Award

Retained Core Business Services (CBP)

HM REVENUE & CUSTOMS

This public procurement record has 2 releases in its history.

AwardUpdate

28 Jul 2025 at 13:27

Award

24 Mar 2022 at 16:27

Summary of the contracting process

The recent update in the contracting process involves HM Revenue & Customs (HMRC), a key UK government department, modifying an existing contract with Capgemini UK Plc. The procurement concerns the provision of application service management within the "Application service providers" category. This contract pertains to essential legacy applications under the Core Business Platform, located at 100 Parliament Street, Westminster, London. The modification entails enhanced support and maintenance services over a 5-year period, totalling £107,271,468, effective from 1st July 2025. The procurement process presently stands at the contract modification stage, aiming to address necessary service continuations and application modernisation.

This procurement presents opportunities for businesses involved in IT support and development, particularly those with expertise in maintaining legacy systems and providing modernisation solutions. Companies offering application decommissioning, system integration, and strategic analyses can find growth potential through partnerships or by positioning themselves for similar future projects. Businesses that can navigate complex government IT infrastructures and demonstrate a capability for seamless transition and upgrade of critical systems would be well-suited to compete in this sphere.

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Notice Title

Retained Core Business Services (CBP)

Notice Description

The contract is for business application support and maintenance services for a set of business-critical legacy HMRC applications. The contract includes options to provide decommissioning and application modernisation services for the business applications in scope. The purpose is either to decommission services during the initial term of this contract or prepare enduring applications and services to go to market in future. The contract will have a duration of 3 - 5 years.

Lot Information

Lot 1

HMRC awarded a contract to Capgemini UK Ltd to provide Business Application, Support and Maintenance (BASM) services for a set of business-critical legacy HMRC applications which were part of the Core Business Platform. Prior to this Capgemini was the incumbent service provider to HMRC for these services (and other business applications, which were part of other replacement contracts or which are now decommissioned and no longer supported). The initial Prime Contract expired in June 2022. The services under the Core Business Platform are: Business Application Support and Maintenance (BASM) services; and optional business application development and enhancement services, system integration services; strategy, architecture and feasibility analysis services and decommissioning services related to the applications, which HMRC can use on a call off basis. The term of the Core Business Platforms contract is 5 years. The consumption of the services for the legacy applications under the contract was planned to decrease over the contract term as some services are decommissioned. The legacy applications supported by this contract are either (1) Being replaced and decommissioned or (2) Services which are aging and require some form of consolidation or modernisation in order to mitigate technical risks and prepare them for going to market in the future. This contract modification is to support these activities. The contract modification is PS107,271,468.

Procurement Information

The services required by HMRC consist of the provision of Business Application Support and Maintenance (BASM) services; and optional business application development services, system integration services; strategy, architecture and feasibility analysis services and decommissioning services to support business critical legacy HMRC applications. The applications in scope are either (1) services which are in the process of being replaced and will be decommissioned within the New Contract term or (2) services which are aging and require some form of consolidation or modernisation in order to mitigate technical risks and prepare for going to market in future. The applications generate substantial taxes and revenue for the UK and a number of the applications are classified as business critical and therefore must be wholly reliable. It is therefore imperative that the support of such applications continue to be delivered safely and without interruption. The award of the New Contract to Capgemini ensures the secure and continued support of the legacy applications whilst they are either decommissioned or undergo technical modernisation. HMRC's assessment is that support services for applications which only have a time-limited life before they are decommissioned can only be provided by Capgemini. This is due to the increased technical risks involved during the migration of services to a replacement application and the decommissioning of all elements of the legacy application that requires a considerable level of in-depth knowledge and experience of the solution, which only Capgemini have because of their 18 years of supporting those services. Due to the age and intricate interdependencies of the legacy applications which are deemed to require consolidation or modernisation, the support services for those applications, until they are modernised, can only be provided by Capgemini. These applications are a complex environment of small solutions which require extensive knowledge of HMRC's business processes to manage and some are also on aged technologies for which there is a reducing skills-base available. Modernisation is necessary to bring them to the required technical level and reduce inter-dependencies whilst preparing them for going to market in future. As these are business critical tax and benefit applications, HMRC requires the secure and uninterrupted delivery of support to those applications and considers the award of the New Contract to be the only option for securing delivery of those services until they are either replaced and decommissioned or have been brought to a suitable technical state via consolidation or modernisation. The resulting contract enables HMRC to deliver on its strategic priorities to protect live services and deliver contractual flexibility to manage decommissioning. In parallel, HMRC will be able to work with Capgemini to prepare enduring technologies and services to go to market. This is an award of a contract via the negotiated procedure without prior publication under Regulation 32 of the Public Contracts Regulations 2015. HMRC's view, having taken advice, is reliance on Regulation 32 is justified because services being procured under and for the term of the New Contract can only be provided by Capgemini because competition is absent for technical reasons. Accordingly, HMRC concluded that for technical reasons HMRC would procure services under the New Contract which only Capgemini could provide and for which there was no reasonable alternative.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-03260e
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/043503-2025
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
Award Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Limited
Procurement Method Details
Award procedure without prior publication of a call for competition
Tender Suitability
Not specified
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

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


CPV Codes

72250000 - System and support services

72261000 - Software support services

72262000 - Software development services

72263000 - Software implementation services

72416000 - Application service providers

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
£536,357,342 £100M-£1B

Notice Dates

Publication Date
28 Jul 20257 months ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
21 Mar 20223 years ago
Contract Period
Not specified - Not specified
Recurrence
Not specified

Notice Status

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

Contracting Authority (Buyer)

Main Buyer
HM REVENUE & CUSTOMS
Additional Buyers

H M REVENUE & CUSTOMS

Contact Name
Carolyne M
Contact Email
carolyne.manyuira@hmrc.gov.uk, sarah.dunsmore@hmrc.gov.uk
Contact Phone
+44 3000585745

Buyer Location

Locality
LONDON
Postcode
EC3R 6EE
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
Not specified

Local Authority
Westminster
Electoral Ward
St James's
Westminster Constituency
Cities of London and Westminster

Supplier Information

Number of Suppliers
1
Supplier Name

CAPGEMINI

Open Contracting Data Standard (OCDS)

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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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                    "rationale": "Need for additional works, services or supplies by the original contractor/concessionaire: The CBP contract provides services supporting the Government's ability to manage national tax collection. A compromise to service delivery would impact the Government's ability to collect taxes and administer benefits payments and as such detrimentally impact UK citizens. This modification has been made in line with Reg (1) (b): Modification of the Contract is sought pursuant to Regulation 72 (1) (b) of the Public Contracts Regulations 2015 (\"PCR 2015\") on the basis of additional works, services and supplies that are required to be delivered under the Contract. Under Regulation 72(1)(b) contracts and framework agreements may be modified without a new procurement procedure where additional works, services or supplies by the original contractor that have become necessary and were not included in the initial procurement, and where a change of contractor- (i) cannot be made for economic or technical reasons such as requirements of interchangeability or interoperability with existing equipment, services or installations procured under the initial procurement. (ii) would cause significant inconvenience or substantial duplication of costs for the contracting authority, and provided that any increase in price does not exceed 50% of the value of the original contract. A change of supplier for this contract is not feasible for technical reasons due to Core Business Platforms applications having extremely high levels of technical and functional complexity. In addition, there would be a significant increase in costs if a new supplier provided these services which would include major delays to programmes."
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