"Sopra Steria claims the Department for Work and Pensions (DWP), which leads the shared services program for multiple departments, failed to spot that Capita's bid for the contract was "abnormally low" relative to Sopra Steria's tender for the same work. It also alleges that after the UK outsourcer was named preferred bidder for the contract, the DWP conducted further renegotiations around Capita's tender."
"The contact award, which will see Capita handling payroll for 250,000 civil servants, was criticized by the union. The Public and Commercial Services (PCS) Union this week claimed Capita's winning bid was £700 million."
"We have delivered a robust procurement process, in line with Government procurement regulations to identify a preferred bidder for the Synergy BPS contract. We stand ready to work with the successful bidder to ensure a smooth transition of service."
Sopra Steria has filed a legal challenge against the UK Department for Work and Pensions (DWP) over a major outsourcing contract awarded to rival Capita. The French outsourcer alleges that Capita's bid was abnormally low compared to its own tender and should have triggered procurement rule violations. Sopra Steria also claims it was excluded from renegotiations conducted after Capita became the preferred bidder. The contract, worth up to £958.7 million, involves handling payroll for 250,000 civil servants. The DWP maintains it followed proper procurement procedures and prioritizes service continuity and value for money. Capita declined to comment on the dispute.
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