By Lindsay Clark
Publication Date: 2026-06-05 10:45:00
Saas
The cost model is intended to protect against bidding errors at low costs, claims the rival
A new court filing reveals that the UK Department for Work and Pensions accepted an offer from Capita to run its new Oracle-based human resources and finance system at a cost of £272 million less than its own cost modelling.
In March the The British outsourcing company was awarded the contract to operate shared services for £370 million over ten years. The central government department previously had a “Should be a cost model” – to protect against favoritism for low bids – which, according to court documents, called for a total price of £642 million. Capita’s offer was 42 percent below the “should-cost” estimate.
The contract to manage the human resources and financial systems for four British ministries has been in place since January Subject of a legal claim from rival bidder Sopra Steria, which claims Capita’s offer was “unusually low” and based on staffing levels…
