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NPS Operations, Maintenance and Modernisation Services

H M REVENUE & CUSTOMS

This public procurement record has 2 releases in its history.

AwardUpdate

23 Dec 2024 at 16:27

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24 Mar 2022 at 16:29

Award Notice
Summary of the contracting process

HM Revenue & Customs (HMRC) has awarded a contract to Accenture plc for NPS Operations, Maintenance, and Modernisation Services. This contract pertains to the provision of Business Application Support and Maintenance (BASM) services for HMRC's National Insurance and PAYE System (NPS) and includes potential business application development, system integration, and strategy services. The awarded contract, valued at £70,393,068, extends for five years, starting from February 2022, encompassing the UK region. This service is classified under the industry category "Application service providers" according to CPV code 72416000. The procurement method utilised was a negotiated procedure without prior publication due to the technical complexity and a lack of competition for these services.

This contract presents significant growth opportunities for businesses specialised in application services, software support, and system integration. The modernisation efforts, including the disaggregation of the NPS solution into independently maintainable components, aim to reduce vendor lock-in and encourage future competition. Businesses skilled in delivering comprehensive IT support and development services, particularly those knowledgeable in handling critical national infrastructure, are well-suited to compete for subsequent phases or related projects. The procurement not only ensures continuance of critical revenue services but also opens doors for innovation and market entry opportunities once the system is fragmented and modernised.

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Notice Information

Notice Title

NPS Operations, Maintenance and Modernisation Services

Notice Description

The contract is for business application support and maintenance services for HMRC's National Insurance and PAYE System (NPS). The contract includes options to provide business application development and enhancement services and NPS solution modernisation services. The intent of the modernisation service is to disaggregate the NPS solution into a number of components in preparation for going to market in future. The contract will have a duration of 5 years.

Lot Information

Lot 1

HMRC has awarded a contract to Accenture plc to provide Business Application Support and Maintenance (BASM) services for HMRC's National Insurance and PAYE System (NPS) ("New Contract"). Prior to this Accenture was the incumbent service provider to HMRC for these services (and other business applications, which are part of other replacement contracts). This expires in June 2022 ("Prime Contract"). The equivalent services under the Prime Contract shall terminate when the New Contract takes full effect. The services under the New Contract are: Business Application Support and Maintenance (BASM) services; and optional business application development services, system integration services; strategy, architecture and feasibility analysis services related to NPS, which HMRC can use on a call off basis. The term of the New Contract is 5 years. NPS is part of HMRC and UK economy Critical National Infrastructure (CNI) collecting 40% of revenues into HMT with nearly 40,000 users in HMRC and DWP. It has hugely complex processing engines, which are critical to calculate tax, as well as the administration of devolved powers at a subnational level between Scotland, Wales and the UK. This is a large, multifaceted service developed over time with complicated integration and interdependencies to other services within HMRC and external parties such as DWP and NS&I. In order to make the services suitable for competition in future and reduce vendor lock-in, the New Contract includes modernisation services which will deliver an NPS Disaggregation Programme. This programme of work will disaggregate the NPS solution into 6 components to provide more open and independently maintainable business focused services. The New Contract value is PS70,393,068. Payments are supported by service levels and service credits and are structured as a combination of fixed price support and maintenance charges, rate-card based charges for development projects and delivery milestone payments for disaggregation services (including retention clauses).

Procurement Information

The services required by HMRC consist of the provision of Business Application Support and Maintenance (BASM) services and optional business application development and enhancement services and NPS solution modernisation services for HMRC's National Insurance and PAYE System (NPS). NPS is classified as Critical National Infrastructure (CNI) collecting 40% of revenues into HMT. The award of the New Contract to Accenture ensures that the support of NPS continues to be delivered safely and without interruption whilst the solution is in its current technical state. During the Contract term, the intent is to disaggregate the NPS solution into a number of components in preparation for going to market in future. Due to the technical risk, age and intricate interdependencies of the NPS solution, the support services could currently only be provided by Accenture, until the solution is disaggregated and modernised. Delivering the disaggregation of the solution will require a considerable level of in-depth knowledge and experience of the solution, which only Accenture have because of their 20 years of supporting the services. There is a significant risk of disruption to critical services, which would lead to a non-recoverable consequence for customers and revenue-stream for the UK Economy. The resulting contract enables HMRC to deliver on its strategic priorities to protect live services and deliver contractual flexibility. In parallel, HMRC will be able to work with Accenture to prepare the disaggregated components of NPS 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 that reliance on Regulation 32 is justified because services being procured under and for the term of the New Contract can only be provided by Accenture because competition is absent for technical reasons. Accordingly, HMRC concluded that for technical reasons HMRC was procuring services under the New Contract, which only Accenture could provide and for which there was no reasonable alternative

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-03260f
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/041469-2024
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
£175,982,670 £100M-£1B

Notice Dates

Publication Date
23 Dec 20241 years ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
23 Feb 20224 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

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
H M REVENUE & CUSTOMS
Additional Buyers

H M Revenue & Customs

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
SW1A 2BQ
Postcode Area
South West 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

Accenture

Further Information

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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