The Channel logo

News

By | Guardian Government Computing 17th April 2012 08:02

HP loses MoD payroll and pensions deal to CSC

US firm snaps up 7-year service bods and veterans contract

HP has lost the contract to supply pay, HR and pensions administration to the Service Personnel and Veterans Agency (SPVA) for the UK armed forces.

"HP will work to ensure a seamless transition of activities to the successful bidder, ensuring no loss of service to the thousands of people who depend on the service," HP said in a statement.

The company had held the SPVA deal for 15 years and, in partnership with Xafinity Paymaster, was among the suppliers shortlisted for the replacement contract.

Two other providers made the shortlist – Capita and CSC – and the latter has now been named the Ministry of Defence's preferred bidder.

The department and US-based firm CSC are now in discussions over the contract, with a final deal expected to be signed in mid-May, a spokeswoman for the ministry said.

According to the original tender document, the deal will be worth up to £400m over seven years, or £750m if an option to extend the contract to 15 years is taken up.

This article was originally published at Guardian Government Computing.

Guardian Government Computing is a business division of Guardian Professional, and covers the latest news and analysis of public sector technology. For updates on public sector IT, join the Government Computing Network here.

comment icon Read 13 comments on this article alert Send corrections

Opinion

WWI French tank picture via Shutterstock
Vinod_Khosla

Chris Mellor

A VC with startup agenda slams established suppliers. Surprised? Neither were we
ZenPad_RealRacing
Boy writes a letter to Santa. Pic via Shutterstock

Kat Hall

Cornwall's win over BT should be a cautionary relationship tale

Features

Eclipse image via Shutterstock
The Azure Portal: Microsoft is betting on cloud for its future business
container_ship_hamburg_shutterstock_648
Michael Dell. Pic by Joi Ito
Cool Texas dude is just your average billionaire