Public Services > Central Government

DWP reveals ICT spend control exceptions

David Bicknell Published 27 July 2017

Figures from Oct-Dec 2016 reveal over 50 exceptions to spend controls, with £74.6m being spent on DWP’s HPE insource and £80m on the Desktop 21 contract extension


Government documents have revealed a series of Department for Work and Pensions exceptions to ICT spending controls.

The publication of the figures on July 21 2017, on ICT spend between October and December 2016, revealed over 50 exceptions, with spending ranging from £117,000 to £80m. There are over 30 separate payments regarding Universal Credit.

Of the larger spend control exceptions, DWP spent £74.6m on its HPE Application Development and Maintenance Support (ADMS) Insource. DWP Technology explained that it is undergoing a major transformation of the way it delivers IT services and its contracting arrangements over the next three years. It said the transformation will be undertaken via a series of incremental phases. It said the exception approval is for the exit and transition of the ADMS contract provided by HPE.

Over £52.5m has been earmarked for DWP’s Virtual Machine Environment (VME) legacy systems which were built and developed between 1974 and 1995. DWP said the VME platforms are now outdated and are becoming increasingly complex to change and support. The spend approval is to migrate the remaining business applications and complete the replacement/remediation of all required middleware and internal/external interfaces.

DWP is also renewing its Microsoft Enterprise Software Agreement (ESA) at a cost of £42.9m. This includes all Microsoft licences that are required to run DWP’s existing desktop estate for three years from 1 January 2017, as well as facilitate the Department's Strategy to disaggregate the desktop contract and move to cloud first services.

DWP also detailed the £80.5m cost of its Desktop 21 Contract Extension.  It explained that the DWP desktop infrastructure is one of the largest in Europe and “this brings a level of complexity that makes transition away from the current integrated services challenging.” It said the contract extension allows DWP to facilitate the planned disaggregation of services and re-procurements with some services to be brought in-house and others competed in the open market in a revised operating model.


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