UK Government Strategic Suppliers
 

In this report:

1. Overview
2. The role of the Cabinet Office in commercial management
3. Why the strategic suppliers?
4. Who are the strategic suppliers to UK government?
5. Key Findings of our 2018 Strategic Supplier report
6. Biggest contracts awarded to Strategic Suppliers in 2018
7. Profiles of the 34 Strategic Suppliers

1. Overview

Around a third of government spending goes on procurement of goods and services from third-party suppliers. UK government procurement covers a wide range of goods, from paperclips to nuclear weapons, and contracts for all kinds of different public services, from rubbish collection to probation. It is one of the most important tools the government has to promote growth and investment across the UK. The delivery of quality public services is dependant on a prosperous relationship between the government and the private sector.

The Cabinet Office designates a number of companies as ‘Strategic Suppliers’ to UK government. These firms are deemed so critical to the delivery of essential public services that the government’s relationship with them is centrally managed.

2. The role of the Cabinet Office in commercial management

The Cabinet Office is the corporate headquarters for government and, in partnership with HM Treasury, take the lead in certain critical policy areas.  It also supports the Prime Minister and ensures the effective running of government.

The Cabinet Office1 manages the Strategic Supplier programme as part of its responsibility for supporting ‘collective government’ and promoting efficiency and reform through better procurement and project management.

The Cabinet Office also sponsors the Crown Commercial Service2, an executive agency that is responsible for providing commercial services for the public sector. This includes setting up government procurement frameworks for use by contracting authorities across the public sector and managing Contracts Finder, the online portal of government contracts.

3. Why the Strategic Suppliers?

In 2010 when Francis Maude began his programme of reforming government contracting, he found that there was no comprehensive record of the contracts held by the government’s suppliers – in fact, he had to reach out to the suppliers themselves to understand the extent of their engagement with the public sector3.

In 2011 the government set up a network of ‘Crown Representatives’ to act as a focal point for suppliers and help the government to act as a single customer. They ensure that the government is communicating a consistent message to its suppliers, identify areas for cost savings and co-ordinate cross-departmental procurement issues.

The Crown Representatives used to provide a risk assessment on the government Strategic Suppliers every six weeks. These assessed performance against contracts, provided an update on the company’s financial and market activity and assigned a risk rating to each supplier4.  These assessments were made available to Central Government bodies5 for the purposes of contract management.

The Cabinet Office has since begun a policy of creating ‘Memorandums of Understanding’ with its Strategic Suppliers. This MOU approach puts the onus on suppliers to provide the government with the information it needs to monitor and manage risks. The Cabinet Office argue this policy is more efficient and flexible and increases the accountability of those suppliers to government.

4. Who are the Strategic Suppliers to UK Government?

As of April 2019 there are 34 companies designated as ‘Strategic Suppliers’. This is a dynamic list – some companies join the list (in April 2019 Balfour Beatty, EY, Jacobs and Mott Macdonald were added to the list), while others are removed (most notably Carillion after its collapse).

The Strategic Suppliers operate in sectors across the UK economy, including telecoms, defence, IT, consultancy, facilities management and construction. Tussell’s 2018 report on the performance of the Strategic Suppliers found the UK public sector awarded these firms 969 contracts worth £4.2bn – equivalent to 6% of the value of all public sector contracts awarded that year.

5. Key Findings of our 2018 Strategic Suppliers report are:

Our 2018 analysis had the following findings about the Strategic Suppliers to the UK government:

  • There was a year on year drop of £2.4bn - 36% - in the total lifetime value of new contracts won by the Strategic Suppliers in 2018. 
  • The volume of contracts awarded declined by a lower rate of 16% on 2017.
  • Two thirds of the Strategic Suppliers won less in 2018 than 2017.
  • Mitie was the biggest winner, with the highest value of contracts won as well as the largest year on year change.
  • Five firms won contracts in total worth more than £200m -  including Interserve who later entered administration.
  • Capita alone won 165 contracts - 16% of the total number of Strategic Supplier contracts in 2018.
  • The proportion of total contract value awarded to the Strategic Suppliers in 2018 almost halved on 2017, from 10.3% to 5.8%.

