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ICL Pathway
Bringing Monthly
Technology Progress
to Post Office
Counters & Report y
Benefit Payments (CL
August 1998
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ICL Pathway Pathway Programme Monthly Report V Ref: PUREDION
ersion: 1.1
Date: 14/09/98
Document Title: Pathway Monthly Report - August 1998
.
Associated Documents:
Reference Vers Date Title Source
{1] PM/PRO/O02 1.0 26/09/96 Pathway Programme - Project
Planning, Reporting and Control
Approval Authorities:
Name Position Signature Date
J. H. Bennett Managing Director
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ICL Pathway Monthly Report
Contents:
a Managing Director’s Summary
ze Systems Report
=~ . . .
= Commercial and Financial Report
Ze Customer Requirements Report
= Customer Service Report
= Quality and Risk Report
Ze Business Development Report
International Sales Report
32 Organisation & Personnel Report
Post Office Client Report
i
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Managing
Director’s
Summary
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ICL Pathway Pathway Programme Monthly Report Ref: PA/REP/029
_ 7 r’s Report Version: 1.0
Managing Directo! i Date: 14/09/98
Managing Director’s Summary
PROGRAMME PROGRESS
e Work on the Joint Programme Plan continues. We have reviewed the DSS
CAPS plans for multi-benefits and -thé associated live trial and Model
Office activities aiid are pressing:the.Horizon Programme Office to obtait?
the contents of future CAPS releases. More work has been done on the
trigger points on the POCL processes leading to National Roll-out. These
still lead to a July 1999 start date. Gaining agreement to a significant
improvement in this will be difficult.
° Model Office Réhearsal 1 (MOR1) finished ahead of schedule on 27
August and was accepted by POCL:-as successful in meeting its objectives.
Preparations for MOR2 are proceeding to schedule for a 14 September
start date.
e End-to-End (E2E) testing is proceeding, but is behind schedule, although
the work done to-date has been of'good quality. E2E activity is therefore a
tisk area in order that testing is complete by year end. Management
reviews are in hand as are mitigation plans.
e The major risk to the programme milestones leading to Live Trial
commencing in January 1999 is the large number of incidents (PinICL’s)
to be resolved. Actions have been put in hand to reduce these, but progress
to date is notfast.cnough. This‘is‘recciving constant management _
attention. The contingency plan already anticipated.in the Horizon
Programme Plans, is to introduce an extra cycle for MOR and E2E, but all
efforts are being made to avoid this.
. We continue to put pressure on the sponsors to sign-off the Acceptance
Test specifications and have now escalated the issue-formally through the
Horizon Programme Office.
e The service performance of Release 1c continues to run well.
e Progress on implementation continues and over 800 post office site
surveys are now completed.
HM TREASURY REVIEW
° The ICL Pathway report on Horizon and Better Government was well
received by HM Treasury who asked us to follow it up with specific
achievable projects in the 2000/2001 timeframe. We have submitted a
short paper scoping seven projects for consideration. This work has also
been shared with POCL and is broadly consistent with their independent
input.
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‘ing Director's Repo Version: 1.0
Managiné port Date: 14/09/98
° Further information was requested by HM Treasury on-the: cost structures
within our business case-aiid this has been provided. Treasury have not yet
appointed independent accountants to carzy-out.an “open book”
inspection of our costs.
e A meeting was held with Geoffrey Robinson, Minister HM Treasury, on 7
September with Keith Todd, Sir Michael Butler and me. The senior
Treasury officials-were also present. The opportunity was taken to .
emphasise the-importance of the BA/POCL programme to ICL, the need
for urgent ministerial.action, and the necessity of major commercial _
restructuring to allow programme funding to continue. Although the tone
of the meeting was constructive, no firm commitments were made. They
emphasised that any agreement would depend upon acceptable
commercial terms to HMG.
e A further ministerial review between HMT, DSS and DTI is scheduled this
week.
e Meetings with Peter Mandelson and lan McCarthy with Keith Todd take
_ place.on Friday‘11 September. _ .... .. ~.. oe eee
e — Insummary, ministerial activity has intensified and there appears to bea
serious intent to find a resolution this month. However there is no change,
within DSS, at official or political level, to support the Payment Card. A
decision to proceed will need to be taken at a higher level, possibly
involving No.10, which would have to over-rule the DSS
recommendation.
ISSUES
e Resolution of high PinICL stack.
° Completion of E2E and MOR by 18 December 1998.
e Sponsor sign-off of Acceptance Test Specifications.
e Resolution of Workplace Technology’s performance:and commercial
arrangements.
° Production of a Programme Plan for delivery of NR2+.
e Management of continuing hostile press with sponsors.
e Ministerial outcome from HMT Review and the commercial terms.
oe The need to raise funding.
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Version: 1.0
Systems Report Date: 14/09/98
Systerns Report
MONTHLY SUMMARY
e — Anexcellent-.model office rehearsal';which completed 27th August must be
balanced against our inability to reduce the PinICL stack to a manageable
level. There:is no shortage of effort from the various teams and it is subje€t
to-daily management attention but it.continues to be an uphill battle.
Further action has been taken, task forces.created, resources transferred,
additional. test rigs built, all in an attempt to reduce the:number of
* outstanding software issues to an acceptable level for the start of the model
office proper in November.
© The third and final cycle of the CAPS Job Seekers Allowance model office
activity was completed 21st August as planned. This was a success from
our perspective but we cannot determine the BA view because their results
are not-visible'to us.
e Good progress on the scoping and design activities associated with new
release 2+, particularly with completing Benefit Payment System.
e Morale and motivation is good in.spite of the continuing critical press
reports but’a positive decision soon regarding the future of the programme
would be a welcome boost for the entire team.
. It is-alittle early to say whether the recent. changes in organisational
structure-and responsibilities associated with the formation.of AT&C are
going to have the desired impact although the initial signs are encouraging.
