Section one: Contracting authority/entity
one.1) Name and addresses
HM Revenue & Customs
100 Parliament Street
London
SW1A2BQ
Contact
Carolyne M
Telephone
+44 3000585745
Country
United Kingdom
Region code
UK - United Kingdom
Justification for not providing organisation identifier
Not on any register
Internet address(es)
Main address
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
Retained Core Business Services (CBP)
Reference number
SR2224878779
two.1.2) Main CPV code
- 72416000 - Application service providers
two.1.3) Type of contract
Services
two.2) Description
two.2.2) Additional CPV code(s)
- 72416000 - Application service providers
two.2.3) Place of performance
NUTS codes
- UK - United Kingdom
Main site or place of performance
100 Parliament Street
Westminster
London
SW1A 2BQ
two.2.4) Description of the procurement at the time of conclusion of the contract:
The Core Business Platform (Retained Services) contract covers the provision of business application support and maintenance services for a set of business-critical HMRC applications. The contract includes options to provide decommissioning and applications modernisation services for applications in scope. The contract modification will support ongoing decommissioning and modernisation of services to meet initial contract objective ensuring that key business applications and services are modernised and ready for future market engagement.
two.2.7) Duration of the contract, framework agreement, dynamic purchasing system or concession
Duration in months
60
Section four. Procedure
four.2) Administrative information
four.2.1) Contract award notice concerning this contract
Notice number: 2022/S 000-008052
Section five. Award of contract/concession
Contract No
CW39425
Title
Core Business Platforms (Retained Services)
five.2) Award of contract/concession
five.2.1) Date of conclusion of the contract/concession award decision:
21 March 2022
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
Capgemini UK plc
95 Queen Victoria Street
London
EC4V 4HN
Country
United Kingdom
NUTS code
- UK - United Kingdom
Companies House
00943935
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: £107,271,468
Section six. Complementary information
six.3) Additional information
This is a contract modification notice.
six.4) Procedures for review
six.4.1) Review body
HMRC
Plaza 2, Ironmasters Way
Telford
TF3 4NT
Country
United Kingdom
Section seven: Modifications to the contract/concession
seven.1) Description of the procurement after the modifications
seven.1.1) Main CPV code
- 72416000 - Application service providers
seven.1.2) Additional CPV code(s)
- 72250000 - System and support services
- 72261000 - Software support services
- 72262000 - Software development services
- 72263000 - Software implementation services
seven.1.3) Place of performance
NUTS code
- UK - United Kingdom
Main site or place of performance
UK - United Kingdom
seven.1.4) Description of the procurement:
HMRC awarded a contract to Capgemini UK Ltd to provide Business Application, Support and Maintenance (BASM) services for a set of business-critical legacy HMRC applications which were part of the Core Business Platform. Prior to this Capgemini was the incumbent service provider to HMRC for these services (and other business applications, which were part of other replacement contracts or which are now decommissioned and no longer supported). The initial Prime Contract expired in June 2022.
The services under the Core Business Platform are: Business Application Support and Maintenance (BASM) services; and optional business application development and enhancement services, system integration services; strategy, architecture and feasibility analysis services and decommissioning services related to the applications, which HMRC can use on a call off basis.
The term of the Core Business Platforms contract is 5 years. The consumption of the services for the legacy applications under the contract was planned to decrease over the contract term as some services are decommissioned.
The legacy applications supported by this contract are either (1) Being replaced and decommissioned or (2) Services which are aging and require some form of consolidation or modernisation in order to mitigate technical risks and prepare them for going to market in the future. This contract modification is to support these activities.
The contract modification is £107,271,468.
seven.1.5) Duration of the contract, framework agreement, dynamic purchasing system or concession
Duration in months
60
In the case of framework agreements, provide justification for any duration exceeding 4 years:
N/a
seven.1.6) Information on value of the contract/lot/concession (excluding VAT)
Total value of the contract/lot/concession:
£214,542,937
seven.1.7) Name and address of the contractor/concessionaire
Capgemini UK PLC
95 Queen Victoria Street
London
EC4V 4HN
Country
United Kingdom
NUTS code
- UK - United Kingdom
Companies House
00943935
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):
This contract has been modified by £107.2m in line with PCR 2015. This is effective from 1st July 2025. This modification does not change the scope or terms and conditions of the contract.
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:
The CBP contract provides services supporting the Government's ability to manage national tax collection. A compromise to service delivery would impact the Government's ability to collect taxes and administer benefits payments and as such detrimentally impact UK citizens.
This modification has been made in line with Reg (1) (b):
Modification of the Contract is sought pursuant to Regulation 72 (1) (b) of the Public Contracts Regulations 2015 ("PCR 2015") on the basis of additional works, services and supplies that are required to be delivered under the Contract.
Under Regulation 72(1)(b) contracts and framework agreements may be modified without a new procurement procedure where additional works, services or supplies by the original contractor that have become necessary and were not included in the initial procurement, and where a change of contractor-
(i) cannot be made for economic or technical reasons such as requirements of interchangeability or interoperability with existing equipment, services or installations procured under the initial procurement.
(ii) would cause significant inconvenience or substantial duplication of costs for the contracting authority, and provided that any increase in price does not exceed 50% of the value of the original contract.
A change of supplier for this contract is not feasible for technical reasons due to Core Business Platforms applications having extremely high levels of technical and functional complexity.
In addition, there would be a significant increase in costs if a new supplier provided these services which would include major delays to programmes.
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: £214,542,937
Total contract value after the modifications
Value excluding VAT: £321,814,405.50