Capita

Transport written question – answered on 5th February 2008.

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Photo of Sir David Amess Sir David Amess Conservative, Southend West

To ask the Secretary of State for Transport how much was paid by her Department to Capita Group plc and its subsidiaries in each financial year since 2000; which contracts were awarded by her Department to Capita Group plc in each year from 2000-01 to the most recent available date; what the cost was of each contract; what penalties for default were imposed in contract provisions; what the length was of each contract; whether the contract was advertised; how many companies applied for the contract; how many were short-listed; what criteria were used for choosing a company; what provision was made for renewal without re-tender in each case; and if she will make a statement.

Photo of Jim Fitzpatrick Jim Fitzpatrick Parliamentary Under-Secretary (Department for Transport)

The Department was formed in May 2002. The following table shows the total value of payments made by the Department to the Capita Group plc. and its subsidiaries in each complete financial year since then.

Period (financial year) Total expenditure (£)
2002-03(1) 3,192,366
2003-04 14,057,908
2004-05 12,188,065
2005-06 12,762,377
2006-07 16,235,816
Total 58,436,532
(1) Starting from 1 May 2002.

A further table showing the 'contracts awarded' by the Department to the Capita Group plc. and its subsidiaries since 1 May 2002 and up to 31 March 2007 has been placed in the House of Commons Library. This table shows the contract title, start and current end date and the estimated value of each contract and, where it has been possible to identify them, those orders raised against framework arrangements.

The other questions could be answered only at disproportionate cost. However the relevant key themes for all procurement in the Department are:

Fair and open competition;

Value for money—based on quality and whole life cost; and

Adherence with the policy and regulatory framework.

Unsatisfactory performance and default are dealt with by specific contract terms and conditions. These include provision to withhold or reduce payment or may entitle the Department to compensation for loss brought about by delay or poor performance.

A contract may be awarded on the basis that it can, subject to satisfactory performance and to business need, be extended without further competition. Other renewals are subject to specific, delegated, approval levels.

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