Further to our HotViewsExtra post last week (DWP awards to IBM and Capgemini), we were interested to get an update from DWP today. According to the department, it has extended its relationship with HP to cover Lots 2 (Core Benefits System) and 5 (Applications Support) of the ADEP (Application Deployment) 'Tower'.
Readers might recall that it was the procurement of these two Lots that was suspended in June last year (see ADEP contract: incumbents favoured). Prior to the suspension of the procurement, HP had been shortlisted for both Lots alongside Accenture and Capgemini for Lot 2, and Accenture and IBM for Lot 5. Having invested time and money in the procurement, one can only imagine the reaction of the other shortlisted bidders to this latest decision.
DWP has stated that "extending the existing contracts with HP will reduce the amount of daily and monthly charges paid for the service we receive and will result in savings for the Department". This looks suspiciously like an admittance that, in times of austerity, large broad-ranging deals with one supplier can help to keep costs down. Spreading the spoils, between a variety of large and small suppliers, looks like a good idea on paper but won't always get the best deal for departments in reality.
So far, of the four IT 'Towers' defined by DWP, HP has retained 'hosting services' and 'integration', and is currently care-taking the 'desktop PC services' Tower until it is relet following the termination of Fujitsu's contract (there's every chance, as a supplier on the Desktop 21 framework, that it may retain that Tower too). It now has two out of five of the ADEP Tower Lots. We're not convinced this is the scenario the DWP had in mind when it first broke down its requirements...