Cabinet Office Call Off from Independent Shared Service Centre 2 (ISSC2 Framework)
A Modification Notice
by CABINET OFFICE
- Source
- Find a Tender
- Type
- Contract (Services)
- Duration
- not specified
- Value
- £100M-£117M
- Sector
- BUSINESS
- Published
- 27 Aug 2025
- Delivery
- To 31 Oct 2025 (est.)
- Deadline
- n/a
Concepts
Location
London
2 buyers
- Cabinet Office London
1 supplier
- Shared Services Connected Hemel Hempstead
Description
In December 2012, HM Government published 'Next Generation Shared Services: The Strategic Plan' which set out its proposals for the consolidation, standardisation and simplification of Back Office Transactional Services between and across Central Government to facilitate improvements in the delivery and reduction in the costs of such services, in support of the Government's cost reduction targets. On 29 March 2013, the Cabinet Office as Framework Authority advertised a notice in the Official Journal of the European Union (2013/S 063-105796 - the 'original framework notice'), its intention to establish a single supplier framework. Pursuant to the advertised notice, and in accordance with the Public Contract Regulations (PCR) 2015, the ISSC2 Framework Agreement was awarded to Shared Services Connect Ltd (SSCL) as the single Contractor to provide shared business support services including human resources, finance and accounts, payroll and procurement to Crown and other public sector bodies. This ISSC2 Framework Agreement, therefore, established the basis on which Crown and other public sector bodies were able, during the Call-Off Period, to enter into Call-Off Agreements (called Call Off Order Forms or 'COOFs) with the SSCL for the provision of the shared business support services. ISSC2 Framework Agreement provided the terms and conditions pursuant to which shared business support services were to be provided. Cabinet Office (the 'Authority') Call Off Order Form (COOF) sourced the provision of shared business support services from ISSC2 Framework Agreement originally commencing from 01/11/2013 to 31/10/2020. The Authority exercised an option to extend the term of the COOF, provided for in the original procurement documents, to 31st October 2023 . It subsequently extended the COOF term for an additional period of 2 years so as to expire on 31st October 2025 .
Ammendments to Previous Notice
2. Contract value
GBP 100,000,000 116,827,000
Award Detail
1 | Shared Services Connected (Hemel Hempstead)
|
CPV Codes
- 79400000 - Business and management consultancy and related services
Indicators
- Contract modified due to additional needs.
Legal Justification
In accordance with the published Shared Services for Government (SSfG) Strategy, the Authority is part of the Matrix Cluster. This SSfG Strategy has been progressing as planned since its launch in 2021. Due to collaborative working across the Civil Service, 17 departments and over 100 arms-length bodies have grouped together in 5 clusters, including the Matrix Cluster, to transform the back-office functions of Government. The SSfG will reform and modernise services leading to smarter, cheaper, faster systems across the 5 clusters. As part of the strategy the technology and business process service elements will be split, in contrast to the current single supplier solution. The complexity of the implementation of the Matrix Cluster arrangements across multiple departments and the Authority's exit from the incumbent solution provided by SSCL to align to the cluster and split technology and business service approach, means that new shared service systems and solutions will not be fully implemented before the Authority's COOF with SSCL expire in 31 October 2025. Procurements for the replacement ERP and SI have already taken place, and business services will be brought in house. An extension is required to the existing arrangements because a change of contractor cannot be made for economic or technical reasons and any change would cause significant inconvenience or duplication of costs for a duration of 18 months. The increase in price does not exceed 50% of the original contract value. The business critical services currently provided by SSCL are dependent on a bespoke operating platform, which incorporates proprietary material and interfaces with numerous other systems. This would need to be re-procured/ replicated in any interim solution and which would necessitate at least some continued reliance on the incumbent supplier, SSCL. The time taken to procure an interim, temporary solution would result in significant duplicative and nugatory cost. There would be insufficient time to exit the SSCL solution, move to the new interim solution and then transition to the solution of the new providers where procurement has already concluded. A change in supplier without the lengthy handover period would risk the failure in the delivery of the shared business support services which provide payments to employees (i.e. payroll) and suppliers. Therefore, an extension to the COOF is essential for safeguarding the uninterrupted continuation of the shared business support services and critical operational arrangements, whilst providing the foundation for a safe transition to new and improved shared services under the Matrix Cluster for the Authority.
Other Information
https://www.contractsfinder.service.gov.uk/Notice/6aa0cac9-3256-437a-8c38-a265e3...
Reference
- FTS 051686-2025