HMRC signs off £500m in deals for digital services revamp

Government’s tax agency has picked Capgemini, Netcompany, IBM and Accenture as the suppliers for a quarter of contracts addressing ‘new builds’ of digital services in a comprehensive range of areas

HM Revenue and Customs has awarded a series of contracts – with a collective potential value of over £500m – to revamp and modernise a comprehensive spread of the department’s digital services.

The tax agency went out to market to find suppliers for four engagements for “digital platforms new build” partners. The numbered opportunities were issued as call-offs from the recently finalised DALAS framework: a £3bn buying vehicle dedicated to support HMRC’s in upgrading legacy systems and refreshing digital services in the coming years.

Each of the four contracts covers the provision of “large-scale digital, integration and development new build services… [and] professional services to allow for the creation of multiple disciplinary and agile delivery teams across HMRC’s Digital Delivery Centres”, according to online procurement notices.

Details have now been published on three of the four contracts, each of which came in effect last month and runs for an initial term of three years, plus two further optional 12-month extensions. Although none of the engagements has a minimum committed spend, the deals could see HMRC invest a cumulative £541.6m.

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The fourth contract, which was awarded to Accenture and addresses work on HMRC’s borders and trade suite of services, is the largest of deals signed, with spending of up £151m during the first three years, plus a potential additional £120m if the agreement runs for the full five-year term.

The second and third contracts could each be worth an initial £75.3m in the next three years, plus up to £60m extra via extensions.

The former covers the department’s operations focused on Customer Strategy and Tax Design, including Policy Driven Change, while the latter addresses digital services in HMRC’s Customer Services Group. These deals were won by IBM and Netcompany.

Details have not yet been published of the first of the four deals grouped under the “digital platforms new build” banner, but it is understood to have been awarded to Capgemini.

Sam Trendall

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