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The Driver and Vehicle Licensing Agency is to more than double what it spends annually on its IT deal with IBM.

It has signed a three-year extension to its existing Partners Achieving Change Together (Pact) ten-year deal, which covers technical infrastructure, operation and support, as well as transformation and system integration projects. The extension, which runs from 2012 to 2015, is worth £300m, according to IBM.

This compares with the DVLA's original estimate of £287.3m for the ten years from 2002-12, although that has since been revised upwards to £437m, a figure quoted by transport minister Lord Adonis last April. This equates to an annual cost of £43.7m, compared with £100m a year for the contract extension.

DVLA said that the scope of the Pact contract has not changed, but added that it includes system running costs which have increased with the increased use of electronic transactions, and development costs for new systems.

"This agreement offers significant savings for DVLA and we look forward to building on the partnership that has already been responsible for a wide range of innovative projects," said Paul Evans, DVLA's chief information officer.

The agency's business plan shows several multimillion pound projects planned for the next few years, such as its Continuous Insurance Enforcement programme, valued at £3.5m and planned to go live 2011 or 2012.

Over the next few years it expects to spend £40m on projects concerned with delivery and strategy, £43m on infrastructure projects and £27m on supporting its change programme, although some of these projects will be completed before the contract extension starts in 2012.

This article was originally published at Kable.

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