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Three more firms are out of the running for major contracts in smart meter data and communications services.

Utility Week understands that Tata Consultancy Services has not made it through to the second phase of the process to become the data services provider (DSP) to the data communications company (DCC).

That contract is worth up to £240 million, but companies have complained that the bid process is labour intensive and expensive. With Accenture last month walking away from the DSP tender, it leaves Atos, HP, IBM, Logica and Siemens entering the detailed design stage.

Meanwhile, UW understands that Ericsson and Everything Everywhere are out of the comms tender. That would mean the remaining bidders for three regional contracts, worth up to £1.5 billion each, are consortia led by Airwave, Arqiva, Balfour Beatty, Cable & Wireless, O2 and Vodafone.

It is not yet clear how the proposed Vodafone takeover of C&W would affect their separate bids. G4S, which failed to make the initial shortlist, has joined IBM’s consortium, Utility Week understands.

The contracts are set to be awarded next spring. Companies have to submit a firm price and detailed proposals by late summer. After evaluating those bids, the Department of Energy and Climate Change is expected to select three bids to take forward. It is thought two bidders will be asked to make a best and final offer in the new year.

This article first appeared in Utility Week’s print edition of 18 May 2012.

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