Will the coalition end CSC's £2.9bn NPfIT contracts?
The coalition could decide to pay CSC a relatively painless sum to end its £2.9bn NPfIT contracts by mutual consent
Published 12:20, 23 June 11
Now that the Health CIO Christine Connelly is quitting, the future of the NPfIT is less certain.
The Cabinet Office's Major Projects Authority is reviewing CSC’s £2.9bn worth of NPfIT contracts. It will consider whether to pay CSC a sum, say £50m, to terminate the NHS IT scheme for convenience, with mutual consent, or sign a memorandum of understanding which knocks £764m off the price of CSC's contracts - leaving £2.1bn still to pay - which may prove poor value for money because it will double the cost of each deployment of iSoft's Lorenzo.
The Department of Health has accused CSC of a breach of contract - and CSC has accused the NHS of causing alleged breaches. Neither side has taken their claims to arbitration though, which would be the next step if they were seriously discontent.
Will the Cabinet Office order an end to CSCs contracts? An analysis is here.