Section one: Contracting authority/entity
one.1) Name and addresses
Home Office
2 Marsham Street
London
SW1P 4DF
Contact
Steve Butler
stephencharles.butler1@homeoffice.gov.uk
Telephone
+44 7768034813
Country
United Kingdom
Region code
UK - United Kingdom
Internet address(es)
Main address
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
Home Office Call Off Order Form (COOF) from the Independent Shared Service Centre Two (ISSC2 Framework Agreement)
two.1.2) Main CPV code
- 79400000 - Business and management consultancy and related services
two.1.3) Type of contract
Services
two.2) Description
two.2.1) Title
Home Office Call Off Order Form (COOF) from the Independent Shared Service Centre 2 (ISSC2 Framework)
Lot No
N/A
two.2.3) Place of performance
NUTS codes
- UK - United Kingdom
two.2.4) Description of the procurement at the time of conclusion of the contract:
In December 2012, HM Government published 'Next Generation Shared Services: The Strategic Plan' which set out its proposals for the consolidation, standardisation and simplification of Back Office Transactional Services between and across Central Government to facilitate improvements in the delivery and reduction in the costs of such services, in support of the Government's cost reduction targets.
On 29 March 2013, the Cabinet Office as Framework Authority advertised a notice in the Official Journal of the European Union (2013/S 063-105796 – the ‘original framework notice’), its intention to establish a single supplier framework. Pursuant to the advertised notice, and in accordance with the Public Contract Regulations (PCR) 2015, the ISSC2 Framework Agreement was awarded to Shared Services Connect Ltd (SSCL) as the single Contractor to provide shared business support services including human resources, finance and accounts, payroll and procurement to Crown and other public sector bodies.
This ISSC2 Framework Agreement, therefore, established the basis on which Crown and other public sector bodies were able, during the Call-Off Period, to enter into Call-Off Agreements (called Call Off Order Forms or ‘COOFs) with the SSCL for the provision of the shared business support services. ISSC2 Framework Agreement provided the terms and conditions pursuant to which shared business support services were to be provided.
[DEPT] (the 'Authority') Call Off Order Form (COOF) sourced the provision of shared business support services from ISSC2 Framework Agreement originally commencing from 30th October 2014 to 29th October 2021. The Authority exercised an option to extend the term of the COOF, provided for in the original procurement documents, to 29th October 2024. It subsequently extended the COOF term for an additional period of 1 year so as to expire on 29th October 2025.
two.2.7) Duration of the contract, framework agreement, dynamic purchasing system or concession
Start date
1 November 2013
End date
31 October 2025
In the case of framework agreements, provide justification for any duration exceeding 4 years
The original COOF was awarded for an initial period of 7 years from ending 29/10/2021 and, in accordance with the original procurement documents relating to the advertised notice for the ISSC2 Framework, contained an option to extend the COOF term by 3 years up to 29/10/2024. In 2024 COOF was extended for a further 1 year from 29/10/2024 after the original option to extend the initial period.
two.2.13) Information about European Union Funds
The procurement is related to a project and/or programme financed by European Union funds: No
Section five. Award of contract/concession
Contract No
Change Authorisation Note No.11
five.2) Award of contract/concession
five.2.1) Date of conclusion of the contract/concession award decision:
30 October 2014
five.2.2) Information about tenders
The contract/concession has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor/concessionaire
SHARED SERVICES CONNECTED LIMITED (‘SSCL’)
Three Cherry Trees Lane
Hemel Hempstead
HP2 7AH
Country
United Kingdom
NUTS code
- UK - United Kingdom
Internet address
The contractor/concessionaire is an SME
No
five.2.4) Information on value of the contract/lot/concession (at the time of conclusion of the contract;excluding VAT)
Total value of the procurement: £1,121,078,560
Section six. Complementary information
six.4) Procedures for review
six.4.1) Review body
Home Office
2 Marsham Street
London
SW1P 4DF
Country
United Kingdom
Internet address
Section seven: Modifications to the contract/concession
seven.1) Description of the procurement after the modifications
seven.1.1) Main CPV code
- 79400000 - Business and management consultancy and related services
seven.1.3) Place of performance
NUTS code
- UK - United Kingdom
seven.1.4) Description of the procurement:
Provision of:
1. shared critical business support services including human resources, finance and accounts, payroll and procurement to Crown and other public sector bodies
2. ‘Transition Services’ to support the phased approach the exit from the shared business support services from the Contractor to the Home Office, (including any of the Service Recipients and/or to any Replacement Contractor(s)) in accordance with a new phased transition approach.
seven.1.5) Duration of the contract, framework agreement, dynamic purchasing system or concession
Start date
24 April 2025
End date
31 October 2028
In the case of framework agreements, provide justification for any duration exceeding 4 years:
For reasons described in this modification notice, the term of the COOF is extended for 3 years from the end of October 2025. The Authority/Department of Work and Pension as Synergy Cluster lead has published the award a new contract (tender_366761/1408635 called the ‘Synergy Technology (including ERP) and System Integration Services’ contract on 25th September 2024 (and awarded on 30th August 20
seven.1.6) Information on value of the contract/lot/concession (excluding VAT)
Total value of the contract/lot/concession:
£40,288,971
seven.1.7) Name and address of the contractor/concessionaire
SHARED SERVICES CONNECTED LIMITED (SSCL)
Three Cherry Trees Lane
Hemel Hempstead
HP2 7AH
Country
United Kingdom
NUTS code
- UK - United Kingdom
Internet address
The contractor/concessionaire is an SME
No
seven.2) Information about modifications
seven.2.1) Description of the modifications
Nature and extent of the modifications (with indication of possible earlier changes to the contract):
The COOF has been modified pursuant to regulation 72(1)(b) of the Public Contracts Regulations 2015 (“PCR 2015”) and this notice is published for transparency purposes.
