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Volume 471: debated on Thursday 31 January 2008

To ask the Secretary of State for Communities and Local Government how much was paid by her Department and its predecessor to Capita Group plc and its subsidiaries in each financial year since 2000; which contracts were awarded by her Department to Capita Group plc in each year since 2000-01 to the most recent available date; what the cost was of each contract; what penalties for default were imposed in contract provisions; what the length was of each contract; whether the contract was advertised; how many companies applied for the contract; how many were short-listed; what criteria were used for choosing a company; what provision was made for renewal without re-tender in each case; and if she will make a statement. (180709)

Details of spend with the Capita and its subsidiaries before 2002 is not available and could be provided only at disproportionate cost. I refer the hon. Member to the reply given to the hon. Member for Hornchurch (James Brokenshire) by my hon. Friend the Member for Poplar and Canning Town (Jim Fitzpatrick) on 23 March 2006, Official Report, columns 97-8W, and to the reply given by the former hon. Member for Shipley (Mr. Leslie) to the hon. Member for Sutton and Cheam (Mr. Burstow) on 29 January 2003, Official Report, column 862W. These answers give some background to spend with Capita prior to 2005.

Communities and Local Government's spend with Capita and its subsidiaries since 2005-06 is as follows;

Financial year

Spend (£)





2007 to December 2007


Since April 2006 Communities and Local Government have kept central records for contracts awarded for over £20,000. Details of contracts awarded before that date can be given only at disproportionate cost. Since 2006 two contracts have been awarded to Capita Resourcing Ltd. They were for commercial and legal management support to the Housing Employment and Mobility Services project.

Both contracts were valued at £139,065 each.

It is departmental policy to pay suppliers in arrears and so protect funds in the event of a default. Also, contracts are awarded using contract terms and conditions that allow us to revise payments because of unsatisfactory performance.

The contracts were and are of six months duration.

The first contract was awarded as a single tender. The strategy adopted to award the second was to seek expressions of interest from a Cabinet Office framework agreement.

Three companies duly submitted tenders and were considered.

Several criteria were used for evaluating the tenders. These were;

understanding the requirement;

evidence of recent experience;



quality of the bid; value for money.

The contracts included options to extend for a further six months.

The balance of spend with Capita has been on a variety of lower value contracts particularly around the storage and distribution of departmental publications. This spend was through a collaborative framework contract set up jointly with the Department for Transport in 2002 and full details of which could be supplied only at disproportionate cost.