"All the Tories have to do is say "We're gonna cancel any contracts we don't like AND we'll introduce a law which gives us the right to do so which trumps any contract law."
The IT companies will run a mile."
As it happens the US Govt reserves the right (and has done IIRC since its founding) to cancel *any* contract it's in at *any* time *without* compensation tot he contractor. It is one of the shaping forces of gubmint con-tractors
1)Big (hidden) cash reserves to handle the *years* of screwing about while Washington decides what they want.
2)*Very* close links to politicians through assorted lobbyists to make sure it won't be canceled.
3)Charging for *everything* over and above the baseline contract requirements, so they get back *all* the money they wasted (which would have been lost if they lost the bidding competition)
A more practical Act might be one outlawing the insertion of "Poison pill" clauses (EG Cancellation of our ID card contract will require HMG to pay us 100% of our *expected* operating charges to them for our projected contract length) in government contracts.
Or something which gave the "Traffic light" reviews actual power to stop things happening. A Red means *no* further work until issues are resolved.
Most people find contract law and procurement slightly less exciting than train spotting but above watching paint dry. However when *billions* of pounds are at stake (Or 10s of Bn with the NHS IT project) the payoff could be quite substantial.
The world has enough HP/EDS, CSC's, CAP Gemini etc. It *really* does not need to create any more.