Bidding launched for £500 million ID cards contracts » Central Government » 24dash.com

The bidding process for lucrative contracts worth up to £500 million each to run the controversial identity card scheme was launched by the Government today.

Five firms will be chosen to supply computer equipment and manage the application and issuing of ID cards.

Government officials said today marked an "important milestone" in delivering the £2 billion scheme, which will see ID cards issued to UK residents in 2009.

The smallest contract will be for £50 million, while two are expected to be worth up to £500 million, representing some of the most expensive contracts ever awarded by any UK Government.

The contracts will run for up to 10 years and a high level of interest is expected from companies across the world.

A host of firms, including giant IT services firms such as IBM, Accenture, BT and Fujitsu services, are expected to bid for the contracts.

Bill Crothers, commercial director of the Identity and Passport Service (IPS), said today that the start of the procurement process represented an "important part" of the ID scheme.

He said officials have liaised with other government departments and have consulted with private companies before going ahead with the bidding process.

Officials would reserve the option to change the length of the contracts, he added, but he envisaged they would be for a period of up to 10 years.

The first contracts are expected to be let in nine months although firms expressing an interest in bidding will attend a conference at the Home Office next month.

James Hall, chief executive of the IPS, said: "Throughout the development of our plans for the National Identity Scheme we have been talking to the public, partners and those who have expressed concerns about the scheme and our ideas have been shaped by the feedback we have received.

"The arguments for the scheme are compelling and the will to deliver it is as strong as ever.

"Feedback from the supplier community has shaped our approach to procurement and will ensure we have a competitive process that enables innovative solutions and value for money."

Home Office minister Meg Hillier said the ID scheme will be a crucial part of the UK's national infrastructure.

"It has become increasingly clear that the message we have traditionally relied on to prove ID are outdated, inefficient and increasingly open to abuse. That has to end and that is why we are taking the scheme forward.

"This is a groundbreaking project with the potential for huge benefits for individuals and the nation.

"As the framework procurement published today makes clear we are committed to introducing the scheme carefully and securely, minimising both cost and risk."

Gareth Crossman, policy director at Liberty said: "Unfortunately the Government has yet to make the case that ID cards will make us safer and that it is necessary to retain more personal data than any comparable database in the Western world.

"Surely the estimated billions to be spent on the ID card scheme would be better spent on the intelligence, police and security services?"

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