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Payroll and HR Software Services

MERSEYRAIL ELECTRICS 2002 LIMITED

This public procurement record has 1 release in its history.

Award

02 Oct 2026 at 16:07

UK5 - Transparency Notice
Summary of the contracting process

Merseyrail Electrics 2002 Limited procured payroll and human resources software services to maintain its existing payroll and HR system. The requirement covers continued operation of the current service, including the software and associated support needed for payroll and HR functions. Continuity is required while Merseyrail carries out a separate procurement for its longer-term system and moves to that solution. The software is used by the railway company, based in Liverpool. The delivery location is in the Liverpool City Region, England. The service is therefore aimed at suppliers able to support an established payroll and HR software environment for a transport utility, rather than providers offering unrelated HR consultancy or general IT services. The requirement is for interim continuity using the incumbent platform and provider’s existing system knowledge.

The procurement is complete and was directly awarded to Zellis UK Limited. The award value is £1,025,524 including VAT. The contract period runs from 29 October 2026 to 28 October 2029, and the award was published on 2 October 2026. Merseyrail used a direct award on technical grounds: it said Zellis was the only supplier able to maintain the live system and deliver the interim services without unacceptable risk to uninterrupted payroll and HR operations. Replacing the system in the interim would require data migration, configuration, interface work, testing, parallel payroll runs, user acceptance testing and mobilisation. There is one lot. The buyer also reserved the right to purchase additional licences or software if business needs require them. No separate evaluation scoring basis is stated.

For suppliers considering similar work when this requirement returns to market, the procurement indicates demand for dependable payroll and HR system operation within a transport utility, with continuity and statutory compliance central to delivery. A credible competitor would need proven capability to run a live payroll and HR platform without disruption, and to manage sensitive employee and payroll data responsibly. Experience with data migration, system configuration, interface integration, testing, parallel payroll runs, user acceptance testing and mobilisation would be important if the buyer is moving to a replacement solution. Suppliers would also need sufficient delivery capacity to support a business-critical service while a longer-term procurement and transition are under way. The direct award went to the incumbent because its system knowledge and established integration could maintain continuity; future competitors would need to demonstrate a safe, practical transition and operational support approach.

How relevant is this notice?

Notice Information

Notice Title

Payroll and HR Software Services

Notice Description

Provision of payroll and human resources software via the existing software provider.

Procurement Information

MEL intends to directly awarded this contract to Zellis UK Limited on the basis that, due to an absence of competition for technical reasons, only Zellis can supply the services required and there are no reasonable alternatives to those services at this time. The conditions set out in paragraph 6 of Schedule 5 of the Procurement Act 2023 therefore apply. There is an absence of competition for technical reasons because the services currently required are interim services to maintain its Payroll & HR system while it carries out a re-procurement, and subsequent transitional and mobilisation period, for its longer-term Payroll & HR Software requirements. Continuity of these services is necessary for MEL to continue operating. Zellis is the current supplier of the services and has the specific know-how and relevant systems in place to ensure the continuing functioning of these critical services. No other supplier would be able to provide and implement an adequate replacement system (requiring data migration, configuration, interface work, testing, parallel payroll runs, user acceptance testing and mobilisation) before MEL's current Payroll & HR contract expires. There is no reasonable alternative to the provision of these interim services by Zellis because of MEL's need for an uninterrupted Payroll & HR service. No alternative supplier could be integrated into the current live system environment before expiry of the existing contract without at least a significant risk to continuous service delivery. MEL is unable to self-deliver the services for this interim period due to their scale, sensitivity and the associated statutory compliance risks. This direct award will guarantee a stable and continuous service while MEL undertakes a robust re-procurement process that will enable a solution for its long-term project delivery.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-078011
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/093504-2026
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

48450000 - Time accounting or human resources software package

72212450 - Time accounting or human resources software development services

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
£1,025,524 £1M-£10M
Contracts Value
Not specified

Notice Dates

Publication Date
2 Oct 20264 days ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
Not specified
Contract Period
29 Oct 2026 - 28 Oct 2029 3-4 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
MERSEYRAIL ELECTRICS 2002 LIMITED
Contact Name
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

Buyer Location

Locality
LIVERPOOL
Postcode
L1 1JF
Postcode Area
Liverpool
Country
England
Major Region (ITL 1)
TLD North West (England)
Basic Region (ITL 2)
TLD7 Merseyside
Small Region (ITL 3)
TLD72 Liverpool
Delivery Location
Not specified
Local Authority
Liverpool
Electoral Ward
Brownlow Hill
Westminster Constituency
Liverpool Riverside

Supplier Information

Number of Suppliers
1
Supplier Name

Zellis UK Ltd

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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