PROGRESS
e The design team is trying hard to keep pace with their deliverables but the
regular’stream of PinICL’s and the:specialised nature of the system
components results in severe resource bottlenecks. The structure and skills
capability of the team is-currently being reviewed. However, in addition to
responding to daily issues on NR2, progress on NR2+ continues. A formal
design plan tias been produced and reviewed.
e The development team is totally consumed with the task of clearing
PinICL’s for NR2. A trickle of software problems continue to be raised on
the live 1C system but these are being dealt with without exacerbating the
problem, .
e Several difficultand potentially damaging problems are been resolved
during the month, the TIP Host: performance issue has been addressed, an
approach to acceptance and performance has been agreed internally and
the migration tools and supporting processes have been agreed with the
customer.
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e The first rehearsal of model office exceeded expectations but the End to
End activity which runs in parallel was far more challenging. This is a
reflection of the more complex business scenarios being exercised-in E2E
CURRENT CRITICAL PROBLEMS
¢ The level of PinICL’s outstanding is not reducing to an acceptable level? «
Although several hundred have be cleared during the past month, more are
being raised in the various parallel test streams. Although we are
reasonably confident that our target will be achieved it could result in an
unstable system causing model office'to fail. All options.to avoid this are
currently being evaluated.
© The latest results from the performance testing activities have shown that
the strategy for using Riposte replication to recover from a. failed
Correspondence Server or Counter PC is flawed. An alternative approach
has been. devised for both events but we must implement the changes
-— -- ——éxtremély quickly if we-are-to-have-the:appropriate hardware and-software-— —
configurations in place for the model office test.
ISSUES
e The security access control requirement is proving difficult to implement
on the NT platforms. A study is underway to determine exactly what can
be achieved and to establish whether-we can successfully assert that we are
compliant.
e ‘We continue to work hard to ensure that the delivery and testing:schedules
for Pentium.2 and the flat screens fit-neatly with the model office and roll-
out plans.
e I Several’ approved changes to the communications network are proving
difficult to stabilise in the model.office environment. Action has been
taken to ensure that the problems are resolved for Rehearsal 3 scheduled
for October.
e¢ Some of the Cathode Ray Tube (CRT) monitors are showing signs of
deterioration and further investigation has uncovered-serious
manufacturing defects. Discussions are taking place with the supplier in
question, in the meantime we continue to persuade POCL to install flat
screens in all locations.
° The size.and complexity of the Key Management System (KMS) required
for new release 2+ has grown enormously. A review is.in progress to
determine whether this is justified and if so'to identify the development
and implementation implications.
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Version: 1.0
stems
Sy: Report Date: 14/09/98
CosTS
« The budgets for the systems directorate continue to be refined and
regularly reviewed but are now being used to monitor expenditure on a
monthly basis.
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E Report Version: 1.0
Commercial & Finance Rep: Date: 14/09/98
Commercial & Financial Report
MONTHLY SUMMARY
e Treasury review related activities.,remain centre stage at:the strategic level.
Activitiés include consideration of “new” services to expand the scope and
leverage the investment. °
e The-Joint Programmes and Commercial Forum (Mike Coombs, David
Miller, Keith Baines, myself) has continued to remove commercial
blockers, enabling the programme to make progress on a number of fronts.
e All programme letters with a contractual/commercial content or
implication are being checked or drafted by Warren.Spencer or myself.
There are many of them. The Replan is one such topic.
e Operationally, progressing difficult to agree CCNs continues to be a time-
consuming and slow process.
° Agreeing an up-to-date contract baseline is now an urgent priority to
support Acceptance. The task includes both clearing the current pipeline of
CCNs'and “conforming” Requirements, Solutions and Schedules to those
already agreed.
e Expect reconciling what we actually now have‘in NR2 to what is
demanded by the contract-baseline to be a difficult process. The challenge
will be to get down to no more than 1 high and 10 medium severity faults.
e Individual supplier situations continue to call for corrective actions to
subcontracts, WTL is the latest example, with quality of service and value
for money both issues.
° We.continue to underspend forecast bécause of recruitment lag. In August,
the underspend was £1m out of £10m. That saves us money in the short
term but means we are not consuming the work at the required rate.
e The Finance team will be under intense pressure once the anticipated
Treasury led audit gets underway, coming as this does on top of the Oracle
Financials migration (Y2K).
PROGRESS
° Treasury Review - getting the key messages across
© — Using-the Joint Programmes and Commercial Forum to remove blockers
e The 1c service and MOR1
. Working relationships with POCL (Horizon) generally improving despite
the pressures (not so BA)
. CCNs and A2As getting better - but a lot still to do
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inance Report
Commercial & Financ ps Date, 14/09/98
EXTERNAL, WITH POCL AND BA
CNT
© We have put on record that we hold DSS/CAPS responsible for
programme delays relating to the 21/2 for 1 day testing requirement and
delayed multi-benefit timetable. *
© We have repeated our request ‘that certain CCNs be expedited because of
programme dependencies on them.
e There is now outline agreement on how to derive a new and up-to-date
version of the contract which can be used safely as a basis for Acceptance.
However, much work needs to be done, and time is the.issue.
JOINT PROGRAMMES AND COMMERCIAL FORUM
e Progress made on: NR2 4000 limit (applies to multi-benefit roll out only),
-—-----—.— -~- flat screens (CCN-signed off),-Casual-agents.(POCL.have-withdrawn-their — — - ~
objections to CCN117), FAD codes (we got what we wanted),
Reconciliation (rules-now agreed), and In-office migration (rules of
engagement agreed).
e° There are important aspects of the proposed Replan which:are
unacceptable from the contractual/commercial standpoint. Specifically,
DSS are‘attempting to defer large amounts of Acceptance (multi-benefits
and related) out of NR2 into an.additional Live Trial which will run for at
least six months after we have started Rollout. This greatly increases .the
Acceptance risk and cash exposure.
