Introduction
Around a third of UK government spending goes on the procurement of goods and services from third-party suppliers, ranging from paper clips to major infrastructure projects.
Some of these suppliers are deemed so critical to the delivery of essential public services that the Cabinet Office designates them as 'Strategic Suppliers' to the government.
As of December 2023, there were 39 Strategic Suppliers.
In this blog, we provide an overview of:
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What are the pros and cons of becoming a Strategic Supplier?
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What were the biggest contracts awarded to Strategic Suppliers in 2021?
A much more extensive analysis of the Strategic Suppliers can be found in our full 2023 Strategic Suppliers Report. To download the full report, click here.
❓ What is a Strategic Supplier?
The Strategic Suppliers are private sector companies whose relationship with the government is centrally coordinated through the Cabinet Office, due to the strategic importance of the goods and services they provide.
Though not an official requirement, the government typically spends over £100 million per year with these suppliers.
The Cabinet Office manages the Strategic Supplier programme as part of its responsibility for supporting 'collective government' and promoting efficiency and reform through better procurement and project management.
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Since 2011, each Strategic Supplier has had a 'Crown Representative' within the Cabinet Office. Crown Representatives act as a focal point for suppliers and help the government to act as a single customer. They ensure that the government is communicating a consistent message to its suppliers, identify areas for cost savings and coordinate cross-departmental procurement issues.
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Since 2019, the Cabinet Office has operated a 'Memorandums of Understanding' approach with the Strategic Suppliers. The MOU approach puts the onus on suppliers to provide the government with the information it needs to monitor and manage risks. The Cabinet Office argue this policy is more efficient and flexible, and increases the accountability of these suppliers to the government.
💡 What are the pros and cons of becoming a Strategic Supplier?
Making it onto the government's Strategic Supplier list is a major accomplishment for any company.
With a dedicated Crown Representative, Strategic Suppliers' relationships to the government are managed more centrally and strategically. Their close proximity to the heart of government will offer unrivalled liaising opportunities with key procurement stakeholders.
On the other hand, becoming a Strategic Supplier comes with much greater scrutiny and oversight. The Strategic Supplier programme's use of MOUs means, as the Cabinet Office describe, "strategic suppliers will agree to provide the government with the information it needs to monitor and manage risks", with the aim of increasing "accountability".
👥 Who are the Strategic Suppliers?
As of November 2023, there are 39 companies designated as Strategic Suppliers.
This is a dynamic list. From May 2022 - December 2023, for example, one company - Tilbury Douglas - was added to the list, whilst two were removed, Motorola and Interserve. The addition or removal of Strategic Supplies can happen at any time, changing with who the government deems as strategically important at a given time.
The Strategic Suppliers operate in sectors across the UK economy, including telecoms, defence, IT, consultancy, facilities management and construction.
How are they performing recently?
Tussell's 2023 Strategic Suppliers Report found that in FY22/23 the public sector spent more on procurement overall, but less with the Strategic Suppliers. Between FY21/22 and FY22/23, the Strategic Suppliers' public sector revenue collectively declined by 17%, resulting in a drop of total market share from from 11% to 9%.
Some of the key findings from our Strategic Suppliers Report include:
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2/3rds of Strategic Suppliers saw their public sector revenue decline
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Only 5 of the 39 Strategic Suppliers had direct public sector revenue of £1b or more in FY22/23. All of the companies earned over £100m.
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Only 11 of the 39 Strategic Suppliers managed to grow their direct public sector revenue in FY22/23.
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Central government remains the biggest buyer with Strategic Suppliers
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20 public sector buyers accounted for 3/4ths of the Strategic Suppliers' revenue
To dig deeper into our analysis, download our 2023 Strategic Suppliers Report.
📝 What were the biggest frameworks used by the Strategic Suppliers in FY22/23?
Data shows that, across the public sector, frameworks are becoming more popular as an alternative to open competition.
The Strategic Suppliers exemplify this trend. In FY22/23, 37% of their combined contract value was won through frameworks, up from 12% in FY18/19.
Of the total value of contracts won by the Strategic Suppliers, over one-third was won via a framework agreement. With call-offs accounting for a large chunk of the Strategic Suppliers' work, it is critical to find out which frameworks they are using.