 

6. Biggest contracts awarded to Strategic Suppliers in 2018:

Company Contracting Authority Value Description
Mitie Home Office £514m Provision of In-Country and Overseas Escorting for Detainees
Amey Highways England £326m Area 10 Maintenance and Response Contract
Amey Scottish Prison Service £238m Scottish Court Custody and Prisoner Escort Service
Capita Department for Education £225m Test Operations Services
Atos Department for Environment, Food and Rural Affairs £135m Defra — UnITy Programme — Hosting and Application Support

 

7. Profiles of the 34 Strategic Suppliers: 

(Data correct as of 06/06/2019)

 

Supplier #1 of 34: Accenture

Accenture is a professional services company that operates primarily in the IT and digital consulting sector. It is headquartered in Dublin and was founded in 1989.
Contracts awarded since 2015 38
Contract value since 2015: £284m
Number of public sector buyers: 23
Biggest contract:

Application Management Services for the Mayor’s Office of Policing & Crime

Frameworks Listed on: Digital Policing – Solution Provider Framework by Metropolitan Police and Technology Services 2 by CCS
Crown Representative: Nick Griffin
Percentage of invoices paid in 60 days or fewer: 92%

 

Supplier #2 of 34: Amey

Amey is an Oxford-based infrastructure support service provider that primarily operates in highway and rail transportation and facilities management. Since 2003, Amey has been a subsidiary of the Spanish transportation company, Ferrovial.
Contracts awarded since 2015: 61
Contract value since 2015: £3bn
Number of public sector buyers: 30
Biggest contract: Operation and Maintenance of a Tram System for Transport for Greater Manchester
Frameworks listed on: Facilities Management Marketplace by CCS and South and West Area Contractors Framework Agreement by Sheffield City Council
Crown Representative: Phil Brookes
Percentage of invoices paid in 60 days or fewer: 84%

 

Supplier #3 of 34: Atkins

Atkins is multinational engineering, project management and consulting company. Founded in 1938, the company was acquired by Canadian company SNC-Lavalin in 2017.
Contracts awarded since 2015: 443
Contract value since 2015: £225m
Number of public sector buyers: 91
Biggest contract: Design PCF Stages 3 and 4 – Package B for Highways England.
Frameworks listed on: Project Management and Full Design Team Services by CCS and Specialist Professional and Technical Services by Highways England
Crown Representative: Ann Pedder
Percentage of invoices paid in 60 days or fewer: 92%

 

Supplier #4 of 34: Atos

Atos is a French IT and consulting company that specialises in communications, cloud-computing and cyber-security.  Its subsidiaries operate in healthcare and outsourcing. Atos was founded in 1988 and is headquartered in Bezons, France.
Contracts awarded since 2015: 90
Contract value since 2015: £452m
Number of public sector buyers: 50
Biggest contract: UnITy Programme – Hosting and Application Support for DEFRA
Frameworks listed on: Fuel Cards & Associated Services by CCS and Technology Services 2 by CCS
Crown Representative: Beverly Tew
Percentage of invoices paid in 60 days or fewer: 92%

 

Supplier #5 of 34: Babcock

Babcock is a multinational engineering company that specialises in managing complex assets and infrastructure. Founded in 1891, the company does the bulk of its business with public bodies.
Contracts awarded since 2015: 164
Contract value since 2015: £5.8bn
Number of public sector buyers: 47
Biggest contract: FMSP Submarine Engineering at Devonport and Clyde for the Ministry of Defence
Frameworks listed on:

Apprenticeships & Associated Training by YPO and Technology Services 2 by CCS

Crown Representative: Luc Bardin
Percentage of invoices paid in 60 days or fewer: 88%

 

Supplier #6 of 34: Balfour Beatty

Balfour Beatty is a multinational construction company that operates in the infrastructure sector. The company was founded in 1909 and is headquartered in London.