FINANCE AND COMMERCIAL FORUMS
e Charging Metrics rules, which define the way transactions are counted for
Scorecard purposes, are crystallising as a potentially serious issue. Its
resolution may affect not only revenues (plus or minus £4m p.a.) but also
EPOS and MIS code-and schemas. It is likely that some changes will still
need to be implemented for NR2.
¢ Progress made on clearing a number of CCNs.
CONTRACT BASELINING AND ACCEPTANCE
e A way forward has been agreed in principle. This:includes.selective
changes to Requirements where:not-to do so would put them in conflict
with the (refined) Solutions, specifically those flowing from CCN117.
e [tis now agreed. that CCN117 should be signed off “as is” with an
addendum to bring it up to date.
e —- There is still a large number of CCNs “to go” with respect to Agreements
to Agree. Each of these represents a measure of risk.
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¢ The greater risk is that there will be failures to agree the current CCN
pipeline and the interpretations of those which have been signed (as was
the case with CCN117 and.CCN105).
e These risks will impact on Acceptance.
EXTERNAL, WITH SUPPLIERS
ce
e WTL has raised. its head again, with unsatisfactory performance.of service
and issues over charges. It.is now clear that we need to agree a
substantially new contract.
e The ‘failure to agree’ with Oracle over man rates has been resolved.
° Internal charging within ICL is settled.
© The cost to date of putting back the programme in terms of subcontractor
settlements now runs into many £m’s. We have. budgeted for more to
come over the next 18 months.
INTERNAL TO ICL PATHWAY
° Progress on A2A CCNs has accelerated.
© The rate of-internal CPs has not abated, although that of Change Requests cs
from the customers has. . *
e The Forecast. has stabilised.at a current spend tate (excluding capital
spend, ie..equipment, counter preparation.and training) of circa £10m per
month, going-up to nearer £12m per month by the end of the year and“
holding at that level throughout 1999. However, as noted above,
recruitment lag is resulting in underspends and work shortfalls against
target.
«© The new intercompany charge rates are factored into the Forecast.
CURRENT CRITICAL PROBLEMS
e° — The-quest for a commercial settlement overall (Treasury)
e The quest for a;commercial basis for the Replan
e Locking down NR2 into a quality compliant product
e —_ Baselining NR2 for Acceptance
ISSUES
e Outcomes of HMT review - programme impact and‘commercial terms -
the time it will ‘take to finalise the details once the principles have been
agreed - uncertainty in the meantime.
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. Date: 14/09/98
© The Replan, keeping NR2 on track, advancing NR2+ and any prior
maintenance release, dealing with Sponsor caveats, A2As, CCNs, etc.,
dealing with BA’s lack of enthusiasm
© The risk register continues to show significant risks not factored into the
business case.
e The need to raise more finding this year.
COSTS
e The Controller’s report follows.
AUGUST ACTUALS 1998
KEY NUMBERS (£000’S)
Worth of Raga 19S Your to Data End August 1608
Vanarce ‘Varianeas v5,
Actval__I_ vs. Feast Actual [Ragust Feast I “Budget
‘TradingProject Costa. Revenue "4 fe) 461 il 2
Project Costs botore Capitaisstions 8,004 aur 65,039 un? (9709)
Dedired PBT Losses 107 “ 1.270 4 (650)
CashvBalance Shect ——_Bussinass Oparating Cash Flow 21 10 (72,969) 10 (at.183)
Project WIP 186,525 41.103 (6502)
Not Fixed Assots 38,157 (284) (1.604)
Total Borrowings 162,924 10 (6295)
End of August 1958)
‘Vanances vs.
Headcount: Actual I AugusiFeast I “Budget”
Pormanent 163 33 ro
NorPermanart (iT and Teriporaries) % - ay
(Mono): Froetanters procured through ICL IT Contractor Servicas 163 2 (50)
Coiiments:
Projact expensdiure was well below forecast, dus 0 @ combination of lower than forecast subconiract invoicing and recruitment lag,
There vigra higher tan forecast fixed asset aditions, with continuing shipments of comporiants forthe Counter infrastructure being sourced well ahead of ra
roquirersits
IMPORTANT REMINDER: ICL Pathway Lis 1997 Statutory Accounts ero sil not lod Regardless
review, PriceWatcrhouseCoopers need o ba brought up to apeed as quickly as possible, so that the.
b0 6 Vary Woh window dung October.
Howave, ret working captel variances dua to this and the fowor project costs resulted in borrowings levals which were inline with forocast.
liming of ay pronouncements from the HM Treasury
viata actions can Be finalised within what wil probably
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AUGUST ACTUALS 1998
PROJECT COST ANALYSIS (£000'S)
Worth of August 1998 Your to Data 1568 =
‘Variance Venunces vs
Actual I vs. Feast Acat__[RugustFeast I “Budget”
Ravenve 6 al “61 ay 2
Direct Cost of Sales 41716 9 12.518, 9 (2,006)
Gross Margin (Dect) ea} a 112.057) (5) (G78)
Oper Labour - Own Staff 2st 85 5202 85 (904)
Travel & Subsistence 52 ” 380 n 6
Froeiancers 1.819 180 11.844 160 (2.487)
ICL Subcontract 1.204 282 8716 m2 (1.074)
‘Other Subcontract 650 sor 543 501 (413)
Ovprecietion 451 sy 2521 Gh) (2.178)
Marketing 38 6 a6. 6 370
Professional 132 5 4,132 $ «76
Other opax ut (19 2798 419) 519)
Gross Project Opex ozs, 7100 CIES FI a5
Interest costexincome) 4.427 " 6.969 in (298)
Costs before Cepitaiaatons 3,004 Oats SUS, Ed C7
Declared PBT Losses [ Tor 7 i370 a eH)
Capitalsed into WIP during year Beg7 1,103, 63769) 4,109 (9.058)
Comments:
Project costs were lower then forecast due principally to subcortract costs. External subcontracts included low «wocing levets from Oracie Corporation, particularly
lating (0 10 ine slower han forecast start-up of knowledge transier actives fram tham to ICL. Qutsourcing, who will be responsible fr longersterm support ~
ICL subcontract costs were elso lower than forecast due in part to the haliday season, bu mainly due tothe fuer than forecast benefits to ICL Pathway ofthe new
tower infer business trading rates from most supply sources, partoulry the Soksion Cente,
Allothar tame, inckiding declared losses cn non-UK project acuties, were close to forecast.
