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House of Commons Public Accounts Committee
BBC Digital Media Initiative
Written Evidence Only those submissions written specifically for the Committee and accepted by the Committee as evidence for the BBC Digital Media Initiative inquiry are included.
List of written evidence
• Bill Garrett, former Head of Technology, BBC Vision Productions.
• John Linwood, former Chief Technology Officer, BBC
BBC’s management of its Digital Media Initiative Written Evidence – William Peter Garrett - “Bill Garrett”
In summary of my submission to the committee;-
• I find it difficult not to conclude that the National Audit Office was mislead during their
previous 2010/11 investigation specifically with reference to the progress of DMI after
the project was brought in-house by the BBC. [paragraph 16, 17]
• I consider evidence given by the corporation to the committee hearing of the 15th
February 2011 misleading and did not portray the true performance of the DMI
project. [paragraph 21, appendix 090]
• I believe the revised investment case (sometimes referred to as the “benefits case” or
“business case”) of April/May 2010 which sought funds to continue DMI’s
development in-house was a fundamentally flawed proposition consequently placing
public funds at significant risk. I believe a number of staff knowingly falsified
estimates of financial benefits to ensure case approval. [paragraph 8,9,10, appendix 040,042]
• I raised concerns about various aspects of DMI in 2010 and again in 2012.
[paragraph 5,6,7,14,16 appendix 024,031,084]
• By virtue of its narrow remit I believe the PwC investigation has not been permitted to
fully answer the fundamental question “What went wrong?”
• I have provided additional documents as evidence to support assertions within this
statement (attached as an appendix).
As the culture surrounding DMI and the behaviours of individuals involved are key to
understanding the events which I believe lead to the failure of the project this written
evidence is provided in the form of a narrative witness statement.
Introduction
1. From 2006 to 2010 I was Head of Technology BBC Vision Productions, a department
of the BBC sometimes referred to as the corporation’s television programme making
arm. Prior to 2006 I was an investigative journalist for the BBC working in business
programming, I specialised in commercial misconduct, corporate finance and
technology transformation. I am a professional engineer with significant experience in
the broadcast industry. I am the author of the letter to Lord Patten of Barnes –
Chairman of the BBC in May 2012 in which I raised a number of concerns about the
corporation’s management of its Digital Media Initiative.
2. In January 2007 I had interaction with a team of BBC staff and hired consultants from
Siemens and Deloitte as they prepared a proposal for DMI. This initiated a work
stream of consultation with the production divisions of the corporation, effectively a
requirements gathering exercise. It indicated the need for a "work in progress" asset
management system for TV production and a digital "archive" for completed master
recordings. The subsequent requirements document formed part of a business case
for DMI submitted to the Director General’s Finance Committee in Q2 calendar year
2007.
3. Throughout the following two year period I had regular contact with the DMI team
during their attempts to deliver a working system within the Siemens delivery
contract. I represented the interests of the production communities and regularly
liaised between senior production figures and DMI management. Within a year it
became obvious that DMI was in significant difficulty as it continued to miss delivery
commitments. By the end of 2008 the credibility of the project was very low and it
became increasingly challenging to explain its failings to senior production figures
who relied on my technical understanding. By early 2009 I was aware that problems
with the project were causing tensions between the corporation and its technology
partner Siemens.
Siemens contract terminated
4. In the autumn of 2009 in a conversation with a senior technology manager who
reported to John Linwood, I describe the decision to tear up the contract with
Siemens as a "reckless act" adding "They (DMI team) will probably never be able to
deliver the project now". I qualify my comments indicating that a key technical
challenge and therefore risk for DMI was the capability of the BBC's computer
network to support the system. I indicated that as Siemens operated and managed
this network for the BBC, Siemens had effectively underwritten this risk by also being
the contractor who had committed to deliver DMI. By tearing up the contract and
bringing the project "in-House" the BBC took on this risk. The individual indicated that
he understood this "dynamic".
5. In January 2010 I am asked to provide my subject matter expertise for a newly
prepared benefits case for DMI. During a meeting I raise a question whether taking
specific component parts of the DMI technology in isolation could more effectively
deliver benefits. I highlight that this approach could also reduce project delivery risks
by focusing in on one or two components. It was agreed between myself and a senior
finance manager in BBC Vision that I should seek to interview the delivery leads of
DMI to ascertain whether this would be an opportunity. It was also suggested that I
raise some additional questions.
