More unspecified delays for £1bn gov software deal as D-day nears
With just four weeks' margin for error, suppliers get tense as planned 5 August award date recedes into the past
The government's next generation of commodity IT frameworks continues to be beset by delays, with the award of the potential £1bn-plus Corporate Software Solutions contract now nine days late and counting.
The postponement seems likely to cause a degree of consternation among suppliers and public procurement chiefs, given that the schedule only allowed four weeks between the expiration of the incumbent contract and the commencement of the new one.
The Crown Commercial Service (CCS) had planned to issue all bidders - whether they were successful or not - with its intention to award notification on 5 August. The intention to award notice marks the start of a 10-day standstill period, with the final go-live date originally set for 19 August.
However, bidders were informed on 7 August that "there will be a delay" in the process, in a cursory email that did not offer any more details on the reasons for the setback, or when a decision is likely to be made. Potential suppliers were instructed to keep an eye out for an updated timetable, which will be provided "in due course".
A Cabinet Office spokesperson issued CRN with a statement asserting that the award of the contract is imminent.
"We are determined to ensure that this procurement provides the right solutions for our customers whilst delivering best value for the taxpayer," said the statement. "We have had a high level of interest from the market and we are evaluating all tenders thoroughly to ensure fairness for all bidders. The procurement is on track to award shortly."
One bidder, who wished to remain anonymous, drew worrying comparisons between the current delays and the ultimately aborted Applications Development, Delivery and Support Services (ADDSS) framework.
"After the debacle that was the aborted £1bn ADDSS framework procurement back in 2012, this indefinite postponement to the similarly scoped CSS is both disconcerting and sadly predictable," said the bidder. "The channel and the public sector urgently need Crown Commercial Service back on track to define the market landscape. The current vacuum of leadership, communication and strategy is unsustainable."
The ADDSS deal was originally due to replace the outgoing Software Application Solutions (SAS) framework, but was ultimately mothballed after the software platform supporting the bidding platform collapsed on the deadline day for submissions. The abandonment left a number of suppliers thousands of pounds out of pocket.
All change
The Corporate Software Solutions deal is the latest vehicle earmarked as the replacement for the £1bn-plus SAS deal, which expires on 16 September. The vehicle has already been given a nine-month stay of execution beyond the EU-mandated limit of four years, as the Crown Commercial Service bought more time to get its commodity IT procurement house in order.
As and when the intention to award is announced, the Crown Commercial Service will certainly be hoping that the cooling-off period does not much exceed the scheduled 10-day timeframe. The £6bn CITHS framework, which was awarded in 2010 and also comes to an end soon, saw its standstill period stretch to almost three weeks, following a scoring correction that ultimately saw Fujitsu gain a place on the deal.
The incoming software framework is looking to appoint up to 12 suppliers to each of seven lots covering various technologies. It has an estimated spending pot of between £750m and £950m (excluding VAT) over its four-year lifespan.
The public sector currently spends an annual total of £500m on software and maintenance, according to CCS figures. Some 15 per cent of this - equating to £80m a year - goes through CCS frameworks. The new vehicle brings with it "the potential to increase [this] to £150m and beyond", claims CCS.
Stay tuned for further news on Corporate Software Solutions and the other big-ticket multi-billion pound government frameworks set to awarded soon.