DWP hunts SMBs for £40m IT services deal

Department for Work and Pensions looks to break up IT megadeals to help SMBs

The Department for Work and Pensions (DWP) has unveiled details of an IT deal worth up to £40m which it claims will SMB-friendly.

The SIAM Service Desk contract requires suppliers to provide the DWP with a range of IT services, consulting, software development, internet services and support, according to a recently published tender document.

The deal is expected to be worth between £30m and £40m excluding VAT over an initial four-year term, and the authority has the option to extend it for an additional 12 months.

The new contract comes under the DWP's IT Transformation Programme (ITTP), which must work out the best way to replace or renew its major IT contracts.

The ITTP is part of the Cabinet Office's push to welcome more SMB suppliers onto government frameworks in a bid to break away from a handful of massive firms hoarding big-money deals.

"Where the contracting authority has previously contracted with single suppliers for tower-based services, it is now examining the potential for disaggregating requirements to the smallest practicable packages that still deliver operational efficiency while remaining broadly aligned to the IT service model," the DWP said in the tender document.