Published date: 25 January 2024
This notice was replaced on 25 January 2024
This notice does not contain the most up-to-date information about this procurement. The most recent notice is:
Opportunity (published 25 January 2024, last edited 16 February 2024)
Closed opportunity - This means that the contract is currently closed. The buying department may be considering suppliers that have already applied, or no suitable offers were made.
Contract summary
Industry
Payroll management services - 79211110
Location of contract
England
Value of contract
£5,000,000
Procurement reference
ECC001-DN675873-82832650
Published date
25 January 2024
Closing date
26 February 2024
Closing time
12pm
Contract start date
1 May 2024
Contract end date
30 September 2027
Contract type
Service contract
Procedure type
Open procedure (above threshold)
Any interested supplier may submit a tender in response to an opportunity notice.
This procedure can be used for procurements above the relevant contract value threshold.
Contract is suitable for SMEs?
Yes
Contract is suitable for VCSEs?
No
Description
Essex County Council invites tenders for provision of its Payroll and Pension Administration Service. The current internal payroll service makes payments to around 8,300 employees per month including managing pension contributions and statutory reporting. It also manages elements of the system administration and maintains certain key data around system approvers and the hierarchy.
The service will be for in initial 3-year term, with an option to extend for up to a further 2 years, with services commencing in August 2024. The aim of the procurement is to outsource the following key activities of the current service, which include but are not limited to:
• processing monthly payroll including payment, costing, statutory deductions, and reporting, third party payments and reconciliation for circa 8,300 - 9,000 directly employed Council staff.
• implementing pay changes because of Essex Pay.
• managing the payment of allowances to circa 75 members and other office holders per month
• administering pension contributions and other pension scheme administration for Council staff only
• undertaking pensions statutory reporting and record corrections for Council staff and maintained schools' employees.
• system administration tasks on the current Council IT system including and managing system upgrades.
• managing the organisation structure within the system
• updating changes to the workforce including starters, leavers, and changes
• managing absence including leave, sickness, and statutory leave
• correcting errors such as over and underpayments
• payroll information for the Council's in-year forecasting of its financial position and in developing future years' budget models
• undertaking financial end of year activity
• managing employee queries relating to the above and all other activities required to deliver the requirements set out in the Council's Service Specification for this requirement.
The current payroll runs monthly for payment in advance on 23rd of each month for the whole month or the closest working day prior - this is required to be continued in the outsourced service. In scope services and out of scope services are set out within the detailed Service Specification published for this tender. We are seeking a Contractor that can and must operate within our existing systems and set up by accessing our current platform to manage the on-going payroll and pension activity including elements of system administration.
The Council has considered this procurement in relation to the Transfer of Undertakings (Protection of Employment) Regulations 2006 (the Regulations). The Council's view is that those Regulations apply to the transfer of activity envisaged by the proposed award of a contract for these services. Application of the Regulations is a matter of law and Bidders are therefore advised to seek their own independent legal advice on whether or not the Regulations apply.
More information
Additional text
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The current in-house Council team is composed of circa 29.66 FTE split between various teams:
Payroll management 18.65
Systems Administration 5.51
Pension Administration 5.50
There will be a requirement to provide appropriate pension provision which would usually entail the preferred Bidder providing continued access to the current Local Government Pension Scheme by achieving admitted body status of the Local Government Pension Scheme for any transferring employees. The requirements for any such pension provision (or alternative) is set out in Schedule 5 of the published contract for this tender.
The indicative contract value set out in this notice are for a 5-year contract with some minimal flex for potential contract variations during the term but there is no guarantee of the extension or any variations. Bidders are referred to Schedule 3 of the contract for this tender and the guidance and instructions issued with the pricing matrix to ensure they fully understand what is and is not permitted for this contract. The Council will not award inflation uplifts at any point during the term.
The Payroll and Pensions Administration Service may provide opportunities for the Council to add to the services during the term where the Council needs or wishes to give effect to changes required to optimise, streamline or otherwise improve the services and/or arising from devolution and/or local government reform arrangements and/or shared services arrangements between the Council and other organisations. The actual contract value of the contract may therefore be in excess of the published value.
The award criteria:
• 35% - Price/Commercial
• 60% - Technical/Quality
• 5% - Social Value
and using the published evaluation criteria in the tender documents.
The tender is subject to minimum scores on some of the quality questions and to maximum caps on price as set out in the published tender documents.
About the buyer
Contact name
Andrew Beaver
Address
County Hall
Market Road
Chelmsford
CM1 1QH
United Kingdom
Website
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