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P Date: 14/09/98
AUGUST ACTUALS 1998
HEADCOUNT
End August 1998 Hi
Permanent Headcount Variances v8
cual [hag Feast_[ “Budget”
‘Systems 28 10 (14)
smpiementation 40 7 (10)]—Anhough incre was a net increase of 10
Customer Service 4a ” {8}] permanent staf in the month, this fel far short
All ether departments Ps 5 6I oft aggressive forecast.
‘Totals - Permanent tft 1 ES [es]
End Ragas 1536
Non-Pormanent Headcount ‘Verna v2
acsuet [hoa Feast [Budget
Industrial Trainees and Temporary Staft cE] rn)
Fraslander lavels actualy wan down in the mont,
Frovlancers sourced through wth 6 laavars and 3 joiners.
ICL IT Contractor Services
Systoms 123 15. 39)] Activity in the Systems area, where mosi of tne
implementation re ba 3 2 1}. contractors’ are engaged, wreni@lyhigh.wih 0
Customer Servico 6 3 2 the ‘sian of rehersais for the Model Office. This marks
Alotver departments Ey 1 (14) a0 ft stage n tne formal sceaptance process
Totals - Higher Sits Freelancers iw Fa %
Totals - Non-Permanent Staft 176 7 ay
Grand Totals
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Version: 1.0
Date: 14/09/98
AUGUST ACTUALS 1998
CASH FLOW (£000’S)
Won of ages TOS. Your to Date =
Venones =
Infonet Ousiows} pcwot_I va. Feast Actual [Roguat Feast I “Badger”
Net Project Costs - capitalised into WIP 227; 1,103 (63.769) 41.103 (3.089)
Project costs taken sraight to P & L (107 14 (4270) 4 (650)
Depreciation 1151 " 9521 " 2178
Movement in other Working Copia tems 2248 (623 (6.055) (23) 630
Fite Asset Additions 1.606} (236) (10.386) (25) (4.260)
Busliess Operating Caah Outow (EB) w Tze) 5 GALES)
Opening Net Borrowings TST o BS o 737
Closing Net Borrowings 162.924 10 162.924 10 (8.296)
BALANCE SHEETS (£000'S)
Tagua 1958 Pathway Tote
Fagus [sy -
Aca “Budge” -
Not Fixed Assets 30,157] 97.873 35,553]. Fixed aaset aditions con ehead of forecast inthe
Project Work in Progress 156525] 157,628I 148,023] month, with the recaipt of a borch of bar eode read
‘Other Working Capa (3s16} (14439) (8,970)I just he ‘wrong’ side ofthe month end
Tovals Twines I Wercer I 75 Ros
Share Capita 20000} 20,000 20,000
Retained Earnings (1.858) (1.872) 11,023]] The tower project costs for Augnat rested in an
advorse working capil variance, with the net reau
Group Pooed Borowings 4235] (5750) 75,288] thet borrowings at month end were vitualy inte
Exiemal Loans seca] 168,684 81331] with forcast.
Total Borroxings e284] 162.994I 196.628 “
Fouts Tapes] Tae I TS
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irements Report Version: 1.0
Customer Requirem Pp Date: 14/09/98
Customer Requirements Report
MONTHLY SUMMARY
° Of the 23 Acceptance Specifications six-are now “recommended”, ten are
“for approval” and the remainder progressed to various earlier states.
e Acceptance has become.a game of hardball. We are engaged in a war-of .
comment-response.attrition with the DSS and have refused to reopen
HLTPs for such late comments. Horizon is trying various arguments to
expand the Acceptance Criteria base, which we have also refused to do.
e We are maintaining constant pressure.on.DSS/POCL through status
reports and action lists.
DETAILED PLAN ACTIVITIES
NEW RELEASE 2
e CAPS and Horizon have accepted our long-standing: proposal to recognise
the.role-of Temporary Agent. We are handling several requests for
information on Temporary Token operations.
e Tony H has codified all the BPS Reference Data for NR2 and is seeking to
get the document baselined. Mysteriously, there are some items of data,
such as profiles of TT usage for each benefit office, and Benefit Types
which qualify as Social Fund, or Means Tested, that we have to have, but
which. DSS will only pass to us‘manually. .
e Despite the contractual posturing, at the working level, the joint
CAPS/PDA/Pathway réviews continue to work well and are proving a good
basis for clearing up issues.
e John P has kept-on top of the EPOSS PinlCLs coming into Requirements
and the PIAT function.as part of the push to clear down the PinICL stacks
iri time for the MOR3 build. Dave J has progressed the Security PinICLs
but there still over 200 open, and they are being raised at high rate.
RELEASE NEW 2+
° The R2+ RCD (and contents) has been progressed.
e The DIDVR (CAPS interface) for R2+ has been received.
CARS
e The CARs were brought up to date, although there was little traffic. We
have agreed a proposal for CAR activities within the customer
organisations to be decentralised.
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Customer Requir: p rion: 10
A2AS
° The remaining A2As assigned to Requirements are those that Pathway
does not wish to expedite.
CCNS / CRS / CPS
© The customers’ legal representation continues to evade ways of .
acknowledgirig the large-scale changes wrought by CCN 117 and.others.
