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Tech Procurement in the UK Justice Sector

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Tech Procurement in the UK Justice Sector Tech Procurement in the UK Justice Sector December 2020 Trusted Insight on Government Contracts and Spend Trusted by suppliers, the public sector, and the media — Corporate Government Media 550+ Press citations since Jan 2019 “Serious-minded business data provider Tussell” Matthew Vincent 22nd September 2018 2 | Trends and Opportunities in the Justice Sector We transform open data into useful data – so you don’t have to — Open data Third party data Useful data Use cases CONTRACT DATA Public Sector Aggregate Get better value from TED (EU) suppliers Companies House Contracts Finder (UK), Sell2Wales, PCS Match Digital Marketplace Suppliers Normalise Win government Circa 70 local portals contracts Cleanse SPEND DATA Moody’s Analytics 6800+ Central Gov’t, Press Local Gov’t & NHS Machine Scrutinise public bodies learn spending 3 | Trends and Opportunities in the Justice Sector Total data coverage: Justice — Spend Contracts Q1 2016 – Q2 2020 Q1 2015 – Q3 2020 864,000 invoices 7,000 contracts £28bn spend value £17bn contract value 43 buyers 100 buyers 31,000 suppliers 2,600 suppliers 4 | Trends and Opportunities in the Justice Sector Questions Tussell will answer — 1. How big is the market? 2. What’s the breakdown by sub-sector? 3. Can new entrants break through? 4. Has demand recovered from Covid? 5. How can I position my firm for future rebids? 5 | Procurement in the UK EdTech market Technology spend in the justice sector in the five years from 2016-2020 was £3bn in total, an average of £597m per annum Spend data £728M £710M Average: £597M £578M £523M £447M 2016 2017 2018 2019 2020 Total justice sector technology spend 2016-2020: £3.0B 6 | Trends and Opportunities in the Justice Sector Justice spending on tech has been consistently higher than other areas of the public sector since 2016 Spend data Proportion of public sector technology spend (2016-2020) 16% 14% 12% Justice 11% 10% 8% NHS 7% 6% Public sector 5% 4% 2% 2016 Q1 2016 Q3 2017 Q1 2017 Q3 2018 Q1 2018 Q3 2019 Q1 2019 Q3 2020 Q1 7 | Trends and Opportunities in the Justice Sector The MOJ and its two agencies accounted for 68% of all spend, while the top 10 suppliers earned 71% of total revenue Spend data Buyers Total justice sector technology spend 2016-2020: £3.0B Ministry of Justice £1,355M HM Prison and Probation Service £420M HM Courts and Tribunal Service £361M Metropolitan Police £332M Other police £662M £0M £100M £200M £300M £400M £500M £600M £700M £800M £900M £1,000M £1,100M £1,200M £1,300M £1,400M Suppliers Capita £624M ATOS £502M CGI Group £240M Entserv £237M Sopra Steria £208M Insight Direct £113M DXC Technology £100M Specialist Computer Centres £77M Leidos £65M Oracle £60M Other suppliers £904M £0M £100M £200M £300M £400M £500M £600M £700M £800M £900M £1,000M £1,100M £1,200M £1,300M £1,400M 8 | Trends and Opportunities in the Justice Sector Except for Sopra Steria, most top suppliers have lost market share since 2016, while other suppliers have benefited Spend data 44% Proportion of total justice sector technology spend with top suppliers and others (2016-2020) Other suppliers 41.4% 40% 36% 32% 28% 24% 20% Capita 19.2% 16% 12% Sopra Steria 11.5% ATOS 10.9% 8% CGI Group 6.8% Entserv 4.0% 4% DXC Technology 3.8% Insight Direct 2.4% 0% 2016 2017 2018 2019 2020 9 | Trends and Opportunities in the Justice Sector Common tech products and services that are purchased throughout the public sector represent £1.4bn or 67% of contract value Contract data General contract categories £483M (379 awards) Infrastructure, support & £54M maintenance from Ministry of Justice to Sopra Steria for Probation ICT Services £376M (246 awards) Cloud infrastructure and £48M software development from Ministry of Justice to Entserv for End User Computing Services for HMPPS and HMCTS £373M (416 awards) Hardware, software and £58M licenses from Ministry of