A major tech agreement is given a final extension to wrap up a small number of ongoing buying processes, while the estimated value is also increased by a significant amount

The Crown Commercial Service has signed off a final three-month extension for portions of the Technology Services 3 framework – while adding nearly £3bn to the deal’s estimated value.

The framework, which is one of the biggest IT buying agreements for the public sector, first came into effect in June 2021. Following a nine-month extension beyond its originally intended four-year term, the agreement was slated to conclude in the next few days – with its replacement, Technology Services 4, having been put in place in December.

A newly released commercial notice indicates that four of the eight lots and sub-lots featured on the outgoing framework have been given a further three months – taking their end date to 14 June and extending the arrangement’s lifespan to five years in total.

Although the fourth iteration is already up and running, PublicTechnology understands that the grace period of overlap between the two has been extended to ensure that a handful of procurements that are currently in process can successfully conclude. CCS believes that the new end date of June should eliminate the risk of any contracts currently in the works failing to be agreed by the point at which the framework expires.

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Alongside the extension, CCS has also modified commercial documentation for Technology Services 3 to reflect a significant uplift in the agreement’s potential value to the 236 featured suppliers – from £4bn to £6.4bn. Inclusive of VAT, this equates to £7.7bn.

The additional value reflects the high level of interest in and usage of the framework, it is understood.

This includes a deal awarded by HM Revenue and Customs in 2024 that, on its own, accounts for almost a tenth of the new expanded worth of the agreement.

The extension applies only to lots 3a, 3b, 3c, 3d and 4 of Technology services framework – and not to lots 1, 2, or 5.

The lots that remain in operation include segments respectively dedicated to suppliers of: end-user services; operational management; technical management; application and data management; and major services transformation programmes.

The replacement Technology Services 4 features similar – but not identical – sections to its predecessor. It will run for an initial term of 30 months, concluding in summer 2028. Initial projections attached an estimated worth of £19.4bn to the buying vehicle.