Official UK procurement notice
Retained Core Business Services (CBP)
Authority: HM Revenue & Customs (Central government)·Consortium: 2 public authorities
What is being bought
Published requirement descriptionThe contract is for business application support and maintenance services for a set of business-critical legacy HMRC applications. The contract includes options to provide decommissioning and application modernisation services for the business applications in scope. The purpose is either to decommission services during the initial term of this contract or prepare enduring applications and services to go to market in future. The contract will have a duration of 3 - 5 years.
CPV: Application service providers
The lotProcurement structure
single lot · no lot value publishedLot #1HMRC awarded a contract to Capgemini UK Ltd to provide Business Application, Support…Awarded
HMRC awarded a contract to Capgemini UK Ltd to provide Business Application, Support and Maintenance (BASM) services for a set of business-critical legacy HMRC applications which were part of the Core Business Platform. Prior to this Capgemini was the incumbent service provider to HMRC for these services (and other business applications, which were part of other replacement contracts or which are now decommissioned and no longer supported). The initial Prime Contract expired in June 2022.
The services under the Core Business Platform are: Business Application Support and Maintenance (BASM) services; and optional business application development and enhancement services, system integration services; strategy, architecture and feasibility analysis services and decommissioning services related to the applications, which HMRC can use on a call off basis.
The term of the Core Business Platforms contract is 5 years. The consumption of the services for the legacy applications under the contract was planned to decrease over the contract term as some services are decommissioned.
The legacy applications supported by this contract are either (1) Being replaced and decommissioned or (2) Services which are aging and require some form of consolidation or modernisation in order to mitigate technical risks and prepare them for going to market in the future. This contract modification is to support these activities.
The contract modification is £107,271,468.
Procedure terms & legal framework
From the official record · publisher note attached- Procedure method
- Award procedure without prior publication of a call for competition
- Legal basis
- CELEX · 32014L0024 Public Contracts Regulations 2015 (Directive 2014/24/EU)
- Procurement category
- Services
- Notice status
- Awarded without competition
- Procurement threshold
- Unspecified in notice
- Regulatory regime
- Standard
- Commercial structure
- Stand-alone contract (no framework)
- Competition type
- Direct award (no call for competition)
- GPA / WTO covered
- Yes (GPA)
- Recurring procurement
- Unspecified in notice
- First published
- 24 Mar 2022, 16:27 GMT
- Last source update
- 28 Jul 2025, 14:27 BST
- Authority reference
SR2224878779- FTS notice number
2025/S 000-043503- Classification (CPV)
- Delivery area
- Official registry OCID
ocds-h6vhtk-03260eFind a Tender
- Why no open competition
The works, supplies or services can be provided only by a particular economic operator due to absence of competition for technical reasons
- Published justification
The services required by HMRC consist of the provision of Business Application Support and Maintenance (BASM) services; and optional business application development services, system integration services; strategy, architecture and feasibility analysis services and decommissioning services to support business critical legacy HMRC applications. The applications in scope are either (1) services which are in the process of being replaced and will be decommissioned within the New Contract term or (2) services which are aging and require some form of consolidation or modernisation in order to mitigate technical risks and prepare for going to market in future. The applications generate substantial taxes and revenue for the UK and a number of the applications are classified as business critical and therefore must be wholly reliable. It is therefore imperative that the support of such applications continue to be delivered safely and without interruption.
The award of the New Contract to Capgemini ensures the secure and continued support of the legacy applications whilst they are either decommissioned or undergo technical modernisation.
HMRC's assessment is that support services for applications which only have a time-limited life before they are decommissioned can only be provided by Capgemini. This is due to the increased technical risks involved during the migration of services to a replacement application and the decommissioning of all elements of the legacy application that requires a considerable level of in-depth knowledge and experience of the solution, which only Capgemini have because of their 18 years of supporting those services.