6. In the following days I meet with some members of the DMI leadership team for a Q
& A session. I conduct the interview and take notes indicating that I will provide a
copy of the notes back to the interviewees so they have an opportunity to moderate
the recorded responses. Although the meeting is cordial and friendly I detect a note
of frustration towards some of my latter questions particularly where finances of the
project are questioned. Specifically one of the team becomes animated when I raise
questions about DMI funding for the Salford Quays project (sometimes referred to as
“Project North”/“North”), he indicates that the questions "were not for this forum".
[page 024-026]
7. I send my notes and the moderated responses to senior staff of the Vision and
Technology divisions setting out a number of my concerns. As these responses had
been moderated by the DMI team I considered these to be an accurate reflection of
their view. I felt the clarity of the responses were not of a standard that informed me
satisfactorily about the future DMI proposition. They raised many questions about the
funding for DMI specifically wrt to Project North where there appeared to be a
significant gap in operational expenses, additionally a critical risk associated with the
BBC’s computer network had not been mitigated or addressed. During various
discussions with fellow senior colleagues within Vision Productions and Children's
television I repeated my concerns that the finances for the project looked unclear and
that I believed there to be a significant number of questions around the technology
yet to be resolved. [page 024, 031-034]
Preparation of the 2010 revised Benefits Case
8. I am invited to take part in a meeting to further address the benefits case for DMI.
The proposed meeting is organised to consider a new benefit line item – “cost
avoidance”. At the meeting we discuss what costs production divisions would be
exposed to if DMI did not go ahead. These consisted of estimated costs of
standalone data storage systems and their associated support costs, these have
subsequently been labelled “digital islands”. Myself and executives from the relevant
production divisions did some rough estimates of costs, our calculations totalled
approximately £7 Million for the project lifespan. All agreed that these numbers were
based on rough workings however some rationale had been applied. The meeting
concluded with these cost avoidance figures being the only numbers discussed
during the two hour session.
9. The following day I am forwarded an email, it is a copy of a summary briefing of the
cost avoidance meeting [page 040,042]. Despite the importance of the email and
that it requested feedback I had not received this directly. It was provided to me by
one of the production staff who also attended the meeting and who wished to draw
my attention to it. Attached was a spread sheet which purported to be a recording of
the figures discussed, however there were three further columns detailing additional
cost avoidance figures I had not previously seen (marked as columns A, B and C in appendix document 042). These additional columns totalled £8.4Million.
Although the sheet indicated that these figures had been produced based on
information gathered during the meeting, these columns had not featured in our
discussions. I became concerned about the veracity of these numbers as I had not
had opportunity to clarify them nor was I aware that any of my production colleagues
had had a similar opportunity. One of the cost items was "Datacentre & Storage
Management costs" and equalled £3 Million. This line item alone defied reason as
this cost would only occur if DMI went ahead, not a cost avoided if it didn’t. It is my
belief that the reason I was not recorded as having attended this meeting or been on
the original distribution list of the email and summary document was because the
authors would have known I would consider the additional £8.4Million unjustified. In
looking at these costs it was clear to me that the numbers had simply been made up.
10. Sometime later in February 2010 I have a brief meeting with a Vision Productions
finance colleague. They wished to clarify their understanding of some of the benefits
and cost avoidance of DMI. I detect an element of concern in their own view and they
show me a document which I believe to have been a section of the revised business
case. It highlights the cost avoidance numbers, these assert the costs avoided if DMI
goes ahead to be £15Million, it uses words to the effect "these figures are ratified by
the CTO of the BBC". I indicate my immediate concern that these were unjustified
figures in my view. I describe the numbers as "like Enron" referring to the approach
of adjusting estimated figures to suit needs rather than being based on pragmatic
rationale. I felt qualified to draw this comparison as a few years earlier I had made a
film about Enron for the BBC in which many of the interviews with former Enron
executives described similar behaviours in the preparation of business cases for the
failed energy company.
