The UK Government Commercial Agency has announced plans to expand access to a major defense technology procurement framework worth £2.88 billion, opening opportunities for small and medium-sized enterprises that have been largely excluded from previous contracts. The agency published a procurement notice on May 18 outlining its vision for DIPS 2, a replacement for the current Digital and IT Professional Services framework that serves only the Ministry of Defence through 17 predominantly large defense companies and consultancies.
The existing DIPS framework, which runs until November 2027, has faced criticism for limiting participation to major contractors. The GCA now seeks to broaden both the supplier base and customer access, potentially extending the framework to the Home Office and Foreign Office alongside the MoD. During a March supplier engagement session, officials emphasized their commitment to increasing SME participation, defining these as companies with fewer than 250 employees that meet specific turnover and balance sheet thresholds.
The technical scope of DIPS 2 reflects evolving defense priorities identified in the UK's Strategic Defence Review. Darren Corkindale, deputy head for professional services in the MoD's digital commercial service, told suppliers the framework must address rapid technological development, citing lessons from Ukraine's conflict experience. The review emphasizes artificial intelligence, cybersecurity, and electromagnetic domain capabilities, with an explicit focus on transition to conflict and war preparedness that will shape procurement requirements.
The GCA is considering structural changes to make the framework more accessible, including reducing the number of contract lots from the current six and potentially creating a dedicated lot for projects valued under £5 million. This approach aims to lower barriers for smaller companies while maintaining the framework's ability to support large-scale defense technology initiatives. The eight-year duration from September 2027 to August 2035 provides long-term stability for suppliers willing to invest in meeting defense sector requirements.
The agency plans to complete supplier engagement by the end of 2024, with the formal tender for DIPS 2 expected in 2027. Organizations interested in participating should monitor GCA procurement channels and prepare to demonstrate capabilities in digital services, cybersecurity, and emerging technologies aligned with UK defense priorities. SMEs should particularly note the potential for dedicated contract structures designed to facilitate their participation in defense technology procurement.
Source: https://www.theregister.com/public-sector/2026/05/20/smaller-suppliers-invited-to-pitch-for-29b-uk-defense-tech-framework/5243217