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Future Debt Solution

Department for Work & Pensions

This public procurement record has 7 releases in its history.

Tender

06 Jan 2026 at 14:11

UK4 - Tender Notice
PlanningUpdate

08 Dec 2025 at 15:27

UK3 - Planned Procurement Notice
PlanningUpdate

09 Sep 2025 at 15:10

UK3 - Planned Procurement Notice
Planning

03 Sep 2025 at 10:48

UK3 - Planned Procurement Notice
PlanningUpdate

03 Jun 2025 at 13:45

UK2 - Preliminary Market Engagement Notice
Planning

02 Jun 2025 at 18:30

UK2 - Preliminary Market Engagement Notice
Planning

21 May 2025 at 14:26

UK2 - Preliminary Market Engagement Notice
Summary of the contracting process

The Department for Work & Pensions (DWP) in London is seeking proposals for the "Future Debt Solution" to engage a supplier for a Software as a Service (SaaS) debt management system. This tender falls under the industry category of financial and industry-specific software packages. The goal is to acquire a commercial off-the-shelf system to aid in recovering over £2 billion annually in debt. The procurement is currently at the tender stage, with the expression of interest deadline set for 12 February 2026. The competitive flexible procedure will involve five stages, concluding with an evaluation and moderation phase by December 2026.

This procurement offers substantial opportunities for businesses specialising in enterprise-level SaaS solutions. Companies equipped to manage data migration, integration, and provide comprehensive support for deployment and system upgrades will find this contract highly beneficial for growth. Businesses catering to financial services, particularly those familiar with public sector engagements, will be well-suited to compete. The substantial contract value and potential for extensions present lucrative prospects for suitable suppliers, especially those aligned with DWP’s operational and policy requirements. Small and medium enterprises are encouraged to apply, offering innovative solutions to meet the projected growth in user accounts and support government policy effectively.

How relevant is this notice?

Notice Information

Notice Title

Future Debt Solution

Notice Description

The Department for Work and Pensions (DWP) ("the Authority") has an obligation to protect public funds and to ensure wherever possible, overpayment and penalty debt is recovered subject to legislative limitations and safeguards. It is Government policy to recover all debt where it is reasonable and cost effective to do so without causing undue financial hardship to debtors. The DWP is undertaking a competitive flexible procedure to appoint a supplier to provide a commercial off the shelf (COTS) software as a service (SaaS) debt management system to meet DWP requirements and manage the recovery of debt and other monies owed to the Government, allowing the DWP to recover over PS2billion of debt annually. The contract will include the design, configuration, testing, support to migration from the existing platform and post go live support. The duration of the contract will be up to 8 years (Initial Term) with the option to extend the Initial Term by one or more extension periods provided that the aggregate of any such extensions is no greater than 36 months. The estimated value of the contract over the Initial Term of the contract (8 years) is up to PS47,000,000.00 (excluding VAT). This figure has been calculated from past and forecasted spend and shall not be taken by Suppliers as a commitment or a forecast of likely revenue. The estimated total contract value (inclusive of any options) is up to PS79,800,000.00 million (excluding VAT). This value has been calculated based on indicative volumes provided within the specification and any future initiatives and optional services. The total published contract value as published in this Tender Notice (UK4) is an indication to the market of the maximum amount which could be spent through this contract and shall not be taken by Suppliers as a commitment or a forecast of likely revenue. The supplier will support the implementation of the SaaS system and provide support for any future upgrades and modifications in-life. The scope of the SaaS includes: * Software as a Service (SaaS) debt management solution to meet DWP functional and non-functional requirements * User friendly modern debt collection and management capabilities * Flexible and business user configurable * Hosted in the UK with 99.9% availability * Scalable to meet projected growth in accounts and users * Innovative future roadmap * Implementation of a SaaS debt management solution * Design and configuration * Integration to DWP architecture * Migration of data from current solution * Testing and assurance * Training and knowledge transfer * Supplier project management * BAU support for a SaaS debt management solution * Service desk * System maintenance * Performance monitoring * Change management support The geographical scope of the Future Debt Solution will be for Great Britain and Northern Ireland.