11. Around the time of the preparation of the revised business case a workshop was held
between Project North and the DMI, it aimed to enlighten Project North about the
technology solution from DMI. During the workshop 36 questions were raised by
Project North members and subsequently submitted in written form to the DMI team.
Answers to these were critical for North to progress with its own project. During the
meeting I am offered a demonstration of a key piece of DMI functionality which I
email to confirm my interest. I and many colleagues considered the performance of
the DMI representatives during the workshop as chaotic and without a clear
understanding of their technology solution. A number of colleagues describe the
meeting as “farcical”. Later I read an article in industry press magazine TVB Europe
in which Mr Linwood explains the DMI would be based on “Cloud” technology. [page 035-036] This brought into question the project’s entire approach and was, in my
view a high risk solution at the time.
12. During February 2010 I receive an email from a member of the DMI project team
withdrawing the previously made offer of a demonstration of a piece of system
functionality. I forward on the email to relevant stakeholders adding the words "It just
gets better and better! Files based import not ready!" [page 049]
13. In the following days, I receive an email from a senior figure in BBC management
who had been, or possibly still was, the creative lead for DMI. [page 050] In it he
raises matters of communications with the DMI team and in particular requests for
demonstrations of technology. At the time I take his communication to be referring to
my email (17/02/2010). He sets out a protocol for all future communication with the
DMI team. He appears to imply that any other approaches were at risk of being
deemed insensitive to priorities, having a disrespectful tone and creating noise. He
writes "These are our colleagues, not a third party we are testing for credibility." I am
shocked by his statement, it was crucial to determine the credibility of DMI ahead of
its business case application for further funding. I cannot speak for the mindedness
of this individual when he wrote this particular email however the net effect of his
communication was to inhibit the freedom of concerns being raised by those it was
directed at. A production colleague commented to me “I think we’re being told to shut
up”.
14. Towards the end of February 2010 In a routine meeting with a senior Vision
Productions colleague and a senior technology manager who reported to John
Linwood. I raise my concerns about the benefits case for DMI directly with the
technology manager, specifically the subject of the cost avoidance figures. He
immediately becomes extremely agitated, he doesn't attempt to address the
concerns but starts raising concerns he has about another unrelated matter
discussed earlier in our meeting. I try to refer back to the issue but he ignores the
point again drawing our focus to an irrelevant matter. The meeting concludes and
myself and my Vision Productions colleague walk back to the Vision Productions
management office where she refers to his behaviour using words to the effect "He's
just not objective"
15. During March and April 2010 there were various levels of contact for me and other
stakeholders with the DMI team. During this time I did not receive any material
answers to the 36 questions that had been minuted and submitted as part of the DMI
workshop held on the 17/02/2010. In the main I and many BBC colleagues remained
unconvinced by the credibility of the DMI team to deliver on their assertions,
particularly as they appeared not to be meeting their deadlines, nor could they
provide any particular insight into their proposed technology solution. Specifically
during this time I was unable to ascertain exactly what functionality was going to be
delivered in "Release 2 – production tools" that the project proposed would occur in
May 2010.
16. Towards the end of April 2010 I engage in dialogue with a colleague who was a
senior technology manager who I understood to have recently assumed some
oversight of the DMI project. I forwarded him copies of various matters including the
mostly unanswered 36 questions raised with the DMI team in the previous months. I
particularly raise questions over the claim that the “Archive” functionality for DMI had
been delivered in February 2010 [page 082,084]. During my dialogue with the
individual it became clear to me that he shared my concerns about the project. At
around the same time I write to the DMI team about the Archive solution and other
matters but did not get a response [page 085]. I casually meet a member of the DMI
team who I had a good working relationship with who admits that he considered the
claim that Archive solution had been delivered as questionable.
17. In early May 2010 it became clear to myself and stakeholders in BBC Children's that
DMI would not deliver the proposed release in May/June 2010. Children’s television
was the only area in the production community slated to have a delivery at this
proposed release. For the removal of doubt no release was made to anywhere in
Vision Productions or Children's during this period. The Natural History Unit was
expecting DMI to be ready for the series “Frozen Planet” which this was due in post-
production. The delay by DMI was likely to cause production issues, as a result a
stand-alone (digital island) solution was put in place. This was not DMI connected to
any archive functionality however it was funded by the DMI project.
