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Find a TenderAwardedContract award notice
Published 29 Jul 2025, 10:26 BST

Official UK procurement notice

Payroll Service and HR/Payroll System

Official notice

Authority: London Borough of Hounslow (Local council)

ServicesOpen procedureAbove thresholdSME suitable
Sectors: Business Services & Consultancy (79) Delivery: UKLondon (UKI75)
Published estimate£13,860,000≈ £2.3m / year · £16,632,000 inc. VAT · 1 value update
Submissions closed 22 Jun 2026awarded 8 Sept 2026
Award (standstill) to MHR International UK Limited
Contract term 6 yrsends 30 Sept 2032 · up to 30 Sept 2036 with extensions · starts 1 Oct 2026

What is being bought

Published requirement description

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.

  • Not divided into lots: Having undertaken the preliminary market engagement, the Authority concluded that the requirement could not appropriately be awarded by reference to lots. The Authority has chosen not to divide the contract into lots as it requires a single supplier to deliver Payroll as a managed service together with an integrated HR and Payroll system. Payroll delivery across council officers, schools, councillors, external clients, LBH trading companies (including the Lampton Group) and periodic elections is critically dependent on accurate, timely and secure HR data. Separating these requirements would increase interface, data integrity and accountability risks and raise the likelihood of service disruption. A single contract approach ensures end‑to‑end responsibility for service delivery, statutory compliance, information security and business continuity, while avoiding additional integration, operational and contract management costs. Following market engagement, the Authority is satisfied that there are sufficient capable suppliers able to deliver the combined requirement and that this approach does not unduly restrict competition
  • The authority expects to re-tender this requirement around 1 Apr 2035, 23:59 BST.

CPV: Payroll management services · Personnel and payroll services

The lotProcurement structure

single lot · value published
Lot #1AwardedRenewal 6 yrsSMEPublished value£13,860,000
Contract period: 1 Oct 2026 – 30 Sept 2032 (6 yrs) · up to 30 Sept 2036 with extensionsValue: £13,860,000 exc. VAT · £16,632,000 inc. VAT
Delivery: UK, LondonEligibility: SME eligible
Extensions: 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
79211110 Payroll management services79631000 Personnel and payroll services
Pre-qualification & selection criteria (PQQ)2
  • Economic & financial standing

    As outlined in the Invitation to Tender

  • Technical & professional ability

    As outlined in the Invitation to Tender

What it takes to win
i

How this buyer will score bids.

The evaluation criteria and weights exactly as published on the notice, grouped by family (price, quality, social value and so on).

Evaluation split and conditions of participation as published; the tender pack may add more
How bids were scored
Quality: 60%Price: 40%
Published award criteria (2)
  • Quality
  • Price
Conditions of participation2
  • Economic & financial standing

    As outlined in the Invitation to Tender

  • Technical & professional ability

    As outlined in the Invitation to Tender

What this means for your bid
  • Price carries 40 of 100 points: a 10% discount moves about 4 points. The method statement decides this lot, not the discount.

Price arithmetic assumes straight proportional scoring; the tender pack may use another formula.

Procedure terms & legal framework

From the official record
Procedure method
Open procedure
Legal basis
UKPGA · 2023/54 Procurement Act 2023
Procurement category
Services
Notice status
Awarded
Procurement threshold
Above threshold (FTS publication)
Regulatory regime
Standard
Commercial structure
Stand-alone contract (no framework)
Competition type
Competitive procedure
GPA / WTO covered
Yes (GPA)
Recurring procurement
Yes · next expected 1 Apr 2035
First published
29 Jul 2025, 10:26 BST
Last source update
21 Sept 2026, 12:26 BST
Award evaluation window
Submission end – 21 Sept 2026
Authority reference
DN812800
FTS notice number
2026/S 000-034141
Latest notice
Contract award notice (UK6)
Classification (CPV)
Payroll management servicesPersonnel and payroll services
Delivery area
UKLondon (UKI75)
Official registry OCID
ocds-h6vhtk-0567b9 Find a Tender
Review and risk notes
Risks

This Procurement relates to a second‑generation outsourced payroll and HR service, replacing an incumbent supplier. While information has been provided based on current arrangements, the following matters are subject to variation during transition and the contract term.