At one point there appeared to be agreement that they would bring
forward-new texts for the backlog of approved CCNs, but later they
reneged.
e Our current position is that we will require the opportunity to modify
solutions affected by the definition of card/Temporary Token and to base
Acceptance‘in these cases on the Solution rather than Requirement. CCN
117 is now expected to be recast as a second version (117b) to include the
details on Temporary Agents and details of other Solutions affected by the
— _ card/Temporary Token definition. ee eee ae
© We await response to proposals on CRBOOS (single:signature): the likely
outcome is a redesign of the AtP (mandate receipt) to permit overprinting
of the declaration area.
e A response to CR0081, contingency payments generation on CAPS failure,
seeking to fix the nature of the-declaration and conditions under which it
is used. The problem area is likely to be when a local DSS office is.also
running in fallback.
° CP 1140, MIS for Temporary Agents, was resolved.
ACCEPTANCE
e Individuals in DSS have clearly been told to put in lots of late extra
comments to slow us down on Acceptance. There were 187 for BES, 56
for PAS, 133 for CMS and 55 for Audit. Legally we have to address them,
but we have taken the line, apparently successfully, that we will not now
break open any HLTPs for them and they will have to be dealt with by
way of existing tests or larer Review.
e The current overall body count is that of the 23 Acceptance Specifications:
© six are “recommended”
© ten are for approval (of which four have suffered bouts of late
comments)
two (EPOSS and TIP) await any comments
one (Reference Data) has just received its first comments
three-are closing towards approval levels, and
one (Reconciliation) requires a second rework.
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e John C has been getting the performance Acceptance testing commitments
underwritten. The 20-counter testing and boundary performance testing
need to be expressly covered in the rework of test plans being undertaken.
° Dave.J and. John C have persuaded the.customer Security Review Panel to
reduce its size from:20 to eight. There-are just-two security issues, also
expressed.as Acceptance Specification caveats: the provision of HLTPs
frorn Pathway suppliers, and a statement that incidents from penetration g
testing, which we have successfilly kept-out of Acceptance.as such, will be
registered as incidents during Live Trial.
e We have performed an extensive review of the Horizon scoping study with
a view to preventing it being used as thé source of additional or changed
Acceptance Criteria.
° We now have forecast dates for the audit passes of Systems Tests and BIT.
There are issues caused by the compression of dates up to MOT.
oe The BIT script will cover over 75% of the required Trials material, which
is rather better than we expected.
NEW BUSINESS SUPPORT
. We have supported Business Development and POCL and their
consultants, Pontis, on banking infrastructure.
° LFS: All Schedules'and other contractual changes now agreed. The CCN is
held up by one commercial. Although design is ready to start in earnest,
LFS:remains a tradable NR2 + item.
e The APS Token Verification Service was discussed and agreed with CS and
associated CP approved. This has now gone to POCL as a CCN.
e EFTPOS: The workshops continue.
OTHER TEAM ACTIVITIES
e At.short-notice, a couple of days assistance was provided to International
in.support of the-Hungarian post office, essentially to present the ICL
proposal and support the demonstration activity.
CURRENT CRITICAL PROBLEMS
° None.
ISSUES
¢ Local access to a functioning test system would much improve the task. of
dealing with Accéptance comments and queries. The Desktop on the
counter PC used to support PPD development should be updated.
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e We need all the NR2 HLTPs baselined and closed by the end of September
so and the BITO3 HLTP fixed.
2 The System Test for parts of BPS will be based on main cycle pass 4.and
will therefore lack a proper rehearsal; it will also model only nine HLTPs
deferring multi-benefit aspects. We will become:reliant on BIT to
maximise the-material Accepted.
e The rate of PinICLs into PIAT to judge referral is too low. We will not be
able to handle a last minute rush of items for deferral and should see items
as soon as they are known
e The fix rate of security PinICLs needs to improve: of the 48 Secure NT
PinICLs shown as cleared in 8F Inc-6, only 10 were found to be fixed.
° The time is getting short to get third party supplier HLTPs.in place for
Security Acceptance.
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A Version: 1.0
Customer Service Report Date. 14/09/98
ICL Pathway
Customer Service Report
MONTHLY SUMMARY
e Service performance in August was generally véry good but there: were
some signs of stress in high activity help-desk areas as the holiday season
progressed. “
° Our performance.in transaction reconciliation was outstanding. The BSU
reports the lowest level ever of incomplete transactions at 0.02 %: More
than 60% of these were due to operator error at.the Post Office.
RELEASE 1C VITAL STATISTICS
Installed base: 204 Post Offices, 334 counters
. Number of Cards issued 42,011
° Number of Active Cards in use 31,559
« Total number of BES Counter Transactions 505,603
e BES Counter Transactions in August 75,340
° Total value of Benefit-Payments received £15.9m
° Value of Benefit Payments received in August £2.1m
° Total value of Benefit Encashments made £12.9m
. Value of Benefit Encashments in August £2.3m
. Total number of OBCS Transactions 5.1m
° Number of books impounded 15,232
° Potential fraud avoided > £2.1m
PROGRESS
OPERATIONS
° The remedial action taken by Sequent and ICL Outsourcing last month to
improve the SE70 performance seems to have beén successful.
e . The Energis network performance was much improved with no further
incidents reported.
e There are still 35 fixes to be applied to Release 1C and I am concerned
that these are not neglected in the shadow of activities to support. Model
Office.
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e ICL Outsourcing continued development of their operational procedures
at Weybridge and Bracknell and they also made good use of the 1-week
slot between MOR1 and MOR2 at Bootle. Backup and recovery testing of
all host databases was completed. Further rehearsals are planned at the end
of MOT.
© Progress is being made in the business continuity area. The final
deliverables to satisfy Requirement 830 and the business continuity = +.
framework overview are being developed by Andrew Brightwell and
should be availablé for discussion by'16 September. We have had no
success ‘in recruiting a business continuity manager.
