Writ points to e-buying risks
DVLA sues over storage system's failure to meet requirements
The Driver and Vehicle Licensing Agency (DVLA) is suing suppliers EDS and Computacenter over problems with an HP storage area network.
Experts say the £2m writ, issued last week, highlights the dangers of buying complex technology from a standard procurement list.
The storage system was bought in 2000 through a government catalogue, but subsequent attempts to reach an out-of-court settlement have foundered.
The writ claims EDS failed to manage the delivery, installation and implementation of the system, and only discovered at an advanced stage that it did not comply with mandatory requirements.
But while EDS is contractually liable because it was running the G-Cat catalogue at the time, the company had subcontracted the service to Computacenter.
Mediation attempts stalled over whether HP and the consultancy advising the DVLA should be involved in the negotiations.
The DVLA declined to comment, but sources say G-Cat purchases have standard terms and conditions for hardware and do not include consultancy.
‘It is like blaming John Lewis when you do not like the colour of your sofa,’ said one source.
As eprocurement gains popularity, the buyer-beware principle is more important than ever, says Phil Morris, chief executive of outsourcing firm Morgan Chambers.
‘Many organisations are going down the eprocurement route for complex systems, but must ensure it is used judiciously,’ he said.
‘People can place too much emphasis on what they see as standard commodities from a catalogue and do not expend the right level of effort to make sure they are right for their needs.’
Buying from a list may work well for simple items such as printers, but more complex systems need more attention, according to Butler Group senior analyst Sarah Burnett.
‘A catalogue may make the procurement much simpler, but it means doing more homework before placing the order,’ she said.
‘Computer equipment is complex, so get some advice to be certain about what you are buying.’
The suppliers are working on responses to the writ. Sources say an out-of-court settlement is still the most likely outcome.
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