Public procurement notice: Prior Information Notice Without Call For Competition
Published: 2017-07-22
Buyer: Ministry of Defence, C&C, Other
Country: UK
Contract type: Services
CPV classification: 72222300: Information technology services | 75112000 | 79512000 | 79631000 | 79900000
Estimated value: 450000000 GBP

Technical requirements: Future Service Delivery Contract (FSDC): Provision of Armed Forces Pay, Pensions and Military HR and Administrative Services.
The Ministry Of Defence (MOD) is publishing this PIN to seek the market's views on the delivery of a specific part of Defence Business Service's (DBS) operations and alert industry to this forthcoming requirement.
The DBS organisation within the MOD was established on 4.7.2011 by bringing together the Finance, Civilian HR, Vetting and some Knowledge and Information (K&I) services into a single shared service organisation, creating a centre of ‘shared service’ expertise. Subsequently, the Service Personnel and Veterans' Agency (SPVA), which provides support services to Armed Forces personnel and Veterans, was brought into the DBS organisation in April 2014.
Current DBS pay, pension and administration services for the Armed Forces, including the Reserves, and Veterans, are delivered through a mixture of in-house and outsourced provision. The commercial arrangement for the outsourced provision expires in November 2019.
Following previous Future Defence Business Services (FDBS) soft market testing undertaken in 2015 and most recently in 2016 (notified in PIN 2016/S 032-052191 on 16/02/2016), the MOD has considered in more detail the options for future DBS service delivery and has concluded that, while our aspirations for corporate services transformation remain, a full outsource of DBS under a single contract or an alternative commercial model for the management of DBS would not be appropriate. To progress our Transformation Agenda, the MOD now wishes to seek the market's views and understand latest industry capabilities regarding the currently outsourced requirement for Armed Forces and Veterans pay, pension and administration services to inform our decision-making around the Future Service Delivery Contract.
We anticipate that the FSDC will cover those Armed Forces and Veterans DBS services currently delivered through outsourcing, which at a high level consist of:
— A variety of personnel support services for the Royal Navy, Army and Royal Air Force, in the form of Joint Personnel Administration (JPA), which is the MOD's current Military HR system, and Military Pensions; and
— The development and maintenance of a range of supporting Information System (IS) applications and elements of IS infrastructure.
A detailed Service Requirement Document (SRD) will be developed, however, in essence the key components of the FSDC requirement are listed below:
— Payroll, Controls and Accounting Services (including financial accounting with interfaces to other MOD and Other Government Department (OGD) systems);
— The administration of a number of Military Pension and Compensation Schemes (including payment and financial accounting with interfaces to other MOD and OGD financial systems);
— An Information System (IS) Service in support of Military Pay, Pensions, Compensation Schemes and JPA, including a broad range of complementary applications and interfaces;
— A Personnel Administration Centre including User Access Control, with an incident and issue management matrix and capability including an Enquiry Service, with multiple support routes for self service, professional and corporate users of Pay, Pensions, Compensation Schemes, JPA and IS/Information Technology (IT);
— The provision of Personnel Services in support of the Armed Forces with significant Business Processing Operations (BPO);
— Delivery of a full Change Programme to both Information Technology Operations (ITO) and BPO with the bidders Change mechanism to be set out as a service; and