Lockheed Martin Withdraws From National Programme

US technology giant, Lockheed Martin, has withdrawn from the procurement competitions being run by the NHS National Programme for IT (NPfIT) the company confirmed to E-Health Insider today (Friday, 29 August).

A Lockheed Martin spokesperson stated: “I can confirm that we have withdrawn from the National Programme for IT.” He declined to answer any questions as to why the company had withdrawn.

In mid-August Lockheed Martin was short-listed as a Local Service Provider (LSP) for two of the five regions of the English NHS for which LSP contracts will be awarded: London and the Southern region. The firm had also been short-listed to provide the national data spine in the procurement for a National Application Service Provider (NASP).

The withdrawal from the procurements means that only two firms IBM and BT are left bidding for the crucial NASP contract, with consortia led by the same two firms now the only two left bidding to become the LSP for London.

In an August interview with E-Health Insider, Richard Granger NHS Director General of IT, when asked about whether it had proved difficult to get a sufficient number of firms to bid to become an LSP in London, answered: “Three is sufficient.”

Industry sources indicate that the reason behind Lockheed Martin’s late withdrawal from the procurement competitions was due the exacting terms and conditions demanded by the National Programme in contract negotiations, and concerns around risks and payment.

One industry source described the news of Lockheed Martin’s withdrawal as “a significant loss to Mr Granger’s plans.” The same source said there was “great disquiet” within the US main board of at least one other leading firm left in the NPfIT procurements.

In a statement to E-Health Insider on Lockheed Martin’s withdrawal the National Programme said: "The National Programme for IT can confirm that Lockheed Martin have withdrawn from the National Programme competitions in which they were taking part.”

The statement continued: “We are pleased that they have given us notice of their withdrawal now, rather than at a later stage of the competition and value the efforts they have made and the innovation they have brought to the competition up to the point of their withdrawal."