Below is a breakdown of the top frameworks, by value of contracts awarded, used by the Strategic Suppliers, by sector, in FY22/23:*
Sector |
Framework |
Value of Contracts awarded to Strategic Suppliers |
Outsourcing & FM |
£890m |
|
Technology |
£801m |
|
Construction & Engineering |
£460m |
|
Consulting |
£153m |
|
Telecoms |
£277m |
|
Aerospace & Defence |
£55m |
* Data is correct as of 12th September 2023
Profiles of the 39 Strategic Suppliers
(Data covers FY18/19 - FY22/23; Listed alphabetically)
Below is a list of all 39 Strategic Suppliers to the UK Government, containing the total number of contracts they've been awarded since FY18/19; their total value; the number of public sector organisations that buy from them; their largest public sector contract by value, a list of the frameworks they are a member of, and their Crown Representative.
1️⃣ Accenture
Accenture is a professional services company that operates primarily in the IT and digital consulting sector. It is headquartered in Dublin and was founded in 1989.
Contracts Awarded since FY18/19 |
270 |
Direct Public Sector Revenue FY22/23 |
£260m |
Biggest Contract Awarded FY22/23 (by CA Value) |
|
Top Framework Used (by CA Value) |
RM6100 Technology Services 3 - £200m |
Crown Representative |
Nick Griffin |
2️⃣ Amey
Amey is an Oxford-based infrastructure support service provider that primarily operates in highway and rail transportation and facilities management. Since 2003, Amey has been a subsidiary of the Spanish transportation company, Ferrovial.
Contracts Awarded since FY18/19 |
100 |
Direct Public Sector Revenue FY22/23 |
£923m |
Biggest Contract Awarded FY22/23 (by CA Value) |
|
Top Framework Used (by CA Value) |
|
Crown Representative |
Boris Adlam |
3️⃣ Atkins Réalis
Atkins is multinational engineering, project management and consulting company. Founded in 1938, the company was acquired by Canadian company SNC-Lavalin in 2017.
Contracts Awarded since FY18/19 |
800 |
Direct Public Sector Revenue FY22/23 |
£460m |
Biggest Contract Awarded FY22/23 (by CA Value) |
|
Top Framework Used (by CA Value) |
|
Crown Representative |
Ann Pedder |
4️⃣ Atos
Atos is a French IT and consulting company that specialises in communications, cloud-computing and cyber-security. Its subsidiaries operate in healthcare and outsourcing. Atos was founded in 1988 and is headquartered in Bezons, France.
Contracts Awarded since FY18/19 |
186 |
Direct Public Sector Revenue FY22/23 |
£850m |
Biggest Contract Awarded FY22/23 (by CA Value) |
|
Top Framework Used (by CA Value) |
RM6100 Technology Services 3 - £164m |
Crown Representative |
Beverley Tew |
5️⃣ Amazon Web Services (AWS)
Amazon Web Services, Inc. is a subsidiary of Amazon providing on-demand cloud computing platforms and APIs. It was founded in 2006 and is headquartered in Seattle.
Contracts Awarded since FY18/19 |
89 |
Direct Public Sector Revenue FY22/23 |
£253m |
Biggest Contract Awarded FY22/23 (by CA Value) |
Public Cloud Hosting Services - £120m |
Top Framework Used (by CA Value) |
RM1557 G-Cloud 13 - £23m |
Crown Representative |
Jay Chinnadorai |
6️⃣ Babcock
Babcock is a multinational engineering company that specialises in managing complex assets and infrastructure. Founded in 1891, the company does the bulk of its business with public bodies.
Contracts Awarded since FY18/19 |
122 |
Direct Public Sector Revenue FY22/23 |
£1.1b |
Biggest Contract Awarded FY22/23 (by CA Value) |
|
Top Framework Used (by CA Value) |
|
Crown Representative |
Joanne Thompson |
7️⃣ BAE Systems
BAE Systems PLC is a British multinational defence, aerospace and security company. It is the largest defence contractor in the UK by sales. BAE Systems was founded in 1999 and is headquartered in London.