Contracts awarded since 2015:

76
Contract value since 2015: £2bn
Number of public sector buyers: 40
Biggest contract: Smart Motorways Construction Programme Package 1 for Department for Transport
Frameworks listed on: Highways Alliance Medium Schemes Framework by Leicestershire County Council and South and West Area Contractors Framework Agreement by Sheffield City Council
Crown Representative: Phil Brookes
Percentage of invoices paid in 60 days or fewer: 79%

 

Supplier #7 of 34: BT

BT is a British telecommunications company that provides fixed-line, broadband and mobile services. Formerly known as British Telecom, the company was privatised in 1984.
Contracts awarded since 2015: 216
Contract value since 2015: £1.6bn
Number of public sector buyers: 117
Biggest contract:

Provision of MoD Integrated User Services for Ministry of Defence

Frameworks listed on: Technology Services 2 by CCS and Framework Agreement for Provision of a Layer 3 WAN by Rochdale Metropolitan Borough Council
Crown Representative: Sean Collins
Percentage of invoices paid in 60 days or fewer: 58%

 

Supplier #8 of 34: Capgemini

Capgemini is a French multinational company that was founded in 1967. The company primarily provides technology, consulting and outsourcing services.

Contracts awarded since 2015:

70
Contract value since 2015: £147m
Number of public sector buyers: 27
Biggest contract: Business Development Service for Home Office
Frameworks listed on: : Management Consultancy Phase 2 by CCS and Technology Services 2 by CCS
Crown Representative: Nick Griffin
Percentage of invoices paid in 60 days or fewer: 92%

 

Supplier #9 of 34: Capita

Capita is a business processing and outsourcing company. The company was founded in 1984 and is headquartered in London.
Contracts awarded since 2015: 835
Contract value since 2015: £1.2bn
Number of public sector buyers: 289
Biggest contract:

5 Councils Corporate Services for South Oxfordshire District Council

Frameworks listed on: Project Management and Full Design Team Services by CCS and Digital Outcomes and Specialist 3 by CCS
Crown Representative: Meryl Bushell
Percentage of invoices paid in 60 days or fewer: 90%

 

Supplier #10 of 34: CGI

CGI is a Canadian IT company that operates in consulting, systems integration and outsourcing. The company was founded in 1976 and its headquarters are in Montreal.
Contracts awarded since 2015: 45
Contract value since 2015: £234m
Number of public sector buyers: 26
Biggest contract: ICT Digital Services and Transformation for Scottish Borders Council
Frameworks listed on: Digital Outcomes and Specialist 3 by CCS and Technology Services 2 by CCS
Crown Representative: Beverley Tew
Percentage of invoices paid in 60 days or fewer: 96%

 

Supplier #11 of 34: Deloitte

Deloitte is a multinational professional services firm and one of the “Big 4” auditing companies. Deloitte also provides tax, consulting, and financial advisory services. Founded in 1845, the company has its headquarters in London
Contracts awarded since 2015: 332
Contract value since 2015: £311m
Number of public sector buyers: 98
Biggest contract: Provision of Business Intelligence and Data Analytics for DAERA
Frameworks listed on: Technology Services 2 by CCS and Management Consultancy Framework 2 by CCS
Crown Representative: Boris Adlam
Percentage of invoices paid in 60 days or fewer: 93%

 

Supplier #12 of 34: DXC

DXC is a multinational IT company. The company operates in outsourcing, consulting and managed services. DXC was founded in 2017 and is headquartered in Virginia.
Contracts awarded since 2015: 36
Contract value since 2015: £459m
Number of public sector buyers: 24
Biggest contract: Total Technology Programme for Metropolitan Police
Frameworks listed on: Digital Services Framework III by BBC
Crown Representative: Vincent Kelly
Percentage of invoices paid in 60 days or fewer: 79%

 

Supplier #13 of 34: EY

EY is multinational professional services firm, and one of the “Big 4” auditors. EY also provides assurance, consulting and advisory services. The company was formed by a merger in 1989 and is headquartered in London.
Contracts awarded since 2015: 223
Contract value since 2015: £229m
Number of public sector buyers: 80
Biggest contract: Contract for the Supply of Direct Investment Services for DfID
Frameworks listed on: Management Consultancy Framework 2 by CCS and Digital Outcomes and Specialist 3 by CCS
Crown Representative: Nick Griffin
Percentage of invoices paid in 60 days or fewer: 78%

 

