DWP Ditches Fujitsu From £300 Million Contract

The UK Department for Work and Pensions has terminated a £300 million pound desktop solutions contract it had given to Fujitsu even before the company had started, it has been revealed.

According to a report on Channel Register, the DWP, which had taken the contract from HP and given it to Fujitsu last year, has asked HP to start the work in the short term.

The multi-million pound contract, which was awarded to Fujitsu by the DWP and Buying Solutions, involved desktop solutions and support across departments. When HP lost the contract to Fujitsu, it was worth less than 15 per cent of the current contract value.

A spokesperson for the DWP confirmed that it had terminated its contract with Fujitsu on March 11th but failed to say whether it would start accepting tenders for the contract again.

The Channel Register report said that sources within the DWP had revealed that Fujitsu lost the contract because it failed to meet three deadlines for starting work. The company was expected to begin work at the DWP from August 31st 2010.

“Fujitsu can confirm that it has received notification from the Department for Work and Pensions (DWP) that they wish to bring the desktop contract, awarded in February 2010, to an end. We are not able to provide any further comment at this stage,” Fujitsu said in a statement.