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Deloitte secures £15m HMRC contract

Deloitte has secured a £15 million consultancy contract to help HMRC shape and deliver its Technology Sourcing Programme (TSP).

Deloitte secures £15m HMRC contract
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Deloitte

The 12-month contract, which came into effect on 1 April 2022 and will run until 31 March 2023, will see Deloitte “work closely with the technology sourcing programme’s senior responsible officer and programme director to define, orchestrate and integrate delivery across all workstreams, providing advisory input and advice on how to accelerate delivery if required.

The technology sourcing programme is an ongoing programme of work, which began in September 2021, which aims to change how HMRC delivers IT and works with IT suppliers to obtain and use new technology to improve its services working with its annual £900 million budget.

The contract stated that “TSP is a fast-paced programme, and Deloitte will be expected to respond at pace to support programme priorities as they emerge with the big four firm’s three main areas of focus including support for the programme delivery, design of the “future operating model, and “burst support for integration requirements.

Other areas Deloitte will be managing over the course of the contract will be “support of outputs that will be delivered by the [individual] workstreams, aligned to programme outcomes, which will be “agreed monthly with the relevant workstream lead and when required the programme director.

The contract stated that Deloitte “will report weekly to the relevant workstream lead on the progress of their activities, the status of their outputs and any risks [or] issues in delivery.

The contract also stated that “HMRC may at its discretion decide to retain the support of Deloitte to assist with the implementation of the future operating model beyond the initial period.

The £15 million fee on the contract is to be paid to Deloitte through monthly invoices and will be paid through HMRC’s SAP Ariba network.

In charge of delivering the HMRC IT procurement shift is chief digital and information officer (CDIO) Daljit Rehal, who was appointed to one of Whitehall’s most senior digital roles in September 2020.

In October 2020, the tax authority hosted an early market engagement to talk to suppliers that aimed to break down and address the spending plan with technology sourcing programme. So far, HMRC has launched 26 competitive tenders, addressing over 85 per cent of its IT spend, and awarded 22 contracts to nine different suppliers.

Since then, the Infrastructure and Projects Authority (IPA), which reports to the Cabinet Office and the Treasury, rated the project as amber on its risk scale, noting that HMRC faced a cliff edge” over the contract expiry, combined with the need to re-balance control over its digital and technology capability”.

HMRC responded to the criticisms at the time stating that it was “focused on meeting its deadlines”.

An HRMC spokesperson said: “Our Technology Sourcing Programme is transforming how we buy technology and IT services. Having the right expertise to deliver the programme will ensure we can improve the experience for our customers and get the best deals for taxpayers.”

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