Breaches, £75 million and guilty vs innocent!
Creese, need to have a look at Becta Report 2010 - MIS Value for Money:
Originally Posted by creese
Breach: There are plenty!!!
Key one is: Annual maintenance contracts that are more than ‘de minimis’ are in breach of EU/UK procurement laws. 'De minimis' means only bug fixes should have been covered in the annual maintenance contracts. Para 1.22 page 5.
Extra charges LAs and schools paid were illegal and exceeds £75 million over the period that went on. Please see annual cost just for schools in England is £550 million over 5 years para 1.4 page 3. 80% is pocketed by the dominant supplier. This amounted funding dominant suppliers developments before being delivered and at expense and disadvantage of all other suppliers. What is worse is that schools perceived as if they were receiving these product developments ‘free of charge’ and when in fact they ‘pre-paid’ in breach of EU/UK Laws.
To avoid such breach, Kent County Council in April thsi year cancelled their annual maintenance contracts with the dominant supplier from 1st of April 2012 so to be in compliant to EU/UK procurements laws. Link: Kent Trust Web: Kent County Council
As to OFT and Competition laws, in this case ie the annual charges including 'product development', amounts to "tying in"/bundling. This is the flip side of the same breach but on supplier account!
As you will know DfE is setting up National Framework OJEU Tender for MIS. Link:
Information Management and Learning Services framework - The Department for Education
In DfE statement, the reference to Becta Report 2010 is clear indication how serious breaches has been over the past 15 years!
I hope the above helps to clarify breaches, £75 million and guilty vs innocent!
80% of school IT systems are bought illegally
A good question!
Originally Posted by matt40k
Answer: Cost of all Statutory Changes should have been met centrally since April 2008. This was a strong recommendation in Becta Report 2005 MIS VfM so to bring transparancy to the cost and fairer sharing of the burden put onto MIS suppliers by teh government. For this, DfE (then DCSF) formed IMPS Group under Memorandum of Understanding, signed by all 6 or so MIS suppliers and DfE in September 2007. A spanner was thrown in around March 2009 and scheme was put on halt. This is being looked into at present by various parties and hopefully consider reinstating the scheme. Probably as part of the DfE Framework OJEU Tender for MIS.
1. Becta Report 2010 para 8.10 page 32: Total cost of Statutory Changes across all suppliers is circa £2.2m in a year - this is circa 30p per student.
2. A local authority such as Kent CC has been paying circa £600,000 per annum in annual charges to the dominant supplier.
3. The cost of Statutory Changes based on 30p per student for Kent CC would come under £70,000 per annum!
4. You can now see where remaining circa £530,000 per annum is going! Product development by the dominant supplier that is in breach of EU/UK procurement and competition laws. Hence: 80% of school IT systems are bought illegally - News - TES Connect