IT
services company Capita has won a £70m contract to manage the
storage and retrieval of 60 million social security records for the
Department for Work and Pensions.
Under the
seven-year deal, Capita is contracted to improve access, retrieval
and tracking of social security and disability benefit claim forms
and associated files.
The three-year project will involve barcoding about 60 million
paper records from 44 locations, re-organising them and storing
their location on a computer system.
Mike Day, head of support service projects, commercial policy
and the procurement division at the Department for Work and
Pensions, said, "We are working closely with Capita to ensure a
seamless transition takes place for the service and all employees.
This project will enhance today's service and make it more cost
effective for the department and taxpayers."
Capita is
contracted to supply IT services to a number of public sector
organisations, including the London Congestion Charge scheme and
the Criminal Records Bureau, which checks the background of people
wanting to work with children or vulnerable adults.
The £250m Criminal
Records Bureau IT systems supplied by Capita were plagued by
problems and delays after the bureau came into operation in March
2002. The Public Accounts Committee warned that the service is
expected to cost taxpayers £150m more than was originally
planned.
Capita was also
contracted to supply IT systems for the government’s failed
Individual Learning Accounts scheme, which collapsed in 2002 after
revelations of widespread fraud. IT systems used by the scheme were
found to lack basic security. The government was heavily criticised
for its poor contractual arrangements with Capita.