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By | Paul Kunert 27th June 2012 13:26

Suppliers finally get contracts for £4bn gov IT shopping centre

Appeals process ends, programme goes live from July

Suppliers bidding for a place on the delayed IT Hardware & Services (ITH&S) framework have finally been awarded their contracts.

A provisional list of suppliers dominated by resellers emerged some weeks ago as The Channel exclusively revealed, but companies that failed to make the cut were then given a 10-day period in which to appeal against the decision.

The Channel can reveal that no changes were made to that initial line-up of 17 companies, which includes the likes of Fujitsu Services, Computacenter and Insight.

Sources claimed suppliers were now in the process of signing the contracts, but still had no firm date for when the ITH&S agreement worth up to £4bn over three years will go live.

According to folk close to Government Procurement Services (GPS) which hosted the tender, there were no appeals because the bidding firms were already put through a series of e-auctions to drive prices close to the bone.

"Despite what the public may think, resellers are lucky to make a couple of points of margin for shifting standard boxes," said a source.

Lots 11 and 12 are the most important for suppliers because they are for non-standard kit and where much of the orders are expected to be placed.

There had been an expectation from several large vendors that resellers would be locked out of ITH&S due to the aggressive pricing required by GPS but the scoring criteria also included aspects such as logistical prowess.

GPS previously claimed ITH&S will kick off at the start of next month but was unavailable to comment further at the time of going to press.

The suppliers were unable to comment officially until the Cabinet Office makes a statement. ®

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