  • TUPE and Transition: The number, roles, and availability of staff transferring under TUPE may differ from indicative information provided.
  • Incumbent Dependency: Transition activities may be affected by the quality, availability, or cooperation of the incumbent supplier.
  • Service Volumes: Payroll and HR transaction volumes may vary from historic levels over the contract term.
  • Legislative Change: Changes in employment, payroll, tax, pensions, or reporting requirements may impact service delivery.
  • Local Policy Change: Local authority HR, pay, or workforce policies may change during the contract term.
  • Exit and Re‑procurement: Exit and future transition requirements may vary depending on future sourcing decisions.

How it was run

Official notice
Run through: ProContract (Due North) · Who buys & how to bid on ProContract
Supplier login requiredElectronic submission allowedLanguage: EN
Access & registration note: Free · short registration with manual review; public opportunity list
Submission deadline
22 Jun 2026, 12:00 BST
Clarification deadline
5 Jun 2026, 12:00 BST
Submission channel
Official e-sourcing portal
Electronic submission
Allowed
Accepted languages
en
Detailed submission instructions & authority contactsFrom official release

procontract.due-north.com/Advert ↗

Timeline

29 Jul 2025 → 1 Oct 2026 · 10 dates
  1. Planning notice published
    29 Jul 2025, 10:26 BST
  2. Market engagement
    5 Sept 2025, 23:59 BST

    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.

  3. Tender notice published193 days ago
    15 Apr 2026, 12:07 BST
  4. Clarification questions by142 days ago
    5 Jun 2026, 12:00 BST
  5. Submission deadline125 days ago
    22 Jun 2026, 12:00 BST
  6. Assessment summaries sent35 days ago
    21 Sept 2026, 00:00 BST
  7. Latest notice published34 days ago
    21 Sept 2026, 12:26 BST
  8. Award decision expected by34 days ago
    21 Sept 2026, 23:59 BST
  9. Contract starts25 days ago
    1 Oct 2026, 00:00 BST
  10. Standstill ends24 days ago
    1 Oct 2026, 23:59 BST

Notice history

10 events · 4 releases on Find a Tender · since 29 Jul 2025
  1. Preliminary market engagement notice published
    29 Jul 2025, 10:26 BST
    UK2
  2. Preliminary market engagement notice published
    11 Aug 2025, 09:17 BST
    UK2
  3. Tender notice published
    15 Apr 2026, 12:07 BST
    UK4
  4. Published value published: £13,860,000
    15 Apr 2026, 12:07 BST
  5. Status changed to active
    15 Apr 2026, 12:07 BST
  6. Procurement method changed
    15 Apr 2026, 12:07 BST
  7. Deadline published: 22 Jun 2026, 12:00 BST
    15 Apr 2026, 12:07 BST
  8. Contract award notice published
    21 Sept 2026, 12:26 BST
    UK6
  9. Status changed to complete
    21 Sept 2026, 12:26 BST
  10. Contract signature expected
    15 Oct 2026, 23:59 BST
    scheduled
Routine re-releases (4)
  • 2025-07: 1 release · 29 Jul 2025

Commercial outcome & contract awards

Published awards, contracts and bid statistics, not a forecast
Awards 1
Awarded value £3,593,0241 award exc. VAT
Bids received 54 from SMEs
Awarded toValueDateStatus
MHR International UK Limited1 Oct 2027 – 30 Sept 2033 · up to 30 Sept 2035Extensions: A six month notice is required to activate extension clause£3,593,0248 Sept 2026standstill to 1 Oct 2026Standstill

Bid statistics published by the authority

BidsSMEVCSEValid bid range
5final-stage tenders · 9 at stage one40—

Contracting authority & participating public bodies

London Borough of Hounslow

Contracting authorityPublic authority - sub-central government GB-PPON: PQYY-1684-DYLV Hounslow House, 7 Bath Road, Hounslow, London, London, TW3 3EBContact name, email

Bidders & participating suppliers

1 commercial party on the notice
  • MHR INTERNATIONAL UK LIMITEDAwarded supplierGB-COH: 01852206GB-PPON: PLVH-3271-VZNN MHR Campus, Mere Way, Nottingham, East Midlands, NG11 6JSContact email

Official documents & specifications (4)

Official links; attachments are not copied

Notices published for this procedure