Case Study: UK Ministry of Defence saves £16.1 million with PA Consulting

Saving IT contract costs of £16.1 million

The UK Ministry of Defence (MOD) needed to renew and extend a set of core IT service contracts supporting around 40 programmes for front-line military operations, but faced reduced budgets, a desire for improved service, and systems that were expected to be phased out in the medium term. PA Consulting worked with the MOD’s Command Support and Intelligence Solutions Integrated Project Team to address the challenge through contract negotiations with the incumbent supplier.

PA Consulting and the MOD team carried out detailed financial analysis and then negotiated over 12 weeks, adjusting performance mechanisms to better incentivize the supplier and removing unrealistic contract elements to reduce supplier risk. The result was 40% savings versus the initial estimated price, delivering £16.1 million in savings for the UK Ministry of Defence.

UK Ministry of Defence

Dave Baskerville

CBM-Air