Contracts Awarded since FY18/19 |
285 |
Direct Public Sector Revenue FY22/23 |
£1.1b |
Biggest Contract Awarded FY22/23 (by CA Value) |
|
Top Framework Used (by CA Value) |
RM6100 Technology Services 3 - £55m |
Crown Representative |
Michael Keegan |
8️⃣ Balfour Beatty
Balfour Beatty is a multinational construction company that operates in the infrastructure sector. The company was founded in 1909 and is headquartered in London.
Contracts Awarded since FY18/19 |
143 |
Direct Public Sector Revenue FY22/23 |
£1.2b |
Biggest Contract Awarded FY22/23 (by CA Value) |
Highways Infrastructure Services - £730m |
Top Framework Used (by CA Value) |
|
Crown Representative |
Jane Bristow |
9️⃣ BT
BT is a British telecommunications company that provides fixed-line, broadband and mobile services. Formerly known as British Telecom, the company was privatised in 1984.
Contracts Awarded since FY18/19 |
537 |
Direct Public Sector Revenue FY22/23 |
£627m |
Biggest Contract Awarded FY22/23 (by CA Value) |
|
Top Framework Used (by CA Value) |
RM3808 Network Services 2 - £174m |
Crown Representative |
Sean Collins |
1️⃣ 0️⃣ Capgemini
Capgemini is a French multinational company that was founded in 1967. The company primarily provides technology, consulting and outsourcing services.
Contracts Awarded since FY18/19 |
314 |
Direct Public Sector Revenue FY22/23 |
£665m |
Biggest Contract Awarded FY22/23 (by CA Value) |
|
Top Framework Used (by CA Value) |
RM6100 Technology Services 3 - £199m |
Crown Representative |
Nick Griffin |
1️⃣ 1️⃣ Capita
Capita is a business processing and outsourcing company. The company was founded in 1984 and is headquartered in London.
Contracts Awarded since FY18/19 |
961 |
Direct Public Sector Revenue FY22/23 |
£923m |
Biggest Contract Awarded FY22/23 (by CA Value) |
Provision of a Training Service to the Royal Navy and Royal Marines - £1.3b |
Top Framework Used (by CA Value) |
Managed Services - Y20023 - £10m |
Crown Representative |
Meryl Bushell |
1️⃣ 2️⃣ CGI
CGI is a Canadian IT company that operates in consulting, systems integration and outsourcing. The company was founded in 1976 and its headquarters are in Montreal.
Contracts Awarded since FY18/19 |
170 |
Direct Public Sector Revenue FY22/23 |
187m |
Biggest Contract Awarded FY22/23 (by CA Value) |
|
Top Framework Used (by CA Value) |
RM6100 Technology Services 3 - £153m |
Crown Representative |
Beverley Tew |
1️⃣ 3️⃣ Computacenter
Computacenter is a British multinational that operates in IT. It was founded in 1981 and is headquartered in Hatfield.
Contracts Awarded since FY18/19 |
866 |
Direct Public Sector Revenue FY22/23 |
£264m |
Biggest Contract Awarded FY22/23 (by CA Value) |
MPS Value Added Reseller - £150m |
Top Framework Used (by CA Value) |
RM6068 Technology Products and Associated Services - £257m |
Crown Representative |
Matt Wiles |
1️⃣ 4️⃣ Deloitte
Deloitte is a multinational professional services firm and one of the “Big 4” auditing companies. Deloitte also provides tax, consulting, and financial advisory services. Founded in 1845, the company has its headquarters in London.
Contracts Awarded since FY18/19 |
863 |
Direct Public Sector Revenue FY22/23 |
£336m |
Biggest Contract Awarded FY22/23 (by CA Value) |
|
Top Framework Used (by CA Value) |
RM6100 Technology Services 3 - £113m |
Crown Representative |
Boris Adlam |
1️⃣ 5️⃣ DXC
DXC is a multinational IT company. The company operates in outsourcing, consulting and managed services. DXC was founded in 2017 and is headquartered in Virginia.
Contracts Awarded since FY18/19 |
141 |
Direct Public Sector Revenue FY22/23 |
£209m |
Biggest Contract Awarded FY22/23 (by CA Value) |
End User Environment Services - £126m |
Top Framework Used (by CA Value) |
RM6100 Technology Services 3 - £11m |
Crown Representative |
Vincent Kelly |
1️⃣ 6️⃣ Equans
Equans has more than 80 local brands in 20 countries, each with its own history and excellence. In the UK & Ireland, it works to provide low-carbon energy solutions, offer cutting-edge technical and FM services and transformative regeneration across the UK & Ireland.
