Award

Corporate Services Modernisation Phase 2 DP

MINISTRY OF DEFENCE

This public procurement record has 2 releases in its history.

Award

22 May 2025 at 12:46

UK6 - Contract Award Notice
Award

25 Mar 2025 at 10:22

UK5 - Transparency Notice
Summary of the contracting process

The Ministry of Defence, a central government authority based in London, has concluded its procurement process for the "Corporate Services Modernisation Phase 2 DP" within the industry category of computer-related professional services. The tender process, which utilized a direct award method, culminated in a pending award notice on 22 May 2025. Key dates for this contracting process included a standstill period ending on 3 June 2025, and a contract period starting from 4 June 2025 to 14 November 2025. The services are planned to support the Ministry's Corporate Services Modernisation programme across the UK.

This contract offers significant opportunities for businesses specializing in IT and professional services, particularly those able to provide comprehensive, integrated solutions within governmental frameworks. The six-month engagement, valued at £8 million excluding VAT, presents opportunities for firms capable of subcontracting arrangements, as demonstrated by the involvement of prominent companies like Capgemini UK Services PLC and McKinsey Ltd. With the Ministry intending to progress through the Transformation and Implementation phase of their modernisation programme, businesses well-versed in high-level design and system interoperability will find themselves well-positioned to participate in subsequent competitive procurements. This project is ideal for large organisations with a rich portfolio in aligning civilian and military systems with global industry standards.

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Notice Information

Notice Title

Corporate Services Modernisation Phase 2 DP

Notice Description

The Corporate Services Modernisation (CSM) team, part of the Ministry of Defence ("the Authority") intends to award a six (6) month contract to KPMG LLP valued at up to PS8M excluding VAT to complete detailed design to enable progression to the Transformation and Implementation phase of the Authority's CSM programme.

Procurement Information

The Corporate Services Modernisation (CSM) team, part of the Ministry of Defence ("the Authority") intends to award a six (6) month contract to KPMG LLP valued at up to PS8M excluding VAT to complete detailed design to enable progression to the Transformation and Implementation phase of the Authority's CSM programme. The CSM Portfolio has been initiated with the aim of delivering efficient and effective HR, Finance and Commercial Shared Services in line with the Government Shared Service Strategy (GSSS). This was established to encourage greater collaboration, help reform government and to play a part in emphasising interoperability across government, in line with global industry standards. The CSM Portfolio is nearing the end of its initial phase of discovery and design work ("Phase 1"). The Phase 1 contract was previously awarded to KPMG LLP following a call-off competition under the Authority's Digital and IT Professional Services framework agreement. However, there were elements of the Authority's detailed design requirement (e.g. for Defence HR Services,) which were not included in Phase 1 due to the complexity of high-level design work required to amalgamate various Civilian and Military systems and associated processes. This has led to the Authority needing to place this interim six-month contract with KPMG LLP via direct award to complete the detailed design stage before commencing the Transformation and Implementation phase of the programme. Currently, it is the Authority's intention that this Transformation and Implementation phase will be procured via one or more contracts following competitive procurement exercises. It is considered that a direct award to KPMG LLP for this six-month contract is lawful in accordance with section 41 and paragraphs 6 (Technical Reasons) and 7 (Extension of Existing Goods and Services) of Schedule 5 of the Procurement Act 2023 for the following reasons. To attempt to change supplier now would result in the Authority receiving partial detailed designs that would be different from and incompatible with the existing designs produced by KPMG LLP. This would in turn result in disproportionate technical difficulties in operation and/or maintenance of the complete CSM design solution when it came to delivering the Transformation and Implementation phase. In practical terms, appointing an alternative supplier utilising a different design methodology to complete the design phase of the CSM Portfolio would result in the production of differing design solutions for the various elements of the same future operating system. The impact of the differing design solutions would be that any future Transformation and Implementation supplier would either be unable to implement the solution design in totality, or the difference/incompatibility between designs would result in disproportionate technical difficulties when attempting to implement the designs during the implementation phase of the programme. This would ultimately result in a future operating system that would not meet the Authority's objective requirements and would be unfit for purpose. Consequently, to retain and maintain compatibility with the designs produced to date this interim six-month contract must be awarded to this particular economic operator. In addition, to attempt to re-compete the entire CSM design requirement at this stage would result in a substantial and unacceptable impact on progress along the Authority's critical path alignment with which is vital to maintain MOD's corporate services systems and capabilities. At a market engagement event held during September 2024 attendees made clear that in order to competitively price the Transformation and Implementation phase of the CSM Portfolio the future solution must be fully designed. This short interim six-month contract provides potential Transformation and Implementation phase bidders with an important degree of certainty that all designs have been completed and assured prior to the Transformation and Implementation phase being procured.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-04f842
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/024849-2025
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
UK6 - Contract Award Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Direct
Procurement Method Details
Direct award
Tender Suitability
Not specified
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

72 - IT services: consulting, software development, Internet and support

CPV Codes

72590000 - Computer-related professional services

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
£8,000,000 £1M-£10M
Contracts Value
Not specified

Notice Dates

Publication Date
22 May 20259 months ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
25 Mar 202511 months ago
Contract Period
3 Jun 2025 - 14 Nov 2025 1-6 months
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Complete
Awards Status
Pending
Contracts Status
Not Specified

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
MINISTRY OF DEFENCE
Contact Name
Susan Koksal
Contact Email
susan.koksal100@mod.gov.uk
Contact Phone
Not specified

Buyer Location

Locality
LONDON
Postcode
SW1A 2HB
Post Town
South West London
Country
England
Major Region (ITL 1)
TLI London
Basic Region (ITL 2)
TLI3 Inner London - West
Small Region (ITL 3)
TLI35 Westminster and City of London
Delivery Location
Not specified
Local Authority
Westminster
Electoral Ward
St James's
Westminster Constituency
Cities of London and Westminster

Supplier Information

Number of Suppliers
1
Supplier Name

KPMG

Further Information

Notice Documents

Open Contracting Data Standard (OCDS)

View full OCDS Record for this contracting process

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The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts. 

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