July 15, 2014 / 10:21 AM / 4 years ago

Capita wins six year UK electronic tagging contract

LONDON, July 15 (Reuters) - Britain’s government awarded a six-year contract to outsourcing group Capita to manage its new electronic monitoring services.

Capita took over the responsibility for electronic monitoring last year, after an audit showed that rivals G4S and Serco were found in July last year to have overcharged the government for tagging criminals who were either dead, in prison or had never been tagged.

The outsourcer, which runs services ranging from the Ministry of Defence pension scheme to police radio systems, was named preferred bidder in August last year and said it expected the contract would generate around 400 million pounds ($680.64 million) of revenue.

The Ministry of Justice said Tuesday it expected the new contracts would deliver annual savings of 20 million pounds, once established after two years to three years.

Capita will be responsible for managing the overall service and will work with Airbus, Telefonica and Steatite, who will provide satellite mapping, network services and tagging equipment respectively. ($1 = 0.5877 British Pounds) (Reporting by Li-mei Hoang, editing by Louise Heavens)

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