Contracts Awarded since FY18/19 |
162 |
Direct Public Sector Revenue FY22/23 |
£624m |
Biggest Contract Awarded FY22/23 (by CA Value) |
|
Top Framework Used (by CA Value) |
|
Crown Representative |
Jane Bristow |
1️⃣ 7️⃣ EY
EY is multinational professional services firm, and one of the “Big 4” auditors. EY also provides assurance, consulting and advisory services. The company was formed by a merger in 1989 and is headquartered in London.
Contracts Awarded since FY18/19 |
539 |
Direct Public Sector Revenue FY22/23 |
£157m |
Biggest Contract Awarded FY22/23 (by CA Value) |
The Provision of CSHR Learning - £130m |
Top Framework Used (by CA Value) |
|
Crown Representative |
Nick Griffin |
1️⃣ 8️⃣ Fujitsu
Fujitsu is a multinational ICT equipment and services company that offers a diversity of products across computing and telecommunications. The company is headquartered in Tokyo and was founded in 1935.
Contracts Awarded since FY18/19 |
113 |
Direct Public Sector Revenue FY22/23 |
£427m |
Biggest Contract Awarded FY22/23 (by CA Value) |
Managed Desktop Services - £500m |
Top Framework Used (by CA Value) |
RM6100 Technology Services 3 - £19m |
Crown Representative |
Vincent Kelly |
1️⃣ 9️⃣ G4S
G4S is a British security services company that operates in secure transportation, the provision of security personnel and monitoring equipment. The company was founded in 2004 and is headquartered in London.
Contracts Awarded since FY18/19 |
122 |
Direct Public Sector Revenue FY22/23 |
£458m |
Biggest Contract Awarded FY22/23 (by CA Value) |
|
Top Framework Used (by CA Value) |
|
Crown Representative |
Ann Pedder |
2️⃣ 0️⃣ IBM
IBM is a multinational IT company that offers hardware, software and cloud computing services. The company was founded in 1911 and is headquartered in New York.
Contracts Awarded since FY18/19 |
242 |
Direct Public Sector Revenue FY22/23 |
£366m |
Biggest Contract Awarded FY22/23 (by CA Value) |
|
Top Framework Used (by CA Value) |
Social Programme Management (SPM) Dynamic Purchasing System - £59 |
Crown Representative |
Jay Chinnadorai |
2️⃣ 1️⃣ ISS
ISS Facility Services is a multinational company that operates primarily in facilities management and the provision of catering, security, support and property services. ISS was founded in 1901 and is headquartered in Copenhagen.
Contracts Awarded since FY18/19 |
47 |
Direct Public Sector Revenue FY22/23 |
£217m |
Biggest Contract Awarded FY22/23 (by CA Value) |
|
Top Framework Used (by CA Value) |
|
Crown Representative |
Jane Bristow |
2️⃣ 2️⃣ Jacobs
Jacobs is the world’s largest engineering firm. The company operates primarily in the provision of technical, professional and construction services. Jacobs was founded in 1947 and is headquartered in Dallas.
Contracts Awarded since FY18/19 |
1,278 |
Direct Public Sector Revenue FY22/23 |
£377m |
Biggest Contract Awarded FY22/23 (by CA Value) |
|
Top Framework Used (by CA Value) |
|
Crown Representative |
Ann Pedder |
2️⃣ 3️⃣ KBR
KBR is an American engineering, procurement and construction company. Formerly a subsidiary of Halliburton, KBR was founded in 2006 and is headquartered in Houston.
Contracts Awarded since FY18/19 |
177 |
Direct Public Sector Revenue FY22/23 |
£414m |
Biggest Contract Awarded FY22/23 (by CA Value) |
|
Top Framework Used (by CA Value) |
|
Crown Representative |
Robin Hughes |
2️⃣ 4️⃣ Kier
Kier is a construction company that operates primarily in building, civil engineering and support services. The company was founded in 1928 and is headquartered in Befordshire.
