Section one: Contracting authority/entity
one.1) Name and addresses
Cabinet Office
70 Whitehall
London
SW1A2AS
commercial@cabinetoffice.gov.uk
Country
United Kingdom
Region code
UKI32 - Westminster
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
Cabinet Office Call Off from Independent Shared Service Centre 2 (ISSC2 Framework)
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.2.3) 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.
Cabinet Office (the 'Authority') Call Off Order Form (COOF) sourced the provision of shared business support services from ISSC2 Framework Agreement originally commencing from 01/11/2013 to 31/10/2020. The Authority exercised an option to extend the term of the COOF, provided for in the original procurement documents, to 31st October 2023 . It subsequently extended the COOF term for an additional period of 2 years so as to expire on 31st October 2025 .
two.2.7) Duration of the contract, framework agreement, dynamic purchasing system or concession
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 01/11/2013 ending 31/10/2020 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 31/10/2023. In 2023 the COOF was extended for a further 2 years from 01/11/2023.
Section four. Procedure
four.2) Administrative information
four.2.1) Contract award notice concerning this contract
Notice number: 2013/S 063-105796
Section five. Award of contract/concession
Contract No
C0019
five.2) Award of contract/concession
five.2.1) Date of conclusion of the contract/concession award decision:
1 November 2013
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
Three Cherry Trees Lane
Hemel Hempstead
Country
United Kingdom
NUTS code
- UK - United Kingdom
Justification for not providing organisation identifier
Partnership
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: £100,000,000
Section six. Complementary information
six.3) Additional information
https://www.contractsfinder.service.gov.uk/Notice/6aa0cac9-3256-437a-8c38-a265e38d070b
six.4) Procedures for review
six.4.1) Review body
Cabinet Office
London
commercial@cabinetoffice.gov.uk
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
- 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 exit from SSCL to the new providers.
seven.1.5) Duration of the contract, framework agreement, dynamic purchasing system or concession
Start date
1 November 2025
End date
30 April 2027
seven.1.6) Information on value of the contract/lot/concession (excluding VAT)
Total value of the contract/lot/concession:
£16,827,000
seven.1.7) Name and address of the contractor/concessionaire
Shared Services Connected Ltd
Three Cherry Trees Lane
Hemel Hempstead
Country
United Kingdom
NUTS code
- UK - United Kingdom
Justification for not providing organisation identifier
Partnership
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 up to 18 months to 30 April 2027 to enable exit from the current solution and transition to the new arrangements.
In addition to the modification to the COOF term, the following modifications have been made:
-Revisions to the Exit Schedule to accommodate the approach to exit and transition to the replacement solution.
-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.
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 Matrix 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 Matrix 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 the implementation of the Matrix Cluster arrangements across multiple departments and the Authority's exit from the incumbent solution provided by SSCL to align to the cluster and split technology and business service approach, means that new shared service systems and solutions will not be fully implemented before the Authority's COOF with SSCL expire in 31 October 2025. Procurements for the replacement ERP and SI have already taken place, and business services will be brought in house.
An extension is required to the existing arrangements because a change of contractor cannot be made for economic or technical reasons and any change would cause significant inconvenience or duplication of costs for a duration of 18 months. The increase in price does not exceed 50% of the original contract value.
The business critical services currently provided by SSCL are dependent on a bespoke operating platform, which incorporates proprietary material and interfaces with numerous other systems. This 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 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 new providers where procurement has already concluded.
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 Matrix Cluster for the Authority.
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: £100,000,000
Total contract value after the modifications
Value excluding VAT: £116,827,000