Phoenix Software, a major IT services provider based in Barmby Moor, near York, has announced a landmark £75 million contract with the Ministry of Defence (MoD).
The agreement was awarded under the Value Added Software Agreement (VOSA), a framework designed to centralise and optimise the procurement of commercial off-the-shelf (COTS) software across the MoD. The contract is set to run until 31 August 2028.
This deal represents Phoenix Software’s first major direct engagement with the MoD. The VOSA agreement is intended to become the primary route for “tail spend”—the fragmented, smaller software purchases made across thousands of MoD buying entities.
By centralising these purchases, Phoenix will help the MoD achieve:
- Greater Transparency: A central repository of all software spend data to inform better decision-making.
- Cost Efficiency: A simplified, single route to market for software purchases.
- Operational Control: Enhanced visibility over vendor and user-level spending.
- Digital Transformation: Supporting the MoD’s broader agenda to modernise its digital infrastructure.
Phoenix Software, which employs over 500 staff and sees annual revenues approaching £1 billion, has secured several sole-supplier wins within the UK public sector recently. This latest contract further establishes the firm as a strategic partner to the UK government.
Sales director Keith Martin commented: “We are delighted to support the Ministry of Defence in this critical transformation. VOSA is not just a contract, it’s a platform for innovation, transparency, and long-term value for the UK’s defence community. It will provide the MoD with a much simpler route-to-market for software purchases, while providing greater transparency and optimisation of its software spend.”
Image source: LinkedIn
