Most HS2 Tech Suppliers Are SMEs, Says DfT

Mar 27, 2014

The G-Cloud procurement framework has been used to purchase IT services for the High Speed 2 (HS2) railway project and the majority of suppliers are small-to-medium enterprises (SMEs), according to the Department for Transport (DfT).

HS2 Ltd CIO and DfT technology leader James Findlay revealed at yesterday’s Think Cloud For Government event that the DfT was the first department to use the procurement framework and it has been used extensively for the new rail development.

Findlay went on to say that initially, 100% of the IT firms contributing to the project were classed as SMEs, but this number has since gone down because some companies have grown enough to become classed as large.

The information chief also added that G-Cloud use has been increasing in general across the DfT and is not just limited to HS2. He attributes this to the fact that many contracts are coming up for renewal.

 Unlike those in branches of local government, Findlay claims that the framework makes procurement “a lot more simpler and a lot more straightforward” process.

He also claims that while pricing is now stabilising, G-Cloud initially made it much more flexible, particularly when migrating legacy contracts on old pricing schemes.

SME Government Business Set To Increase

Meanwhile, SME Crown Representative for the Cabinet Office Stephen Allott praised the framework as “a huge success to date.”

According to Allott, people are using G-Cloud more and more and hopes this is because it provides greater value for money, rather than because it’s government policy.

He also believes that SME involvement within government is only set to go up, as more branches of local government and the wider public sector get on board.