Supplier #14 of 34: Engie

Engie is a multinational utilities company that supplies electricity, natural gas, nuclear and renewable energy, as well as facilities management services. The company is based in Paris and was founded in 2008.
Contracts awarded since 2015: 186
Contract value since 2015: £229m
Number of public sector buyers: 127
Biggest contract: Waste Collection and Recycling Services for Somerset County Council
Frameworks listed on: Facilities Management Marketplace by CCS and Framework for the supply of Electricity and Natural Gas by Genesis Housing Association
Crown Representative: Jane Bristow
Percentage of invoices paid in 60 days or fewer: 72%

 

Supplier #15 of 34: Fujitsu

Fujitsu is a multinational ICT equipment and services company that offers a diversity of products across computing and telecommunications. The company is headquartered in Tokyo and was founded in 1935.
Contracts awarded since 2015: 56
Contract value since 2015: £2bn
Number of public sector buyers: 24
Biggest contract: Provision of MoD Connectivity Services for the Ministry of Defence
Frameworks listed on:

Technology Services 2 by CCS and Digital Outcomes and Specialist 3 by CCS

Crown Representative: Meryl Bushell
Percentage of invoices paid in 60 days or fewer: 64%

 

Supplier #16 of 34: G4S

G4S is a British security services company that operates in secure transportation, the provision of security personnel and monitoring equipment. The company was founded in 2004 and is headquartered in London.
Contracts awarded since 2015: 75
Contract value since 2015: £803m
Number of public sector buyers: 49
Biggest contract: DWP Estates Security Services for DWP
Frameworks listed on:

Facilities Management Marketplace by CCS and Contact Centre Services by CCS

Crown Representative: Ann Pedder
Percentage of invoices paid in 60 days or fewer: 88%

 

Supplier #17 of 34: IBM

IBM is a multinational IT company that offers hardware, software and cloud computing services. The company was founded in 1911 and is headquartered in New York.
Contracts awarded since 2015: 109
Contract value since 2015: £1.5bn
Number of public sector buyers: 34
Biggest contract: Project Infinity - Partnership for London Borough of Harrow
Frameworks listed on: Technology Services 2 by CCSand Digital Outcomes and Specialist 3 by CCS
Crown Representative: Lan O'Connor
Percentage of invoices paid in 60 days or fewer: 54%

 

Supplier #18 of 34: Interserve

Interserve is a group of  firms that operates primarily in professional services, construction and support services. The company was founded In 1884 and is headquartered in Reading.
Contracts awarded since 2015: 184
Contract value since 2015: £1.6bn
Number of public sector buyers: 74
Biggest contract: DWP Estates Facilities Management for DWP
Frameworks listed on: Facilities Management Marketplace by CCSand Procure North West (Build) Framework by St Helens College
Crown Representative: Phil Brookes
Percentage of invoices paid in 60 days or fewer: 87%

 

Supplier #19 of 34: ISS Facility Services

ISS Facility Services is a multinational  company that operates primarily in facilities management and the provision of catering, security, support and property services. ISS was founded in 1901 and is headquartered in Copenhagen.
Contracts awarded since 2015: 61
Contract value since 2015: £197m
Number of public sector buyers: 46
Biggest contract: Total FM Services for BEIS
Frameworks listed on: Outsourced Catering Services by Crescent Purchasing Ltd andFacilities Management Marketplace by CCS
Crown Representative: Jane Bristow
Percentage of invoices paid in 60 days or fewer: 83%

 

Supplier #20 of 34: Jacobs

Jacobs is the world’s largest engineering firm. The company operates primarily in  the provision of technical, professional and construction services. Jacobs was founded in 1947 and is headquartered in Dallas.
Contracts awarded since 2015: 566
Contract value since 2015: £1.2bn
Number of public sector buyers: 51
Biggest contract: Highway Design, Maintenance and Construction Services for Cheshire East Council
Frameworks listed on:

Project Management and Full Design Team Services by CCS and Management Consultancy Framework 2 by CCS

Crown Representative: Sir Robert Walmsley
Percentage of invoices paid in 60 days or fewer: 89%

 

Supplier #21 of 34: KBR

KBR is an American engineering, procurement and construction company. Formerly a subsidiary of Halliburton, KBR was founded in 2006 and is headquartered in Houston.
Contracts awarded since 2015: 9
Contract value since 2015: £2.1bn
Number of public sector buyers: 6
Biggest contract: Army Basing Project – Works and Services (Salisbury Plain and Aldershot) for MoD
Frameworks listed on: Management Consultancy Framework 2 by CCS and Digital Outcomes and Specialist 3 by CCS
Crown Representative: Robin Hughes
Percentage of invoices paid in 60 days or fewer: 93%

