Section one: Contracting authority
one.1) Name and addresses
The Minister for the Cabinet Office acting through Crown Commercial Service
9th Floor, The Capital, Old Hall Street
Liverpool
L3 9PP
Contact
Pat Robinson
pat.robinson@cabinetoffice.gov.uk
Telephone
+44 7711937552
Country
United Kingdom
NUTS code
UK - UNITED KINGDOM
Internet address(es)
Main address
one.4) Type of the contracting authority
Ministry or any other national or federal authority
one.5) Main activity
General public services
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
Administration of the Civil Service Pensions Schemes
two.1.2) Main CPV code
- 66523100 - Pension fund administration services
two.1.3) Type of contract
Services
two.1.4) Short description
The administration of civil service pensions for more than 1.5 million past and present civil servants and more than 250 employers; the provision of pension payroll and injury benefit services; and services in connection with the Civil Service Compensation Scheme, which provides compensation to civil servants in the event of redundancy.
two.1.6) Information about lots
This contract is divided into lots: No
two.1.7) Total value of the procurement (excluding VAT)
Value excluding VAT: £44,762,364
two.2) Description
two.2.3) Place of performance
NUTS codes
- UK - UNITED KINGDOM
two.2.4) Description of the procurement
Cabinet Office is responsible for the management of the Civil Service Pension Scheme (CSPS) and the Royal Mail Statutory Pension Scheme (RMSPS) - the third and sixth largest pension schemes in the UK respectively. The CSPS is currently administered under contract by MyCSP Ltd and the contract is due to expire on 31 December 2021. Additional work has become necessary between early 2021 and mid 2023 In order to allow the contracting authority to meet its obligations in response to the McCloud judgment on the transitional protection elements of the 2015 public sector pension scheme reforms. This cannot be carried out by an alternative provider for economic and technical reasons without causing significant inconvenience or substantial duplication of costs for the contracting authority. Accordingly, the contracting authority has entered into an agreement with MyCSP to extend the contract by two years. The RMSPS is currently administered under a separate contract with Capita, which expires in September 2023.
two.2.5) Award criteria
Price
two.2.11) Information about options
Options: No
two.2.13) Information about European Union Funds
The procurement is related to a project and/or programme financed by European Union funds: No
two.2.14) Additional information
Cabinet Office expects to run a single procurement for both schemes. An advert will be published in Q2 of 2021 with contract award in 2022. To inform the procurement, Cabinet Office is undertaking pre-market engagement and would welcome views from suppliers on: Delivery Model, Service Transformation, Transition, Technology, Commercial models and risk appetite.
Section four. Procedure
four.1) Description
four.1.1) Type of procedure
Award of a contract without prior publication of a call for competition in the cases listed below
- Additional deliveries by the original supplier
Explanation:
Cabinet Office is responsible for the management of the Civil Service Pension Scheme (CSPS) and the Royal Mail Statutory Pension Scheme (RMSPS). MyCSP Ltd administers the CSPS, and the contract expires on 31 December 2021. Additional work has become necessary to allow Cabinet Office to meet its obligations in response to the McCloud judgment on the transitional protection elements of the 2015 public sector pension scheme reforms (the “2015 Remedy”). An alternative provider cannot deliver this work for technical reasons, and without causing significant inconvenience or duplication of costs. The principle technical issue is the need to administer the 2015 Remedy from early 2021 alongside the core scheme administration, which timeline precludes the opportunity to procure and transition the services to an alternative provider. It is expected the 2015 Remedy will take three years to complete. Continuing with the current provider allows the Cabinet Office to meet the immediate needs of scheme members who have already taken pensions and may need to have their pensions adjusted under the 2015 Remedy or who have been denied ill health retirement pensions which may be granted due to the 2015 Remedy. In addition to meeting the needs of those retiring over the coming few years. For a third party to deliver the 2015 Remedy separately from the core pension administration would require substantial duplication of costs and be technically difficult due to the need to; replicate the scheme calculations through a second pension administration system; transition and duplicate scheme data; maintain two parallel databases; and interface data between two administrators to ensure consistent and accurate communication with members and employers to calculate the benefits. Accordingly, Cabinet Office has entered into an agreement with MyCSP to extend the contract by two years and to deliver the 2015 Remedy programme. Cabinet Office expects to commence a new procurement exercise for the administration of both CSPS and RMSPS in Q2 of 2021. As set out in the additional information section, Cabinet Office will carry out pre-market engagement to inform the procurement exercise for replacement CSPS and RMSPS contract(s).
four.1.8) Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: Yes
Section five. Award of contract
Contract No
1
Title
Administration of Civil Service Pensions
A contract/lot is awarded: Yes
five.2) Award of contract
five.2.1) Date of conclusion of the contract
20 January 2021
five.2.2) Information about tenders
Number of tenders received: 1
The contract has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor
MyCSP Limited
Park Square, Bird Hall Lane
Stockport
SK3 0XM
Country
United Kingdom
NUTS code
- UK - UNITED KINGDOM
The contractor is an SME
No
five.2.4) Information on value of contract/lot (excluding VAT)
Total value of the contract/lot: £44,762,364
Section six. Complementary information
six.4) Procedures for review
six.4.1) Review body
High Court of England and Wales
London
Country
United Kingdom