Award

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

AwardUpdate

14 Mar 2025 at 16:09

Award

07 Oct 2024 at 10:05

AwardUpdate

21 Nov 2023 at 16:13

AwardUpdate

06 Apr 2023 at 15:39

AwardUpdate

05 May 2021 at 17:01

Award

05 May 2021 at 16:58

Award

06 Apr 2021 at 12:10

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.

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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.

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 20253 months ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
5 Apr 20214 years ago
Contract Period
31 Mar 2024 - 31 Mar 2025 6-12 months
Recurrence
Not specified

Notice Status

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

Contracting Authority (Buyer)

Main Buyer
POST OFFICE LIMITED
Contact Name
Not specified
Contact Email
cvmteammailbox@postoffice.co.uk, procurement@postoffice.co.uk
Contact Phone
Not specified

Buyer Location

Locality
LONDON
Postcode
EC2Y 9AQ
Post Town
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
TLI London, 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
2
Supplier Names

FUJITSU SERVICES

KPMG

Open Contracting Data Standard (OCDS)

View full OCDS Record for this contracting process

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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.

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        {
            "id": "034447-2023-N/A-1",
            "awardID": "034447-2023-N/A-1",
            "status": "active",
            "value": {
                "amount": 2375000000,
                "currency": "GBP"
            },
            "dateSigned": "2023-11-03T00:00:00Z",
            "period": {
                "startDate": "2024-04-01T00:00:00+01:00",
                "endDate": "2025-03-31T23:59:59+01:00"
            },
            "items": [
                {
                    "id": "1",
                    "classification": {
                        "scheme": "CPV",
                        "id": "72000000",
                        "description": "IT services: consulting, software development, Internet and support"
                    },
                    "deliveryAddresses": [
                        {
                            "region": "UKI"
                        }
                    ],
                    "relatedLot": "1"
                }
            ],
            "amendments": [
                {
                    "id": "3",
                    "description": "The following key amendments will be made to the Horizon Agreement. A 1 year extension of the Data Centre Operations and Central Network Services (including Test Infrastructure).",
                    "rationale": "Need for additional works, services or supplies by the original contractor/concessionaire: This Notice relates to the modification of an existing contract that has been necessary due to the following reasons: The existing Horizon System is a highly complex platform, written in legacy versions of software languages and which incorporates five \"systems\" in one i.e. financial services, banking, government services, mails and retail. As an aging platform, the inflexible nature of the construction of the architecture of \"Horizon\" itself makes technology change challenging. Accordingly, the Program to transfer the services to the Cloud encountered fundamental technical challenges that Post Office could not economically and technically overcome, and the business has taken the decision to pivot back to the existing Data Centres until the successful transfer of services out of Horizon and into its replacement NBIT (\"New Branch IT\"). The Data Centre Operations and Central Network Services cannot be transferred away from the original contractor in the short term because of the specific interoperability requirements, compounded by the highly complex nature of the existing infrastructure and the Post Office's business model and operating procedures. A change of contractor would result in disproportionate technical difficulties in implementation as well as operation and maintenance at this time. Awarding the services to a different contractor would also cause significant inconvenience in terms of service delivery, reliability and continuity of service including because of incomplete transfer of know-how. Therefore, Post Office has modified the contract 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. The Data Centre Operations and Central Network Services have thereby been extended for an additional period of 1 year from the 1st April 2024."
                }
            ]
        },
        {
            "id": "032026-2024-1",
            "awardID": "032026-2024-1",
            "status": "active",
            "value": {
                "amount": 12000000,
                "currency": "GBP"
            },
            "dateSigned": "2024-08-01T00:00:00+01:00"
        },
        {
            "id": "009521-2025-C100147-1",
            "awardID": "009521-2025-C100147-1",
            "status": "active",
            "value": {
                "amount": 2438000000,
                "currency": "GBP"
            },
            "dateSigned": "2024-11-29T00:00:00Z",
            "period": {
                "durationInDays": 360
            },
            "items": [
                {
                    "id": "1",
                    "classification": {
                        "scheme": "CPV",
                        "id": "72000000",
                        "description": "IT services: consulting, software development, Internet and support"
                    },
                    "deliveryAddresses": [
                        {
                            "region": "UKJ"
                        },
                        {
                            "region": "UKK"
                        },
                        {
                            "region": "UKN"
                        }
                    ],
                    "relatedLot": "1"
                }
            ],
            "amendments": [
                {
                    "id": "5",
                    "description": "A one year extension of all Services from the 1st April 2025 to the 31st March 2026. Other than the extension of the term of the agreement, all other terms and conditions shall remain the same with the exception of the removal of FSL obligations in respect of: Court Support Services, Litigation Support and prosecution support from both the Clauses and the Security Management Service: Service Description as well as Schedule A4 from the date of the execution of the modification; and Delivery of the Payment and Banking Service from 31st March 2025 or such earlier date as agreed between the Parties. Additional upgrades to address legacy technical debt issues estimated at PS21,000,000 is also included in the modification value. NB: Any investment will be subject to POL agreeing suitable work orders with FSL.",
