MoD hunts for IT firm to complete paperless payment system

Ministry of Defence aims to save £120m a year with new automated system

The Ministry of Defence (MoD) is on the hunt for an IT supplier to put the finishing touches to its paperless payment system in a deal which could be worth up to £30m.

In a recently published tender, the MoD claims that the vast majority of spending goes through its existing Purchase to Payment (P2P) system but that some of its transactions remain paper-based.

It is searching for an IT partner to provide an automated system which will boost efficiency by putting an end to manual management of its payments.

"We recognise the inefficiency of this situation and consequently wish to undertake a single competition to satisfy two distinct, but inter-related, requirements that will together realise benefits in excess of £120m per year," it said in the document.

The supplier will be tasked with designing, building and moving the MoD to the new paperless system based on commercial products as well as implementing necessary measures to ensure the new system is used most efficiently, it said.

The contract will last a maximum of 24 months, but the MoD stressed it wants the system to be delivered as soon as possible so it can maximise its savings.

The deal is expected to be worth between £20 and £30m over its duration.