Market report

Identify your next Central Government contract

Prepare for upcoming pipeline contracts in 2024/25.

13th June 2024
8 min
Written by 
Xavier Garnham
Research Analyst
 at Stotles

Introduction

11 Central government authorities have updated their commercial pipelines since the start of 2024.

Commercial pipelines give suppliers a forward look into upcoming procurement activity of all contracts valued over £2m for the next 18 months.

To help you identify the opportunities involved, this report highlights 320 digital contracts emerging from these pipelines for your team to target in 2024/2025.

320

Upcoming digital opportunities.

£5.4b

In upcoming digital opportunities.

In this report, we provide a resource so you can easily identify relevant opportunties for your company, and highlight key analysis and individual buyer trends to help you:

  • Identify upcoming opportunities: We designed an interactive webpage that you can filter by keyword, department or date to quickly spot relevant opportunities.
  • Analyse top buyers: Dive into each commercial pipeline and learn more about buyer profiles, investment priorities and framework preferences.
  • Recognise key commercial trends: Highlight total opportunities, top buyers, average contract values and framework insight.
Section One

Identify upcoming opportunities

We have designed an interactive search tool containing information on all 320 digital opportunities that are predicted to come to market in 2024/25 from these 11 commercial pipelines.

Filter by keyword, department or date to quickly spot and qualify the most relevant opportunities.

Google Sheet Data with Search
Section two

Buyer trend analysis

In the sections that follow, we’ll take a closer look into the procurement processes of the buyers responsible for the 11 commercial pipelines by detailing:

  • Buyer profiles
  • Framework preferences
  • Investment priorities

Analysis varies slightly for each buyer due to different data being provided in each of the pipeline updates. This is something the procurement act {{link to report}} will standardise in future commercial pipelines.

The Department For Transport (DfT)

A high level overview of the DfT:

  • The DfT has predicted it will spend more than £395m on digital procurement in 2024/25 with an average contract value of £12.7m.
  • Excluding enterprise contracts the average contract value falls to £5.7m making this a potential sweet spot for SME and mid-market digital suppliers.

Top frameworks

An overview of the DfT's preferre routes to market:

  • The DfT plan to procure 70% of all digital contracts in 2024/25 on frameworks, referencing a wide variety.
  • Iterations of G-Cloud are the DfT’s preferred route to market.

See below for a visualised breakdown of the DfT's framework preferences.

Investment priorities

Here is an overview of the DfT's investment priorities:

  • Tracking the DfT’s investment priorities, we see that the Maritime and Coastguard Agency is set to receive more than 25% of the DfT’s procurement budget in their whole commercial pipeline update in 2024/25.
  • The DVLA, DfTc and DVSA are also set to spend a significant portion of the declared procurement budget.

See below for a visualised breakdown of the DfTs investment priorities.

Stotles Tip

View the Department for Transport's commercial pipeline.

Identify upcoming opportunities

The Home Office (HO)

A high level overview of the HO:

  • The HO is planning to procure almost £1.7b worth of contracts from suppliers in 2024/25.
  • This value is inflated by 14 enterprise contracts worth more than £1.5b so if you are a digital enterprise supplier we recommend targeting the HO.
  • Excluding enterprise contracts the average contract value falls to £5.7m making this a strong target for SME and mid-market digital suppliers too.

Top frameworks

Here is an overview of the HO's preferred route's to market:

  • Taking a look at the HO’s framework preferences we can see that the department is yet to formally announce what frameworks it will procure on.

See below for a visualised breakdown of the HO's framework preferences.

Investment priorities

Here is an overview of the HO's investment priorities:

  • Visualised above are the number of digital contracts that each department of HMRC have predicted to procure in 2024/25.
  • DDaT is set to have a relatively busy year with 12 digital contracts coming to market in the next year, so we recommend tracking their activity.

See below for a visualised breakdown of the DfTs investment priorities.

Stotles Tip

View the Home Office's commercial pipeline.

