Whitehall probes IT supplier

Link: EDS signs ‘failure clause’

The US company has a large share of UK government technology business including deals at the Department for Work and Pensions, and has been involved with several high-profile problem areas such as the Child Support Agency and the tax credits system.

According to documents requested by the Sunday Times and released under the Freedom of Information Act, the OGC commissioned two investigations by accountants Deloitte – in 2002 and 2004 – and also put together two of its own financial reports on the company.

EDS’ dominance of the government sector has diminished in recent years. The Inland Revenue’s £3bn Aspire deal went to a consortium led by Capgemini rather than EDS, despite its position as incumbent, and none of the £6bn-worth of NHS IT deals went to the EDS-led PlexusCare consortium. But the company is still in the running for the £4bn Defence Information Infrastructure contract due to be signed imminently.

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