Scope
Reference
CPD4128021
Description
To appoint an external Supplier that can quickly mobilise resources to coordinate and conduct external assurance reviews of local authorities where those local authorities are identified as carrying significant risk and / or exhibiting evidence of failure. The reviews may cover a range of subject areas that include but are not limited to: governance processes, financial management, financial sustainability, commercial and companies, and procurement and contract management. Reviews will include recommendations on appropriate steps local authorities could take to address the issues / risks identified.
It is expected that the areas of focus for each review will not be mutually exclusive, and the Supplier is expected to consider the interdependencies across the different areas as required. There may be additional focuses for specific local authorities that may be included in review scopes, for instance, specific demand pressures or investments / companies that are driving financial pressures.
External Assurance Reviews will be categorised as either (but not limited to)
"in depth assessment (finance and governance)" - will encompass a wide scope across a range of subject areas
"in depth assessment (finance)" - scopes which are principally focused on financial management & sustainability and/ or capital / debt & investments / assets, and improvement only
"in depth assessment (governance)" - reviews focused on the governance, culture and leadership of organisation or service delivery (and improvement) - with only limited focus on financial elements of the authority under view
"rapid review" (which could be financial or governance focused in nature)
Under this contract the Supplier will be expected to deliver against the following objectives:
Objective 1 - Delivering Reviews: To deliver to MHCLG completed external assurance reviews of local authorities to an agreed timeframe to enable timely actions to be taken in response to their findings;
Objective 2 - Consistency and Quality: To ensure consistency of quality, depth, and presentation of external assurance reviews, and that all reviews meet a good standard of written English;
Objective 3 - Constructive Working Relationships: To work constructively with local authorities subject to an external assurance review to ensure review analysis and findings are robust, and maintain as far as possible a collaborative working relationship between local authority, Supplier and MHCLG;
Objective 4 - Due Diligence to Reduce Legal Risk: To ensure that conflicts of interest are managed appropriately, and that the Supplier undertakes due diligence to reduce legal risk in all respects, this includes ensuring appropriate due diligence where a review implicates an identifiable individual.
Objective 5 - Resource Capacity: To ensure resource capacity and flexibility is provided so that reviews can continue to be delivered to the agreed timeframes, particularly where reviews are occurring concurrently.
Objective 6 - Expertise: To ensure Supplier reviewers / review teams have the necessary experience, expertise, qualifications and understanding of the local authority sector, reflecting the review scope may flex subject to the issues identified in individual local authorities.
Contract 1
Supplier
Contract value
- £4,500,000 excluding VAT
- £5,400,000 including VAT
Above the relevant threshold
Award decision date
22 October 2025
Date assessment summaries were sent to tenderers
22 October 2025
Standstill period
- End: 3 November 2025
- 8 working days
Earliest date the contract will be signed
21 November 2025
Contract dates (estimated)
- 28 November 2025 to 1 December 2026
- Possible extension to 1 December 2028
- 3 years, 4 days
Description of possible extension:
There is an optional extension period of two years (+1+1). The financial cap for the initial 12 months will be a maximum of £1,500,000 ex VAT. Any extension period would be subject to requirements, a variation process, funding approval and performance of the supplier up to a maximum value of £3,000,000 ex VAT (for the optional extension years). The maximum value of the contract including any extension years is £4,500,000 ex VAT.
Main procurement category
Services
CPV classifications
- 66171000 - Financial consultancy services
Information about tenders
- 2 tenders received
- 2 tenders assessed in the final stage:
- 1 submitted by small and medium-sized enterprises (SME)
- 0 submitted by voluntary, community and social enterprises (VCSE)
- 1 supplier awarded contracts
- 1 supplier unsuccessful (details included for contracts over £5 million)
Unsuccessful suppliers
Procedure
Procedure type
Open procedure
Suppliers
CIPFA BUSINESS LIMITED
- Companies House: 02376684
- Public Procurement Organisation Number: PDXT-3827-YNGN
77 Mansell Street
London
E1 8AN
United Kingdom
Email: trackernotices@cipfa.org
Website: http://www.cipfa.org
Region: UKI42 - Tower Hamlets
Small or medium-sized enterprise (SME): Yes
Voluntary, community or social enterprise (VCSE): No
Supported employment provider: No
Public service mutual: No
Contract 1
ERNST & YOUNG LLP
- Companies House: OC300001
- Public Procurement Organisation Number: PMLW-7292-ZXTL
1 More London Place
London
SE1 2AF
United Kingdom
Website: https://www.ey.com/en_uk
Region: UKI44 - Lewisham and Southwark
Small or medium-sized enterprise (SME): No
Voluntary, community or social enterprise (VCSE): No
Contracting authority
Ministry of Housing, Communities & Local Government
- Public Procurement Organisation Number: PWCX-8281-CLPR
2 Marsham Street
London United Kingdom
SW1P 4DF
United Kingdom
Region: UKI32 - Westminster
Organisation type: Public authority - central government