Identify upcoming opportunities

His Majesty's Revenue and Customs (HMRC)

A high level overview of HMRC:

  • HMRC’s commercial pipeline indicates plan to spend more than £1b on digital procurement in 2024/25 with an average contract value of £34m.
  • Like the HO, HMRC’s pipeline is dominated by large enterprise level procurement and excluding these reveals an average contract value of £4.6m.
  • Mid-market and SME suppliers should consider this buyer as these types of contracts make up 61% of HMRC’s digital commercial pipeline for 2024/25.

Top frameworks

Here is an overview of HMRC's preferred routes to market:

  • HMRC’s commercial pipeline only gives insight into whether a contract will be procured on framework, not what framework will be utilised.
  • With the majority of HMRC digital contracts in 2024/25 being procured via framework we recommend a proactive approach be aware of buyer announcements to reamin competitive and win more awards.

See below for a visualised breakdown of HMRC's framework preferences.

The Ministry of Defence (MoD)

A high level overview of HMRC:

  • Unlike the other commercial pipeline updates, the MoD and the DfE commercial pipelines include predicted procurement on contracts above and below the £2m reporting threshold that are predicted to come to market.
  • Upcoming in 2024/25 we found 79 digital contracts expected to come to market worth a combined £860.5m, with an average contract value of £10.9m.
  • Excluding enterprise contracts the average contract value is £4.2m making this an interesting source of mid-market and SME opportunities.

To learn more about the MoD's commercial pipeline, read our reporty that was published in May 2024.

Top frameworks

Here is an overview of HMRC's preferred routes to market:

  • Technology products and associated services 2 and Technology services 3 indicate tech CCS frameworks are favoured for the MoD’s future digital procurement.
  • There is a trend towards using frameworks more frequently in the mid-market and SME contract value categories so if your company falls into these categories ensure you are fully informed on what frameworks are in action.

Below we visualise the MoD's preferred routes to market:

Investment priorities

Here is an overview of the MoD's investment priorities:

  • Surprisingly, the UK Hydrographic Office plans a significant amount of digital procurement in the next year.
  • DE&S and Defence Digital are also leading the way in this procurement category so we suggest keeping an eye on these three departments.

See below for a visualised breakdown of the MoD's investment priorities.

Stotles Tip

View the Home Office's commercial pipeline.

Identify upcoming opportunities

The Department for Education (DfE)

A high level overview of DfE:

  • The DfE is fairly balanced in it’s predicted digital procurement for 2024/25 because it predicts to procure relatively evenly across each value bucket.
  • 31 digital contracts are expected to be procured in 2024/25 with a total value of £338.2m and an average contract value of £12.4m.
  • Excluding enterprise level contracts, this figure falls to £5.7m, making this buyer an interesting target for mid-market and SMEs.
  • 87% of digital contracts estimated to come to market in 2024/25 labelled as “Operations and Infrastructure.”

Top frameworks

Here is an overview of the DfE's preferred routes to market:

  • The DfE’s commercial pipeline does not provide visibility into what contracts will be procured via framework.
Stotles Tip

Use Stotles framework intelligence to understnad the DfE's preferred routes to market.

Identify upcoming opportunities

The Department for Digital Culture Media and Sport (DCMS) & The Department of Health and Socia Care (DHSC)

The DCMS and DHSC digital procurement planned for 2024/25 is relatively small in comparison to the other departments so we have grouped their analysis.

A high level overview of the DCMS and the DHSC:

  • From these departments, 9 digital contracts are expected to come to market in 2024/25 with a total value of £33.4m and an average contract value of £3.7m, making these buyers an interesting target for SME suppliers.
  • These buyers intend to procure all of these contracts on framework.
  • CCS Digital Outcomes and Specialists and NHS SBS Digital Workplace solutions being referenced as key agreements suppliers should be aware of to be successful with this buyer.
  • In the DHSC’s commercial pipeline, 66% of contracts are assigned to DDaT, so if your company has experience in this organisation category we’d recommend tracking these opportunities.

