IT services giant EDS has been forced to sign a 'failure clause' so that it can continue to pitch for the £4bn MoD contract.
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The clause - if it came into effect - would force EDS to hand over control of the MoD's systems if a computer 'meltdown' was to occur.
'If the system crashes, and EDS is deemed incompetent, the MoD has the ability to take work away from us and give it to our second partners, Fujitsu,' EDS defence MD Graham Lay told the Daily Telegraph.
EDS is battling for the contract against a consortium known as Radii, which is headed by CSC and includes BT and Thales.
Last November, EDS was lambasted after a vital computer system crashed at the Child Support Agency, and it also lost its lucrative Inland Revenue IT services contract to Capgemini in 2004, following a series of IT disasters.
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