The Audit Commission has given its approval to the way
Somerset County Council set up a 10-year £400m IT contract with
IBM.
The council has blocked journalists' attempts to disclose
details of the contract, after IBM said any disclosure would break
commercial confidentiality requirements.
But the Audit Commission report has cleared the process that led
to the creation of Southwest One, a joint venture company initially
set up between
Somerset County Council, Taunton Deane Borough Council and
IBM.
The Avon and Somerset Police Authority joined the contract as a
partner soon after it was set up.
The Audit Commission concluded that the Council's procurement
and governance arrangements were "robust" and that "the councils
have identified and appropriately assessed the main service and
financial risks associated with the contract".
The Council said the Commission recorded its highest level of
confidence in respect of the Council's risk management
arrangements, and stated that "the present contract management
arrangements provide a good starting point for managing a complex
contract".
But the Commission pointed out that performance needs to be
monitored in order to achieve the cost reductions, increased
efficiency and improved services that Somerset County Council and
Taunton Deane Borough Council aim to deliver through Southwest
One.
The Commission says the £200m savings target from the Joint
Venture is achievable.
Councillor Dave Greene, Somerset County Council's portfolio
holder for resources and finance, said, "This report, from a highly
regarded and independent body such as the Audit Commission, should
give everyone in Somerset confidence in what Somerset County
Council and Taunton Deane Borough Council have done and are
achieving through Southwest One."