Post Office begins long-awaited move away from Horizon
The month’s biggest technology contract award came from the Post Office, which selected Accenture and OneView Commerce to help replace the controversial Horizon system at the centre of the Post Office scandal.
Under the award, Accenture will become the replacement service provider for Horizon and associated services, while OneView Commerce will provide the commercial off-the-shelf point-of-sale platform intended to underpin the future solution. Award notices show the contracts are worth £269 million and £141 million respectively, representing a combined procurement value of £410 million. Other reports have quoted figures including VAT, putting the total closer to £500 million.
The decision marks one of the most significant public sector technology procurements of the year and begins the process of ending Fujitsu’s decades-long involvement with the system. Fujitsu will continue supporting Horizon until March 2027 while the transition takes place.
Kainos lands £150 million Defra digital transformation contract
Kainos has secured a contract worth up to £150 million to support digital delivery across the Department for Environment, Food and Rural Affairs (Defra) and its arm’s-length bodies.
Awarded under Defra’s Application Development and Maintenance Services Plus (ADMS Plus) programme, the deal will see Kainos provide application development, support and maintenance services for critical systems spanning areas including biosecurity, flood management, environmental regulation and wildlife protection.
The agreement is expected to run for an initial four years, with an option to extend for a further year. Kainos said the contract will support Defra’s ambition to modernise legacy technology and accelerate delivery of digital-first services, while incorporating AI-enabled capabilities throughout the software development lifecycle.
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The award reinforces Kainos’ position as one of government’s largest digital transformation suppliers and highlights continued investment in the digital foundations underpinning key public services.
Palantir police deal blocked over procurement concerns
One of the most closely watched technology procurements of the year failed to reach the finish line after London Mayor Sadiq Khan intervened to halt a proposed £50 million Metropolitan Police contract with Palantir.
The contract would have seen Palantir provide analytics technology to support criminal investigations through a programme known as Unified Operational Analytics. However, City Hall cited concerns around procurement procedures, including questions over market testing and whether alternative suppliers had been adequately considered.
‘Buy British’ push puts AI procurement under the spotlight
Procurement itself became a political issue during May after Chancellor Rachel Reeves instructed ministers to place greater emphasis on British suppliers when awarding contracts in strategic sectors, including AI.
While the move doesn’t represent a specific contract award, it could have significant implications for future public sector technology procurement. Government departments have been told that AI contracts will face increased scrutiny from both the Treasury and Cabinet Office as ministers seek to strengthen domestic tech capabilities.
For UK AI vendors, the announcement may signal a more favourable procurement environment as government accelerates adoption of AI across public services.
