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CSC Wins British Military Payroll Contract

by: Matthew Potter
April 20, 2012

Category: Business Line, Companies, Contract Awards, CSC, Events, Hewlett Packard, IT, logistics, Services | RSS 2.0

In a move that surprised some observers the British Ministry of Defence (MOD) awarded the contract to manage their payroll and personnel services to CSC (CSC). The current contract is being executed by Hewlett Packard (HP).

The seven year contract which will begin in late 2012 has an estimated value of almost $1.5 billion. HP has been executing this work since 1997.

CSC was one of two other bidders then HP who had attempted to win the contract alongside Capita.

The decision was somewhat a surprise due to CSC’s recent failure on a contract with the British National Health Service (NHS) for a patient administration IT system. The fallout from this contract is currently under negotiation between CSC and the NHS to reach a settlement. It was recently reported that these negotiations are ongoing and some sort of agreement will be reached by 1 June. CSC has said that they have had to write off their nearly $1.5 billion investment into the system.

The agreement will manage the reduction in CSC’s support and the use of the system.

Despite this past performance the British MOD has clearly stated that CSC submitted the best proposal and believe the contract was evaluated fairly and properly.

As the U.S. military has had the British military also experienced problems in the past paying personnel the right amounts due to the large movement to and number of troops in Afghanistan and Iraq.

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