 

Supplier #22 of 34: Kier

Kier is a construction company that operates primarily in building, civil engineering and support services. The company was founded in 1928 and is headquartered in Befordshire.
Contracts awarded since 2015: 148
Contract value since 2015: £1.2bn
Number of public sector buyers: 91
Biggest contract: Highways Term Maintenance for Shropshire Council
Frameworks listed on: Facilities Management Marketplace by CCS and Project Management and Full Design Team Services by CCS
Crown Representative: Phil Brookes
Percentage of invoices paid in 60 days or fewer: 69%

 

Supplier #23 of 34: KPMG

KPMG is a network of professional services firms, and one of the “Big 4” auditors. The company provides auditing, tax and advisory services. KPMG was founded in 1987 and is headquartered in Amsterdam.
Contracts awarded since 2015: 340
Contract value since 2015: £173m
Number of public sector buyers: 163
Biggest contract:

Design and Implement Accountability in Tanzania (Act 2) for DfID

Frameworks listed on: Management Consultancy Framework 2 by CCS and Digital Outcomes and Specialist 3 by CCS
Crown Representative: Nick Griffin
Percentage of invoices paid in 60 days or fewer: 89%

 

Supplier #24 of 34: Microsoft

Microsoft is a technology company, producer of personal computers and the largest provider of software in the world. Microsoft was founded in 1975 and is headquartered in Washington.
Contracts awarded since 2015: 70
Contract value since 2015: £119m
Number of public sector buyers: 38
Biggest contract: Microsoft Enterprise Subscription Agreement for DWP
Frameworks listed on:

Digital Outcomes and Specialist 3 by CCS and G-Cloud 10 by CCS

Crown Representative: Myron Hrycyk
Percentage of invoices paid in 60 days or fewer: 97%

 

Supplier #25 of 34: Mitie

Mitie is an outsourcing and energy company. The firm provides consultancy, facilities management and custodial services. Mitie was founded in 1987 and its headquarters are in Bristol.
Contracts awarded since 2015: 199
Contract value since 2015: £1.1bn
Number of public sector buyers: 112
Biggest contract:

Provision of In-Country and Overseas Escorting for Home Office

Frameworks listed on: Facilities Management Marketplace by CCS and Management Consultancy Framework 2 by CCS
Crown Representative: Robin Hughes
Percentage of invoices paid in 60 days or fewer: 62%

 

Supplier #26 of 34: Motorola

Motorola is a multinational telecommunications company that provides telephony and networks services. Motorola was founded in 1928 and its headquarters are in Illinois.

Contracts awarded since 2015:

5
Contract value since 2015: £403
Number of public sector buyers: 5
Biggest contract: Emergency Services Network (ESN) – Lot 2 for Home Office
Frameworks listed on: Digital Outcomes and Specialist 3 by CCS and G-Cloud 10 by CCS
Crown Representative: Meryl Bushell
Percentage of invoices paid in 60 days or fewer: 75%

 

Supplier #27 of 34: Mott MacDonald

Mott MacDonald is a multidisciplinary consultancy company that provides design, engineering and project management services. The company was formed through a merger in 1989 and its headquarters are in Croydon, Greater London.
Contracts awarded since 2015: 295
Contract value since 2015: £1.8bn
Number of public sector buyers: 71
Biggest contract: Education Services for London Borough of Barnet
Frameworks listed on: Project Management and Full Design Team Services by CCS and Management Consultancy Framework 2 by CCS
Crown Representative: Ann Pedder
Percentage of invoices paid in 60 days or fewer: 92%

 

Supplier #28 of 34: Oracle

Oracle is a multinational IT company that operates in enterprise software, database software and cloud computing. Oracle was founded in 1977 and is headquartered in Santa Clara, California.
Contracts awarded since 2015: 158
Contract value since 2015: £233m
Number of public sector buyers: 63
Biggest contract: Software Licenses, Maintenance and Support for DWP
Frameworks listed on:

G-Cloud 10 by CCS and Sales and Marketing Framework by London & Quadrant Group

Crown Representative: Myron Hrycyk
Percentage of invoices paid in 60 days or fewer: 97%

 

Supplier #29 of 34: PwC

PwC is a professional services network and one of the “Big 4” auditors. Founded through a 1998 merger, PwC provides assurance, advisory and legal services worldwide. The company is headquartered in London.

