Capita to miss out on Home Office contract

Capita, the FTSE 100 outsourcing group, has said it is aware that the Home Office is pursuing discussions with another supplier with the intention of awarding them a contract to support the new Disclosure and Barring Service (DBS) operations, which are part of the coalition's agreement to review and reform the criminal records system.

While the date of the full handover of services to the new supplier has yet to be finalised, the Criminal Records Bureau (CRB) - which is to merge with the Independent Safeguarding Authority to become the DBS - has advised Capita of its intention to extend the current CRB contract with Capita beyond the current expiry date of March 31st 2013. The terms of this extension agreement are now being finalised.

"Capita is disappointed not to have been selected by the Home Office to support DBS," the firm said.

"We believe we have built a strong partnership with the Criminal Records Bureau (CRB) successfully delivering the disclosure service for over 10 years. We will now, of course, work with the CRB, and its new partner, to enable the smooth transfer of the service."

The share price fell 1.68% to 762.50p by 13:53.

NR