CIS Maude, the Cabinet Office minister, will hold discussions on Friday with major defence, IT and other equipment suppliers aimed at shaving billions of pounds from its annual procurement bill.
Companies such as Balfour Beatty, Carillion, Cisco Systems, Deloitte, Ernst & Young, KPMG, Slaughter & May and Tata Consultancy Services are expected to be at the meeting, according to Sky News.
Some companies, including IT services provider Logica, have alread reached agreement with ministers on revised terms.
In a statement issued to Sky, Maude said: “Although renegotiating contracts in this way had never been done by government before, it has proved to be a success for all sides involved, particularly the taxpayer. Several Memoranda of Understanding (MoUs) have already been signed and we expect more to be signed over the coming weeks.”