CSL SME Consortium: SME's Suppliers to Capita-Run Contracts Submit Complaint to Competition and Markets Authority

LONDON--(BUSINESS WIRE)--

A consortium of SME suppliers to Civil Service Learning (CSL) and Contingent Labour One (CL1), which are run by Capita, have submitted a complaint to the Competition and Markets Authority that the restrictive terms contained in these contracts are in breach of the Competition Act 1998 and Article 101 of the Founding Treaty of the European Union.

To continue providing services, suppliers to CSL were required to sign a sub-contract with Capita containing a "restriction" clause. The CSL SME Consortium claims this clause prevented them from competing and also bidding for the re-let of the contract, to the detriment of the Government and the taxpayer.

The National Audit Office is currently conducting a review of the CSL contract. The scope of the review includes:

· the payment of subcontractors within 30 days;

· the calculation of the administrative fees;

· the amount of training that goes out to open competition; and

· any non-compete clauses within the contract.

Similar restrictive clauses are also present in the CL1 (and legacy CIPHER) contracts for contingent labour, which are also run by Capita. The CL One Action Group claims that the clauses restrict competition and also reduce the amount of business flowing through alternative market channels, such as the G Cloud Digital Marketplace.

Christine Archer, Director of the Faraday Partnership, which coordinates the CSL SME Consortium says, "Francis Maude, the Cabinet Office Minister has said in the national press that the way CSL is working is "Not acceptable" and the National Audit Office is now investigating. Last week we retained the services of Mark Brealey QC, a leading competition lawyer, to examine SMEs' competition concerns about CSL and CL1. This week we have filed our complaint with the Competition and Markets Authority. We are also considering whether there are grounds for a complaint to the European Commission."

Effective immediately, the CSL SME Consortium is organising its efforts to promote a level playing field in the procurement of government services through the "Not Acceptable" campaign and have appointed Vince Heaney, former deputy editor of the Financial Times Lex column to act as campaign organiser.