                    "rationale": "Need for additional works, services or supplies by the original contractor/concessionaire: This notice relates to the modification of an existing contract under regulation 72(1)(b) of the Public Contracts Regulations 2015 (\"PCR\"). The modification has become necessary because delays to Post Office Limited's (\"POL\") New Branch IT (\"NBIT\") project meant that it would not be possible to transition from its legacy system, Horizon - provided by Fujitsu Services Limited (\"FSL\"), to the new NBIT system before POL's contract with FSL expires by effluxion of time on 31st March 2025. By the time significant delays to the NBIT project had become apparent in October 2023, any alternative tendered solution to replace Horizon would not have been mobilised and transitioned to prior to 31st March 2025. It was, therefore, necessary to extend POL's contract with FSL for ongoing support of the Horizon system. A change of contractor cannot be made for technical reasons. The 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 and has an inflexible monolithic architecture that makes technology change difficult. It would not be possible to simply hand this system over to another supplier. A change of contractor would result in disproportionate technical difficulties in implementation as well as operation and maintenance. Furthermore, while there are other similar systems to Horizon available on the market, there are no alternative systems that currently meet all of Post Office's business needs without significant development or customisation. It would not, therefore, be technically possible to mobilise a replacement system before 31 March 2025. On that basis, there are technical reasons why a change of contractor cannot be made. Changing contractor would cause significant inconvenience and duplication of costs. It would cause service disruption, cause significant data migration issues, require substantial business change at short notice, threaten continuity of service and create risk in the transfer of know-how. Furthermore, changing contractor would result in sunk costs, including an increase in run costs, dual running costs, and additional exit/transition costs. The modification is less than 50% of the original contract value. The Horizon support agreement was originally valued at approximately PS846,700,000. The maximum value of the extension, if all options are called on during its term is approximately PS63,000,000. The increase is, therefore, approximately 7.4% of the original contract value. 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 Post Office. The value of the extension is substantially less than 50% of the original contract value. Accordingly, Post Office is satisfied that the modification can be made under regulation 72(1)(b) of the PCR."
                }
            ]
        },
        {
            "id": "073336-2025-C100147-1",
            "awardID": "073336-2025-C100147-1",
            "status": "active",
            "value": {
                "amount": 2479000000,
                "currency": "GBP"
            },
            "dateSigned": "2025-11-04T00:00:00Z",
            "period": {
                "durationInDays": 360
            },
            "items": [
                {
                    "id": "1",
                    "classification": {
                        "scheme": "CPV",
                        "id": "72000000",
                        "description": "IT services: consulting, software development, Internet and support"
                    },
                    "deliveryAddresses": [
                        {
                            "region": "UKJ"
                        },
                        {
                            "region": "UKK"
                        },
                        {
                            "region": "UKN"
                        }
                    ],
                    "relatedLot": "1"
                }
            ],
            "amendments": [
                {
                    "id": "6",
                    "description": "A one year extension of all Services from the 1st April 2026 to the 31st March 2027. 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) components, improved Governance for better management, Removal of Redundant Clauses and Schedules, maintenance of software that resides on HNG-X system, licenses required, updated contractors used by FSL and replacement of the current Fujitsu Services WAN, from the date of the execution of the modification; and Additional upgrades to address legacy End of Service Life components is estimated at PS3,000,000 is also included in the modification value. NB: Any investment will be subject to POL agreeing suitable work orders with FSL.",
                    "rationale": "Need for additional works, services or supplies by the original contractor/concessionaire: This notice relates to the modification of an existing contract under regulation 72(1)(b) of the Public Contracts Regulations 2015 (\"PCR\"). Post Office Limited (\"POL\") requires a 12-month extension to its contract with Fujitsu Services Limited (\"FSL\") for the provision of its core trading platform Horizon (the \"Contract\"), from 01 April 2026 to 31 March 2027. The modification has become necessary because POL is in the process of procuring a replacement service provider (\"Replacement Provider\") to manage Horizon (the \"Procurement\") and that procurement activity and the mobilisation of the Replacement Provider will not be complete by 31 March 2026 when the Contract expires by effluxion of time. POL commenced the Procurement in the summer of 2025 and has been conducting the procedure at pace. POL expects that the Procurement will conclude and a new contract with the Replacement Provider put in place in Summer 2026 with transition activity commencing upon execution. It is necessary, therefore, to extend the Contract by 12 months to 31 March 2027. It would not have been possible for POL to have competed the opportunity to support Horizon during this period as any alternative tendered solution would not have been mobilised and transitioned to prior to 31st March 2026. A change of contractor cannot be made for technical reasons. The 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 and has an inflexible monolithic architecture that makes technology change difficult. It would not be possible to simply hand this system over to another supplier. A change of contractor would result in disproportionate technical difficulties in implementation as well as operation and maintenance. Furthermore, while there are other similar systems to Horizon available on the market, there are no alternative systems that currently meet all of Post Office's business needs without significant development or customisation. It would not, therefore, be technically possible to mobilise a replacement system before 31 March 2026. On that basis, there are technical reasons why a change of contractor cannot be made. Changing contractor would cause significant inconvenience and duplication of costs. It would cause service disruption, cause significant data migration issues, require substantial business change at short notice, threaten continuity of service and create risk in the transfer of know-how. Furthermore, changing contractor would result in sunk costs, including an increase in run costs, dual running costs, and additional exit/transition costs. The modification is less than 50% of the original contract value. The Horizon support agreement was originally valued at approximately PS846,700,000. The maximum value of the extension, if all options are called on during its term is approximately PS41,000,000. The increase is, therefore, approximately 4.8% of the original contract value. 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 Post Office. The value of the extension is substantially less than 50% of the original contract value. Accordingly, Post Office is satisfied that the modification can be made under regulation 72(1)(b) of the PCR."
                }
            ]
        }
    ],
    "language": "en",
    "bids": {
        "statistics": [
            {
                "id": "1",
                "measure": "bids",
                "relatedLot": "1",
                "value": 1
            },
            {
                "id": "2",
                "measure": "bids",
                "relatedLot": "1",
                "value": 1
            }
        ]
    },
    "description": "NB: Technical issues with Find a Tender has delayed publication of this notice."
}