The Provision of a Loan Administration System

A direct award is justified under Section 41 and Schedule 5 of the Procurement Act 2023, on the basis that a change in supplier would result in services that are incompatible with DBW’s existing systems, and that the resulting integration challenges would give rise to disproportionate technical and operational difficulties. DBW’s loan administration solution forms part of an embedded and highly integrated financial ecosystem, underpinning repayment processing and payment-enabled operational workflows. The current system is tightly coupled with existing infrastructure, including repayment processes, APIs and back-office systems, and supports core operational activity. Introducing a replacement supplier would necessitate significant redevelopment and reconfiguration, including: Redesign of existing processes and system architecture Rebuilding and testing of integrations (including APIs) Re-engineering of back-office systems This would require substantial internal and external resource, including specialist capability not currently held in-house, resulting in additional cost and delivery risk. A change in supplier would also create material operational risk, including: Potential service disruption during migration Risk to payment processing continuity, impacting revenue collection and customer experience Requirement for dual running, cutover planning and stabilisation support, increasing operational burden Extensive staff retraining and process transition activity These impacts arise directly from replacing an integrated, business-critical service, rather than switching a standalone or self-contained product. Any interruption or degradation in payment processing would present a significant risk to operational continuity, particularly where timely payment acceptance is integral to service delivery and DBW’s ability to meet its obligations. The incumbent solution is proven in service, supports operational stability, and ensures continuity of critical payment-enabled processes. On this basis, a change in supplier would result in disproportionate technical and operational difficulties, satisfying the criteria set out in Schedule 5.