Fujitsu staff instructed how to bid for government contracts during self-imposed ban

A Fujitsu leak has revealed staff were given a flow diagram instructing them how to bid for government contracts during the IT supplier’s self-imposed ban on bidding, which a senior UK executive sees as no more than “an extra gateway” for it.

Internal communications seen by Computer Weekly also reveal Fujitsu has spent £27m on a project known as Holly, established to help the supplier through the current Post Office Horizon scandal, with the contracting of public relations, business ethics and law firms.

Staff at the UK arm of the Japanese IT giant were shown instructions on how to bid for government contracts during the period it promised to pause making them. This pause was as a “voluntary” concession, following its public shaming as the supplier of the software and support for the Post Office’s controversial Horizon system.

For example, in a flow diagram sent to staff, instructions advise that if a public sector body is not an existing customer, rather than pull out of the bidding, they can look to see if they have a unique selling point. Failing that, staff are told to ascertain whether there is potential for a failed procurement if they pull out, and if so, they should “escalate to Fujitsu’s head of public sector to raise with the Crown Representative”.

Computer Weekly has also seen a staff forum answer about the ban on bidding. In response to a question in the forum, Dave Riley, head of public sector at Fujitsu UK, told an employee it is not an outright ban, but another “gateway”, and that Fujitsu already has hundreds of millions of pounds worth of backlog of contracts to be delivered.

“I have outlined our current thinking, but I do need to be clear that we have over £650m of backlog to be delivered, so we need to keep focused on that,” he wrote. “Also, it is not a blanket ban on bidding, but is an extra gateway check we need to go through.”

Fujitsu said it does not wish to comment on Computer Weekly’s questions, but reiterated that it “continues to work very closely with the Cabinet Office to ensure that the [bidding pause] guidelines that we have voluntarily put in place are being followed appropriately”.

Fujitsu had to react quickly following the broadcast of ITV’s drama about the Post Office scandal, Mr Bates vs the Post Office, with the government contract bidding pause part of its response. It is also spending heavily in attempt to salvage its UK reputation, and contracting public relations, legal, government affairs, business ethics and governance companies as part the Holly project, which, according to internal communications seen by Computer Weekly, has already cost £27m.

Fujitsu refused to comment on the Holly project.

One of the supplier’s damage-limitation exercises was a letter to government in which Fujitsu made three promises on government bidding.

“Fujitsu will pause bidding for new government customers,” it said. “This is until such time the inquiry has reported, or with prior consultation and support from such government customers.

“In support of government, where there are existing customer relationships or an agreed need for Fujitsu skills and capability, we will bid as appropriate in line with public procurement process.

“Where we already actively engaged in a live procurement, we will sensitively assess our continued involvement whilst seeking not to disrupt ongoing procurement processes or disrupt essential government work.”