Scope
Reference
C7876
Description
The Department for Work and Pensions (DWP) is responsible for welfare, pensions, and child maintenance policy within the UK. As the UK's biggest public service department, it administers the State Pension and a range of working age and disability benefits to around 20 million UK citizens. DWP is committed to doing everything it can to enhance the overall citizen experience.
Citizens contact DWP wishing to start, validate, change or query their benefit claims. Calls using free phone Non-Geographic Numbers (NGNs) are answered by advisors within the DWP contact centre, which is the largest platform of its kind across all UK Government Departments and is one of the largest in Europe. The contact centre managed service ensures that all twenty-seven of DWP's Business Groups can connect with and support citizens, while also offering specialist services such as debt recovery and support for citizens with complex needs.
Conversational AI Platform is a Natural Language Call Steering (NLCS) solution which allows citizens to speak naturally to determine why our citizens are calling, which then enables the guiding of the call to the right agent which in turn offers the ability to provide personalised call deflection and/or self-service offerings. The net result creates several operational efficiencies. This solution will be integrated into the DWP contact centre platform to better serve millions of citizens by improving how DWP handle inbound calls, route queries intelligently, and offer self-service options.
Total value (estimated)
- £9,000,000 excluding VAT
- £10,800,000 including VAT
Above the relevant threshold
Contract dates (estimated)
- 6 July 2026 to 5 July 2030
- Possible extension to 5 July 2032
- 6 years
Description of possible extension:
Two separate 12-month extensions
Main procurement category
Services
CPV classifications
- 48512000 - Interactive voice response software package
- 79512000 - Call centre
- 64227000 - Integrated telecommunications services
- 72000000 - IT services: consulting, software development, Internet and support
Contract locations
- UK - United Kingdom
Participation
Legal and financial capacity conditions of participation
Legal Conditions
The Authority intends to use the GOV.UK Mid-Tier Contract as the basis for this Contract amended only to the extent required to accommodate the specific needs of this procurement and incorporate the Tender response of the successful Supplier.
Financial Conditions
In line with the 'Assessing and monitoring economic and financial standing (EFS) guidance note', the Supplier is required to complete the Financial Viability and Risk Assessment Tool (FVRAT) template (with input from any Related Persons and/or Sub-Contractors) that will be included in the Portal library.
Insurance Conditions
The following levels of insurance cover will be required at contract award:
a. Employer's Liability Insurance = Not less than £10 million per claim
b. Third Party Public and Product Liability Insurance = Not less than £25 million in respect of any one occurrence, the number of occurrences being unlimited in any annual policy period, but £15 million in the aggregate per annum in respect of products and pollution liability
c. Professional Indemnity Insurance = for a potential breach of professional duty by the Supplier in connection with professional advice and /or professional services, not less than £10 million per claim and such policy to be maintained for 6 years following the End Date
d. Cyber Liability Insurance = for cyber risk exposures, not less than £10 million per claim
e. Fidelity Insurance = in respect of the loss, theft or misappropriation of sums appropriate to the Contract while such sums are in the possession of the Supplier, not less than £1 million per claim
Technical ability conditions of participation
The supplier must confirm that any proposed solution will be UK-shored in a dedicated sovereign cloud environment, compliant with:
1. DWP procurement policies and procedures including the security policies and standards:
https://www.gov.uk/government/collections/dwp-procurement-policies-and-procedures ; and
https://www.gov.uk/government/publications/dwp-procurement-security-policies-and-standards
2. HMG security policy framework:
https://www.gov.uk/government/publications/security-policy-framework/hmg-security-policy-framework
3. National Institute of Standards and Technology (NIST) and National Cyber Security Centre (NCSC) standards (e.g. FIPS 140-2, SP 800-175B, SP 800-67).
4. 'The Public Sector Bodies (Websites and Mobile Applications) (No.2) Accessibility Regulations 2018' in line with the HM Government's Technology Code of Practice point 2, https://www.gov.uk/guidance/make-things-accessible which currently requires WCAG 2.2 AA standard as a minimum.
Particular suitability
Small and medium-sized enterprises (SME)
Submission
Publication date of tender notice (estimated)
5 January 2026
Enquiry deadline
16 January 2026, 12:00pm
Submission type
Requests to participate
Deadline for requests to participate
2 February 2026, 9:00am
Submission address and any special instructions
The Enquiry Deadline and Participation Deadline specifically relate to the Participation Stage. The Award Decision Date specifically relates to the Tender Stage. The elapsed time for enquiries and submission in the Tender Stage are expected to closely mirror those of the Participation Stage.
All procurement documentation will be shared via the DWP e-Sourcing tool (the Portal). The Portal is based on the Atamis software. The Portal is free of charge for Suppliers to use.
