House of Lords written question – answered on 29th July 2014.

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Photo of Lord West of Spithead Lord West of Spithead Labour

To ask Her Majesty’s Government, further to the Written Answer by Lord Astor of Hever on 6 May (WA 367–8), what specific figures they have for (1) savings, and (2) asset realisations, delivered by Capita.

Photo of Lord Astor of Hever Lord Astor of Hever The Parliamentary Under-Secretary of State for Defence

The Ministry of Defence (MOD) obtains best value for money in its contracts by maximising competition. Not all contracts have specific figures relating to savings because of the nature of the requirement. This is the case for most contracts between the MOD and Capita.

However, Capita is currently working in partnership with the Armed Forces to deliver the Recruiting Partnering Project. This contract is expected to deliver savings of around £254 million over 10 years. This contract also identified £3.5 million in asset sale realisation in 2012-13.

In June 2014, the Defence Infrastructure Organisation awarded a contract for its strategic business partner to Capita, working with URS and PA Consulting. The 10-year contract, worth around £400 million, will help transform the facilities and services that allow our armed forces to live, work, train and deploy on operations. It also has the potential to deliver substantial savings for the taxpayer, which could reach over £300 million a year during the contract.

The MOD uses a Cabinet Office Crown Commercial Services Framework Agreement with Capita for the provision of temporary manpower resource. However, as this framework was only let in November 2013, savings figures for MOD overall are not yet known.

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