DCA signs new it contracts

24 Oct 2006 10:33 AM

Alex Allan, Permanent Secretary at the Department for Constitutional Affairs (DCA) signed two new major IT contracts with Atos Origin and LogicaCMG. These contracts are forecast to deliver cost savings of more than £100m over the next seven years on comparable IT services and will ensure more efficient, effective and joined up services to DCA clients and staff.

The contracts, which together are initially worth in excess of £500m over the seven year period, will consolidate and replace current infrastructure and application contracts as they expire.

Award of the infrastructure contract to Atos Origin and the applications contract to LogicaCMG comes at the end of a two-year competitive procurement process. The process commenced with consultation between the Office for Government Commerce (OGC), the DCA and the IT industry through the Intellect Concept Viability Forum and was intended to deliver the best possible commercial agreement for all parties involved.

The new contracts are based on the latest relevant OGC model contracts, which have been developed to capture best practice from pan-Government IT contracting. The model contracts were developed in certain areas to reflect the specific needs of the DCA such as recognising the multi-supplier environment.

Alex Allan said:

"The DCA now has first class contracts in place with world class suppliers selected to deliver them. The DCA is looking forward to working together with Atos Origin and LogicaCMG to deliver a modernised IT service and clear benefits to the tax payer, general public and Departmental staff."

Management Board Member & CEO of Atos Origin UK, N. America & Asia Pacific, Xavier Flinois said:

"We are pleased to have been awarded such a prestigious contract to support the transformation of DCA's infrastructure. The procurement was tightly managed and gave us a clear understanding of what is required, including the risks, but also allowed us to focus on the benefits we will be able to help the Department realise."

LogicaCMG's UK Chief Executive, Guy Warren, added:

"The DCA DISC applications contract sits firmly within LogicaCMG's core competency of applications development and management and is the latest in a sequence of successful outsourcing contracts within our Public Sector business. The Department's modernisation strategy comprises much needed and worthwhile activity delivering improvements and change in efficiency of operations and better impact for citizen and public services. We are looking forward to supporting the DCA during this period of transformation."

ends

Notes to editors

1. The DISC Programme is a major procurement for the replacement of current DCA IT infrastructure and application contracts. The initial scope of the contracts does not include new applications or services, but does provide the framework that allows for future innovation and development. The Programme was designed to:

* Ensure continuity of services when existing contracts expire * Procure a modern, flexible IT infrastructure and applications contract
* Deliver a single, common, IT infrastructure across the DCA * Provide a stronger IT platform for delivery of current services and a more flexible base for modernisation
* Act as an enabler for the Department to exploit new technologies * Provide significant savings on existing IT service costs

2. The DISC Programme is forecast to deliver cost savings of more than £100m net over the seven-year term assuming steady state. This equates to a net saving in excess of 15% over the current contracts on like-for-like services. This is a base cost and does not include future provision of new services.

3. The infrastructure contract awarded to Atos Origin is worth around £350m. It will provide a number of benefits including the rollout of a unified IT infrastructure across the whole Department allowing for more effective and efficient communication and improved service levels.

4. The applications contract awarded to LogicaCMG is worth around £150m. It will include the support, maintenance and development of existing applications and provide a flexible platform for modernisation.

5. The procurement strategy was developed in consultation with the IT industry and Office for Government Commerce via the Intellect Concept Viability Forum to ensure maximum attractiveness to the market and value for money.

6. About Atos Origin

Atos Origin is an international information technology services company. Its business is turning client vision into results through the application of consulting, systems integration and managed operations. The company's annual revenues are EUR 5.5 billion and it employs over 47,000 people in 40 countries. Atos Origin is the Worldwide Information Technology Partner for the Olympic Games and has a client base of international blue-chip companies across all sectors. Atos Origin is quoted on the Paris Eurolist Market and trades as Atos Origin, Atos Euronext Market Solutions, Atos Worldline and Atos Consulting. For more information, please visit the company's web site at http://www.atosorigin.com

For more information, please contact:
Caroline Crouch
Tel: 020 7830 4233
Email: caroline.crouch@atosorigin.com

7. About LogicaCMG

LogicaCMG is a major international force in IT services. It employs around 40,000 people across 41 countries. LogicaCMG's focus is on enabling its customers to build and maintain leadership positions using LogicaCMG's deep industry knowledge and its track record for successful delivery. The company provides business consulting, systems integration and IT and business process outsourcing across diverse markets including the public sector, telecoms, financial services, energy and utilities, industry, distribution and transport. Headquartered in Europe, LogicaCMG is listed on both the London Stock Exchange and Euronext (Amsterdam) (LSE:LOG; Euronext:LOG) and traded on the Xternal List of the Nordic Exchange in Stockholm. More information is available at www.logicacmg.com.

For more information, please contact:
Pam Taylor
Tel: 07894 603910
Email: pam.taylor@logicacmg.com
Nicky Rich
Tel: 020 7446 5384
Email: nicky.rich@logicacmg.com