The Public Accounts Committee (PAC) released its latest report on Friday, saying that failure to reach recruitment targets was the responsibility of both parties and a waste of taxpayers' money - that will dog the Army for some time.
The report says that the contract was badly drawn up and overly complicated.
The Chair of the PAC, Meg Hillier MP, said: "Capita made it over-complicated so between them they just didn't get it right.
"This is a problem that is going to be dogging the Armed Forces for some time."
Meg Hillier MP: "The Army was rather naive offering the contract to Capita."
In terms of personnel numbers, the Army is well below par.