A new iteration of the DIPS arrangement could be worth several billion pounds over a period of almost a decade, with suppliers supporting a range of defence and security organisations

The second iteration of a major £1bn-plus framework set up by the Ministry of Defence to access specialist technology professional services is set to double in value, while expanding to include other departments engaged in national and international security.

The Digital and IT Professional Services (DIPS) framework came into effect in November 2023 and is the latest incarnation of a vehicle addressing “all delivery-enabling professional service requirements” across six lots, covering software development, hardware engineering, project management, and cybersecurity.

That commercial vehicle features 17 suppliers is valued at £360m per year over its four-year term – for the first half of which, the engagement was managed directly by the MoD. From 2025, it was taken over by the Crown Commercial Service – which has recently become the Government Commercial Agency (GCA).

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With the end of the deal now just over 18 months away, the GCA has published a commercial pipeline notice outlining plans for “DIPS 2.0”.

The second iteration of the professional tech services deal is slated to commence on 1 September 2027 – providing an overlap of two-and-a-half months with the incumbent deal.

Inclusive of VAT, DIPS 2.0 is expected to be worth £2.9bn, over a term of eight years; these figures represent a doubling of the current deals £1.44bn value and four-year lifespan.

The new arrangement will also expand to cover not just the MoD, but the wider landscape, the notice indicates.

“The DIPS 2.0. framework will provide access to professional services requirements, enabling the recruitment of digital and IT resources,” the document says. “It will be available for customers with defence and security requirements, including but not limited to MoD and potentially Home Office and Foreign Commonwealth and Development Office.”

No further details about the structure of the framework – and whether it will replicate the existing lots – has yet been provided. But firms that may be interested in bidding for a place on the agreement are advised that the GCA expects to issue a contract notice around early March next year.