Contracts awarded since 2015:

357
Contract value since 2015: £353m
Number of public sector buyers: 120
Biggest contract: HMCTS Reform Delivery Partner for DWP
Frameworks listed on: Technology Services 2 by CCS and Management Consultancy Phase 2 by CCS
Crown Representative: Nick Griffin
Percentage of invoices paid in 60 days or fewer: 91%

 

Supplier #30 of 34: Serco

Serco is a multinational outsourcer that works across the public sector. Serco provides health, security and border services in the UK and around the world. The company was founded in 1987 and has its headquarters in Hook, Hampshire.
Contracts awarded since 2015: 48
Contract value since 2015: £2.5bn
Number of public sector buyers: 26
Biggest contract:

Asylum Accommodation and Support Services Contract for Home Office

Frameworks listed on: Facilities Management Marketplace by CCS and Management Consultancy Phase 2 by CCS
Crown Representative: Sir Robert Walmsley
Percentage of invoices paid in 60 days or fewer: 96%

 

Supplier #31 of 34: Sodexo

Sodexo is a food services and facilities management company that serves schools, prisons, universities and military bases. The company was founded in 1966 and has its headquarters in Paris.
Contracts awarded since 2015: 49
Contract value since 2015: £562m
Number of public sector buyers: 41
Biggest contract: Catering and Hospitality Services for Coventry University
Frameworks listed on: Outsourced Catering Services by Crescent Purchasing Ltd andFacilities Management Marketplace by CCS
Crown Representative: Mervyn Greer
Percentage of invoices paid in 60 days or fewer: 61%

 

Supplier #32 of 34: Sopra Steria

Sopra Steria is an ICT company that specialises in the provision of consultancy, systems integration and subcontracting solutions. Sopra Steria was established in 2014 as part of a merger and is headquartered in Annecy, France.
Contracts awarded since 2015: 47
Contract value since 2015: £265m
Number of public sector buyers: 19
Biggest contract: Front End Service for Home Office
Frameworks listed on: Technology Services 2 by CCS andDigital Outcomes and Specialist 3 by CCS
Crown Representative: Lan O'Connor
Percentage of invoices paid in 60 days or fewer: 95%

 

Supplier #33 of 34: Virgin Media

Virgin Media is a telecommunications company that provides telephony and internet services. Since 2013 Virgin Media has been a subsidiary of Liberty Global PLC. The company has its headquarters in Hook, Hampshire.
Contracts awarded since 2015: 79
Contract value since 2015: £61m
Number of public sector buyers: 48
Biggest contract: Provision of Telephony Maintenance Contract for DVLA
Frameworks listed on: Technology Services 2 by CCS
Crown Representative: Vincent Kelly
Percentage of invoices paid in 60 days or fewer: 83%

 

Supplier #34 of 34: Vodafone

Vodafone is a multinational communications conglomerate that operates in the provision of telephony and IT services. The company was founded in 1991 and has its headquarters in London.
Contracts awarded since 2015: 150
Contract value since 2015: £201m
Number of public sector buyers: 81
Biggest contract: FITS WAN/LAN Contract for MoJ
Frameworks listed on: G-Cloud 10 by CCS and GSI Convergence Framework by Home Office
Crown Representative: Vincent Kelly
Percentage of invoices paid in 60 days or fewer: 64%

 

Enter your details below to download our 2018 report on the Strategic Suppliers' performance in 2018 to see their largest contracts, their top public sector customers, and the change in their year-on-year performance. 

Tussell continues to monitor the Strategic Suppliers and will keep this blog continually updated with any relevant changes.

 

www.gov.uk/government/organisations/cabinet-office

www.gov.uk/government/organisations/crown-commercial-service

www.nao.org.uk/wp-content/uploads/2013/11/10296-001-Delivery-of-public-services-HC-8101.pdf

publications.parliament.uk/pa/cm201719/cmselect/cmpubacc/1031/1031.pdf

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