Find a TenderClosedTender notice
Published 29 Jul 2025, 10:14 BST

Official UK procurement notice

Revenue Collection and Benefits Administration Services

Official notice

Authority: London Borough of Hounslow (Local council)

ServicesCompetitive flexible procedureAbove thresholdSME suitable
Published estimate£40,000,000≈ £7.1m / year · £48,000,000 inc. VAT · 1 value update
Submissions closed 27 Jul 2026
Contract term 5 yrs 8 moends 30 Sept 2032 · up to 30 Sept 2036 with extensions · starts 12 Feb 2027

What is being bought

Published requirement description

The Authority is seeking a suitably qualified and experienced Service Supplier to deliver high quality, compliant and customer focused Revenue Collection and Benefits Administration Services from 1 October 2027.

The contract will include:

  • Fully managed Revenue Collection Service including Council Tax and Business Rates Collection
  • Fully managed Benefits Administration Service including Housing Benefits, Council Tax Support and Discretionary schemes
  • Fully managed Free School Meals administration
  • Customer services for Council Tax, Business Rates, Housing Benefits, Council Tax Support, Discretionary Schemes and Free School Meals
  • Provision of the IT systems used: Business Rates system, and Council Tax and Benefits system, and any other systems, not provided or managed by the Council, necessary to meet requirements for service delivery
  • Provision of system management for the Business Rates system, and Council Tax and Benefits system, and any other systems, not provided or managed by the Council, necessary to meet the requirements for service delivery
  • Mobilisation of the service and system implementation
  • Ongoing service improvement, cost savings and benchmarking
  • Exit and transition management support

Contract start and go-live: The Contract is anticipated to commence in February 2027 to enable mobilisation and implementation. The full live service will commence on 1 October 2027.

Contract term and end dates: The initial term will run until 30 September 2032.

The Authority may extend the Contract by a further two (2) years (to 30 September 2034) and then by a further two (2) years (to 30 September 2036).

For the avoidance of doubt, the Contract end date is aligned to 30 September and is not linked to the anniversary of the anticipated February commencement date.

  • Not divided into lots: The Authority has considered whether the requirement can appropriately be divided into lots, including in light of preliminary market engagement. The Authority has concluded that this procurement is not suitable for division into lots because the services and systems form a single integrated end‑to‑end operating model and require single-point accountability for statutory outcomes and customer experience. The requirement includes Revenue Collection (Council Tax and Business Rates), Benefits Administration (including Housing Benefit, Council Tax Support and discretionary schemes), Free School Meals administration, multi‑channel customer services, and provision and management of the supporting IT systems, together with mobilisation, continuous improvement and exit support. These components are operationally interdependent and must operate seamlessly for residents and businesses. Dividing the requirement into lots would create material interface risk and split accountability, particularly at the boundaries between: (i) customer contact (telephony/digital), (ii) back‑office processing and decision‑making, and (iii) system configuration, workflow and integrations. Experience in this service area indicates that performance failures and customer detriment most commonly arise at such interfaces, leading to delays, rework, inconsistent decision‑making and disputes over responsibility. Lotting would therefore increase delivery and governance complexity and reduce clarity of accountability for statutory compliance, performance, data quality, reporting and audit readiness. The Contract includes mobilisation to achieve go‑live on 1 October 2027. A lotted model would increase mobilisation risk by making readiness dependent on multiple suppliers' inter‑related deliverables (including data sharing, workflow hand‑offs and management information reconciliation). A single contract provides the clearest route to controlled mobilisation, stable day‑one operations and audit/assurance readiness. Lotting is also likely to reduce value for money due to duplicated overheads, additional integration and governance activity, increased risk pricing and a higher likelihood of disputes and change at interfaces. A single integrated contract supports a coherent commercial model, aligned incentives and a single performance framework. Competition is maintained because bidders may propose consortia, partnerships and/or specialist subcontractors, provided the prime contractor retains end‑to‑end accountability for delivery and outcomes across all service components.
  • The authority expects to re-tender this requirement around 30 Sept 2034, 23:59 BST.
  • How the procedure runs: The Authority is conducting this Procurement using the Competitive Flexible procedure under Section 20(2)(b) of the Procurement Act 2023. Any interested organisation/consortium may submit an Initial Tender in response to the Invitation to Submit Initial Tender and this Tender Notice. The procurement will be conducted through two tender stages only; Stage 1 - Initial Tender Stage 2 - Improved Final Tender (Best and Final Offer) Between these two tender stages, the Authority will undertake a non‑scored presentation/clarification step. This step does not constitute a tender stage and does not involve negotiation. The Authority will not conduct negotiations or dialogue on pricing, solutions, or contract terms at any stage. The only interactions between Stage 1 and Stage 2 will be non-scored presentations/clarifications to verify and clarify submitted tenders. Any change a bidder wishes to make must be submitted only in its Improved Final Tender. Any presentations or clarification discussions are for the purposes of: • verifying and testing the content of written submissions; • clarifying ambiguities or inconsistencies; • confirming bidders' understanding of the Authority's requirements and proposed approach; and • testing and challenging the assumptions underpinning bidders' proposed solutions and pricing No commitments, improvements, or changes discussed during presentations or clarifications will be taken into account for evaluation unless they are formally incorporated into the bidder's Improved Final Tender.

