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IT suppliers who can bring down the technology costs of a central government department are invited to bid for its billion-pound computer contracts. So far, the DwP has only called to replace its desktop services contract, currently held by EDS, but its review of all “major” IT deals will also cover its datacentre management contract. When combined, the value of the two contracts, the department’s largest IT agreements which both expire in 2010, is a reported estimate of £3billion. However the design and deployment of future applications, which will also be open to tender, may be worth up to £1.5bn, the Independent reported. This would take the total value of the IT workload to a reported £4.5bn. Observers pointed out that the move by the Department for Work and Pensions to spell out its future IT requirements on the open market mirrors the Home Office’s approach. Oversimplified; the plan is to sign up a small number of suppliers to a framework contract of standard terms, so IT developments can be made quicker than European procurement rules allow. This stance has been adopted for the identity card programme and for the IT transformation of the Serious Organised Crime Agency, which has just published a prior tender notice for computer services. Joe Harley, the chief information officer at the DwP, reflected on the IT review, which follows software glitches at Job Centre Plus and the Child Support Agency. “We are committed to ensuring that future IT services continue to be provided in a way which delivers the best service to the citizen and maximum value for the taxpayer “To ensure this, we will be managing a series of competitions to replace existing contracts progressively by 2015…The first of these is the contract to provide desktop services across the department.” The contract, which will run from 2010, will be open to competition and published shortly in the Official Journal of the European Union, which also contains the advance notice of SOCA’s IT requirements. However, the DwP said the change over to new IT suppliers will depend on “operational need” and market opportunities,” meaning existing contracts may be extended in the short-term. To this end, the department said it had already extended its current contract with EDS because it wanted to gain early benefits from its “modern and reliable” data centre services. Its officials said moving to replace its desktop contract with the company by putting it on the open market should “help drive innovation and further bring down the department’s IT costs.” Jul 4, 2008 Email this article Printer friendly page Previous Page
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