BT To Sue NHS Scotland After Missing Out On Contract

Feb 13, 2014

BT is to start legal proceedings against NHS Scotland after losing its bid to re-run the tender process for the £110m Scottish Wide Area Network (SWAN) contract.

The telecommunications company initially lost its first bid for the contract last month, but appealed against this – stating the tender process was improperly handled, leading to it not securing the contract.

According to press reports, a partnership between Capita and Updata were the preferred bidders, while a collaboration between Cable and Wireless and Virgin Media Business were the only others attempting to win the contract.

However, the judge presiding over the legal battle ruled in favour of NHS Scotland last week.  

“Though BT’s primary aim was always to seek a re-run of the procurement process, the case will now proceed as a damages claim,” said a BT spokesperson.

The failure of its second bid means the company are now able to seek compensation. Reports say NHS Scotland could be sued in the region of £20m.

NHS Scotland allegedly welcomes the news that BT will no longer be part of the procurement process.

“We are pleased that we are now able to proceed with the contract award and get moving with the implementation of SWAN,” a representative claimed in the Scottish press.

The Scottish branch of the health service has been negotiating SWAN with bidders for the last year and says it hopes it will be adopted by public sector bodies across the country.

The project is designed to deliver a single public services network to potentially all public sector organisations in Scotland, while cutting costs through its delivery of shared infrastructure and services. 




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