CPV: Benefit services · Collection agency services · General public services

The lotProcurement structure

single lot · value published
Lot #1Renewal 5 yrs 8 moSMEPublished value£40,000,000
Contract period: 12 Feb 2027 – 30 Sept 2032 (5 yrs 8 mo) · up to 30 Sept 2036 with extensionsValue: £40,000,000 exc. VAT · £48,000,000 inc. VAT
Delivery: UK, LondonEligibility: SME eligible
Extensions: The Authority may extend the Contract at its discretion by a first extension period of up to two (2) years, ending on 30 September 2034 and by a further extension period of up to two (2) years ending on 30 September 2036. The Contract end date (whether at the end of the Initial Term or any extension) is aligned to the Service Go‑Live Date and will fall on 30 September. It is not linked to the anniversary of the anticipated February Contract Commencement Date.
Pre-qualification & selection criteria (PQQ)2
  • Economic & financial standing

    As outlined in the Invitation to Submit Initial Tender

  • Technical & professional ability

    As outlined in the Invitation to Submit Initial 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: 100%
Published award criteria (1)
  • Quality: The contracting authority will award the contract on the basis of the Most Advantageous Tender (MAT). Whilst the award criterion is expressed as Quality (100%), price forms a fundamental component of the evaluation through the application of a Weighted Price per Quality Point (Weighted PPQP) methodology. This methodology determines value for money by calculating the ratio of a Bidder's Adjusted Evaluated Price to its Final Quality Score (Weighted PPQP = Adjusted Evaluated Price ÷ Quality Score). The tender achieving the lowest Weighted PPQP score will be identified as the Most Advantageous Tender, subject to compliance with all mandatory requirements and minimum quality thresholds. Full details of the evaluation methodology are set out in the procurement documents.
Conditions of participation2
  • Economic & financial standing

    As outlined in the Invitation to Submit Initial Tender

  • Technical & professional ability

    As outlined in the Invitation to Submit Initial Tender

Procedure terms & legal framework

From the official record
Procedure method
Competitive flexible procedure
Legal basis
UKPGA · 2023/54 Procurement Act 2023
Procurement category
Services
Notice status
Closed
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 30 Sept 2034
First published
29 Jul 2025, 10:14 BST
Last source update
20 May 2026, 14:42 BST
Award evaluation window
Submission end – 4 Jan 2027
Authority reference
DN815229
FTS notice number
2026/S 000-046460
Latest notice
Tender notice (UK4)
Classification (CPV)
Benefit servicesCollection agency servicesGeneral public services
Delivery area
UKLondon (UKI75)
Official registry OCID
ocds-h6vhtk-0567b0 Find a Tender
How it runs

The Authority is conducting this Procurement using the Competitive Flexible procedure under Section 20(2)(b) of the Procurement Act 2023. Any interested organisation/consortium may submit an Initial Tender in response to the Invitation to Submit Initial Tender and this Tender Notice.

The procurement will be conducted through two tender stages only;

Stage 1 - Initial Tender

Stage 2 - Improved Final Tender (Best and Final Offer)

Between these two tender stages, the Authority will undertake a non‑scored presentation/clarification step. This step does not constitute a tender stage and does not involve negotiation.

The Authority will not conduct negotiations or dialogue on pricing, solutions, or contract terms at any stage. The only interactions between Stage 1 and Stage 2 will be non-scored presentations/clarifications to verify and clarify submitted tenders. Any change a bidder wishes to make must be submitted only in its Improved Final Tender.

Any presentations or clarification discussions are for the purposes of:

  • verifying and testing the content of written submissions;
  • clarifying ambiguities or inconsistencies;
  • confirming bidders' understanding of the Authority's requirements and proposed approach; and
  • testing and challenging the assumptions underpinning bidders' proposed solutions and pricing

No commitments, improvements, or changes discussed during presentations or clarifications will be taken into account for evaluation unless they are formally incorporated into the bidder's Improved Final Tender.

Review and risk notes
Risks

The Authority has identified a number of known but inherently uncertain risks associated with the delivery of Revenues, Benefits and associated services.

These include:

a) future legislative, policy and regulatory changes;

b) demand volatility and changes in caseload complexity;

c) uncertainty relating to TUPE scope and workforce information;

d) data quality and legacy system dependencies;

e) evolving technology, digital service expectations and integration requirements;

f) changes in labour market conditions; and

g) potential organisational or strategic changes within the Authority.

These risks are not wholly attributable to either party and may require contract modification in accordance with the agreed change control provisions.

The procurement and resulting contract will therefore include appropriate mechanisms to manage change in a transparent and controlled manner.

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
27 Jul 2026, 12:00 BST
Clarification deadline
6 Jul 2026, 12:00 BST
Submission channel
Official e-sourcing portal
Electronic submission
Allowed
Accepted languages
en
Detailed submission instructions & authority contactsFrom official release

Timeline

29 Jul 2025 → 12 Feb 2027 · 7 dates
  1. Planning notice published
    29 Jul 2025, 10:14 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 published161 days ago
    20 May 2026, 14:42 BST
  4. Clarification questions by114 days ago
    6 Jul 2026, 12:00 BST
  5. Submission deadline93 days ago
    27 Jul 2026, 12:00 BST
  6. Today
    28 Oct 2026
  7. Award decision expected byin 68 days
    4 Jan 2027, 23:59 GMT
  8. Contract startsin 106 days
    12 Feb 2027

Notice history

6 events · 2 releases on Find a Tender · since 29 Jul 2025
  1. Preliminary market engagement notice published
    29 Jul 2025, 10:14 BST
    UK2
  2. Tender notice published
    20 May 2026, 14:42 BST
    UK4
  3. Published value published: £40,000,000
    20 May 2026, 14:42 BST
  4. Status changed to active
    20 May 2026, 14:42 BST
  5. Procurement method changed
    20 May 2026, 14:42 BST
  6. Deadline published: 27 Jul 2026, 12:00 BST
    20 May 2026, 14:42 BST

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 email

Official documents & specifications (2)

Official links; attachments are not copied

Notices published for this procedure