POL00028529 - Fax from David Sibbick, Director Posts, to Jonathan Evans, POCL, re Advantages in Easing Migration to ACT, Horizon Contingency Options Meeting, Option 1 flowchart

Evidence on official site

27-NOV-1988 TUE 09:20 1D: : moxie
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dti

Deparment of Trads and Industry

FAX MESSAGE/COVER SHEET.

THIS MESSAGE IS FOR: SOMATA. Eva

FAX NO:

FROM: DAVID SIBBICK

Director Posts

Room 307 Red

151 Buckingham Palace Road

London SWIW 9SS
TELEPHONE NO: (Office)

I (Mobile)

FAX NO:

DATE: Wor MN AG. se

DTI REFERENCE: NO. OF PAGES TO FOLLOW:

IF YOU DO NOT RECEIVE ALL THE PAGES, PLEASE CONTACT ME AS
SOON AS POSSIBLE.

SPECIAL INSTRUCTIONS/ MESSAGE :

Senalkon
Ta L pols a9 prorated,
Dewd .

17/11 '98 08:22 TX/RX NO. 0200 PO1

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27-NOV-1998 TUE 09:21 -ID:

Prez

If: negotiations are to continue, POCL will need to be given a very clear and specific remit
by Government, and will also need to know how far the Government is prepared to help
through, for example, EEL adjustments:

« Difficult to envisage a deal acceptable to public sector side that does not include

= acceptance by ICL of a substantial share of the £121m (plus the contingency fund)

which they currently expect to be covered by price revisions within the contract;

- acceptance that Fujitsu cannot be allowed to wash their hands of the project as the
ICL proposals seem to envisage. Fujitsu must stand behind the project with funding

- and guarantees;

+ acceptance by ICL that if there are further delays attributable to them, they will be
* liable to compensate POCL/BA; and _
- acceptance by ICL that this project is simply too important to BA, to POCL and to
the Government more widely for the contractual acceptance process to be anything
less than full and. comprehensive (though that, of course, does not mean that itshould -
not be fair, nor does it necessarily preclude some element of independent

* assessment),

PAMOOFF ATL RNVORDDOCUUENTHORTONOCHE 14DOC ott
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17/11 '98 08:22 TX/RX NO. 0200 P02

POL00028529

POL00028529
16/11/98
' Horizon Contingency Options Meeting
I
I Action Points
1, Revisit arguments to Government against Option 2 SR

2. Get POEC signed up to Option 2 future being different from Negotiated settlement
PR/SS

3. Remind DTI about Option 2 not being agreed as part of settlement with POCL.
- JE

4. Review need for Business strategy review including DTI ‘and KPMG - and then
review in light of ITT work underway

PR/DM/JE
5. Get Option 3 demand position ready Mena
6. Lobbying Plan Keith Hardie

7, Review litigation strategy Mena/ Joe

POL00028529
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é

T
OPTION 1
DEAD
Keep Horizon. .
Scrap Benefit Payment Card Scrap all of Horizon
BA /POCL negotiate BA/POCL to BA /POCL negotiate BA/POCL, agree new
partial termination with negotiate terms termination with Options 3/4 -
ICL _
PO response: 1) Delay to rethink DA ttl 1) Need to review POCL
Getter for ICL to ch d a al terms strategy (Option 3 not
No - against PO terminate anyway) termination with BA real)
commercial interests 2) Fallback - Soloman (including terms with 2) we will take into
(because we have lost a (POCL demand . acount migration to ACT
eee POCL fromBA) prior to sate. otis A
central part of our position) advising ICL needs within this Option
strategy. Would we be . 3) Too early to decide
: 2) Run PO Horizon . é
prepared to consider ICL Probably more costly programme until commercial terms with
as a future supplier. for DSS than full advising ICL BA - but we will use
termination 3) Negotiate with ICL Option 2 Corbett .
. assumptions as.a minimum]
= - Then terminate with ICL
. - Kick Off AMBER