Lot Information

Lot 1

Options: Optional services are defined as services that are not part of the core deliverables and will only be implemented at DWP's discretion, subject to the appropriate contract modification process, and in-line with Procurement Act 2023.

Renewal: The duration of the contract will be up to 8 years (Initial Term) with the option to extend the Initial Term by one or more extension periods provided that the aggregate of any such extensions is no greater than 36 months. Any extensions will be at the sole discretion of the Authority.

Planning Information

DWP have previously undertaken informal market engagement with a small select group of suppliers to explore the core Debt Management Systems capabilities in the market, this exercise helped the department consider what capabilities are standard in the market to ensure effective competition in a fair and transparent manner. In August 2024 DWP undertook initial early market engagement and in February/March 2025 undertook a “deeper dive” into the debt management system market to assess market level capability further and to determine whether and with what level of confidence the COTS market could meet DWPs needs. DWP used the Market Assessment to determine: 1) the Market’s ability to meet DWPs Functional Requirements 2) the Market’s ability to meet DWPs Non-Functional Requirements 3) the Market’s ability to deliver key Business Scenarios representative of DWPs more complex Functional Requirements 4) Indicative Delivery Timescales to deliver a solution that meets DWP’s needs, with an understanding of the risks, assumptions and dependencies surrounding these timescales 5) Supplier Delivery Costs which may be incurred in delivering a COTS solution and Operating Costs over the contract term Participating suppliers were sent two Information Requests which outlined Functional and Non-Functional Requirements and gave details of seven Business Scenarios which represented DWPs more complex functional requirements. Suppliers were asked to respond to the Information Requests and demonstrate in a Workshop how they would deliver the Business Scenarios as well as responding to questions on their delivery plans and timescales. Based on the Market Assessment DWP has concluded that the market for COTS debt management systems could meet its requirements. 1. Functional Requirements: we have a high degree of confidence that the market can meet DWPs Functional Requirements. 2. Non-Functional Requirements: we have a high degree of confidence that the market can meet DWPs Non-Functional Requirements. 3. Business Scenarios: A level of confidence that the Market could deliver DWP’s complex customer journeys. 4. Delivery Timescales: A level of confidence that DWP’s requirements could be met within 18 -24 months. DWP specific requirements are still evolving, and we will share our high-level requirements at a further virtual Supplier briefing which will take place on Wednesday 11th June 2025. Suppliers may register their interest in attending until 12:00hrs Thursday 5th June 2025. To receive the invitation to this event suppliers will need to contact stephen.wardle@DWP.gov.uk by 5th June 2025 when an NDA will be provided to be signed to gain access to the Event. NDAs will be required to be signed by yourselves by 12:00 on 10th June 2025.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-051b05
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/000698-2026
Current Stage
Tender
All Stages
Planning, Tender

Procurement Classification

Notice Type
UK4 - Tender Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Selective
Procurement Method Details
Competitive flexible procedure
Tender Suitability
SME, VCSE
Awardee Scale
Not specified

Common Procurement Vocabulary (CPV)

CPV Divisions

48 - Software package and information systems

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

CPV Codes

48100000 - Industry specific software package

48442000 - Financial systems software package

72212440 - Financial analysis and accounting software development services

Notice Value(s)

Tender Value
£79,800,000 £10M-£100M
Lots Value
£79,800,000 £10M-£100M
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
6 Jan 20267 months ago
Submission Deadline
Not specified
Future Notice Date
7 Jan 2026Expired
Award Date
Not specified
Contract Period
14 Jan 2027 - 13 Jan 2035 Over 5 years
Recurrence
Not specified

Notice Status

Tender Status
Active
Lots Status
Active
Awards Status
Not Specified
Contracts Status
Not Specified

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
Department for Work & Pensions
Additional Buyers

Department for Work and Pensions

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
SW1H 9NA
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

Further Information

Notice Documents

Open Contracting Data Standard (OCDS)

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