Contracts Awarded since FY18/19 |
340 |
Direct Public Sector Revenue FY22/23 |
£1.4b |
Biggest Contract Awarded FY22/23 (by CA Value) |
Major Works Investment Programme - £350m |
Top Framework Used (by CA Value) |
|
Crown Representative |
Boris Adlam |
2️⃣ 5️⃣ KPMG
KPMG is a network of professional services firms, and one of the “Big 4” auditors. The company provides auditing, tax and advisory services. KPMG was founded in 1987 and is headquartered in Amsterdam.
Contracts Awarded since FY18/19 |
610 |
Direct Public Sector Revenue FY22/23 |
£206m |
Biggest Contract Awarded FY22/23 (by CA Value) |
The Provision of CSHR Learning - £158m |
Top Framework Used (by CA Value) |
|
Crown Representative |
Nick Griffin |
2️⃣ 6️⃣ Laing O'Rourke
Laing O'Rourke is a British international construction company. It was founded in 1978 and is headquartered in Dartford.
Contracts Awarded since FY18/19 |
14 |
Direct Public Sector Revenue FY22/23 |
£120m |
Biggest Contract Awarded FY22/23 (by CA Value) |
4 New Prison Contract Award - £300m |
Top Framework Used (by CA Value) |
None used |
Crown Representative |
Phil Brookes |
2️⃣ 7️⃣ Leidos
Leidos is a US company specialising in defence, aviation, IT, and biomedical research.
Contracts Awarded since FY18/19 |
37 |
Direct Public Sector Revenue FY22/23 |
£435m |
Biggest Contract Awarded FY22/23 (by CA Value) |
|
Top Framework Used (by CA Value) |
RM1557 G-Cloud 13 - £696k |
Crown Representative |
Joanne Thompson |
2️⃣ 8️⃣ Microsoft
Microsoft is a technology company, producer of personal computers and the largest provider of software in the world. Microsoft was founded in 1975 and is headquartered in Washington.
Contracts Awarded since FY18/19 |
383 |
Direct Public Sector Revenue FY22/23 |
£114m |
Biggest Contract Awarded FY22/23 (by CA Value) |
Supercomputing 2020+ - £1.0b |
Top Framework Used (by CA Value) |
RM1557 G-Cloud 13 - £18m |
Crown Representative |
Jay Chinnadorai |
2️⃣ 9️⃣ Mitie
Mitie is an outsourcing and energy company. The firm provides consultancy, facilities management and custodial services. Mitie was founded in 1987 and its headquarters are in Bristol.
Contracts Awarded since FY18/19 |
323 |
Direct Public Sector Revenue FY22/23 |
£1.3b |
Biggest Contract Awarded FY22/23 (by CA Value) |
|
Top Framework Used (by CA Value) |
|
Crown Representative |
Ann Pedder |
3️⃣ 0️⃣ Mott MacDonald
Mott MacDonald is a multidisciplinary consultancy company that provides design, engineering and project management services. The company was formed through a merger in 1989 and its headquarters are in Croydon, Greater London.
Contracts Awarded since FY18/19 |
563 |
Direct Public Sector Revenue FY22/23 |
£211m |
Biggest Contract Awarded FY22/23 (by CA Value) |
PO 10080 - Shule Bora - £80m |
Top Framework Used (by CA Value) |
|
Crown Representative |
Ann Pedder |
3️⃣ 1️⃣ Oracle
Oracle is a multinational IT company that operates in enterprise software, database software and cloud computing. Oracle was founded in 1977 and is headquartered in Santa Clara, California.
Contracts Awarded since FY18/19 |
357 |
Direct Public Sector Revenue FY22/23 |
£290m |
Biggest Contract Awarded FY22/23 (by CA Value) |
Supply, Implementation and Maintenance of an Electronic Patient Records System - £85m |
Top Framework Used (by CA Value) |
|
Crown Representative |
Nick Griffin |
3️⃣ 2️⃣ PwC
PwC is a professional services network and one of the “Big 4” auditors. Founded through a 1998 merger, PwC provides assurance, advisory and legal services worldwide. The company is headquartered in London.
