Contract Award for Pensions Administration Software

The Council as a Local Authority and as an Administering Body must comply with and has statutory obligations under the LGPS Regulations 2013 (as amended) which are made under The Superannuation Act 1972. To meet its statutory obligations, the Council must, among other things, meet the requirements on administering authorities set out in Part I (Membership, contributions, and benefits), Part II (Administration) and Part III (Governance) of the LGPS Regulations 2013. The Pension Administration system is critical for delivering member benefits, managing the pensioner payroll and meeting the Council's statutory obligations.

Paragraph 13 of Schedule 5 of the Procurement Act 2023 provides a justification for the direct award of public contracts where it is strictly necessary for reasons of urgency and where a public contract cannot be awarded on the basis of a competitive tendering process. The services are strictly necessary to meet statutory obligations. The current contract expires on 31 March 2026, and there is insufficient time to conduct a competitive procurement process. Furthermore, migration of pensions data is complex and onboarding of a new provider typically requires 14–18 months after completion of a procurement process. This cannot be accommodated within the remaining timeframe. Without a new contract in place, officers would be unable to discharge statutory duties, including paying member benefits and the pensioner payroll, from 1 April 2026. The proposed 36‐month direct award represents the shortest feasible contract term that allows for a compliant procurement process and the completion of data migration.