Fujitsu Wins Spot On £600M Framework After Vowing To Sit Out Public Sector

Fujitsu has won a place on a UK tech framework worth up to £600 million ($802 million) despite promising not to bid for public sector contracts while its role in the Post Office Horizon scandal faces scrutiny. The company says bidding for the deal took place before it made that commitment to the UK government.

Northern Ireland's health service has awarded the Japan-based global tech services company a place on the first lot of the Technology Framework Agreement 2, worth a maximum of £576 million ($770 million).

Fujitsu joins Capita, BT, and Telefónica on the procurment mechanism, intended for "service delivery, transformation and operational services," awarded by the Health and Social Care Northern Ireland's Business Services Organisation. A second lot on the framework was awarded to PA Consulting, Deloitte, and Expleo Technology to provide technical advice and support in an agreement worth up to £24 million ($32 million).

It is the award to Fujitsu, however, that is likely to surprise observers. In January, the company wrote to the UK government to confirm it will no longer tender for business in the public sector owing to its role in the Post Office Horizon scandal, in which Fujitsu's flawed accounting system made errors in calculating the finances of Post Office branches.

The Post Office wrongfully prosecuted 736 managers for fraud when errors in the system were to blame, destroying the lives of many involved, leaving some bankrupt and others suicidal. The court quashed 39 additional convictions in 2021. A statutory inquiry was launched that year and Parliament has passed a law to exonerate the managers en masse.

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The public inquiry into the scandal continues with further hearings scheduled for this week.

In January, Fujitsu's letter [PDF] to the government said it would pause bidding for new government contracts "until such time as the Inquiry has reported, or, with prior consultation and support from such new government customers."

At the time, the Cabinet Office said it welcomed Fujitsu's decision.

In a statement to The Register, Fujitsu said the bidding process for Fujitsu to be part of Northern Ireland's HSC Technology Framework Agreement 2 took place in October 2023.

“In this instance, although Fujitsu has been awarded a place on the framework this does not commit us to any specific work. Going forward, call off notices will be issued, and we will work with HSC to decide on a case-by-case basis where Fujitsu's services may be needed and in accordance with our voluntary undertaking to restrict where we bid for new work within the Public Sector."

A procurement notice confirms the competition started in August last year, although it is uncertain for how long negotiations took place, or whether Fujitsu had the opportunity to withdraw from the process.

Fujitsu made its commitment weeks after winning a £2 million contract extension to run the UK's flood warning system after apparent delays to finding a replacement supplier. The Department for Education has also extended work with Fujitsu since it promised not to bid.

The Register has offered Northern Ireland's Department of Health the opportunity to comment. ®