This is a summary of some of the most important parts of a hard-hitting report by the Public Accounts Committee on the Windows-based £7bn Defence Information Infrastructure [DII] project
The DII is not a failure. Given its complexity and over-ambitious timetable it's surprising more hasn't gone wrong; and parts of it have gone well: the MoD has a strong relationship, for example, with EDS which leads the Atlas consortium, the main DII contractor.
Still, progress has fallen well short of expectations and in the first three years of the programme the MoD spent more than 90% of the original budgeted costs of the first stage but received fewer than 50% of the terminals and software it had expected. Core software such as word processing, email, internet access and security should all have been available in June 2006, but less than half of the requirement had been delivered two years later in June 2008. The report criticises the MoD and Atlas for "severe underperformance".
From the report [my sub-headings]:
Did the MoD mislead Parliament in 2006 by understating DII's full costs?
"The Department originally forecast that the Programme would cost £5.8bn ...This cost is greater than the £2.3bn that the Department had previously reported to Parliament. The Department stated that it had provided Parliament with the value of the contract that had been awarded to ATLAS at the time, which is its usual practice, but subsequently acknowledged that this could have been explained more fully. The Department now estimates that the cost of delivering the DII Programme will be £7.09bn ...