Following my resignation from the BBC
18. (04/06/2010) I leave the BBC, in the months following I remain in close contact with
many key stakeholders who confirm that no DMI functionality had been delivered.
19. (July 2010) I read an article in trade paper Broadcast, it is an interview with John
Linwood in which he indicates that DMI is "live and in production and being used in
the BBC". I know John Linwood's statement to be misleading. [page 087-089]
20. (Jan 2011) I read the NAO report and associated press coverage. The press
coverage appears to focus on lost benefits from the project during its time under the
Siemens contract. The NAO report states the deliveries of DMI that John Linwood
had claimed in the press article. Again I know these to be misleading and I am
amazed that these are recorded in the NAO findings. I consider the report does not
reflect what I know about the project from the point when it was brought in house by
the BBC
21. (June 2011) I read a press article about the BBC contracting a consortium to design
the infrastructure for DMI. The article supports my view that the claims by Mr
Linwood and subsequent NAO findings and the BBC’s evidence to the PAC hearing
were not only misleading they were not technically possible. Essentially it could not
be claimed that the DMI system was working if the design and delivery of the
infrastructure had yet to be commissioned at the time of the report and subsequent
hearing. [pages 090]
22. (During 2011 – 2012) I have regular catch ups with colleagues still working at the
BBC and in areas close to the DMI project. I hear that nothing has been delivered
during this period. I am told that a small trial of functionality had been attempted in
the BBC London Factual department but the component was just a fraction of the
workflow. Further I meet at a dinner party former colleagues of my wife (another
former BBC production staff member), they indicate that they had "tried some sort of
system for logging but it was pointless and didn't work very well” I realise they are
referring to DMI.
23. (May 2012) I visit BBC Salford Quays, I had been part of the work stream that had
defined much of the non-DMI technology for the facility. During my visit I became
aware that DMI had not delivered any functionality. I was told there were developers
attempting to deliver the “Archive” function but no useable system was in use in
production. This was extremely disappointing to learn in light of the time that had
passed. Following this visit I write to BBC Trust Chairman Lord Patten.
Conclusions
24. It is clear that this project failed because despite claims the DMI team did not deliver
a working solution. It is my belief that this was as a result of very poor technical
direction by the BBC evident in the DMI team’s inability to show me technical designs
for the proposal. From Q1 2010 when the project was claiming a delivery schedule
which included a “Basic Archive” and “Production Tools” they did not have a design
that would deliver a viable implementation.
25. From the outset the technical leadership of DMI appeared mismatched with the skills
required for such a project. This was compounded by a lack of understanding by the
team of contractual boundaries the BBC had in place with many of its technology
providers who would be necessary stakeholders. Adding these factors to the
challenging environment created by the scale of the BBC and some of the investment
needed around infrastructure (such as the network) meant the chances of success
were extremely low. In essence the DMI team did not grasp the scale of the
challenge.
26. A year later when Mark Thompson and Erik Huggers gave oral evidence to the
committee hearing on the 15th February 2011 the BBC was still to commission the
design and delivery of the infrastructure for DMI which brings into question their
evidence. The infrastructure would have glued DMI together, it is therefore difficult to
reconcile the lack of a fundamental element of DMI with the picture the corporation
painted at the time.
Why was DMI allowed to continue?
27. Too many staff members and contractors jobs depended on DMI continuing, many of
them recognised the project had little chance of success however speaking up would
impact their careers and livelihood. Many senior figures had reputations invested in
DMI. The resulting behaviours ensured that concerns external to DMI were either
dismissed or shut down and business cases and other approvals were simply waived
through without proper scrutiny. This culture ensured the project continued receiving
funds, this was not one person but a very large group of people. There were a
number of individuals senior in the technology division who held the responsibility to
safe guard public funds in this area but did not act despite being aware of this
situation. In some cases I believe certain individuals acted wilfully to subvert
governance processes and falsify value propositions so as to deceive the various
governance panels. This most serious matter is one I believe the BBC has a
responsibility to investigate.
