Payroll Service and HR/Payroll System

London Borough of HounslowcontractFind a TenderRef ocds-h6vhtk-0567b9Procurement Act 2023SME suitableactive
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Estimated value

£13.9m

services

Awarded value

Suppliers

0

Lots

1

0 awarded

Published

15 Apr 2026

Deadline 22 Jun 2026

Description

The London Borough of Hounslow (the "Council") is seeking a Service Delivery Partner ('Delivery Partner') to deliver a fully outsourced Payroll Service and Software‑as‑a‑Service (SaaS) HR/Payroll System from 1 October 2027. The service has been outsourced since October 2017 and TUPE will apply. The incumbent system is iTrent. The Authority will retain an in‑house HR operations team responsible for system set‑ups and reporting. The contract covers a fully managed payroll service for: Council employees Employees of Council‑owned companies (the Lampton Group) External clients purchasing the service Councillors' allowances and expenses Periodic election payrolls Maintained schools, academies and extended childcare centres including: • West Thames College • Norwood Green Juniors • The Green School Trust • BCPS Extended Day Care • Beavers Lodge Playgroup • Hounslow Action For Youth Association Ltd • Riverside Early Risers • Springwell + Morning Care • Springwell Holiday Scheme The supplier must provide the employer role for pension administration, covering the Local Government Pension Scheme (LGPS), Teachers' Pension Scheme and other applicable pension arrangements. The supplier must provide a SaaS HR/Payroll system including payroll, core HR, absence management, recruitment and onboarding, and management of employees and non‑employees. The scope includes implementation, configuration and deployment; data migration and reconciliation; ongoing support, maintenance and upgrades; continuous improvement and benchmarking; and contract exit and transition support. The service must comply with all applicable UK legislation and deliver accurate, timely and customer‑focused payroll services.

Scope

Reference
DN812800
Total value
£13,860,000 excluding VAT
£16,632,000 including VAT
Above the relevant threshold
Commercial tool
Standalone contract
Contract dates
30 Sept 2026 to 30 Sept 2032
Possible extension to 30 Sept 2036

The Contracting Authority reserves the right to extend the contract beyond the initial term for up to a further two (2) years and an additional option to extend for a further two (2) years thereafter, subject to satisfactory performance of the Contractor. Extension Criteria An extension will only be considered where the Contractor has: - Consistently met or exceeded performance expectations - Demonstrated proactive issue resolution and continuous improvement - Maintained compliance with all legal and contractual requirements

Main category
services
CPV classifications
79211110
79631000
Contract locations
UK, United Kingdom
Particular suitability
Small and medium-sized enterprises (SME)

Award criteria

Criteria the buyer will use to evaluate bids.

NameDescriptionTypeWeighting
Qualityquality60.00%
Priceprice40.00%

Participation

Conditions suppliers must meet to bid.

As outlined in the Invitation to Tender

Submission & procedure

Enquiry deadline
05 Jun 2026, 11:00 am
Submission deadline
22 Jun 2026, 11:00 am
Submission address
https://procontract.due-north.com/Advert?advertId=3706a117-ab38-f111-813c-005056b64545&fromProjectDashboard=True
Electronic submission
Yes
Procedure
Open procedure