Underperforming suppliers may get fewer government contracts

28.06.2012
Francis Maude, minister for the Cabinet Office, will today address twenty of the government's top suppliers and inform them that supplier performance will now be monitored and made available at the start of and during the procurement process, which may make it difficult for those with poor performance to secure future government work.

Companies attending the briefing include Accenture, Atos, BT, Capgemini, HP and IBM.

Absent from the meeting list, however, is CSC - the supplier that was responsible for the failed National Programme for IT (NPfIT). It was lambasted last year by MPs on the Public Accounts Committee (PAC) after it was revealed that the IT services company had delivered a full patient administration system to just three trusts in nine years. CSC may have to write off the entire £957 million investment it made in the programme.

However, this did not prevent it from with the Ministry of Defence (MoD) to deliver payroll and personnel services to serving veteran communities. It beat incumbent supplier HP to secure the contract, which was worth an estimated £100 million a year.

Tola Sargeant, director at analyst firm , highlights that CSC's past failings may now hold repercussions for its future in public sector work.

"Obviously this does have implications for suppliers like CSC. They are not the only one, there are always examples of suppliers in areas of the public sector where things go wrong, but at the moment CSC is the first one to spring to mind because it was such a big contract and the problems have been ongoing for a long time," said Sargeant.