BA & POCL SERVICES
e The contract with De La Rue for the supply of Temporary Tokens has
been signed. Temporary Token packaging has passed the RML test
mailings and De.La Rue have, been authorised to proceed.to acquire stock.
° Updated Volumetric information has been provided to Girobank.and to____
De La Rue.
° The. Horizon Systems Helpdesk performance deteriorated over the past
two months and is. being monitored very closely. A number of corrective
actions are planned. This is part of a broader scrutiny of HSH and SMC
operation being undertaken in readiness for full NR2 service.
CUSTOMER SATISFACTION
e Feedback from Service Visits continues to be good but I am concerned at
the number of negative:responses‘about ‘disruption’ to the postmaster’s
business. As the size of the counter message store has grown over time,
there has been a corresponding increase in the time-taken to restore a
counter after a hardware failure. This is being investigated by Systems
Development.
SYSTEM SUPPORT
e The SSC is now heavily involved in Model Office support.
© Mik Peach has made excellent progress with Oracle in securing a Ric
support contract extension at a fair price.
© — Work is progressing-on identifying Known Errors for NR2 ‘in an-attempt
to avoid unnecessary investigation of ‘duplicate’ PinICLs.
° Only 30% of NR2 PinICLs have been cleared by the SSC. This will
improve once the-source code and documentation has. been made
available.
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BUSINESS SUPPORT
The BSU has again beaten its SLA performance measures_and was able to
reconcile all transactions within time-scales:
The performance for Incomplete Transactions achieved its lowest level
ever at 0.02%. Only 18 of the 75,340 transactions in August were
incomplete and at least 11 of these were due to operator error at the post,
office. A counter fix has been idéntified which should ‘reduce these
volumes yet further.
The APS reconciliation report has been finalised and signed off with POCL
and agreement reached over the transaction fallback and recovery
procedures.
The first reconciliation panel was held and good progress made. Many of
the benefit payment processes are generic and will be able to be applied to
APS.and EPOSS
CURRENT CRITICAL PROBLEMS
ISSUES
None
I am concerned that the plans of ICL System Service for the development
of their new strategic help desk platform are not well understood. The
Powerhelp system currently deployed is to withdrawn and replaced by a
bespoke system. A Supplier CP is awaited.
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; Version: 1.0
Quality & Risk Report Date: 14/09/98
Quality & Risk Report
MONTHLY SUMMARY
FRM progress. FRM Analysis Report 1 has been issued. This has required
education and improvement.of the Girobank contribution. One potential
fraud incident-has been investigated and found to be counter clerk errors*
Card detail checking and User Id issues have been resolved.
Risk Management. The first update of the NRO Risk Register has shown
little change. Issues regarding commitment to reporting need to be
addressed.
System Security. Delivery of NT access controls‘is now critical and-may
raise R2 authorisation issues. Progress continues to be been made with
development of procedures, preparation for Release 2 and definition of
penetration testing.
Quality. Audit ‘of supplier processes continues with WT.
Audit. The delivery of the solution remains a high risk; both in.terms of
testing and providing assurance for NR2 authorisation.
Year 2000 Conformance. Review of service supplier compliance plans has
begun. The Microsoft position still gives cause for concern.
Considérable support has been given for the PinICL clearance exercise.
PROGRESS
FRAUD RISK MANAGEMENT
RELEASE 1C
FRM Analysis Report 1 was completed and issued. The Girobank
contribution was not up to expectation. A presentation was.delivered to
Girobank FRM outlining the ctirrent analysis strategy and two days were
spent helping them develop an analysis database.
The FRM Lost and Stolen Cards report was found to contain details of the
number of impoundment processes, not the number of cards impounded.
A PinICL was raised and a fix.implemented.
One potential fraud incident was investigated.and found to be misuse by
the operator at.the counter and was resolved without’fraud or
reconciliation issues.
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NEW RELEASE 2
e The FRM Lost and Stolen Cards report content has, been agreed. The
report.was originally produced via CMS; for NR2 it will transfer to
Business Objects, requiring agreement to remove cardholder name and
address data, as this is not-available in the warehouse.
e User testing of FEMS. T&I have experienced difficulty with the build of «
FCMS, delaying full end user input.into testing.
e — Good progress has been made with correcting content and format of NR2
reports.
e All card detail checking at the counter issues have been resolved for NR2
and a CP raised for NR2+.
e A revised CP for User_ID has been issued and approved with.a CCN raised
on the Counter PPDs. A Six digit ID with a three alpha and three numeric
format is defined. This solution avoids the need for changes to the.
warehouse, FCMS and the CAPS interface.
oe The definition of the scenarios for inclusion in counter penetration testing
has begun.
NEW RELEASE 2+
RISK MANAGEMENT
e NRO Risk Register:
e Major risks that have been identified include sub-postmaster
compliance (availability, training), turnover training, agreement of
expensive and no-solution offices, installation time, failure of office
balance, failure of migration verification, HFSO training and guides.
e Reporting process. POCL and Pathway have agreed to include the
mitigation actions in the level 3 plans; this has still to be
implemented.
° Individual risk owners are not fully committed to the process. There
is also confusion about the 300 Club role. These issues are being
addressed with Implementation management.
e. Joint working with Implementation has started to develop the risk
scenario model.
e Analysis of dual encashment issues including LAN disconnects has begun
and extends to OBCS transactions in some instances.
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SYSTEM SECURITY
GENERAL
e A Security Policy for Testing was written describing the physical, logical
and operational controls in place in the various Pathway testing
environments. ~
« : A process’ was completed describing how evidence to support fraud
prosecutions should be produced, protected and PACE certified.
