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UK – Capita’s Ministry of Defence contract suspended after rival Serco challenges decision (Reuters)

24 July 2018

The Ministry of Defence said it had suspended a contract for UK-based outsourcing group Capita, to provide firefighting services on military sites after rival Serco began a legal challenge to the decision, reports Reuters. Capita announced in June that it had beaten rival Serco for a contract for the Defence Fire and Rescue Project. Serco confirmed that it was taking legal action over the contract but declined to comment any further. Capita said it remained fully committed to the contract and would continue to work with the Ministry on the matter. “The contract award has been suspended until the legal challenge to the procurement is resolved,” a Ministry spokesman said. “It is not uncommon for there to be procurement challenges.” Trade union Unite criticised the contract win and said it comes at a time when Capita has been forced to borrow over £700 million after racking up losses of £513 million last year.

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