New Opportunities in Public Procurement. Magnus Josephson Kelvin Prescott 26 April 2013. New Opportunities in the Public Sector. The dynamics of IT sourcing have transformed in the 21st century public sector buyers have become more sophisticated
26 April 2013
How can IT providers win in this market?
The UK outsourcing and IT market remains the largest in the world (outside the US)
The MOD selected BAE Systems as its prime contractor for an £800M contract for the support and development of its logistics applications.
BAE won out over a number of established systems integrators such as EDS, IBM, CSC and others, even through it no established SI capability in the UK.
How? Because it set out a simple, clear strategic vision for the delivery of logistics information and gave the message "everything else is in the detail, which we will manage, but we are the ones who know how the end to end military logistics process works”
Before the Procurement
The Ministry of Justice was evaluating software vendors for the provision of an integrated document management and workflow system to support the civil courts in the UK. There were 3 leading contenders in the market who had implemented similar systems in other countries, and the competition was initially assumed to be a 3-horse race.
However, one of the 3 submitted a response that was poorly written and, in a number of cases failed to answer the questions in the tender pack. As a result, it was deselected, even though the project team believed that the company had a credible and capable solution. By contrast, a fourth bidder submitted a response that was both fully compliant and met all of the evaluation criteria. It was selected even though it had never implemented a similar solution in the past
The MOD undertook a major procurement to consolidate its desktop infrastructure and support arrangements. Two incumbent service providers held the majority of the existing estate, in addition to in-house support teams.
However, the MOD was concerned that two bidders was insufficient to generate real competitive tension, and consequently went to great lengths to encourage alternative bidders to form consortia to bid.
The incumbents didn’t fight the competition, but they did spend 18 months proactively building pilot solutions to the MOD’s requirements, and highlighting the cost and risk of change to a new provider
In practice, two other consortia were formed and submitted proposals. They were eventually deselected after investing, conservatively, £4m each in bid costs, and the two incumbent providers then went
head to head for the contract
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