Contracts Awarded since FY18/19 |
701 |
Direct Public Sector Revenue FY22/23 |
£165m |
Biggest Contract Awarded FY22/23 (by CA Value) |
|
Top Framework Used (by CA Value) |
|
Crown Representative |
Nick Griffin |
3️⃣ 3️⃣ Serco
Serco is a multinational outsourcer that works across the public sector. Serco provides health, security and border services in the UK and around the world. The company was founded in 1987 and has its headquarters in Hook, Hampshire.
Contracts Awarded since FY18/19 |
93 |
Direct Public Sector Revenue FY22/23 |
£738m |
Biggest Contract Awarded FY22/23 (by CA Value) |
|
Top Framework Used (by CA Value) |
|
Crown Representative |
Paul Jacques |
3️⃣ 4️⃣ Sodexo
Sodexo is a food services and facilities management company that serves schools, prisons, universities and military bases. The company was founded in 1966 and has its headquarters in Paris.
Contracts Awarded since FY18/19 |
171 |
Direct Public Sector Revenue FY22/23 |
£259m |
Biggest Contract Awarded FY22/23 (by CA Value) |
Provision of Facilities Management Services to COVID-19 Testing Sites - £404m |
Top Framework Used (by CA Value) |
|
Crown Representative |
Meryl Bushell |
3️⃣ 5️⃣ Sopra Steria
Sopra Steria is an ICT company that specialises in the provision of consultancy, systems integration and subcontracting solutions. Sopra Steria was established in 2014 as part of a merger and is headquartered in Annecy, France.
Contracts Awarded since FY18/19 |
123 |
Direct Public Sector Revenue FY22/23 |
£321m |
Biggest Contract Awarded FY22/23 (by CA Value) |
Future Service Delivery Contract - £294m |
Top Framework Used (by CA Value) |
|
Crown Representative |
Vincent Kelly |
3️⃣ 6️⃣ Thales
Thales is a French multinational company specialising in electrical systems, defence systems and security. It was founded in 2000 and is headquartered in Paris.
Contracts Awarded since FY18/19 |
94 |
Direct Public Sector Revenue FY22/23 |
£332m |
Biggest Contract Awarded FY22/23 (by CA Value) |
Passsport Production and Associated Services Agreement - £262m |
Top Framework Used (by CA Value) |
RM1557.12 G-Cloud 12 - £15m |
Crown Representative |
Paul Jaques |
3️⃣ 7️⃣ Tilbury Douglas
Tilbury Douglas is a leading UK building, infrastructure, engineering and fit-out company. It was founded in 1991 when Tilbury Lighterage Company Limited (then known as Tilbury Contracting Group Limited) merged with RM Douglas, forming Tilbury Douglas.
Contracts Awarded since FY18/19 |
105 |
Direct Public Sector Revenue FY22/23 |
£233m |
Biggest Contract Awarded FY22/23 (by CA Value) |
Passport Production and Associated Services Agreement - £262m |
Top Framework Used (by CA Value) |
|
Crown Representative |
Phil Brookes |
3️⃣ 8️⃣ Virgin Media
Virgin Media is a telecommunications company that provides telephony and internet services. Since 2013 Virgin Media has been a subsidiary of Liberty Global PLC. The company has its headquarters in Hook, Hampshire.
Contracts Awarded since FY18/19 |
391 |
Direct Public Sector Revenue FY22/23 |
£236m |
Biggest Contract Awarded FY22/23 (by CA Value) |
|
Top Framework Used (by CA Value) |
RM3808 Network Services 2 - £27m |
Crown Representative |
Vincent Kelly |
3️⃣ 9️⃣ Vodafone
Vodafone is a multinational communications conglomerate that operates in the provision of telephony and IT services. The company was founded in 1991 and has its headquarters in London.
Contracts Awarded since FY18/19 |
352 |
Direct Public Sector Revenue FY22/23 |
£219m |
Biggest Contract Awarded FY22/23 (by CA Value) |
VVI Interim contract - £105m |
Top Framework Used (by CA Value) |
RM3808 Network Services 2 - £76m |
Crown Representative |
Jay Chinnadorai |
*
To see a deeper analysis and comparison of the government's Strategic Suppliers, download Tussell's 2023 Strategic Suppliers report.
All the data in the above tables was generated using Tussell's market intelligence platform - book a demo today to start monitoring the Strategic Suppliers yourself!