Sopra Steria widens legal challenge to Capita's Whitehall outsourcing deal
Unredacted contract prompts fresh claims of preferential treatment and greater risk for the DWP
Sopra Steria has escalated its legal challenge against Capita's £370 million contract with the UK government's Department for Work and Pensions (DWP). Capita had previously secured the contract to provide finance, payroll, HR, procurement and other shared services across four government departments. However, Sopra Steria claims that undisclosed terms in the agreement gave Capita preferential treatment, reduced its risk exposure and left the DWP carrying more of the burden.
The dispute arose because Capita's tender price was significantly below the current staffing levels, which Sopra Steria alleges is an abnormally low bid. The contract also includes a Project Change Clause that allows the DWP to amend it to compensate for Capita's deficiencies, which Sopra Steria believes reduces Capita's exposure and increases its potential margin.
The DWP maintains it conducted a fair competition and that the deal represents value for the public.
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