The Cabinet Office and the Government Digital Service (GDS) have placed a tender notice in the Official Journal of the European Union (OJEU) for a private sector partner to provide data center space and related services.

According to the notice the contract could be worth up to £700m, in a deal that involves setting up a joint company between the government bodies and the data center operator, which will have a majority shareholding.

Initially, the contract involves handling government data classified as ‘official’ (says the OJEU) but future requirements may include accreditation for managing 'secret' and 'top secret' classified information.

Any data center operator tendering for the contract must have at least two separate locations – subject to a minimum separation – from which to provide colocation services and demonstrate sufficient back up on electricity, cooling, connectivity and physical security.

The partner must have a track record of work successfully in a joint venture or partnership in the public or private sector and ‘the ability to grow a sustainable, profitable business’. 

The supplier would have to subscribe for a majority shareholding (up to 75%) in DatacentreCo, a new private company that is to be established by the Cabinet Office to provide data center co-location services.

The chosen supplier will also have to provide some initial funding for DatacentreCo.

The government intends to retain a significant minority shareholding in DatacentreCo, anticipating this to be a minimum of 25% + 1 share.

The Cabinet Office wants more transparency over service use, costs and supplier margins, according to the tender.

The initial framework agreement will provide a four-year period during which they may enter into call-off agreements to access the services of DatacentreCo.

The framework agreement will then continue for as long as a call off agreement remains in operation.

Call off contracts under the framework agreement may be awarded for up to five years, with options for customers to extend for a further two one-year periods.