Justice to Trustmarque for Microsoft Enterprise Agreement £167M (66 awards) Network and £104M communication from Ministry of Justice to Vodafone for FITS WAN/LAN 2015 2016 2017 2018 2019 2020 2021 Sector-specific contract categories 10 | Trends and Opportunities in the Justice Sector £421M (4 awards) Total Technology Programme Infrastructure £155M from Metropolitan Police to CSC Computer Sciences for TTPI End User Services £106M (116 awards) Data management systems £6M from Ministry of Justice to Unlink Software for nDelius Support £95M (54 awards) Video and voice capture £29M from Police and Crime Commissioner for Sussex to Accenture for Implementation and Adoption of Video Enabled Justice £48M (16 awards) Automation £13M from Ministry of Justice to Kainos Software for Automated Track Case Management 2015 2016 2017 2018 2019 2020 2021 General contract categories £483M (379 awards) Infrastructure, support & £54M maintenance from Ministry of Justice to Sopra Steria for Probation ICT Services £376M (246 awards) Cloud infrastructure and £48M software development from Ministry of Justice to Entserv for End of USer Computing Services for HMPPS and HMCTS £373M (416 awards) Hardware, software and £58M licenses from Ministry of Justice to Trustmarque for Microsoft Enterprise Agreement Justice-specific contracts make up the remaining 33%£ 1and67M (6 6provide awards) Network and £104M communication ample opportunity for niche suppliers and solutions from Ministry of Justice to Vodafone for FITS WAN/LAN 2015 2016 2017 2018 2019 2020 2021 Contract data Sector-specific contract categories £421M (4 awards) Total Technology Programme Infrastructure £155M from Metropolitan Police to CSC Computer Sciences for TTPI End User Services £106M (116 awards) Data management systems £6M from Ministry of Justice to Unlink Software for nDelius Support £95M (54 awards) Video and voice capture £29M from Police and Crime Commissioner for Sussex to Accenture for Implementation and Adoption of Video Enabled Justice £48M (16 awards) Automation £13M from Ministry of Justice to Kainos Software for Automated Track Case Management 2015 2016 2017 2018 2019 2020 2021 11 | Trends and Opportunities in the Justice Sector The number of technology tenders in justice dropped during the height of the pandemic but it has now recovered almost to pre-pandemic levels Tender data Number of technology notices from the justice sector published in 2020 compared to 2019 250 248 234 239 200 182 150 115 100 January February March April May June July August September October November December 12 | Trends and Opportunities in the Justice Sector Contracts are predominantly awarded for just 2-3 years, which means your next opportunity to bid for a major contract is never far away Contract data Expiring contracts by duration and expiration date 7 y 2021: £186M (174 awards) 2022: £180M (118 awards) £0.8M £15.5M 5 y contract 6 y 2 y contract expiring on Dec 2022 expiring on Apr 2021 South Yorkshire Police / Ministry of Justice / Oracle Computacenter PLC for Oracle Support & Maintenance for RSSS & DFU Imaging Network of MoJ licensed estate 5 y 4 y 3 y 2 y £16.4M 3 y contract 1 y expiring on Jul 2022 Ministry of Justice / 4net Technologies Ltd for CTSC Technology Solution Award 0 y Jan 2021 Mar 2021 May 2021 Jul 2021 Sep 2021 Nov 2021 Jan 2022 Mar 2022 May 2022 Jul 2022 Sep 2022 Nov 2022 Jan 2023 13 | Trends and Opportunities in the Justice Sector Key Findings — Contracts are Justice dominated rebid frequently, by five major The market has with an average suppliers but still clearly bounced duration of just 2-3 accessible to new back from the years – so plan entrants pandemic ahead Understand your market Know your customer Plan ahead 14 | Trends and Opportunities in the Justice Sector All the data in this presentation came directly from Tussell Insight, our online market intelligence platform — To learn more, email Gus at [email protected] 15 | Trends and Opportunities in the Justice Sector.
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