° Regular meetings have taken place with Horizon FSG and Customer
Requirements to progress issues such as known problems, penetration
testing, acceptance, third party security testing and policy-related PinICL’s.
e — Anagreement:has been reached with CESG to produce RAMBUTAN keys
at six month intervals, without request from Pathway. ‘Hot spares’ can be
also be created at very short notice, rather than with a six week lead time.
RELEASE 1C
e A process has been agréed to,better control the return and destruction of
Horizon Security Passes allocated to employees of third parties who leave.
e The inappropriate use of live R1c cryptographic keys in MOR has been
investigated. No compromise of keys occurred, but procedures for the
control of keys in support services will be strengthened. +
NEW RELEASE 2
e The scope of the proposed technical penetration testing has been agreed
with Admiral Management Services Limited (AMSL) and the Horizon
FSG. AMSL have responded with a proposal for conducting the- work.
° Good progress towards obtaining a license to enable the export of ‘Red
Pike’ to the Dé La Rue contingency site in Sittard, Holland.
° Builds have been agreed for SecurID, FRM, MIS, and SLAM NT clients.
e A requirements definition for. group.access controls within the secure NT
build has been written.
° Early drafts of the processes and procedures required to support
Acceptance are now in PCMS.
° A CP has been raised to introduce a new ‘MIGRATION’ role on the
counter workstations.
e ACP has been.approved to introducé a list of excluded passwords on
counter workstations.
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NEW RELEASE 2+
QUALITY
e The audit of WTplc processes has been completed. In general processes
and controls on their sub-contractors appear well defined. A number of
processes are still under development and a number of minor process “+
improvement opportunities were identified for attention by Pathway as
well as by WT plc. The most significant issue identified was a failure to
control the return of POCL Security Passes from sub-contractors no longer
involved in the project. This is being addressed.
e The Microtouch-report of accelerated monitor test.has shown that the
failure rate for Essex monitors is acceptable (6% pa), but the ETC version
remains unreliable (18% pa). Microtouch have been asked to propose a
way forward.
e Support to Acceptance Test planning / preparation continues.
PROCESS MANAGEMENT
AUDIT
e Audit testing is a concern, particularly with the ability to provide sufficient
assurance for R2 authorisation.
¢ Audit Design is also a concern, particularly the extraction facilities;
resource has been identified but seems to have been diverted.
e Astart has been made in identifying the requirements for auditing of the
financial and commercial aspects of Pathway's business.
YEAR 2000 CONFORMANCE
e _ Progress.on,the 3rd party front has been maintained. The Microsoft
‘position still gives cause for concern.
e Progress has been made with assessing our Service Providers compliance
plans; the first. meeting was held with Energis and meetings are now
scheduled with Royal Mail and De La Rue Card Technology.
e Further work has been undertaken on Y2K Business Continuity.
e Initial meeting with ICL. Properties:and Site Services held to discuss
compliance of FELO1 site; the current plan’is for completion by end 1998.
e ICL Outsourcing has been pushed by ICL Corporate into putting some
significant commitment into Year 2000 compliance and managerial weight
behind it. John Connelly has been appointed Year 2000 Programme
Director covering, and Pathway's perspective has been presented. .
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CURRENT CRITICAL PROBLEMS
° None
ISSUES
e Delivery of NT access controls remains an issue.
e Audit delivery, particularly testing and assurance for R2 authorisation.
e The current approach of running business critical systems on platforms not
recognised within the TED/TEI and additionally not subject to proper
verification and configuration control is. an exposure-for Pathway.
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Business Development Report Dace. 14/09/98
Business Development Report
MONTHLY SUMMARY
° Press interest has been low during August, there have been one or two
trade articles and an article in the Daily Express. Computer Weekly has
continued to jibe and Computing:is “sniffing” for the outcome of the = *
review. Interest will increase during September.
e Planning forthe approach to. communication post the Treasury Review
announcement of results has progressed as far-as it can. Further
consideration awaits the outcome.
. We have produced papers on communication activities post Treasury
review whatever the outcome. These have not been shared with the
sponsors until the outcome of the review is known.
° Government Communication: review meetings held with John Cheetham
to progress the target matrix of MPs. Alan Keen the constituency MP for
Feltham is to be invited to see the system. Peter Atkinson MP for Hexham
saw the 1C’system in a post office’ in his constituency.
° Continued progress albeit slow on getting the Logistics Feeder Service fully
signed off. This will be the first new, i.e. non-current contract, service. I
am also. drawing up a-history of the LFS saga on the basis that if every new
service takes this long to sign off, then progress will be painfully slow.
e We have at last engaged on the banking front. There is now a joint steering
group between POCL and Pathway. There is a plan that by end September
we will have assessed the technical suitability of the Horizon architecture
and will have a plan of work agreed to take the banking proposition to
market. It.has been. difficult ro get this far-with POCL’s natural reluctance
to’engage. I.am now using the banking example:as the precedent-for
engaging.on other possible market:moves, i.e. better government,
Smartcards and Mails.
¢ It is important that we are now in a position to demonstrate some of the
ideas we are putting on paper to Government. Recovering our marketing
area space is therefore vital to this thrust.
° Assuming.a successful outcome to the Treasury review means that we must
also examine carefully the development of new or re-engineered product
offerings: My concern is that next year and more will be totally absorbed
by NR2+ and that little work time will be available from the existing
teams for new:product. I propose that we take a half day workshop to
tease this out.
. Presentations and demonstrations have continued as a mainstay of our
sales activity. Harry Bush and Ross Newby from Treasury, Geoff Mulgan,
No. 10 policy unit and Chris Holmes, CITU spent some two hours with
us. We re-ran the session for Jonathan Evans of POCL.
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PROGRESS
CUSTOMER EDUCATION
¢ — Customer Education: a preseritation on how customer education‘ will be
handled asa result of decoupling post office roll-out from benefit roll-out,
and in phasing benefits-roll-out has been made to CAPS and broadly
accepted: the acceptance however, is premised on other sponsor support
and is without consideration of cost.
