Lockheed Martin beats IBM to £125m Ministry of Justice deal

The Ministry of Justice (MoJ) has selected Lockheed Martin as its preferred bidder on a £125 million Service Integration & Management (SIAM) deal, which will see the company help the department overhaul its legacy IT contracts.

Lockheed Martin was going up against IBM for the deal, but is understood to be partnering with Atos, Cadence Partnership and Skyscape Cloud Services.

The SIAM contract has been formed as part of the MoJ’s Future IT Sourcing Programme (FITS), which aims to organise the department’s IT into service towers. The MoJ’s legacy ICT contracts were negotiated prior to the creation of the department, and as such are broadly aligned to business units, rather than supporting integrated services across the MoJ.

However, under FITS, towers will be set up that provide different services – such as desktops, networks, applications – across the whole organisation.

Lockheed Martin’s role will be to help the MoJ transition from the existing contracts to the new tower model and to coordinate the service delivery from tower suppliers.

"We are transforming our IT contracts to ensure they provide the best possible value for taxpayers. As part of this, Lockheed Martin have been awarded a contract to provide IT services to around 90,000 users across the criminal justice system, replacing the three different providers who currently deliver these services,” said a Ministry of Justice spokesperson.

"We anticipate this and other reforms to the current cost of delivering ICT services will save taxpayers millions of pounds."

Georgina O’Toole, director at analyst house TechMarketView, said that the deal will help the company’s UK revenues.

“In 2012, we estimate that Lockheed generated about £255 million of SITS revenue from the UK market. This latest win – one of its largest IT wins to date – will give a significant boost to Lockheed’s UK IT business,” said O’Toole.

“Lockheed’s success comes after another major UK defence contractor – BAE Systems (Detica) won the SIAM contract at the Foreign & Commonwealth Office.”

She added: “What’s clear is that partnerships with traditional IT companies will remain an important part of Lockheed’s approach. And it is interesting that despite investing in its own cloud-solution-as-a-service (listed on the G-Cloud framework) it has chosen, on this occasion, to partner with SME hosting provider, Skyscape.”

Copyright © 2013 IDG Communications, Inc.

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