RM has confirmed that a Building Schools for the Future project with the London Borough of Barking and Dagenham has gone through at just one tenth of the value it initially expected back in the summer.
The specialist IT education supplier has reached financial close on the contract worth £4.5m, which is way below the £44m that RM hailed in June before the coalition government collapsed the BSF programme.
"We've worked with Barking and Dagenham for a long time, so it's great news to have been able to reach financial close on their BSF sample schools," said RM chief executive Terry Sweeney.
Sample schools are BSF projects that were at an advanced stage but had not reached financial close when the government announced a review of the scheme. Around 33 such projects have been given the green light to continue.
The contract with the London Borough now includes the renewal of just two schools with RM supplying IT kit and services including classroom systems, interactive learning technology, wireless networking and VOIP.
The loss of BSF contracts could cost IT suppliers up to £3.7bn with RM losing up to £306m in deals, according to TechMarketView research.
However RM acted swiftly after the government's axe fell on BSF, cutting contractors and restructuring the bidding team to focus on non-BSF activities.