Post Office seeks back office and network suppliers in £200m contracts

By Sooraj Shah
24 Dec 2013 View Comments
Post Office

The Post Office is seeking a back office IT application services provider in a contract that could be worth up to £230m, and a network IT services provider in a contract worth up to £200m.

In an Official Journal of European Union (OJEU) notice, the Post Office said it has undertaken a review of its existing supply chain as it undergoes a significant level of change to deliver its strategic priorities.

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It said it had chosen "a strategic IT supply chain and optimal target operating model that adopts industry standards and good practice".

The model involves the provision of service towers being managed by a service integrator and service desk (SISD) provider, for which Atos has been chosen. It is also looking for suppliers to support delivery of managed IT technical services, and in the first tender on the OJEU, it said it was looking for a back office IT application services provider.

The contract includes: service management activities to govern the operations management of the back office tower; service management to interact and collaborate with the broader supply chain; development, maintenance and support for centrally managed applications which support business operations beyond real-time customer transactions.

The supplier must also provide support and management for the back office tower applications. In addition, the Post Office is looking to acquire services that include but are not limited to hosting and infrastructure support and management services.

Currently, the Post Office's back office applications include finance, accounting and HR, among others.

The tender states that a "scalable and flexible solution is required to allow the Post Office to grow with customer needs and support increased product diversity, reducing running costs and faster integration with its partners and suppliers".

The contract is covered by the Government Procurement Agreement (GPA), and has an estimated value of between £50m and £180m for an initial seven year term. This could rise to £230m if the contract is extended for two one-year periods.

In a second tender notice, the Post Office said it is looking for a supplier to provide IT network services including wide area networks (WAN), local area network (LAN), IT security, unified communications, mobility services and contact centre solutions.

This contract has an estimated valye of between £85m and £160m for the initial eight year term, and up to £200m including the two extension years.

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