28. The 2013 PwC report into DMI followed a mandate set by the BBC Trust consisting
of seven questions which narrowed the investigation to governance issues. I believe
there remains a risk of a repeat of these circumstances because there are no
conclusions about the real causes of DMI’s failure and therefore recommendations to
mitigate them. I indicated to the Trust and the PwC team the significance of the 2010
business case and my concerns that this crucial step required examination. This
business case permitted spending on the DMI project despite a questionable
proposition, accordingly placing considerable public funds at significant risk. I am
unaware if there has been any review of the preparation of this case.
29. The BBC does deliver large scale technology projects very well. Many of my former
colleagues are committed to delivering value for money for the licence fee payer,
however there remains a number of individuals within the leadership of the
Technology and North divisions of the BBC who need to account for their actions in
relation to the management of DMI.
�
A It is recognised that the current networking infrastructure is not fit for purpose and as such John
Linwood has committed to upgrading the infrastructure from FM&T’s budgets. This must be done by
Release 3 of DMI during 2010
Q3 Does DMI still anticipate to replace the production paperwork system P4A, if so is this fully funded
from DMI and when would it deliver?
A Yes DMI is expecting to fund and deliver the replacement for P4A and this is expected in Release 4 or
later. There is a short term solution for production paperwork called Silver Mouse currently under
consideration as an interim solution but it’s costs are in the tens of thousands pounds and therefore not a
considerable sum.
Q4 Is it possible to optimise the benefits case in a particular production genre or business area by only
taking part of the DMI functionality, for example just the Archive? In context as other systems are expected
to feed the DMI Archive in isolation for example Northern Ireland and A&M it must be technically possible
to do this?
A Taking either the Archive or the Production Tools components is possible but this would not be DMI,
The benefits case does not stack up unless the system is complete with all the metadata management making
the Archive searchable. DMI was tasked to provide and end to end architecture.
Q5 If the system has to be complete are there any benefits from DMI as it’s functionality is rolled out, in
particular in Children’s when they receive just the production desktop tools in May 2010 ahead of the rest of
the system?
A Yes there are some financial benefits.
Q6 Are there additional costs that production areas will have to meet during the proposed benefits case?
For example will they have to pay for any of the following: - Client machines for the DMI desktop tools;
Training; Storage; Support.
A - DMI is designed to operate on standard BBC desktop machines and therefore there is effectively no
additional cost over a normal machine. In some cases specific performance may need to be met with higher
performance machines. Training is cost covered and will not impact on production financially. Storage for
predicted volumes of media is covered, additional media capacity can be purchased from a rate card.
Q7 What are the breakdowns of costings for DMI? The original case from my understanding was £83M
but I now see a figure of £105M what is this additional cost?
A The new costs cover lost benefits in the old case resulting from the late delivery. I am not providing a
breakdown of costs as this could effect commercial negotiations with suppliers.
025
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Q8 Had DMI delivered on time Children’s DMI solution will have effectively been fully funded, Will
DMI cover the specific Opex costs of DMI in Salford for the benefits case period of 8 years.
A Project North has a budget line to cover capex for certain DMI elements not covered in the original
£83M DMI business case.
Q9 I understand that the capex budget line in the Project North case, approximately £5M was to help
design and build the “Share” enabler of DMI which was specifically needed for Salford, but what about the
operational costs of running the Production Tools storage ie the back end of Cynergy?
A- This is a discussion for the Project North team who are all fully aware of this.
Q10 Aside of who may actually meet the costs of this ongoing year on year support in Salford, as DMI is
the design and build authority what is the expectation cost of this element? You must have an understanding
of what your solution will cost?
A This is not a question for this forum and I suggest it is directed towards the Project North Leadership
Team of .
026
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soon as is possible, I hope to get a finalised version to by 10am tomorrow.
– Question 7 on reflection I’m not sure I understand you response in that “lost benefits
from the old case are included in the new figure”, is it possible you could provide me with
an explanation of how this has become an additional £22M element to the current business
case?
Bill
Q1 – Is the proposed DMI solution still an end-to-end system with tapeless delivery, and if the system is to be
phased in when would the tapeless delivery functionality be available to production?
