Tender

Payroll Service and HR/Payroll System

LONDON BOROUGH OF HOUNSLOW

This public procurement record has 3 releases in its history.

Tender

15 Apr 2026 at 11:07

PlanningUpdate

11 Aug 2025 at 08:17

Planning

29 Jul 2025 at 09:26

Summary of the contracting process

The London Borough of Hounslow has initiated a procurement process to secure a Service Delivery Partner to provide a fully outsourced Payroll Service and HR/Payroll System. The tender, titled "Payroll Service and HR/Payroll System," focuses on services within the public authority sector, specifically targeting payroll management and personnel services. This procurement, set to commence service delivery by 1 October 2027, covers payroll management for various entities including council employees, councillors, schools, and external clients. Key deadlines include submissions by 22 June 2026, with the award decision expected by 21 September 2026. This opportunity follows an open procedure, offering substantial growth potential for qualified bidders, especially those experienced in large-scale, integrated HR and payroll systems delivery.

This tender represents a significant opportunity for businesses specialising in services such as payroll administration, HR system implementations, and SaaS solutions. Firms with a demonstrated capability in handling complex data migrations, pension administration, and compliance with UK legislation stand to benefit. The contract, valued at £13,860,000 exclusive of VAT, promises steady revenue through a multi-year engagement with potential renewals. The buying organisation seeks a unified approach, requiring a supplier capable of delivering integrated solutions that ensure accuracy and customer satisfaction, while also supporting continuous improvements and benchmarking. Small to medium-sized enterprises with expertise in payroll services and system support are especially suited to compete, provided they can demonstrate economic and technical viability as outlined in the selection criteria.

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How relevant is this notice?

Notice Title

Payroll Service and HR/Payroll System

Notice Description

The London Borough of Hounslow (the "Council") is seeking a Service Delivery Partner ('Delivery Partner') to deliver a fully outsourced Payroll Service and Software-as-a-Service (SaaS) HR/Payroll System from 1 October 2027. The service has been outsourced since October 2017 and TUPE will apply. The incumbent system is iTrent. The Authority will retain an in-house HR operations team responsible for system set-ups and reporting. The contract covers a fully managed payroll service for: Council employees Employees of Council-owned companies (the Lampton Group) External clients purchasing the service Councillors' allowances and expenses Periodic election payrolls Maintained schools, academies and extended childcare centres including: * West Thames College * Norwood Green Juniors * The Green School Trust * BCPS Extended Day Care * Beavers Lodge Playgroup * Hounslow Action For Youth Association Ltd * Riverside Early Risers * Springwell + Morning Care * Springwell Holiday Scheme The supplier must provide the employer role for pension administration, covering the Local Government Pension Scheme (LGPS), Teachers' Pension Scheme and other applicable pension arrangements. The supplier must provide a SaaS HR/Payroll system including payroll, core HR, absence management, recruitment and onboarding, and management of employees and non-employees. The scope includes implementation, configuration and deployment; data migration and reconciliation; ongoing support, maintenance and upgrades; continuous improvement and benchmarking; and contract exit and transition support. The service must comply with all applicable UK legislation and deliver accurate, timely and customer-focused payroll services.

Lot Information

Lot 1

Renewal: The Contracting Authority reserves the right to extend the contract beyond the initial term for up to a further two (2) years and an additional option to extend for a further two (2) years thereafter, subject to satisfactory performance of the Contractor. Extension Criteria An extension will only be considered where the Contractor has: - Consistently met or exceeded performance expectations - Demonstrated proactive issue resolution and continuous improvement - Maintained compliance with all legal and contractual requirements

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.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-0567b9
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/034141-2026
Current Stage
Tender
All Stages
Planning, Tender

Procurement Classification

Notice Type
UK4 - Tender Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Open
Procurement Method Details
Open procedure
Tender Suitability
SME
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

79631000 - Personnel and payroll services

Notice Value(s)

Tender Value
£13,860,000 £10M-£100M
Lots Value
£13,860,000 £10M-£100M
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
15 Apr 20261 weeks ago
Submission Deadline
22 Jun 20262 months to go
Future Notice Date
5 Sep 2025Expired
Award Date
Not specified
Contract Period
30 Sep 2026 - 30 Sep 2032 Over 5 years
Recurrence
2035-04-01

Notice Status

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

Contracting Authority (Buyer)

Main Buyer
LONDON BOROUGH OF HOUNSLOW
Contact Name
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

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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