The UK government has indicated a possible shift in its stance regarding the subcontracting of work abroad for an online procurement platform. This comes after previously establishing a ban due to concerns surrounding security.
A notice revealed that negotiations are set to occur regarding a variation to an £8 million contract, allowing for offshore subcontracting under “extreme urgency brought about by events unforeseeable for the contracting authority.”
The Cabinet Office, which oversaw the competition related to the Central Digital Platform (CDP), an online system for procurement notices and tenders, could potentially allow this change, which would contradict several terms outlined in the original agreement.
In April, the Cabinet Office announced that Goaco Group Ltd had secured the contract to maintain the CDP, a platform where UK contracting authorities share procurement information. Earlier this month, the Cabinet Office outlined its “intention to vary to permit the offshoring of subcontractor resources to offer advisory support for ongoing continuous improvement activities under the contract.” However, it specified that “all other actual and deliverables remain with Goaco Group Limited.”
The initial award of the contract included a stipulation that “all work must be completed within the UK; offshoring of any work will not be permitted.” The Cabinet Office classified this contract as a “higher-risk agreement,” mandating that the supplier complete a “Secure by Design Questionnaire,” which restricts the handling of government data to the United Kingdom.
A spokesperson for the Cabinet Office reiterated that “no offshoring has occurred” and noted that the publication of the notice was part of their commitment to transparency. Suppliers are encouraged to respond to the notice and share their views, with no definitive decisions made yet.
The notice regarding offshoring was issued following a request from Goaco, although the company opted not to comment on the matter. Procurement professionals within senior government roles expressed that failed bidders for the contract might feel disadvantaged by the changing rules but would likely refrain from challenging the decision due to concerns about missing future opportunities.
Under the previous Conservative administration, forecasts indicated that ongoing operational costs for the CDP would be £1.5 million annually from 2024/25 to 2030/31. The intention was to “develop new platform capability that provides suppliers with a single portal for information and integrates existing systems.”
The ongoing contract with Goaco, amounting to £8 million, is set to run from April 2025 until April 2027. Additionally, a separate £17 million contract has been awarded to the consultancy EY to serve as a “Digital Delivery Partner for the CDP,” also spanning from February 2025 to February 2027, which raises annual costs to around £4 million. The Cabinet Office stated that the scope of the CDP has evolved under the current government, transforming the delivery of various government commercial services, including procurement websites such as Find a Tender Service and Contracts Finder.
