--- title: "Payroll Service and HR/Payroll System" ocid: "ocds-h6vhtk-0567b9" canonical_url: "https://d3tenders.com/contract/?ocid=ocds-h6vhtk-0567b9" markdown_url: "https://d3tenders.com/contract/ocds-h6vhtk-0567b9.md" json_url: "https://d3tenders.com/contract/ocds-h6vhtk-0567b9.json" source: "Find A Tender Service" current_stage: "Tender" buyer: "LONDON BOROUGH OF HOUNSLOW" published: "2026-04-15" --- # Payroll Service and HR/Payroll System Buyer: LONDON BOROUGH OF HOUNSLOW Current stage: Tender OCID: ocds-h6vhtk-0567b9 [View canonical contract page](https://d3tenders.com/contract/?ocid=ocds-h6vhtk-0567b9) [Download OCDS JSON](https://d3tenders.com/contract/ocds-h6vhtk-0567b9.json) ## Summary 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. ## Notice 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. ## Key Details | Field | Value | | --- | --- | | Publication source | Find A Tender Service | | Latest notice | https://www.find-tender.service.gov.uk/Notice/034141-2026 | | 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 | | All stages | Planning, Tender | ## Dates | Field | Value | | --- | --- | | Publication date | 15 Apr 2026 | | Submission deadline | 22 Jun 2026 | | Future notice date | 5 Sep 2025 | | Award date | Not specified | | Contract period | 30 Sep 2026 - 30 Sep 2032 | | Recurrence | 2035-04-01 | ## Values | Field | Value | | --- | --- | | Tender value | £13,860,000 | | Lots value | £13,860,000 | | Awards value | Not specified | | Contracts value | Not specified | ## Status | Field | Value | | --- | --- | | Tender status | Active | | Lots status | Active | | Awards status | Not specified | | Contracts status | Not specified | ## Buyer | Field | Value | | --- | --- | | Main buyer | LONDON BOROUGH OF HOUNSLOW | | Locality | HOUNSLOW, LONDON | | Post town | Twickenham | | Postcode | TW3 3EB | | Country | England | | ITL 1 | TLI London | | ITL 2 | TLI7 Outer London - West and North West | | ITL 3 | TLI75 Hounslow and Richmond upon Thames | | Local authority | Hounslow | | Electoral ward | Hounslow West | | Westminster constituency | Feltham and Heston | | Delivery location | TLI75 Hounslow and Richmond upon Thames | ## CPV Codes ### Divisions - 79 - Business services: law, marketing, consulting, recruitment, printing and security ### Codes - 79211110 - Payroll management services - 79631000 - Personnel and payroll services ## Release History - 15 Apr 2026 at 11:07 - Tender - UK4 - Tender Notice - https://www.find-tender.service.gov.uk/Notice/034141-2026 - 11 Aug 2025 at 08:17 - PlanningUpdate - UK2 - Preliminary Market Engagement Notice - https://www.find-tender.service.gov.uk/Notice/047497-2025 - 29 Jul 2025 at 09:26 - Planning - UK2 - Preliminary Market Engagement Notice - https://www.find-tender.service.gov.uk/Notice/043723-2025 ## Documents - https://www.find-tender.service.gov.uk/Notice/034141-2026 15th April 2026 - Tender notice on Find a Tender - https://www.find-tender.service.gov.uk/Notice/047497-2025 11th August 2025 - Preliminary market engagement notice on Find a Tender - https://www.find-tender.service.gov.uk/Notice/043723-2025 29th July 2025 - Preliminary market engagement notice on Find a Tender ## Notice URLs - https://procontract.due-north.com/Advert?advertId=3706a117-ab38-f111-813c-005056b64545&fromProjectDashboard=True - https://www.legislation.gov.uk/ukpga/2023/54/contents ## Provenance This Markdown file is an alternate public rendering of the D3 Tenders contract record. The canonical page is https://d3tenders.com/contract/?ocid=ocds-h6vhtk-0567b9. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-h6vhtk-0567b9.json.