picture of motorway
Highways Agency expects to reduce congestion with the new system

Highways Agency network procurement took twice as long as planned

But the end result of the tendering was a big success, says National Audit Office

Written by Angelica Mari

The Highways Agency (HA) took five years to complete the procurement of a digital information system for England's motorway network - twice as long as planned.

But according to a National Audit Office (NAO) report into the project, the organisation successfully transferred the risks involved to the private sector bidder.

Advertisement

The procurement followed a 17-month shortlisting process which started with six potential bidders and left just two in the running for the contract, which concluded in 2005. But the agency spent £15.5m on professional advice - more than £10m above its initial budget.

"The Highways Agency's procurement identified the risks to the National Roads Telecommunications Services project and successfully transferred them to the private sector, conducting negotiations with the preferred bidder well,” said NAO head Tim Burr.

“However, it did take a lot longer than planned and only two bidders remained through to the end of the competition. There are good practice lessons both for the agency and for other major public procurements."

HA hoped to reduce congestion on the road network with the system, which provides moment-by-moment information on traffic congestion and delays.

In 2005, the HA contracted supplier GeneSYS Telecommunications to replace England’s ageing motorway network system - in place for the last 40 years - for a digital platform to carry data as well as CCTV images.

The supplier was given a two-year deadline to replace the obsolete system and the project and 14,000 road side devices were delivered on time, according to the HA, which pays the supplier £3.9m per month.

Comments

White papers

Related jobs

More Accounting jobs

Spotlight

Ted Bell, Abel and Cole FD

Profile: Ted Bell, FD of Abel and Cole

The combination of the online shopping boom and a hunger...

Top 30 Accounting Networks and Associations 2008

The race to become the biggest firm on the planet...

Barack Obama Accountancy Age cover October 2008

Obama: asset or liability?

What an Obama presidency could mean for you

Find your next job

Find your next job
Salary Checker

Job of the week

More finance jobs

Newsletters

Sign up here for the very latest news delivered to your inbox. Choose from the following options:

Your next job

Have your say

Will proposed tax cuts help to stimulate the economy?
Yes
No

Advertisement

Search white papers

Search white papers

Advertisement