Contract award notice
Results of the procurement procedure
Section I: Contracting
entity
I.1) Name and addresses
Department for Work & Pensions
Caxton House, 6-12 Tothill Street, London, SW1H 9NA
London
SW1H 9NA
UK
E-mail: ai.commercial@dwp.gov.uk
NUTS: UK
Internet address(es)
Main address: https://www.gov.uk/government/organisations/department-for-work-pensions
Address of the buyer profile: https://www.gov.uk/government/organisations/department-for-work-pensions
I.4) Type of the contracting authority
National or federal agency/office
I.5) Main activity
General public services
Section II: Object
II.1) Scope of the procurement
II.1.1) Title
Nexus AI
Reference number: Project_26634 / C7927
II.1.2) Main CPV code
72000000
II.1.3) Type of contract
Services
II.1.4) Short description
The Authority requires a strategic Supplier capable of meeting requirements related to the exploration, deployment, and ongoing support of Artificial Intelligence (AI) systems and services. These include, but are not limited to: Tech Spikes, Horizon Scans, Proofs of Concept (PoCs), Software Trial Teams, working with colleagues to identify business problems, supply expertise to build Beta MVP products and maintain / support products that have gone Live.
II.1.6) Information about lots
This contract is divided into lots:
No
II.1.7) Total value of the procurement
Value excluding VAT:
27 000 000.00
GBP
II.2) Description
II.2.3) Place of performance
NUTS code:
UKI
II.2.4) Description of the procurement
The Authority is seeking support from subject matter experts in AI to build a deep and continually updated understanding of AI capabilities mapped against DWP’s key business challenges and opportunities. The Authority requires the development and implementation of these services to be able to meet governmental ambitions.
II.2.5) Award criteria
Quality criterion: Technical
/ Weighting: 65%
Price
/ Weighting:
35%
II.2.11) Information about options
Options:
No
II.2.13) Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds:
No
Section IV: Procedure
IV.1) Description
IV.1.1) Type of procedure
Restricted procedure
IV.1.8) Information about Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement:
Yes
IV.2) Administrative information
IV.2.1) Previous publication concerning this procedure
Notice number in the OJ S:
2025/S 000-007055
Section V: Award of contract
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
12/09/2025
V.2.2) Information about tenders
Number of tenders received: 15
Number of tenders received by electronic means: 15
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
IBM UK Ltd
741598
Building C IBM Hursley Office Hursley Park Road Winchester Hampshire
Winchester
SO21 2JN
UK
NUTS: UKJ2
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Initial estimated total value of the contract/lot:
Total value of the contract/lot:
: 9 000 000.00
GBP
V.2.5) Information about subcontracting
Section VI: Complementary information
VI.3) Additional information
The contract includes two (2) optional extension periods, each of up to one (1) year in duration. The maximum contract value for each extension period shall not exceed £9,000,000 (ex VAT).
VI.4) Procedures for review
VI.4.1) Review body
Department for Work & Pensions
Caxton House, 6-12 Tothill Street, London, SW1H 9NA
London
SW1H 9NA
UK
Internet address(es)
URL: https://www.gov.uk/government/organisations/department-for-work-pensions
VI.5) Date of dispatch of this notice
29/09/2025