Award

CO0344 Essex Payroll and Pensions Administration Service

ESSEX COUNTY COUNCIL

This public procurement record has 3 releases in its history.

Award

23 Jul 2024 at 13:43

TenderUpdate

16 Feb 2024 at 09:43

Tender

25 Jan 2024 at 14:14

Summary of the contracting process

Essex County Council is seeking to outsource its Corporate Payroll and Pensions Administration Services (PPAS), currently managed in-house. The tender, titled "CO0344 Essex Payroll and Pensions Administration Service," falls under the industry category of Payroll management services (CPV code 79211110). The process is currently at the award stage, following the initial tender and subsequent updates. The contract is anticipated to commence in August 2024, initially for a 3-year period with an optional 2-year extension, covering the region identified as UKH3. The procurement method used is an open procedure, and key activities include processing monthly payroll, managing pension contributions, and implementing pay changes, among others. The submission deadline for bids was updated to 1st March 2024 at 14:00, with the service expected to operate within existing council systems.

This tender represents significant business growth opportunities, particularly for companies specialising in payroll management and pension administration services. Businesses experienced in handling large-scale payroll operations, statutory reporting, and system administration will be well-suited to compete. There is also the potential to scale the service offering through shared service arrangements with other organisations or adapting to new requirements, thus providing additional avenues for revenue. The evaluation criteria ensure a focus on technical quality (60%) and social value (5%), making it an attractive opportunity for businesses aiming to deliver high-quality and cost-effective solutions. The estimated contract value is £5,000,000 for the initial term, with the Council retaining the right to optimise, streamline, or improve the service as necessary.

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Notice Title

CO0344 Essex Payroll and Pensions Administration Service

Notice Description

Essex County Council (the Council) is seeking to outsource its Corporate Payroll and Pensions Administration Services (PPAS) which are currently provided in-house by the Council, such contract anticipated to commence in August 2024 for an initial 3-year period (with a further extension option of up to 2 years). The in-house PPAS primarily manages payment of salaries to Council employees and allowances to members and other officers, while administering pension contributions and pensions statutory reporting. The Council is looking for an external provider for this service, in order to benefit from reduced costs and innovative approaches while retaining a high level of service. Any solution will include the transfer of our existing staff and continued use of the existing payroll system, which has successfully paid all staff since its introduction in 2021.

Lot Information

Lot 1

Essex County Council invites tenders for provision of its Payroll and Pension Administration Service. The current internal payroll service makes payments to around 8,300 employees per month including managing pension contributions and statutory reporting. It also manages elements of the system administration and maintains certain key data around system approvers and the hierarchy. The service will be for in initial 3-year term, with an option to extend for up to a further 2 years, with services commencing in August 2024. The aim of the procurement is to outsource the following key activities of the current service, which include but are not limited to: * processing monthly payroll including payment, costing, statutory deductions, and reporting, third party payments and reconciliation for circa 8,300 - 9,000 directly employed Council staff. * implementing pay changes because of Essex Pay. * managing the payment of allowances to circa 75 members and other office holders per month * administering pension contributions and other pension scheme administration for Council staff only * undertaking pensions statutory reporting and record corrections for Council staff and maintained schools' employees. * system administration tasks on the current Council IT system including and managing system upgrades. * managing the organisation structure within the system * updating changes to the workforce including starters, leavers, and changes * managing absence including leave, sickness, and statutory leave * correcting errors such as over and underpayments * payroll information for the Council's in-year forecasting of its financial position and in developing future years' budget models * undertaking financial end of year activity * managing employee queries relating to the above and all other activities required to deliver the requirements set out in the Council's Service Specification for this requirement. The current payroll runs monthly for payment in advance on 23rd of each month for the whole month or the closest working day prior - this is required to be continued in the outsourced service. In scope services and out of scope services are set out fully within the detailed Service Specification published for this tender. We are seeking a Contractor that can and must operate within our existing systems and set up by accessing our current platform to manage the on-going payroll and pension activity including elements of system administration. The Council has considered this procurement in relation to the Transfer of Undertakings (Protection of Employment) Regulations 2006 (the Regulations). The Council's view is that those Regulations apply to the transfer of activity envisaged by the proposed award of a contract for these services. Application of the Regulations is a matter of law and Bidders are therefore advised to seek their own independent legal advice on whether or not the Regulations apply. The current in-house Council team is composed of circa 29.66 FTE split between various teams: Payroll management 18.65 Systems Administration 5.51 Pension Administration 5.50 There will be a requirement to provide appropriate pension provision which would usually entail the preferred Bidder providing continued access to the current Local Government Pension Scheme by achieving admitted body status of the Local Government Pension Scheme for any transferring employees. The requirements for any such pension provision (or alternative) is set out in Schedule 5 of the published contract for this tender. The indicative contract value set out in this notice are for a 5-year contract with some minimal flex for potential contract variations during the term but there is no guarantee of the extension or any variations. Bidders are referred to Schedule 3 of the contract for this tender and the guidance and instructions issued with the pricing matrix to ensure they fully understand what is and is not permitted for this contract. The Council will not award inflation uplifts at any point during the term. The Payroll and Pensions Administration Service may provide opportunities for the Council to add to the services during the term where the Council needs or wishes to give effect to changes required to optimise, streamline or otherwise improve the services and/or arising from devolution and/or local government reform arrangements and/or shared services arrangements between the Council and other organisations. The actual contract value of the contract may therefore be in excess of the published value. The award criteria referenced in II.2.5 includes the applicable weightings: * 35% - Price/Commercial * 60% - Technical/Quality * 5% - Social Value and using the published evaluation criteria in the tender documents. The tender is subject to minimum scores on some of the quality questions and to maximum caps on price as set out in the published tender documents.

Renewal: The contract has an option to extend for a period of up to 24 months, exercisable in such durations as required by the council.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-04348e
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/022868-2024
Current Stage
Award
All Stages
Tender, Award

Procurement Classification

Notice Type
Tender Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Open
Procurement Method Details
Open procedure
Tender Suitability
Not specified
Awardee Scale
Not specified

Common Procurement Vocabulary (CPV)

CPV Divisions

79 - Business services: law, marketing, consulting, recruitment, printing and security


CPV Codes

79211110 - Payroll management services

Notice Value(s)

Tender Value
£5,000,000 £1M-£10M
Lots Value
£5,000,000 £1M-£10M
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
23 Jul 20241 years ago
Submission Deadline
26 Feb 2024Expired
Future Notice Date
Not specified
Award Date
23 Jul 20241 years ago
Contract Period
Not specified - Not specified
Recurrence
Not specified

Notice Status

Tender Status
Unsuccessful
Lots Status
Cancelled
Awards Status
Unsuccessful
Contracts Status
Not Specified

Contracting Authority (Buyer)

Main Buyer
ESSEX COUNTY COUNCIL
Contact Name
Mr Andrew Beaver
Contact Email
andrew.beaver@essex.gov.uk
Contact Phone
+44 333

Buyer Location

Locality
CHELMSFORD
Postcode
CM1 1QH
Post Town
Chelmsford
Country
England

Major Region (ITL 1)
TLH East (England)
Basic Region (ITL 2)
TLH3 Essex
Small Region (ITL 3)
TLH36 Heart of Essex
Delivery Location
TLH3 Essex

Local Authority
Chelmsford
Electoral Ward
Moulsham and Central
Westminster Constituency
Chelmsford

Open Contracting Data Standard (OCDS)

View full OCDS Record for this contracting process

Download

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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