Failed Contractor Awarded MoD Deal

CSC, the US contractor services firm responsible for £1 billion failure to deliver an essential IT programme for the NHS has been awarded a contract with the Ministry of Defence (MoD). The news stunned union leaders and MP’s because the contractor has banned by David Cameron from performing any more government work after failing to settle its dispute with the NHS. 

CSC has been awarded a £400m contract to run the pension administration for military veterans. Ministers have expressed concern over the company’s poor track record for delivering outsourcing relating services to the government. The news is particularly disappointing for the UK economy as ministers continue to award high margin work overseas without apparent regard to the quality of the work. More support should be provided to UK contractors who have more than sufficient skills to deliver this type of work.