Is this the same type of squeeze that they objected to Serco putting on its suppliers?
As for the "we're joined up" nonesense. I'll believe that when the Govt contracts for Outsourcing services with a single supplier for the whole of Govt. Lets at least be honest here, Govt is not a single customer but lots and they all want their own "special" set of services and requirements hence the reason why things are priced differently be customer, much like the real world when you think about it.
I reckon Francis Maude threatened to not give the suppliers any more work like they did to Andersons after the DeLorean fiasco.