DN817670 Parcel Locker Services on Hackney Estates

1.0 Introduction

The London Borough of Hackney Council (LBH) is seeking to engage with organisations operating within the parcel locker, logistics, postal and last-mile delivery sectors regarding a significant future opportunity to design, install, operate and maintain a borough-wide network of automated parcel lockers across Hackney Council-owned housing estates and other suitable Council-owned land.

This notice forms part of LBH’s market engagement programme and is intended to provide potential suppliers with an overview of the proposed opportunity and the Council's current thinking before a formal procurement process commences within the next few months.

LBH is keen to engage with experienced suppliers who can deliver a parcel lockers programme to help shape an innovative, commercially sustainable solution that can realise benefits for residents, delivery operators and the borough as a whole.

2.0 Background: Why a parcel lockers programme is being considered

The way residents receive parcels has changed dramatically in recent years. Across the UK, more than 13 million parcels are delivered every day and online shopping continues to grow. Whilst convenient, this growth has also created challenges for residents living on housing estates including parcel theft, failed deliveries, repeated delivery attempts, insecure doorstep drop-offs and increased delivery traffic.

LBH receives regular feedback from residents and councillors regarding these challenges. The Council is therefore considering automated parcel lockers as a practical solution to improve the resident experience whilst supporting wider environmental and economic objectives.

The proposed programme aims to:

Improve security and reduce parcel theft through secure automated collection points.

Provide convenient 24-hour access to parcels and returns.

Improve the efficiency of parcel collection and returns for residents and delivery operators.

Provide a simple, contactless and user-friendly service.

Reduce repeat delivery attempts and unnecessary vehicle movements through the borough.

Support Net Zero objectives by reducing last-mile delivery emissions and congestion.

Generate a long-term income stream and social value that can be invested into services and projects that benefit LBH residents.

LBH believes there is an opportunity to create one of the first borough-wide housing estate parcel locker networks in London, delivered through a single strategic concession arrangement.

3.0 The Opportunity

LBH is currently exploring the appointment of a single supplier to deliver a concession contract for the installation and operation of automated parcel lockers programme across selected housing estates and other suitable Council-owned sites throughout the borough.

It is proposed that the successful supplier would be responsible for the complete service, including:

Site surveys and deployment planning.

Design and installation of locker infrastructure.

Obtaining or supporting any necessary permissions and consents (including planning where applicable).

Provision of power, connectivity and associated infrastructure.

Day-to-day operation and management of the network.

Customer support and incident management.

Maintenance, repair and replacement of equipment.

Performance monitoring and reporting.

Removal of equipment and reinstatement of sites at the end of the contract term.

The current preference is for a carrier-neutral solution that can be used by multiple parcel and postal operators rather than a single delivery company. Therefore the expectation is that the lockers are capable of supporting all major operators such as Amazon Logistics, Royal Mail, Evri, DPD, Yodel, InPost and other equivalent providers. The service is intended primarily to benefit LBH Housing Estate residents, although proposals that also enable appropriate use by members of the wider public may be considered.

It is currently anticipated that the terms and conditions will be based on a concession contract, a draft copy of which is set supplied It is anticipated that the contract term will be for an initial eight year period with options to extend for a further two periods of one year, creating a potential total contract duration of up to ten years.

4.0 Commercial Model

LBH is currently proposing a concession-based delivery model. Under this arrangement, the supplier would fund the installation, operation, maintenance and replacement of the locker network and generate revenue through its commercial arrangements with parcel and delivery operators.

LBH would receive a share of the income generated from lockers located on its own housing estates and any other Council-owned land.

The programme is intended to be self-financing and income-generating, with no anticipated requirement for Council investment in the locker infrastructure itself.

Based on current modelling, the Council believes the concession has the potential to generate an annual income in the region of £300,000 to £500,000 per annum over the life of the contract, whilst also delivering significant social, environmental and resident benefits.

5.0 Sustainability, Social Value and Innovation

LBH is committed to securing wider social, environmental and economic value through this opportunity, and are particularly interested in solutions that can demonstrate:

Measurable reductions in vehicle movements and carbon emissions.

Innovative approaches to last-mile logistics.

Support for the Council's Net Zero ambitions.

Opportunities for local employment, apprenticeships and skills development.

Inclusive design and accessibility for all users, including residents who may be digitally excluded.

Strong customer experience and resident satisfaction.

Future scalability and innovation as parcel delivery patterns continue to evolve.

6.0 Proposed Procurement Approach

The current proposal is to consider a Competitive Flexible Procedure under the Procurement Act 2023. This anticipated procurement process is expected to comprise five stages:

Stage 1 – Market Engagement

This market engagement exercise will be used to gather feedback and information from the market to support and inform the final decision to maximise the probability of a successful project. This process will help to test proposed delivery models and scope of requirement, understand commercial options and refine the final procurement documentation where necessary.

Stage 2 – Selection Stage

A formal procurement will be launched inviting interested organisations to submit information demonstrating their technical, financial and organisational capability. Following evaluation, up to eight organisations may be invited to proceed to the next stage.

Stage 3 – Proposal Stage

Shortlisted organisations will be invited to submit detailed technical, operational and commercial proposals against the Council's requirements and financial model.

Stage 4 – Negotiation Stage

The Council intends to enter a period of structured negotiation either with a single preferred bidder or with the two highest-ranked bidders. This stage will be used to refine technical, operational and commercial aspects of the proposals. The Council may conclude negotiations and make an award at any stage if it considers this appropriate.

Stage 5 – Final Evaluation and Contract Award

Final submissions will be evaluated and subjected to governance and assurance processes before a contract award decision is made.

7.0 Market Engagement and Supplier Participation

LBH welcomes engagement from experienced operators, technology providers, logistics organisations and strategic delivery partners interested in this opportunity. The information gathered through this market engagement exercise will be used to help shape the final specification, commercial model and procurement approach.

The Council is particularly interested in understanding:

Innovative delivery models and emerging technologies.

Approaches to planning and site deployment.

Commercial and concession arrangements.

Opportunities to maximise environmental and social value outcomes.

Lessons learned from similar programmes delivered elsewhere.

This engagement process does not form part of any formal procurement process and participation will not provide any advantage or disadvantage in any future procurement exercise. The Council looks forward to working with the market to develop an innovative solution that improves services for residents, supports environmental objectives and creates long-term value for the borough.

This market engagement will be open for 3 weeks, closing to all further feedback on 12noon 14th July 2026

Please find the attached two templates available to submit your feedback and or queries:

1. TO BE COMPLETE AND RETURNED Detailed Feedback - Lockers Market engagement
2. TO BE COMPLETE AND RETURNED - Summary Feedback

NOTE: This feedback may be used to inform the drafting of the final tender documentation.