| Date |
|---|
| 11th February 2026 |
Suppliers have advised SUPC that global shortages of key components, particularly memory and certain processors, are continuing to impact configuration availability, lead times and pricing (significantly) across client devices and infrastructure systems.
These conditions are being driven by exceptional demand for AI‑related data‑centre infrastructure, with hyperscalers securing memory and storage supply years in advance, reducing availability for standard device production.
As a result, pricing and specifications previously quoted may no longer be valid and suppliers are shortening validity periods, sometimes to days. Some configurations may also need to be revisited where component allocation cannot be secured.
Recommendations
1. Accelerate procurement decisions
Where possible, bring forward commitments to lock in current pricing and availability before further increases occur. A peak is expected for central government/nhs/private sector FY year end in March, so please take this into consideration.
2. Engage with suppliers
Talk to suppliers – confirm lead times, stock positions, and price validity with suppliers for all outstanding orders and new quotations.
3. Use flexible award approaches
Given the market conditions, where appropriate and compliant with framework rules and your own internal governance/policies, a direct award route may help secure pricing more quickly amid shortened validity periods. Each institution should assess potential risk associated with the direct award and ensure the decision and justification is documented.
4. Reduce standstill where appropriate
While standstill period under framework mini competition awards are best practice, shortening or removing standstill periods in this current climate may minimise the risk of losing pricing commitments due to market changes.
5. Explore flexible funding mechanisms
Evaluate options such as deferred payment or interest-only models with suppliers to align procurement timing with budget cycles while mitigating immediate cost exposure.
6. Monitor market conditions continuously
Given ongoing volatility, maintain regular market surveillance and update forecasts to reflect emerging price trends and supply constraints.
If you have any questions, or would like any support on this, please contact our Head of Procurement Carol Murphy.