° Sponsor internal communications: Five articles have appeared this month
in POCL publications. As far as POCL goes there is little activity of
process elsewhere. There are concerns over the degree of a universal
systematic approach. The process of addressing this has started. CAPS
communications is going OK.
e Customer Education : A further presentation to the Horizon
- Implementation Board-on customer education and the suggested approach— ~—~--—
for the replan is scheduled for 8 September.
e Agreeing the additional costs involved (approximately £1- £3 million) will
not be-an insignificant task. Any changes will require a change request. All
plans currently, therefore, are on hold. New planning will have to. now
start with exact implementation details. :
BUSINESS DEVELOPMENT
EFTPOS:
e = POCL are currently undertaking-their office pilot. I expect the results of
the pilot to be available by year end and that a CCN will be finalised and
then put through for contract details. We.are involved with the pilot in
terms of being updated on progress and are members of POCL’s project
team for implementing a national service.
GENERICS:
e Analysis work.is being undertaken by Pathway. This work will involve the
development of generic functions, such as personal details capture that can
then be tised across several product services without individual
development each time.
GENERAL
e Future presentations/demonstrations planned for Chairman Sekizawa on
1* October and for Peter Bareau; CEO of National Savings.on 9" October.
¢ Also sub-postmasters exhibition in Wembley 2-4 October.
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CRITICAL PROBLEMS
e Sponsor approach to media communications: It is proving too difficult to
engage anyone in the sponsor organisations-on how to communicate this
project to business audiences, beyond simply speaking about our
contractual.commitments in communicating the card, this is particularly
the case within POCL, whom it most affects. In the BA communication of
anything but the card is not an issue.of discussion.
© The need for pilots by end 99 to prevent multi-channel and banking
choosing non-Horizon routes to prove the concept as clients cannot. wait
until the end of 2000. This relates back to my workshop point in the
summary above.
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International Sales Report Date: 14/09/98
International Sales Report
MONTHLY SUMMARY
e No submission.this month
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Organisation and Personnel Report Date, 14/09/98
Organisation and Personnel Report
MONTHLY SUMMARY
° Recruitment continvéd to be the.main. focus this month, with good
progréss to fill existing vacancies and a focus on resourcing a significant
number of new vacancies for the International business. °
PROGRESS
¢. There has been solid. progress in recruiting permanent people, as follows:
Permanent.appointments in August 14
Currently under offer 2
Appointments YTD 72
Current requirements 34
° 68% of vacancies have been filled within the benchmark target of 3
months and 52% within 2 months.
° Two assessment centres, for graduate trainees were run at ICL Beaumont.
40 potential graduates were assessed for trainee roles in the business and 6
have been invited to meet Pathway managers.
e — Several.key vacancies'were resourced in August, most notably an offer has
been made for the position of Fraud Manager, which has been outstanding
for some:months. .
e There:is a continued high level of activity to find permanent people for
Test and Integration and. Development. The new requirements for
International Business are being energetically resourced through both the
permanent and the freelance route.
e An induction event for new starters was held and well supported by
Pathway Managers, 20 new joiners attended the half day event.
e An action plan was developed to address health and safety issues within
ICL Pathway. The most pressing issue is the need to undertake workstation
assessments and a number of Pathway employees will be trained to
undertake this activity over the next period of time.
CURRENT CRITICAL PROBLEMS
° None
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The Post Office - Client Director Date: 14/09/98
The Post Office - Client. Director’s Report
MONTHLY SUMMARY
¢ The Technical Resources Supply contract is live and operational with
£237k of orders taken to date.
° Interest is accelerating in the potential for Pathway cards in the wider
Better Government world.
TREASURY REVIEW
° Following a brief. August leave season and the change of ministers, the
presentations to Harry Bush. (HMT), Geoff Mulgan (No 10 Policy) and
Chris Holmes (CITU) sparked off another series of briefing papers and
follow up. The potential of the Horizon/Pathway network for delivery of
Better Government.has been revisited and two papers delivered. CITU.
private view is that, whatever the decision and/or negotiation, there will be
no announcement on the BA:POCL Programme before October.
e Interest is accelerating in the potential of Smartcards for government
electronic service delivery, with CITU of the view that the next step is to
“close the sale”, for the potential of Citizen Smartcards for government,
direct, to ministers and MPs. The aim is to break the deadlock between
government departments being unwilling to commence electronic service
developments until a wider citizen smartcard population exists, and card
suppliers being unwilling to issue large volumes of digital signature
smartcards until there is a government electronic applications/services
market.
ONE-STOP-SHOP DESKTOP SUPPLY
e This Contract, won by ICL Multivendor Computing Division, is running
very well with £2m of business in August. Parcelforce have also placed a
£2m order for delivery over 3 years for their “Despatch Managér” project,
with ICLMC delivering systems directly to Parcelforce’s major customers.
TECHNICAL CONSULTANCY
e The bid to PO IT Services for supply of.ad-hoc technical skills
(bodyshopping) in distributed systems, networks and database has been
won and contract signed. This bid-was run by ICL Government Services
Supply Unit, under Client Management direction from. FELO1. Final
presentations on 10" June with John Bell fronting resulted. in.a preferred
supplier contract and £237k:has been ordered to date. Although this is not
large business its importance lies in the ICL visibility and access it will give
to the key technical IT managers across Post Office.
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Version: 1.0
Date: __ 14/09/98
OTHER ACTIVITIES
e Of the 23 OJEC bid opportunities advertised this year, the.statistics are as
follows:
e Total advertised
e Bids qualified out
e Bids submitted
of which: Bids Won
Bids Lost
Bids still in train
23
13
10
Po
i.e. One Shop Desktop &
Technical Resources Supply
e- - The-next:major bid-is-for-TWIM - Integrated Workflow; Document Image —-— — -
, & Management - estimated at £30m, ITT expected October.
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