A leading research body saw the cost of installing a new computer system nearly double after underestimating the complexity of the project, a public spending watchdog has reported.

The Council for the Central Laboratory of the Research Councils - which operates the Rutherford Appleton Laboratory at Harwell - paid £544,000 for the new computer system.

But further costs of £458,000 were added relating to additional hardware, training, legal and audit fees and temporary staff.

The Financial Accounting and Management Information computer system was ordered on a joint basis from Coopers & Lybrand, Data General and Oracle.

But the National Audit Office report found problems arising from the system's troubled installation included nearly 500 overpayments to staff and suppliers totalling £270,000. In his report, Comptroller and Auditor General Sir John Bourn found that the CCLRC underestimated the scope and complexity of the project.

Other problems included failing to resolve all issues with the contractor when the contract was placed; failing to run the old and new systems in tandem to ensure a fallback position in the event of difficulties; and shortcomings in project management arrangements.

Sir John noted that the CCLRC and the contractors were continuing to work together to ensure that FAMIS became fully operational. Outstanding issues, he said, included ensuring that the system's software was upgraded to protect it against the Millennium Bug.

The CCLRC, which was set up in April 1995, promotes scientific and engineering research by industrial and academic clients, by providing facilities and technical expertise in support of applied research programmes.

Story date: Monday 08 March

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