The Ministry of Justice (MoJ) has selected Capita as the preferred bidder for its £400 million electronic tagging contract.
The six year contract will involve Capita providing two monitoring centres, field force support, and wider services as a systems integrator. Capita will be tasked with ensuring that hardware, software and mobile network procured separately by the MoJ are all integrated successfully.
The announcement follows reports that the previous suppliers, G4S and Serco, had pulled out of the running for the contract. The two companies had been accused by Justice Secretary Chris Grayling of overcharging in their previous contract to deliver electronic tagging services, costing the taxpayer tens of millions of pounds.
Capita will now work with the MoJ to promote the intellectual property used in the GPS monitoring systems, both for use by other government organisations within the UK, such as the NHS and social care agencies.
“When fully live, this is expected to be the largest, single and most advanced ‘tagging’ system in the world,” said Capita plc chief executive, Paul Pindar.
“This integrated service will play a key role in providing better alternatives to short prison sentences, allowing more tailored curfew and location monitoring, and better management of subjects under electronic monitoring orders.”
He added: “It will offer a balance of monitoring and mentoring and help to achieve the Government’s broader objective of reducing re-offending while being run to the highest possible standards of governance and transparency.”
According to TechMarketView director Tola Sargeant, Serco and G4S’ loss has benefitted Capita, but added that the firm will now have to deal with the same level of attention as the previous suppliers.
“It’s undoubtedly a significant win for the company,” she commented. “But as Serco and G4S know only too well, such high profile deals carry their reputational risks – Capita must be prepared to operate in the glare of the public spotlight.”