The Department for Levelling Up, Housing and Communities (DLUHC)

A high level overview of the DCMS and the DHSC:

  • The DLUHC is a hotspot for mid-market digital suppliers with 68% of planned contracts being procured in the £20-£5 value bucket.
  • The DLUHC total digital pipeline for 2024/25 value is estimated to be £154.5m with an average contract value of £8.8m.
  • 95% contracts expected to come to market in 2024/25 in DLUHC’s commercial pipeline will be procured on frameworks.

Top frameworks

Here is an overview of the DLUHC's preferred routes to market:

  • G-Cloud 13 and Digital Specialists and Programmes are strongly preferred with 50% of all DLUHC upcoming digital opportunities being procured through these frameworks.
  • If you are on these or partnered with a company on these frameworks, we strongly suggest exploring opportunities within the DLUHC.

Below we visualise the DLUHC's preferred routes to market:

The Ministry of Justice (MoJ)

A high level overview of the MoJ:

  • The MoJ offers enterprise, mid-market and SME suppliers a range of strong digital opportunities in 2024/25.
  • The MoJ's total pipeline value is £436.8m with an average contract value of £6.3m (excl. enterprise contracts).
  • We recommend tracking this buyers activity.

Top frameworks

Here is an overview of the DLUHC's preferred routes to market:

  • The data reveals that 89% of these upcoming digital contracts will be awarded via framework.
  • Whilst the commercial pipeline provides limited visibility into exactly what framework will be used, the data shows that CCS frameworks are the primary digital route to market for this buyer.

Below we visualise the MoJ's preferred routes to market:

Investment priorities

Here is an overview of the MoJ's investment priorities:

  • Pivoting our analysis toward the investment priority of the MoJ, unsurprisingly the internal MoJ department is listed as being the source of 53% of all upcoming digital contracts.
  • However, the HMCTS and HMPPS departments combine to make up 43% of total upcoming digital procurement.
  • If you are a supplier aiming to serve the MoJ, we suggest looking at these apartments as well.

See below for a visualised breakdown of the MoJ's investment priorities.

The Student Loans Company (SLC)

A high level overview of the SLC:

  • The SLC offers offers no enterprise upcoming digital contract but offers strong mid-market and SME opportunities.
  • The SLC total upcoming digital pipeline value is £75.9m with an average contract value £4.7m.
  • The SLC commercial pipeline update provides limited data on upcoming contracts so we recommend taking a look at the raw data to draw relevant insights to your business.

Top frameworks

Here is an overview of the SLC's preferred routes to market:

  • The SLC are planning to procure 93% of their contracts via framework agreements but do not provide visibility into what frameworks will be used.
  • We suggest tracking this buyer in app to stay up to date on framework announcements.

The Department for Work and Pensions (DWP)

A high level overview of the DWP:

  • The DWP is a strong source of digital opportunities with significant digital contracts expected to come to market in 2024/25 across the contract value segments.
  • The DWP’s commercial pipeline reveals £280.3m in upcoming digital opportunities with an average contract value of £9.3m. Excluding enterprise contracts, this average falls to £4.4m.
  • 60% of all upcoming digital contracts in this pipeline fall into the SME category. So we recommend tracking these contracts if relevant to you.

Top frameworks

Here is an overview of the SLC's preferred routes to market:

  • Iterations of G-Cloud are clearly preferred but the buyer’s procurement strategies is quite varied with 9 different types of frameworks being referenced and 9 contracts yet to be confirmed.
  • Agile suppliers should keep a close eye on this buyer to stay ahead of the curve.

Visualised below is the DWP preferred routes to market.

section three

Identify upcoming opportunities

Section four

Engage with relevant decision makers

Summary

Next steps

The MoD commercial pipeline update allows us to understand routes to market across the 14 departments and the essential frameworks to be on to win more contracts.

This report should enable your sales teams to efficiently identify and qualify the most promising opportunities whilst using the Stotles platform to pinpoint upcoming contract renewals and what key decision makers to engage with.

This report was designed using the MoD pipeline update in tandem with Stotles data to provide suppliers with a tool to do better business with the MoD.

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