The Foreign and Commonwealth Office (FCO) has picked BAE Systems Detica as preferred bidder for its service management integration (SMI) framework, after a number of bidders dropped out of the running.
Under the contract, BAE Systems Detica will be responsible for managing the FCO’s IT suppliers.
The government hopes that the service management integration outsourcing structure will help break the oligopoly of IT suppliers in government by separating contracts into towers, with one integrator to bring the separate tower models together.
The FCO has been an early adopter of the model. However, it saw a significant drop out in the numbers of suppliers bidding in the first round of the procurement: down from eight to three.
The integrator role is seen as the one with the most risk and least financial reward, with both suppliers and government calling the SIAM to task.
Computer Weekly understands that Logica, Detica and IBM were the remaining suppliers for the FCO contract.
The Ministry of Justice (MoJ) also saw the number of suppliers bidding for its SIAM contract fall from four to two, with Lockheed and IBM understood to be the last suppliers in the MoJ bidding process.
Martin Sutherland, managing director of BAE Systems Detica, said: “We’re delighted to be selected by the FCO for this market-first IT contract. This is a significant milestone in our plans to establish ourselves as a leading service integrator.
It is anticipated that the FCO and BAE Systems Detica will formally sign the SMI framework contract in the summer of 2013.