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HP loses MoD payroll and pensions deal to CSC

US firm snaps up 7-year service bods and veterans contract

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HP has lost the contract to supply pay, HR and pensions administration to the Service Personnel and Veterans Agency (SPVA) for the UK armed forces.

"HP will work to ensure a seamless transition of activities to the successful bidder, ensuring no loss of service to the thousands of people who depend on the service," HP said in a statement.

The company had held the SPVA deal for 15 years and, in partnership with Xafinity Paymaster, was among the suppliers shortlisted for the replacement contract.

Two other providers made the shortlist – Capita and CSC – and the latter has now been named the Ministry of Defence's preferred bidder.

The department and US-based firm CSC are now in discussions over the contract, with a final deal expected to be signed in mid-May, a spokeswoman for the ministry said.

According to the original tender document, the deal will be worth up to £400m over seven years, or £750m if an option to extend the contract to 15 years is taken up.

This article was originally published at Guardian Government Computing.

Guardian Government Computing is a business division of Guardian Professional, and covers the latest news and analysis of public sector technology. For updates on public sector IT, join the Government Computing Network here.

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