Question to the Cabinet Office:

To ask His Majesty's Government what guidance has been issued to departments regarding the awarding of public contracts to suppliers that have caused public harm, with specific reference to Fujitsu.

The impact of the Horizon scandal on postmasters and their families has been horrendous. The Government is determined to hold those responsible to account and will continue to seek to make rapid progress on compensation and redress. Fujitsu’s role in Horizon is one of the issues currently being reviewed by Sir Wyn Williams’s statutory inquiry. The Government are carefully considering volume 1 of the report. Once the inquiry has established the full facts, we will review its final report and consider any further action, where appropriate.

In January 2024, Fujitsu committed to withdraw from bidding for contracts with new government customers until the Post Office Horizon inquiry concludes. It will bid for work with existing government customers only where it already has a contract with them or where there is an agreed need for Fujitsu’s skills and capabilities.

Individual contracting authorities are responsible for the award and management of contracts. With regard to scrutiny during procurement processes, the Procurement Act 2023 enables and, where appropriate, requires the exclusion of suppliers where they pose particular risks to public procurement. The Cabinet Office has issued substantial guidance for departments, available on gov.uk. The exclusions regime provides a framework within which contracting authorities must consider a supplier’s recent past behaviour and circumstances (or their presence on the debarment list) to determine whether it should be allowed to compete for or be awarded a public contract.

The National Procurement Policy Statement asks contracting authorities to ensure they have the appropriate procurement and contract management skills and capability necessary to deliver public contracts and encourages the use of collaborative procurement frameworks, where appropriate, to deliver value for money.

To provide transparency, the government regularly publishes Key Performance Indicators (KPIs) for its most important contracts, and the performance of the vendor against those KPIs.