A – Yes the system is end-to-end and it will include tapeless (file based) delivery. This functionality is fully funded
from DMI and file based delivery is expected to be available to production in Release 4 by the end of 2010. Benefits
case is predicated on a four month lag between release and start of benefits realisation in order for productions to
familiarise themselves with system, training etc
Q2 – Is the proposed system going to operate over the existing BBC networking infrastructure or a separate
network? Are there costs of any additional networking work?
A – It is recognised that the current networking infrastructure is not fit for purpose and as
such John Linwood has committed to upgrading the infrastructure from FM&T’s budgets.
Delay to this would consrain the speed of roll-out from release 3 onwards.
Q3 – Does DMI still anticipate to replace the production paperwork system P4A, if so is this
fully funded from DMI and when would it deliver?
A – Yes DMI is expecting to fund and deliver the replacement for P4A and this is expected
in Release 4 or later. There is a short term solution for production paperwork called Silver
Mouse currently under consideration as an interim solution. DMI is not funded to deliver an
interim solution so there would need to be a decision about funding and delivery ownership
before a decision is made at the end of january. These issues are outlined in the paper that
is pulling together for
Q4 – Is it possible to optimise the benefits case in a particular production genre or business
area by only taking part of the DMI functionality, for example just the Archive? In context
as other systems are expected to feed the DMI Archive in isolation for example Northern
Ireland and A&M it must be technically possible to do this?
A – Taking either the Archive or the Production Tools components is possible but this would
032
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not be DMI, The benefits case does not stack up unless the system is complete with all the
metadata management making the Archive searchable. DMI was tasked to provide and end
to end architecture and to future-proof the production processes in line with creative futures
aspirations.
Q5 – If the system has to be complete are there any benefits from DMI as it’s functionality is
rolled out, in particular in Children’s when they receive just the production desktop tools in
May 2010 ahead of the rest of the system?
A – Yes there are some financial benefits.
Q6 – Are there additional costs that production areas will have to meet during the proposed
benefits case? For example will they have to pay for any of the following: - Client machines
for the DMI desktop tools; Training; Storage; Support.
A - DMI is designed to operate on standard BBC desktop machines and therefore there is
effectively no additional cost over a normal machine. In some cases specific (e.g. If a
production chose to do high-end finishing within the DMI toolset) performance may need to
be met with higher performance machines. Training is cost covered and will not impact on
production financially. Storage for predicted volumes of media, as indicated by production
departments, is covered, additional media capacity can be purchased from a rate card.
Q7 – What are the breakdowns of costings for DMI? The original case from my
understanding was £83M but I now see a figure of £105M what is this additional cost?
A – There is no increase in the cost to the BBC. DMI will deliver more functionality to more
areas for the same amount of money. The suggested increase is an accounting necessity to
illustrate loss of benefits due to delays against old case. The DMI programme is currently
negotiating substantial deals with 3rd parties around kit, professional services and managed
service and it is not appropriate to highlight the monies available as this is commercially
sensitive. All deals go through correct scrutiny with BBC Procurement and industry
benchmarking in place to ensure that value for money is realised.
Q8 – Had DMI delivered on time Children’s DMI solution will have effectively been fully
funded, Will DMI cover the specific Opex costs of DMI in Salford for the benefits case
period of 8 years.
A – DMI will cover the operating costs and deliver a managed service for the duration of the
case. There are some specifics around the Salford infrastructure and the commercial deals 033
�
that are being worked on that may shift some of this responsibility to other areas. This is
being worked on collaboratively between project north, DMI and MCSL. It is not anticipated
that this would have any impact on production departments
Q9 – I understand that the capex budget line in the Project North case, approximately £5M
was to help design and build the “Share” enabler of DMI which was specifically needed for
Salford, but what about the operational costs of running the Production Tools storage ie the
back end of Cynergy?
A- There is a capex element in the project north funding for building DMI infrastructure.
The operational costs are outlined in the previous answer.
Q10 – Aside of who may actually meet the costs of this ongoing year on year support in
Salford, as DMI is the design and build authority what is the expectation cost of this
element? You must have an understanding of what your solution will cost?
A – DMI will deliver within the capex budget. The other elements of spend, as outlined in
answer 7 are, for very good reason, being negotiated by project north and a team is in place
to drive this forward. This team includes senior management from project North, Dmi and
FM&T.
034