The current COOF with SSCL is due to expire by 31 October 2025 which means business critical services including the capacity to make payments to employees (i.e. payroll) and suppliers would cease. i.e. the business as usual shared business support services unless continued provision could be secured. The term of the COOF is therefore being extended by a period of 3 years to expire on 31 October 2028 to enable exit from the current solution and transition to the new arrangements (however it is anticipated that the provision of the services will taper down during the currency of the extension period and cease prior to this date).
In addition to the modification to the COOF term, the following modifications have been made:
• Revisions to the Exit Schedule to accommodate the phased approach to exit and transition to the replacement contractor(s) in alignment with the Shared Services for Government (SSfG) Strategy;
• Reductions to Unit Prices, fixed indexation, streamlined volume banding and changes to the manner in which minimum purchase volumes will be calculated;
• Enhanced financial transparency obligations;
• An agile change management process to facilitate commissioning of minor changes;
• Provision for payment of certain stranded costs, in part to facilitate the re-procurement exercises; and
• New governance arrangements to align to the Synergy Cluster approach and to interface with the new ERP/SI and (eventual) BPS providers.
seven.2.2) Reasons for modification
Need for additional works, services or supplies by the original contractor/concessionaire.
Description of the economic or technical reasons and the inconvenience or duplication of cost preventing a change of contractor:
In accordance with the published Shared Services for Government (SSfG) Strategy, the Authority is part of the Synergy Cluster. This SSfG Strategy has been progressing as planned since its launch in 2021. Due to collaborative working across the Civil Service, 17 departments and over 100 arms-length bodies have grouped together in 5 clusters, including the Synergy Cluster, to transform the back-office functions of Government. The SSfG will reform and modernise services leading to smarter, cheaper, faster systems across the 5 clusters. As part of the strategy the technology and business process service elements will be split, in contrast to the current single supplier solution.
The complexity of implementation of the Synergy Cluster arrangements including the phased exit from the incumbent solution provided by SSCL to align to the cluster and split technology and business service approach, that include the Authority, means that new shared services will not be procured and associated systems and solutions will not be fully implemented before the Authority's COOF with SSCL expire by 31 October 2025.
The Synergy Cluster considered a number of options to secure the continued provision of the business critical services. These services are dependent on a bespoke operating In accordance with the published Shared Services for Government (SSfG) Strategy, the Authority is part of the Synergy Cluster. This SSfG Strategy has been progressing as planned since its launch in 2021. Due to collaborative working across the Civil Service, 17 departments and over 100 arms-length bodies have grouped together in 5 clusters, including the Synergy Cluster, to transform the back-office functions of Government. The SSfG will reform and modernise services leading to smarter, cheaper, faster systems across the 5 clusters. As part of the strategy the technology and business process service elements will be split, in contrast to the current single supplier solution.
The complexity of implementation of the Synergy Cluster arrangements including the phased exit from the incumbent solution provided by SSCL to align to the cluster and split technology and business service approach, that include the Authority, means that new shared services will not be procured and associated systems and solutions will not be fully implemented before the Authority's COOF with SSCL expire by 31 October 2025.
The Synergy Cluster considered a number of options to secure the continued provision of the business critical services. These services are dependent on a bespoke operating platform, the SOP, which incorporates proprietary material and interfaces with numerous other systems within the respective Synergy Cluster members' IT environments. Which would need to be re-procured/ replicated in any interim solution and which would necessitate at least some continued reliance on the incumbent supplier SSCL. The time taken to procure an interim, temporary solution (pending finalisation of the live re-procurements) would result in significant duplicative and nugatory cost. There would be insufficient time to exit the SSCL solution, move to the new interim solution and then transition to the solution of the providers procured via the current procurements.
A change in supplier without the lengthy handover period would risk the failure in the delivery of the shared business support services which provide payments to employees (i.e. payroll) and suppliers.
Therefore, an extension to the COOF is essential for safeguarding the uninterrupted continuation of the shared business support services and critical operational arrangements, whilst providing the foundation for a safe transition to new and improved shared services under the Synergy Cluster for the Authority.
As described above, the Synergy Cluster has finalised the technology re-procurement and is currently procuring the business process services that will implement the SSfG Strategy vision. It is anticipated that the incumbent services provided under the COOF will transition to these new arrangements before the expiry of the extended COOF. i.e. on or by 31st Oct 2028 with a ramp down of incumbent services during this period.
The value of the modification does not exceed 50% of the value of the original contract.
seven.2.3) Increase in price
Updated total contract value before the modifications (taking into account possible earlier contract modifications, price adaptions and average inflation)
Value excluding VAT: £112,078,560
Total contract value after the modifications
Value excluding VAT: £152,367,532