Planning

Payroll and HR System Admin

LONDON BOROUGH OF HOUNSLOW

This public procurement record has 2 releases in its history.

PlanningUpdate

11 Aug 2025 at 08:17

UK2 - Preliminary Market Engagement Notice
Planning

29 Jul 2025 at 09:26

UK2 - Preliminary Market Engagement Notice
Summary of the contracting process

The London Borough of Hounslow is in the planning stage of a tender process for a contract titled "Payroll and HR System Admin." This procurement falls under the services category and will be located in the Hounslow area, specifically within the region of UKI75 in the United Kingdom. The process is set to progress with significant market engagement occurring in August and September 2025, with interviews scheduled with interested parties by 5th September 2025. The eventual contract will start on 1st October 2027 and will end on 30th September 2032. The contract aims to deliver accurate and efficient payroll services and support HR system administration for the council, its schools, and external clients.

This tender presents growth opportunities for businesses specialising in payroll and HR system management services, with skills in automation and process improvements. Companies capable of ensuring high accuracy in payroll and pension administration will find alignment with the council's objectives to increase service efficiency and reduce costs. Notably, the opportunity is suitable for businesses that can offer self-service capabilities and robust reporting tools, contributing to the council's aim of a minimum 10% cost reduction and improved data utilisation in monitoring payroll performance. This opens avenues for firms experienced in handling large-scale public sector contracts and those offering innovative HR solutions.

How relevant is this notice?

Notice Information

Notice Title

Payroll and HR System Admin

Notice Description

LBH is seeking to commission: Payroll: the service includes payroll for Council officers, staff based in schools and other external clients, staff employed by council companies - LNH trading company, pensioners in the Hounslow Local Government Pension Scheme, payment of Councillors allowances and expenses and periodic elections payroll when required. Trading Company's payroll service is based on the same specification as the service received by the Council. System administration for the HR system iTrent (provided by the current supplier) and the HRP/Schools portal Vision: Our vision for the Payroll Service: To provide seamless, efficient and transparent payroll and pensions services for Hounslow employees and pensioners, its companies' employees and external clients (e.g., schools). The Payroll services will be fit for purpose for the specific requirements of these different clients. The service will ensure that payroll is accurate and on time, and that pension contributions for all pension providers, tax and other deductions are administrated correctly. Our vision for System Administration Service: To actively support system developments and upgrades to ensure that the system in use meets the needs of the organisation. We want to provide a responsive service that addresses issues with the HR system in a timely manner and provides data and reports when required, as well as offering support and training for the end users of the HR system. The service will support the organisation to deliver its People strategies and policies effectively. Current performance In 2024/25 payroll accuracy has consistently been over 99.90% In 2024/25 there were a total of 180,001 payrolls, 90,678 were pensions 1,472 new queries about pensions were received in 2024/25 In 2024/25 there was PS47k in overpayments on LBH payroll, 63.7% (PS30k) of which was recovered to date There were approximately PS81k in overpayments on Trading Comapny's payroll in an 8-month period (August 2024 - March 2025) There were 335 new starters were set up in iTrent and 275 leavers processed on the HR System in 2024/25 There is a 3 working day response time from the HR Systems Administration team Current contract cost Annual core contract cost System admin: PS303k Payroll: PS1.083m Objectives Lower contract cost by min 10% Increase accuracy and minimise incorrect payments Automate processes wherever possible Ability for employees to self-serve wherever possible Improve reporting on pensions and review what other data could be used to monitor the payroll performance Provide HR system (optional)

Planning Information

The Council intends to hold a series of online interviews with interested providers during August/September 2025. It should be noted that this engagement is not a formal tendering process. The information we gain through our market engagement will help to inform our commissioning intentions and refine our specification for this service.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-0567b9
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/047497-2025
Current Stage
Planning
All Stages
Planning

Procurement Classification

Notice Type
UK2 - Preliminary Market Engagement Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Not Specified
Procurement Method Details
Not specified
Tender Suitability
Not specified
Awardee Scale
Not specified

Common Procurement Vocabulary (CPV)

CPV Divisions

75 - Administration, defence and social security services

CPV Codes

75110000 - General public services

Notice Value(s)

Tender Value
£8,316,000 £1M-£10M
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
11 Aug 20253 months ago
Submission Deadline
Not specified
Future Notice Date
5 Sep 2025Expired
Award Date
Not specified
Contract Period
30 Sep 2027 - 30 Sep 2032 Over 5 years
Recurrence
Not specified

Notice Status

Tender Status
Planning
Lots Status
Planning
Awards Status
Not Specified
Contracts Status
Not Specified

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
LONDON BOROUGH OF HOUNSLOW
Contact Name
Not specified
Contact Email
beatrice.uhlir@hounslow.gov.uk
Contact Phone
Not specified

Buyer Location

Locality
HOUNSLOW, LONDON
Postcode
TW3 3EB
Post Town
Twickenham
Country
England
Major Region (ITL 1)
TLI London
Basic Region (ITL 2)
TLI7 Outer London - West and North West
Small Region (ITL 3)
TLI75 Hounslow and Richmond upon Thames
Delivery Location
TLI75 Hounslow and Richmond upon Thames
Local Authority
Hounslow
Electoral Ward
Hounslow West
Westminster Constituency
Feltham and Heston

Further Information

Notice Documents

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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