No surprise about that, except open source was the issue.
Reported here on ZDNet are these comments from George Osborn MP, the shadow chancellor:
Too many companies are frozen out of government IT contracts, stifling competition and driving up costs. Not a single open-source company is included in Catalyst, the government’s list of approved IT suppliers. [One of the problems is] a government IT system … incompatible with other types of software, which stifles competition and hampers innovation.