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Capita

Volume 472: debated on Monday 25 February 2008

To ask the Secretary of State for the Home Department how much was paid by her Department 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 from 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. (180689)

Home Office HQ figures on the total value of spend on contracts with the Capita Group and its subsidiaries are available from 2003-04 when the Department's ERP system was initiated. Earlier data could be collected only at disproportionate cost. Taking into account the May 2007 machinery of government changes, the available information held by the Department and its agencies on spend for each year since 2000 is as follows:

£

HO HQ incl. BIA

CRB

IPS

Total

2000-01

n/a

0

1,482,985

1,482,985

2001-02

n/a

12,100,000

198,290

12,298,290

2002-03

n/a

33,500,000

65,108

33,565,108

2003-04

92,423

58,500,000

31,091

58,623,514

2004-05

1,182,337

44,100,000

974,281

46,256,618

2005-06

1,739,153

47,000,000

4,452,623

53,191,776

2006-07

3,985,112

49,000,000

7,053,127

60,038,239

The Department does not hold a central record of individual contracts with Capita Group and its subsidiaries, and to assemble all the requested details from all individual contract records would incur disproportionate cost. The majority of the spend derives from the disclosure service contract between the Criminal Records Bureau and Capita Business Services based upon a public private partnership agreement. The Department is able to provide the information in relation to this contract as set out in the following table.

The contract was awarded in 2000 and runs for 10 years from CRB go-live which occurred in March 2002. The contract cost is estimated at £400 million over 10 years. Contract schedules set out service levels and the service credits that apply should Capita fail to meet the agreed service levels. Liquidated damages are charged in the event of late delivery to agreed changes in the service. From 2001-02, the following payments have been received from Capita for service credits and liquidated damages:

Received from Capita for service credits (£)

2001-02

555,000

2002-03

1,718,000

2003-04

1,528,000

2004-05

53,000

2005-06

92,000

2006-07

168,000

The Department awards contracts in competition according to the EU procurement directives based on value for money. The contract was advertised and 94 companies registered expressions of interest.