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MoD Contract Award Sends Clear Signal to Incumbent Suppliers

by | Jun 15, 2020 | BoardRoom, Defense

A Win For The New Kid?

The Ministry of Defence (MoD) has taken the confident step of awarding a significant (in monetary terms) and strategically important (in operational terms) contract to Capgemini, a supplier that has not historically been seen by the Authority as a truly strategic partner.

The Future Operating Service Management (‘FOSM’) contract, worth around £160M over seven years, awards the operation of the MoD’s UK-based service center (known internally as the SPOC – ‘Single Point of Contact’) to Capgemini, providing contact center and support services to the entire MoD workforce including the armed forces, reservist forces, civil servants, and supporting suppliers & contractors, totaling somewhere in the region of 250,000 people.

A forward-thinking move, the FOSM contract is the first of a number of contracts that will be let in the coming years as the breakup of the existing services gains momentum, and the award going to a relatively small player in the defence marketplace sends a strong signal of intent to existing suppliers deeply entrenched within the MoD.

Watch Out, Incumbents!

The move sends a very clear signal to a number of the entrenched MoD suppliers, including members of the ATLAS Consortium, that being an existing part of the MoD delivery framework definitely does not guarantee any form of preferential treatment when it comes to the award of future business as the Defence Information Infrastructure (Future) (‘DII(F)’) contract (operated by the ATLAS Consortium) is wound down and the services provided by DII(F) are disaggregated into smaller, some would say more manageable, contracts.

Personally, I see the move as healthy for the future of Defence and how services are procured and operated. Behemoth contracts such as DII(F) are (or should be) a thing of the past, an approach of a bygone age where defence agility was something only practiced during PT sessions on the parade ground.

Leveling the ‘battlefield’ for suppliers. Providing incentives and enablement for new suppliers to join the party. Increases in accountability as smaller contracts make it harder for detail to be ‘washed over’ or ignored. All of these benefits will reap rewards for the MoD as it continues to pivot and determine how it can deliver its ever more complex mission in more effective and effective ways.

Initiatives such as the Defence Technology Framework (‘DTF’), the introduction of a better understanding of how to leverage common architectures, and the use & risk balance of commoditized offerings (such as Microsoft 365 that is already in place), will all lead, in time, to a leaner, more effective ‘business space’ so that the MoD can concentrate on its imperative in the battlespace.

More to follow…

Photo by Specna Arms on Unsplash