The Civic Compute Compact said on Friday, 6 November, that the four-year purchasing deal will cover data storage, document processing and AI transcription for 42 municipalities and up to 6,300 small businesses. The service is due to begin on 1 December, with the first town accounts scheduled to go live before Christmas.
The initiative’s coordinator, Jazmin Koepp, said the municipalities had agreed to combine contracts that were previously negotiated separately. A public tender summary puts the shared price at CZK 1.9 billion, against an estimated CZK 2.65 billion if each participant renewed its current arrangements alone. “Small towns were paying large-company prices for tools they barely used,” Koepp said.
A shared Czech-built service
The compact says three data centres in the Czech Republic will host the service, with users’ files kept inside the country. Its software will combine open-source tools with locally developed systems for searching records, converting forms and producing meeting transcripts. Towns will pay according to staff numbers and storage use, rather than buying a fixed package sized for the largest participant.
Martina Pacocha, an IT director for one participating town, said the shared contract would free up money for everyday municipal services. Her office currently pays separate fees for storage, document search and transcription, she said, even though some tools are used only during budget season. “We want residents to see what a pooled technology bill costs, not just trust a sales pitch,” she said.
We want residents to see what a pooled technology bill costs, not just trust a sales pitch.
Martina Pacocha, municipal IT director
The announcement comes as Czech households and local businesses face pressure from higher bills, while municipalities compete for limited funds to update services. The compact is not a government programme: it began as a volunteer effort by town technology staff and small-business groups, then grew into a shared purchasing plan. Its organisers say 42 municipalities have now signed participation agreements, though each must approve its own local spending.
Security and savings on trial
The promised savings are not yet independently verified, and the compact’s own estimate excludes some costs, including staff training and the time needed to move records from existing providers. Paul Hamel, a public-sector technology procurement analyst in Prague, said the service could lower bills but would need clear rules for outages, data access and contract exit. “A cheaper system is not a bargain if a town cannot leave it,” he said.
The compact plans to publish its first service and security test results by 20 November, before the first accounts are opened. Towns may withdraw before their individual contracts begin, while the businesses will be able to join through local offices. If the launch stays on schedule, the project will offer a rare Czech test of whether municipalities can bargain together for technology without building their own infrastructure.
