The government will be capping most IT projects at £100 million from now on. In a procurement policy notice (PPN) delivered to all departments and agencies, the government mandated that all future IT projects are capped at the figure.

The move comes as part of a new IT procurement strategy, as the government attempt to move away from awarding lengthy, expensive contracts large vendors and instead allow SMEs to deliver projects over a shorter period of time.

In 2011, it was announced that projects over £100 million would be analysed carefully by the Major Projects Authority, but the cap will now prevent any projects that large taking place without a thorough review.

Francis Maude, Minister for the Cabinet Office, realised a statement, stating: “The Government ICT Strategy, published at the end of March 2011 outlined a new approach to ICT procurement that improves contract delivery timelines and reduces the risk of project failure, enables greater use of SMEs, a much shorter timescale and lower costs to all parties. We will end the practice of attempting to cover every requirement in great detail and cover every legal eventuality in every project and contract, thereby increasing the procurement cost and timescales to all parties to an unacceptable level.”