Interested suppliers should register at: https://dwp2.my.site.com/s/Welcome
For further assistance in relation to the Portal, please consult the online help.
Tenders may be submitted electronically
Yes
Languages that may be used for submission
English
Suppliers to be invited to tender
Maximum 5 suppliers
Selection criteria:
Any interested Suppliers will be invited to respond to a Procurement Specific Questionnaire (PSQ). The PSQ will contain a mixture of informational, pass/fail and scored requirements. The pass/fail questions will be based on the Conditions of Participation outlined in this Notice which must be met for a Supplier to advance to the Tender Stage of this competition.
The scored component will focus on technical and professional ability by reference to the contract examples, covering aspects of design, implementation, integration, and service delivery.
The evaluation framework (including the scoring methodology and question weighting) will be set out in the tender documents and will be applied in a transparent and non-discriminatory manner.
In the event of a tie-break, the Authority reserves to right to either (a) invite, or (b) exclude, all equally tied Suppliers to/from the Tender Stage.
Award decision date (estimated)
1 June 2026
Recurring procurement
Publication date of next tender notice (estimated): 7 January 2030
Other information
Payment terms
The process for submitting invoices and dealing with disputed invoices will align with the approach described in the Mid-Tier Contract and will be further detailed in the draft Mid-Tier Award Form that will be provided alongside the draft Contract as part of the tender process.
Description of risks to contract performance
DWP has identified the following known risks which satisfy the description at paragraph 6(a) of Schedule 8 of the Procurement Act 2023, because if they arise, either individually or otherwise, they could jeopardise the satisfactory performance of the Contract and, because of their nature, cannot be addressed unambiguously in the draft Contract. They are therefore intended to be permitted modifications pursuant to Schedule 8 Procurement Act 2023:
1. Government changes to welfare policy not covered by the qualifying change in law provisions in the draft contract, and
2. Changes required due to government re-organisation.
Procedure
Procedure type
Competitive flexible procedure
Competitive flexible procedure description
This procurement is being conducted under a Competitive Flexible Procedure in accordance with the Procurement Act 2023 using a two (2) stage approach. The evaluation framework, including the Participation Stage down-selection and Tender Stage award criteria, will be set out in the Competitive Flexible Procedure (CFP) Pack that will be issued in parallel with the Tender Notice. Please note that the Participation Stage and Tender Stage evaluation criteria will differ. For example, price will only be considered at Tender Stage. The evaluation framework will be applied in a transparent and non-discriminatory manner.
1) Participation Stage
Any interested Suppliers will be invited to respond to a Procurement Specific Questionnaire (PSQ). The PSQ will contain a mixture of informational, pass/fail and scored requirements. The pass/fail questions will be based on the Conditions of Participation outlined in this Notice which must be met for a Supplier to advance to the Tender Stage of this competition. The scored component will focus on technical and professional ability.
Alongside the PSQ response, Suppliers will be required to submit a signed Non-Disclosure Agreement (NDA) and a completed Financial Viability Risk Assessment Tool (FVRAT) using the template provided. The FVRAT is used to assess and monitor the economic and financial standing of potential Suppliers. In addition, if any potential conflicts are identified by the contracting authority, Suppliers may also be required to sign an Ethical Wall Agreement (EWA). No pricing information will be required or scored at the Participation stage, but Suppliers will be required to acknowledge the budget for the procurement.
The CFP Pack, PSQ, FVRAT, NDA and EWA will all be provided to the Supplier alongside the Tender Notice. The Authority will also make available a complete draft Contract which will include the required service specification, performance levels and an outline implementation plan.
The Authority intends to select a maximum of five (5) suppliers to advance to the Tender Stage, based on the five highest scoring responses from the qualified Suppliers.
2) Tender Stage
Shortlisted Suppliers will be invited to formally respond to a set of Quality questions and submit pricing in the form of a Financial Model, allowing the Authority to assess the overall tender submission. Following evaluation and a period of governance, Suppliers will be notified of the outcome, and the winning Supplier awarded the Contract.
The information provided here is based on the latest available information but may be subject to changes during the procurement. The Authority reserves the right to update or confirm aspects of the procurement process and associated timetable at any stage during the procurement; or circulate updated documents in respect of the procurement process. If it exercises these rights, it will inform all participating Suppliers of the proposed changes and impact on the process and any related documents via the Portal.
Contracting authority
Department for Work & Pensions
- Public Procurement Organisation Number: PJCP-7274-TLRQ
Caxton House, 6-12 Tothill Street, London, SW1H 9NA
London
SW1H 9NA
United Kingdom
Email: cp.commercial@dwp.gov.uk
Website: https://www.gov.uk/government/organisations/department-for-work-pensions
Region: UKI32 - Westminster
Organisation type: Public authority - central government