Newly published spend-control data shows that deals were awarded to extend service provision until 2022

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In the closing weeks of 2019, HM Revenue and Customs received Cabinet Office approval to award contract extensions worth a cumulative £120m to BT and Accenture.

Newly published spend-control data reveals that, on 6 November 2019, the tax agency was given the green light for a £104.8m deal as part of its “IT sourcing programme 2020”. 

This came about 10 days after it had received approval to spend £14.4m on a contract for the provision of wide-area network technology. 

The former represents an extension of an existing IT-service contract with Accenture, while the latter relates to WAN services delivered by BT and London-based cloud specialist hSO. Both contracts are understood to last until 2022.

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An HMRC spokesperson said: “Both of these entries relate to approvals for continued spend with existing HMRC suppliers – with Accenture for a range of IT services, and with BT and hSo for the provision of WAN services.”

Although the department has signed these extensions with two major IT firms, the long-term aim of the Technology Sourcing programme is to broaden and diversify HMRC’s IT supplier base, to promote innovation and use of suppliers of all sizes. The procurement initiative is set to join government’s Major Project Portfolio, subject to the approval of a business case that the department expects will be forthcoming sometime this summer.

In the meantime, the tax authority is understood to have redrawn the boundaries of some of its engagements with existing suppliers, while striving to protect service delivery.

In addition to the BT and Accenture deals, HMRC also last year awarded multimillion-pound extensions to deals with partners including Capgemini and KCOM.

The department is currently recruiting for a deputy direct for the Technology Sourcing programme, a role that comes with an annual salary of up to £110,000.

“[The] programme is a multi-year programme of work that will deliver a step change in how we deliver IT, how we work more broadly as an organisation and work with IT suppliers to procure and utilise technology,” the job advert said. “HMRC’s ambition is to be one of the most digitally advanced tax authorities in the world and technology is at the heart of its transformation.”

It added: “The programme will develop an industry-leading technology target supply-chain model, sourcing capabilities and practices, establish partnerships with suppliers to deliver innovation, enabling HMRC to address technical debt, reduce risk in our estate, achieve cost efficiency, create flexibility and protect live services.”

The chosen candidate will report into the programme director, and will oversee the work of a team of about 13 people.

Applications for the position are open until 11.55pm on 31 May.