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MoD deal with CSC is ‘regrettable’, says senior MP

MP Richard Bacon is critical after CSC’s failings in the NHS NPfIT

A senior MP and member of the Public Accountants Committee has slammed the Ministry of Defence's (MoD) decision to select CSC over HP and Capita to provide it with payroll and personnel services, labelling it as "regrettable".

It was revealed yesterday that the MoD has selected CSC for a 10-year outsourcing deal, in what was considered a 'shock' decision by the analyst community, which thought it would go to the incumbent provider HP.

MP Richard Bacon believes CSC's failings in the National Programme for IT (NPfIT) is reason enough for it not to be selected for the large government contract.

"In my opinion it is regrettable that CSC has been awarded more government work," Bacon told Computerworld UK.

"Companies which have failed so badly to deliver on their contractual promises should not be rewarded with further contracts elsewhere in government."

CSC is in talks with the UK government over the failed NPfIT, which may lead to the company having to write off the entire £957 million investment it made in the programme.

A Memorandum of Understanding (MoU) was due to be reached in April, but this has now been extended to June after failed negotiations.

In a conference call last week, CSC's chief financial officer (CFO), Michael Mancuso, may have hinted at the MoD deal after he told investors that "the company does not revolve around the NHS".

Bacon, who is also a member of the Public Accounts Committee, last year added to the controversy surrounding CSC's failings by highlighting an undisclosed £200 million payment by the NHS to the outsourcing company.

The MoD said yesterday that CSC had been selected because it offered the best technical solution and the best price.

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