Due to the age and intricate interdependencies of the legacy applications which are deemed to require consolidation or modernisation, the support services for those applications, until they are modernised, can only be provided by Capgemini. These applications are a complex environment of small solutions which require extensive knowledge of HMRC's business processes to manage and some are also on aged technologies for which there is a reducing skills-base available. Modernisation is necessary to bring them to the required technical level and reduce inter-dependencies whilst preparing them for going to market in future.
As these are business critical tax and benefit applications, HMRC requires the secure and uninterrupted delivery of support to those applications and considers the award of the New Contract to be the only option for securing delivery of those services until they are either replaced and decommissioned or have been brought to a suitable technical state via consolidation or modernisation. The resulting contract enables HMRC to deliver on its strategic priorities to protect live services and deliver contractual flexibility to manage decommissioning. In parallel, HMRC will be able to work with Capgemini to prepare enduring technologies and services to go to market.
This is an award of a contract via the negotiated procedure without prior publication under Regulation 32 of the Public Contracts Regulations 2015. HMRC's view, having taken advice, is reliance on Regulation 32 is justified because services being procured under and for the term of the New Contract can only be provided by Capgemini because competition is absent for technical reasons.
Accordingly, HMRC concluded that for technical reasons HMRC would procure services under the New Contract which only Capgemini could provide and for which there was no reasonable alternative.
Publisher note: This is a contract modification notice.
Notice history
1 event · 2 releases on Find a Tender- Buyer details updated28 Jul 2025, 14:27 BST
Commercial outcome & contract awards
Published awards, contracts and bid statistics, not a forecast| Awarded to | Value | Date | Status |
|---|---|---|---|
| Capgemini | £214,542,937 † | — | Awarded |
| CapgeminiCore Business Platforms (Retained Services) | £321,814,406 † | — | Awarded |
Contracts
Contract 008052-2022-1 · Capgemini
- Signed
- 21 Mar 2022
- Value
- £214,542,937
- Status
- active
Core Business Platforms (Retained Services) · Capgemini
- Signed
- 21 Mar 2022
- Value
- £321,814,406
- Status
- active
- Change This contract has been modified by £107.2m in line with PCR 2015. This is effective from 1st July 2025. This modification does not change the scope or terms and conditions of the contract., Need for additional works, services or supplies by the original contractor/concessionaire: The CBP contract provides services supporting the Government's ability to manage national tax collection. A compromise to service delivery would impact the Government's ability to collect taxes and administer benefits payments and as such detrimentally impact UK citizens. This modification has been made in line with Reg (1) (b): Modification of the Contract is sought pursuant to Regulation 72 (1) (b) of the Public Contracts Regulations 2015 ("PCR 2015") on the basis of additional works, services and supplies that are required to be delivered under the Contract. Under Regulation 72(1)(b) contracts and framework agreements may be modified without a new procurement procedure where additional works, services or supplies by the original contractor that have become necessary and were not included in the initial procurement, and where a change of contractor- (i) cannot be made for economic or technical reasons such as requirements of interchangeability or interoperability with existing equipment, services or installations procured under the initial procurement. (ii) would cause significant inconvenience or substantial duplication of costs for the contracting authority, and provided that any increase in price does not exceed 50% of the value of the original contract. A change of supplier for this contract is not feasible for technical reasons due to Core Business Platforms applications having extremely high levels of technical and functional complexity. In addition, there would be a significant increase in costs if a new supplier provided these services which would include major delays to programmes.
Bid statistics published by the authority
| Bids | SME | VCSE | Valid bid range |
|---|---|---|---|
| 1bids | — | — | — |
Contracting authority & participating public bodies
2 public bodies on the noticeDispute resolution & review bodies
- HMRCReview body
Bidders & participating suppliers
2 commercial parties on the notice- CapgeminiAwarded supplier
- Capgemini UK PLCAwarded supplier
Official documents & specifications
Official links; attachments are not copiedNo document links were published on the notice.