, waste, waste...and more waste. Incompetents!
Judy , Liverpool, england
How in God's name do EDS keep getting Government contracts? Am I the only person who remembers all the other times this company has cost us tens of millions of pounds for defective or non-operational computer programs?
Neil S, Glasgow , Scotland
Another cock-up by our "leaders". We need competent businesspeople in Parliament and the services that design, prepare tenders, and select and award the contracts. And the contracts must also have clauses that protect the taxpayers if the promised benefits are not evident. That includes paying back as much of the cash paid out as possible.
Computers are supposed to save employing people to a certain degree yet the civil service is bigger under Nu labour that it has ever been.
B J Deller, Marbella, Spain
btw, I forgot to mention that this is not restricted to public sector as well. Certain investment bank in London is doing to the same to their IT system. Throw enough money at a project and it will eventually deliver - that's the mentality of some middle management people. It is EASY for them to do that - after all, it is the developer who get the rap in the end.
martin, london,
The money would have been better spent on new prison buildings to enable more offenders to be locked up
David, Nottingham,
So "cancelling the project will cost the Ministry of Justice £50 million in fees to EDS, the private contractor in charge of developing the system".
Presumably that actually means it will cost us tax-payers £50 million, not the ministers who approved the project.
And, if past experience is anything to go by, the private contractors involved will get yet more public sector contracts in which to exhibit their expertise.
Eric , London, England
Ridiculous. This Government needs to find a way to make all this succeed. This is all at the very top of most people's agenda in this country.
pauline hodson, stoke on trent, england
...and you haven't mentioned NHS Connecting for Health, the Child Support Agency, Air Traffic Control, tax credits, single farm payments, criminal records checks for teachers, etc.
As usual no minister will be held to account for yet another dismal failure. Has any Government IT project ever been delivered on time and on budget?
Nick, London,
Can't wait till they bring in ID cards - that'll probably bankrupt the whole country...!
Rod Munch, Northampton, UK
Oh well never mind ... it's only tax payers money ...
Benzo, Nr Chelmsford,
Totally predictable that yet another IT project managed by incompetent civil servants delivered by avaricious consultants should collapse. Yet the consultants always seem to get paid, however pathetic the results of their work. But as I have shown in my book "Plundering the Public Sector" about £70 billion of taxpayers' money will be handed over by New Labour to management and IT consultants for work that is mostly junk. Don't ever say you weren't warned.
David Craig
Author: "Plundering the Public Sector", london, UK
For those in the IT sector, it is frustrating that when such high profile IT projects fail, it catches the headlines. Everyday, many more IT projects that are far more complicated are delivered on time and on budget.
I had worked for and with many of those "international" IT consultancy firm. This is how they work: High power lunch/entertainment, fancy HQ in London, win the contract and then just bring in contractors from the open market. The money seldom filter down to the one delivering the solution. It often goes to the management.
I tried to bid for a government project together with couple of mats who are in the same business. We do not even qualify to build a simple web site for a local borough because our turnover is less than 3 million and we had not been in business for more than 5 years. A company that I used to work for won the contract and then try to sub-contract the work to us for 1/3 value. Go figure if this project is going to fail if whoever does it do it for 1/3.
martin, london,
Nothing surprising there. Pie-in-the-sky projects are doomed to failure from the get-go. Unfortunately not until millions of tax dollars that could have gone to help the disadvantaged, schools, NHS et al are down the old crapper. One does wonder who thinks up this stuff and more importantly why the government buys into it. Now there would be cause for an investigation but of course that will never happen because, well just because. . .
Shirley Hodge, Glasgow, E. Renfrewshire