Award

Ask AI about this notice

Summarise, research or assess it with AI

View Markdown

Share this notice

Send this contract to a colleague

1 Year Extension of the Horizon Services Agreement

Post Office Limited

This public procurement record has 8 releases in its history.

AwardUpdate

12 Nov 2025 at 17:11

Award Notice
AwardUpdate

14 Mar 2025 at 16:09

Award Notice
Award

07 Oct 2024 at 11:05

Award Notice
AwardUpdate

21 Nov 2023 at 16:13

Award Notice
AwardUpdate

06 Apr 2023 at 16:39

Award Notice
AwardUpdate

05 May 2021 at 18:01

Award Notice
Award

05 May 2021 at 17:58

Award Notice
Award

06 Apr 2021 at 13:10

Award Notice
Summary of the contracting process

The Post Office Limited, headquartered in London, is currently in the award stage of its procurement process for a "1 Year Extension of the Horizon Services Agreement". The tender, initiated in November 2025, falls under the IT services category, encompassing consulting, software development, Internet, and support. It specifically maintains and develops Point of Sale/Service systems across multiple channels while addressing several vital contract terms such as governance enhancements and legacy system upgrades. The agreement extends for another year starting 1 April 2026, ending on 31 March 2027. The regions covered include UKJ, UKK, and UKN, with Fujitsu Services Limited, located in Bracknell, acting as the main supplier. Contract work is valued at £2,479,000,000, with Fujitsu particularly chosen due to technical reasons that prevent moving to another supplier given Horizon's complexity and age.

This contract extension presents significant growth opportunities for IT service providers familiar with legacy systems and complex infrastructures. Companies with expertise in software maintenance, development, and support for critical and extensive service agreements would find this tender highly suitable. The project provides ample scope for businesses that can offer tailored solutions to enhance governance structures, maintain complex systems, and manage end-of-life service components. Suppliers who can accommodate the specific interoperability needs and navigate the intricacies of large-scale IT operations in government-linked services are best positioned to compete. Furthermore, firms adept at handling transition periods and technical upgrades can play a pivotal role in extending and updating such legacy service contracts.

How relevant is this notice?

Notice Information

Notice Title

1 Year Extension of the Horizon Services Agreement

Notice Description

Provision of professional services to support electronic disclosure management services, including the collection, processing and analysing of electronic data.

Lot Information

Lot 1

Continuing provision of application and service management, maintenance, development and support services under an existing software and IT services agreement relating to Point of Sale/Service ('POS') customer facing transactions across multiple channels. Other than the extension of the term of the agreement, all other terms and conditions shall remain the same with the exception of FSL obligations in respect of: End of Service Life (EOSL) Impact and Relief Principles, improved Governance for better management, Removal of Redundant Clauses and Schedules, maintenance of software that resides on HNG-X system and licenses required, from the date of the execution of the modification; and NB: Any investment will be subject to POL agreeing suitable work orders with FSL.

Options: Option to extend for a further 12 month term.

Procurement Information

This Notice relates to the modification of an existing contract that has been necessary due to the following reasons. The Authority's existing Horizon system is a highly complex, legacy platform, written in outdated versions of software languages, and incorporates five 'systems' in one i.e. financial services, banking, government services, mails, and retail. "Horizon" is an aging platform, has an inflexible monolithic architecture that makes technology change difficult. It was not designed for multi-channel digital operations. The services cannot for economic and technical reasons be provided by a contractor other than the original contractor before the expiry of the Horizon Agreement because of the specific interoperability requirements and the highly complex nature of the existing infrastructure and the Authority's business model and operating procedures. A change of contractor would result in disproportionate technical difficulties in implementation as well as operation and maintenance. Awarding the contract to a different contractor would also cause significant inconvenience in terms of service delivery, reliability, and continuity of service, not least because of risk of incomplete transfer of know-how. Changing the original contractor would result in a number of sunk costs, including an increase in run costs, dual running costs, and additional exit/transition costs for a 2-year service term. There would also be significant service risk as a result of engaging in two transitions of service provider within the relatively short time period of 2-3 years whereas an extension with the original contractor would just require one such transition. In summary, a change of contractor cannot be made for technical or economic reasons and would cause substantial inconvenience and duplication of costs for the Authority in accordance with Regulation 72(1)(b) of the Public Contracts Regulations 2015. The increase in price as a result of the modified contract is less than 50 % of the original contract value.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-02a2c1
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/073336-2025
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
Award Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Selective
Procurement Method Details
Restricted procedure
Tender Suitability
Not specified
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

72 - IT services: consulting, software development, Internet and support

CPV Codes

72000000 - IT services: consulting, software development, Internet and support

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
£12,008,000,000 Over £10B

Notice Dates

Publication Date
12 Nov 20259 months ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
6 Apr 20215 years ago
Contract Period
1 Apr 2024 - 31 Mar 2025 6-12 months
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Cancelled
Awards Status
Active
Contracts Status
Active

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
Post Office Limited
Contact Name
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

Buyer Location

Locality
LONDON
Postcode
EC2V 7ER
Postcode Area
Central London
Country
England
Major Region (ITL 1)
TLI London
Basic Region (ITL 2)
TLI3 Inner London - West
Small Region (ITL 3)
TLI35 Westminster and City of London
Delivery Location
TLJ South East (England), TLK South West (England), TLN Northern Ireland
Local Authority
City of London
Electoral Ward
Bassishaw
Westminster Constituency
Cities of London and Westminster

Supplier Information

Number of Suppliers
3
Supplier Names

Fujitsu Services Limited

Fujitsu Services Ltd

KPMG LLP

Further Information

Open Contracting Data Standard (OCDS)

View full OCDS Record for this contracting process

JSON Markdown

The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.

Loading OCDS record...