Sopra Steria widens legal challenge to Capita's Whitehall outsourcing deal

Sopra Steria has expanded its legal challenge to a major UK government contract award after obtaining an unredacted copy of the agreement between Capita and the Department for Work and Pensions (DWP). The company alleges that previously undisclosed terms gave Capita preferential treatment, reduced the outsourcer's exposure to risk, and left the DWP carrying more of it. One clause could allow the department to fund technology needed to compensate for deficiencies in Capita's tender, Sopra Steria claims. Capita values the deal at £370 million, although government documents put its potential value as high as £873.4 million. Sopra Steria has been challenging the award since March, alleging that the DWP accepted an "abnormally low" bid based on staffing numbers "significantly below the current levels." The dispute concerns a contract to provide finance, payroll, HR, procurement, and other shared services across four government departments. …