Award

Contract Award for Pensions Administration Software

THE ROYAL BOROUGH OF KENSINGTON AND CHELSEA

This public procurement record has 3 releases in its history.

Award

15 Apr 2026 at 14:47

Award

27 Mar 2026 at 15:01

Award

27 Mar 2026 at 14:00

Summary of the contracting process

The Royal Borough of Kensington and Chelsea has directly awarded a contract to Heywood Ltd for the provision of pensions administration software. This contract, classified under the software and services category, is valued at £956,544 and spans three years from 15 April 2026 to 31 March 2029. Due to statutory obligations under the LGPS Regulations 2013, this direct award was deemed necessary, avoiding a traditional competitive tendering process. The urgency for this contract stems from the imminent expiration of the current agreement on 31 March 2026, highlighting the crucial role of the software in managing pensioner payroll and delivering member benefits. Key details include a procurement method classified as a direct award due to urgency, with further documentation accessible online.

Businesses specialising in software packages and information systems, particularly those with a focus on pension administration, may find similar opportunities for growth within the public authority market. This tender highlights the demand for reliable software solutions capable of meeting government standards and functionality requirements. Large-scale IT service providers with the capacity to manage complex data migrations and ensure operational continuity can benefit from establishing themselves as trusted suppliers in this sector. The direct award approach underscores the importance of readiness to meet urgent governmental needs, presenting an advantage for businesses that can offer rapid deployment and compliance assurance.

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Notice Title

Contract Award for Pensions Administration Software

Notice Description

The Royal Borough of Kensington & Chelsea (RBKC) has directly awarded a software contract to Heywood Ltd for the provision of pensions administration software. The contract was established for three years commencing in April 2026.

Procurement Information

The Council as a Local Authority and as an Administering Body must comply with and has statutory obligations under the LGPS Regulations 2013 (as amended) which are made under The Superannuation Act 1972. To meet its statutory obligations, the Council must, among other things, meet the requirements on administering authorities set out in Part I (Membership, contributions, and benefits), Part II (Administration) and Part III (Governance) of the LGPS Regulations 2013. The Pension Administration system is critical for delivering member benefits, managing the pensioner payroll and meeting the Council's statutory obligations. Paragraph 13 of Schedule 5 of the Procurement Act 2023 provides a justification for the direct award of public contracts where it is strictly necessary for reasons of urgency and where a public contract cannot be awarded on the basis of a competitive tendering process. The services are strictly necessary to meet statutory obligations. The current contract expires on 31 March 2026, and there is insufficient time to conduct a competitive procurement process. Furthermore, migration of pensions data is complex and onboarding of a new provider typically requires 14-18 months after completion of a procurement process. This cannot be accommodated within the remaining timeframe. Without a new contract in place, officers would be unable to discharge statutory duties, including paying member benefits and the pensioner payroll, from 1 April 2026. The proposed 36-month direct award represents the shortest feasible contract term that allows for a compliant procurement process and the completion of data migration.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-0676a0
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/034350-2026
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
UK7 - Contract Details Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Direct
Procurement Method Details
Direct award
Tender Suitability
Not specified
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

48 - Software package and information systems

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


CPV Codes

48000000 - Software package and information systems

72268000 - Software supply services

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
£1,753,664 £1M-£10M
Contracts Value
£956,544 £500K-£1M

Notice Dates

Publication Date
15 Apr 20261 months ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
26 Mar 20262 months ago
Contract Period
14 Apr 2026 - 31 Mar 2029 2-3 years
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Complete
Awards Status
Active
Contracts Status
Active

Contracting Authority (Buyer)

Main Buyer
THE ROYAL BOROUGH OF KENSINGTON AND CHELSEA
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
W8 7NX
Post Town
West London
Country
England

Major Region (ITL 1)
TLI London
Basic Region (ITL 2)
TLI3 Inner London - West
Small Region (ITL 3)
TLI33 Kensington & Chelsea and Hammersmith & Fulham
Delivery Location
Not specified

Local Authority
Kensington and Chelsea
Electoral Ward
Campden
Westminster Constituency
Kensington and Bayswater

Supplier Information

Number of Suppliers
1
Supplier Name

HEYWOOD

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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