Award

Contract Award for Pensions Administration Software

THE ROYAL BOROUGH OF KENSINGTON AND CHELSEA

This public procurement record has 1 release in its history.

Award

27 Mar 2026 at 14:10

UK5 - Transparency Notice
Summary of the contracting process

The Royal Borough of Kensington and Chelsea has concluded a direct award contract for the provision of pensions administration software, valued at £956,544, to Heywood Ltd. This procurement falls under the services category and is classified within the software package and information systems and software support services sectors. The contract spans from 15 April 2026 to 31 March 2029, with the award pending signature expected by 14 April 2026. The decision to proceed with a direct award was driven by urgency due to statutory obligations under LGPS Regulations 2013 and the impending expiry of the current contract on 31 March 2026. The location for delivery is the United Kingdom, and the direct award approach is justified under the Procurement Act 2023, Paragraph 13, due to the necessity to meet legal requirements efficiently within the given timeframe.

This tender represents a significant growth opportunity for businesses specialising in pensions administration software, particularly those based in the software support sector. Large-scale suppliers with the capability to handle complex data migration and system integration will find this contract especially lucrative. Companies can leverage this contract to establish long-term relationships with local authorities, enhancing their portfolio through critical statutory service provision. Suppliers with expertise in compliance with regulatory frameworks in public sector procurement will be particularly well-suited to such direct award opportunities, allowing them to contribute significantly to local government efficiency and public service delivery.

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Notice Information

Notice Title

Contract Award for Pensions Administration Software

Notice Description

The Royal Borough of Kensington & Chelsea (RBKC) is intending to directly award a software contract to Heywood Ltd for the provision of pensions administration software. The contract will be established for three years commencing on 1 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.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-0676a7
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/028578-2026
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
UK5 - Transparency 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

72261000 - Software support services

Notice Value(s)

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

Notice Dates

Publication Date
27 Mar 20261 weeks ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
27 Mar 20261 weeks 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
Pending
Contracts Status
Not Specified

Buyer & Supplier

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)

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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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