Bacho Foto - stock.adobe.com

Post Office Horizon replacement contract delayed further

The Post Office has once more extended the standstill period before putting pen-to-paper on new EPOS system

The formal signing of the contract that will see Fujitsu’s controversial Horizon system replaced has been delayed for the fourth time.

The latest update to the tender notice for the contract, which forms Lot 2 of the tender to replace the system at the centre of the Post Office scandal, states that the procurement date has been extended to 17 July.

US retail specialist OneView Commerce remains the successful bidder, but the earliest time the contract can be signed is now 18 July.

The contract to replace the Horizon electronic point of sale (EPOS) software used in branches was initially set to be signed on 3 June, but this was extended to 15 June, then to 26 June and then to 8 July. And as of today, it has been put back to 17 July.

Computer Weekly asked the Post Office why it was being delayed, but it would not comment. One source said that for repeated delays of this type, there might have been a challenge against the award of the contract.

The OneView Commerce deal was first announced on 21 May alongside Lot 1, the £322.8m contract awarded to Accenture to run Horizon, but while the Accenture contract was signed off, the formal signing of the EPOS agreement has been repeatedly put back.

It is set to replace the Horizon EPOS system with a software-as-a-service (SaaS) application hosted in the cloud, which the Post Office specified must use a modern microservice architecture. It hopes the software will provide point-of-sale capabilities and other functionality required for an end-to-end retail platform. The move to standardised, off-the-shelf software represents a change in strategy for the Post Office, which throughout the Horizon era had insisted on using bespoke software designed for its own purposes.

The original tender for Lot 2 requested a commercial off-the-shelf EPOS-SaaS, with the supplier required to “transform the Post Office’s retail technology platform to meet evolving business, operational and customer requirements.” The OneView Commerce deal is planned to run for a minimum of 10 years. The losing bidder was Escher Software, which provided middleware as part of the original version of Horizon, first rolled out in 1999.

The Post Office Horizon contract the suppliers will replace is believed to have been Fujitsu’s most lucrative ever contract in the UK, earning the Japanese-owned firm more than £2.5bn over its 25-plus years duration. Nearly 1,000 subpostmasters were wrongly convicted after Horizon erroneously recorded accounting errors caused by bugs in the software, and a further 10,000 are eligible to claim compensation after the Post Office forced them to make good on phantom losses out of their own pockets.

In February, Post Office CEO Paul Anastassi told Computer Weekly that Fujitsu would be completely removed from its Post Office contract by the summer of 2027, and its Horizon system would be “eradicated” earlier than planned.

The Post Office scandal was first exposed by Computer Weekly in 2009, when it revealed the stories of seven subpostmasters and the problems they suffered due to Horizon, which led to the most widespread miscarriage of justice in British history (see below timeline of Computer Weekly articles about the scandal since 2009).

Timeline: Computer Weekly articles about the scandal since 2009

Read more on IT for retail and logistics