19 Sep 2001
The National Audit Office (NAO) is investigating the extension of Accenture's contract to develop the Inland Revenue's troubled National Insurance Recording System (Nirs2).
The NAO says it is examining the Nirs2 contract to see why the Revenue had to contract for additional development work. It will publish its report later this year.
It is also looking at what other options were available for carrying out the work, whether risk was shared appropriately by the parties to the contract, and what steps the Revenue has taken to ensure that difficulties arising from the original contract with Accenture are not repeated.
In April 1999 the Revenue negotiated an extension to the contract with Accenture, then called Andersen Consulting, claiming that the system needed to comply with new pensions and National Insurance contributions legislation.
Nirs2 has been dogged by problems since Accenture was awarded the initial contract in 1995. It cost more than £100m to develop and has frequently been criticised for being over budget and behind schedule.
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