Friday, October 18, 2024

Overwhelmed Post Office Fumbles Hardware Procurement in Bid to Replace Flawed System

Issues with the Post Office’s efforts to replace the controversial Horizon system have led to unplanned renovations at branches and the risk of critical hardware shortages.

Facing considerable public and political pressure to sever ties with long-time supplier Fujitsu and its disputed software due to the Horizon scandal, the Post Office’s New Branch IT (NBIT) project is experiencing significant delays. Although the replacement system is still several years away, the organization plans to utilize hardware acquired for NBIT to update existing systems. This complicates the replacement of hardware still in use from the current Horizon system, which is expected to remain operational for the foreseeable future.

According to a knowledgeable source, subpostmasters may need to modify their counters to accommodate the new hardware, which was not designed for the current layouts. Additionally, there may be shortages of replacement hardware before the NBIT project reaches completion, especially as support deadlines for old branch hardware approach.

The NBIT project, intended to replace Horizon by 2025, was disclosed in May 2022; however, Fujitsu’s contract with the Post Office appears poised for another five-year extension, amounting to an additional £180 million from taxpayers. As reported by Computer Weekly earlier this year, the initiative has encountered significant problems, prompting the Post Office to request an additional £1 billion in public funding from HM Treasury to get the program back on track.

Currently, thousands of point-of-sale (PoS) units from HP, including monitors, keyboards, scanners, and printers, remain idle in a warehouse.

A Post Office spokesperson stated, “The new hardware will support branches using Horizon, ensuring access to compatible equipment while a replacement system is being developed.” However, the source claims the equipment is standard and lacks adequate research regarding its compatibility with existing counter setups. Consequently, the Post Office may need to install the hardware on poles in branch counters, which could necessitate substantial renovations.

The Post Office asserted that it has acquired a variety of equipment to enable the deployment of new hardware across its branches. These devices include an integrated counter and options for various mounting methods to fit within counter spaces. They are also surveying branches to customize each installation to meet specific needs.

Even though the hardware has already been procured, the Post Office is currently conducting ergonomic assessments and collaborating with the manufacturer to explore additional configuration options. The source indicated there might be a shortage of replacement hardware, with plans to decrease the number of units in branches significantly from approximately 24,000. The Post Office responded that they have made preliminary procurements to support the refresh and that the branch surveys will confirm full requirements for the entire refresh initiative.

The organization emphasized there are no plans to reduce the number of PoS units in some branches, although it monitors usage and partners with branches to remove unused equipment to control costs, which is an ongoing collaborative effort.

The source attributed the hurried timelines to looming deadlines for support contracts for current hardware and software, suggesting poor decision-making under political pressure. The Post Office maintains that it is developing a deployment strategy and may introduce new counters as interim replacements for failing hardware later this year.

Last month, the Post Office announced the appointment of a new technology leader as it awaits funding for the troubled initiative. Former chief transformation officer Chris Brocklesby left after his one-year contract concluded and was succeeded on an interim basis by Andy Nice, who previously served as transformation director at Camelot, the organization that operated the National Lottery until January 2024.

The existing relationship with Fujitsu and the use of Horizon are expected to continue for several more years. According to Computer Weekly, the Post Office plans to seek a five-year extension with Fujitsu, potentially prolonging the partnership until 2030.

The Horizon scandal, first uncovered by Computer Weekly in 2009, revealed the harrowing experiences of seven subpostmasters, including Alan Bates, stemming from complications with the accounting software. This incident has been recognized as one of the most significant miscarriages of justice in British history (see the timeline of Computer Weekly articles about the scandal since 2009).

– Also read: What you need to know about the Horizon scandal
– Also watch: ITV’s documentary – Mr. Bates vs. The Post Office: The real story
– Also read: Post Office and Fujitsu negligence and incompetence lead to hefty taxpayers’ bill