New Procurement Framework Promises Lucrative Deals for Tech Firms

The UK government is preparing to unleash a massive wave of IT spending, setting aside up to £16 billion in contracts for a wide array of technology services. This significant increase in government procurement comes after a six-month delay, resulting in a 25 percent boost in the total spending pot compared to earlier plans.

 

A Long-Awaited Opportunity for Tech Suppliers

The Crown Commercial Service (CCS), the executive agency overseeing public sector procurement, recently notified technology suppliers about its upcoming Technology Services 4 framework. The government has now set March 21, 2025, as the official launch date for the invitation to tender, providing a lucrative opportunity for IT firms to secure long-term contracts.

Originally announced in September 2023, the framework was expected to open for competition on October 15, 2024, with a projected budget of £12 billion. However, due to delays in implementing the Procurement Act, the launch was postponed, ultimately increasing the total estimated value of the contracts.

 

What’s Behind the Delay?

The Procurement Act, which came into force in February 2024, introduced significant changes to how public sector contracts are awarded. The reforms aim to increase transparency, prevent unethical business practices, and ensure better value for taxpayers' money.

One of the biggest changes includes the ability to blacklist suppliers with a history of misconduct. Companies involved in bid-rigging, price-fixing, or other illegal cartel activities risk being barred from government contracts for up to five years, unless they can prove that they have reformed their business practices.

 

What Services Are Covered?

Under the Technology Services 4 framework, the UK government seeks providers for a comprehensive range of IT and digital services, including:

• Technology and digital consultancy
• IT service integration and management
• End-user and infrastructure services
• Live service management and maintenance
• Asset management
• Application development and lifecycle management
• Data and security management
• IT transformation services

 

Tech Giants and SMEs Set to Compete

With a £16 billion budget, both major tech corporations and smaller, specialized firms will be eyeing a piece of the pie. The framework is expected to fuel innovation and drive competition within the sector, potentially benefiting taxpayers by securing high-quality services at competitive prices.

However, critics argue that past government IT procurement strategies have led to inefficiencies, vendor lock-ins, and overspending. For example, HM Revenue and Customs (HMRC) has already spent a staggering £3.8 billion on outdated technology suppliers, while cloud migration projects have cost over £1 billion—often without clear improvements in service delivery.

 

A Step Towards Smarter Spending?

The UK government’s revamped IT procurement strategy aims to prevent similar pitfalls. With stricter supplier evaluation processes and a debarment list to eliminate unethical vendors, the goal is to increase accountability and reduce wasteful spending.