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Payroll Service and HR/Payroll System

London Borough of Hounslow

This public procurement record has 4 releases in its history.

Award

21 Sep 2026 at 12:26

UK6 - Contract Award Notice
Tender

15 Apr 2026 at 12:07

UK4 - Tender Notice
PlanningUpdate

11 Aug 2025 at 09:17

UK2 - Preliminary Market Engagement Notice
Planning

29 Jul 2025 at 10:26

UK2 - Preliminary Market Engagement Notice
Summary of the contracting process

London Borough of Hounslow procured a fully outsourced payroll service alongside a software-as-a-service HR and payroll system. The service covers council employees, employees of Council-owned companies including the Lampton Group, external clients, councillors’ allowances and expenses, periodic election payrolls, maintained schools, academies and extended childcare centres. It also includes the employer role for the Local Government Pension Scheme, Teachers’ Pension Scheme and other applicable arrangements. The system must support payroll, core HR, absence management, recruitment, onboarding, and the management of employees and non-employees. The scope includes implementation, configuration, deployment, data migration and reconciliation, support, maintenance, upgrades, continuous improvement, benchmarking, and contract exit and transition support. Delivery is centred on Hounslow and its associated schools, companies and service users, with compliance with UK legislation and accurate, timely payroll delivery required.

This is a completed, above-threshold open procedure with one lot. Nine bids were received and five reached the final stage, including four from SMEs. Quality carried 60% of the evaluation and price 40%; economic and technical selection requirements were set out in the Invitation to Tender. The estimated lot value was £13,860,000 excluding VAT (£16,632,000 including VAT). MHR INTERNATIONAL UK LIMITED was selected on 8 September 2026 for £3,593,024.35 excluding VAT (£4,311,629.22 including VAT). The award standstill ended on 1 October 2026. The awarded contract is due to run from 1 October 2027 to 30 September 2033, with an extension option to 30 September 2035 and six months’ notice required to activate it. The tender response deadline was 22 June 2026, following an enquiry deadline of 5 June 2026.

This requirement demonstrates demand for a single supplier able to combine managed payroll operations with an integrated HR and payroll platform across a complex public-sector workforce. Credible competitors would need demonstrable capability in high-volume, accurate and legally compliant payroll; pension administration covering local government and teachers’ schemes; HR systems covering core HR, absence, recruitment and onboarding; and secure management of employee and non-employee data. Relevant delivery strength includes implementation and configuration, migration and reconciliation from an incumbent system, reliable support and upgrades, continuous improvement, benchmarking, business continuity, and controlled exit or transition. Suppliers should also be prepared to manage TUPE-related transition, changing service volumes, evolving employment, tax and pension legislation, and varied users including schools, councillors, trading companies and external clients. The opportunity was considered suitable for SMEs, although delivery requires end-to-end accountability and integration.

How relevant is this notice?

Notice Information

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.

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/089105-2026
Current Stage
Award
All Stages
Planning, Tender, Award

Procurement Classification

Notice Type
UK6 - Contract Award Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Open
Procurement Method Details
Open procedure
Tender Suitability
SME
Awardee Scale
Large

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
£3,593,024 £1M-£10M
Contracts Value
Not specified

Notice Dates

Publication Date
21 Sep 20261 months ago
Submission Deadline
22 Jun 2026Expired
Future Notice Date
Not specified
Award Date
8 Sep 20261 months ago
Contract Period
1 Oct 2027 - 30 Sep 2033 Over 5 years
Recurrence
2035-04-01

Notice Status

Tender Status
Complete
Lots Status
Complete
Awards Status
Pending
Contracts Status
Not Specified

Buyer & Supplier

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
Postcode Area
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
Not specified
Local Authority
Hounslow
Electoral Ward
Hounslow West
Westminster Constituency
Feltham and Heston

Supplier Information

Number of Suppliers
1
Supplier Name

MHR International UK Limited

Further Information

Notice Documents

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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