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PROCUREMENT OPPORTUNITY

1 Year Extension of the Horizon Services Agreement

Post Office Limited · compiled

Tender information last checkedLast checked 29 Sept 2026, 18:37.

Opportunity overview

Provision of professional services to support electronic disclosure management services, including the collection, processing and analysing of electronic data.

Awarded to

Amounts belong to published awards or contracts. Where several suppliers share one value, it is labelled as shared and is not a supplier-specific allocation.

Fujitsu Services Limited

Match processing…
Contract value
£42.5m
Awarded
Not supplied
Contract signed
5 Apr 2021
Award ID
006992-2021-1
Status
active
Location
London, UK, W1U 3BW, United Kingdom

Fujitsu Services Limited

Matched by number
Contract value
£2.4bn
Awarded
Not supplied
Contract signed
29 Nov 2024
Award ID
009521-2025-C100147-1
Status
active
Identifier
GB-COH 00096056
Location
Bracknell, UKK, RG12 8SN, United Kingdom

Fujitsu Services Ltd

Match pending…
Contract value
£42.5m
Awarded
Not supplied
Contract signed
29 Apr 2021
Award ID
009752-2021-1
Status
active
Location
London, UK, United Kingdom

Fujitsu Services Limited

Match processing…
Shared contract value
£2.3bn
Awarded
Not supplied
Contract signed
29 Apr 2021
Suppliers
One of 2 awarded suppliers
Award ID
009753-2021-N/A-1
Status
active
Location
London, UK, United Kingdom

Fujitsu Services Ltd

Match pending…
Shared contract value
£2.3bn
Awarded
Not supplied
Contract signed
29 Apr 2021
Suppliers
One of 2 awarded suppliers
Award ID
009753-2021-N/A-1
Status
active
Location
London, UK, United Kingdom

Fujitsu Services Limited

Matched by number
Contract value
£2.3bn
Awarded
Not supplied
Contract signed
31 Mar 2023
Award ID
010251-2023-N/A-1
Status
active
Identifier
GB-COH 00096056
Location
Bracknell, UKK, RG12 8SN, United Kingdom

KPMG LLP

Matched by number
Contract value
£12m
Awarded
Not supplied
Contract signed
31 Jul 2024
Award ID
032026-2024-1
Status
active
Identifier
GB-COH OC301540
Location
London, UK, United Kingdom

Fujitsu Services Ltd

Matched by number

Fujitsu Services Limited

Contract value
£2.4bn
Awarded
Not supplied
Contract signed
3 Nov 2023
Award ID
034447-2023-N/A-1
Status
active
Identifier
GB-COH 0096056
Location
Bracknell, UK, United Kingdom

Fujitsu Services Limited

Matched by number
Contract value
£2.5bn
Awarded
Not supplied
Contract signed
4 Nov 2025
Award ID
073336-2025-C100147-1
Status
active
Identifier
GB-COH 00096056
Location
Bracknell, UKK, RG12 8SN, United Kingdom

Classification

  • CPV72000000 — IT services: consulting, software development, Internet and support

Lots

  • Continuing provision of application and service management, maintenance, development and support services under an existing software and IT services agreement relating to Point of Sale/Service ('POS') customer facing transactions across multiple channels. Other than the extension of the term of the agreement, all other terms and conditions shall remain the same with the exception of FSL obligations in respect of: End of Service Life (EOSL) Impact and Relief Principles, improved Governance for better management, Removal of Redundant Clauses and Schedules, maintenance of software that resides on HNG-X system and licenses required, from the date of the execution of the modification; and NB: Any investment will be subject to POL agreeing suitable work orders with FSL.Value not stated

Published notice details

Additional information from the published procurement release. Fields appear only when supplied by the source; check the original notice and tender documents before acting.

Scope, procedure and submissions

Id
ocds-h6vhtk-02a2c1
Status
complete
Procurement Method
selective
Main Procurement Category
services
Procurement Method Details
Restricted procedure
Why this procedure was chosen
This Notice relates to the modification of an existing contract that has been necessary due to the following reasons. The Authority's existing Horizon system is a highly complex, legacy platform, written in outdated versions of software languages, and incorporates five 'systems' in one i.e. financial services, banking, government services, mails, and retail. "Horizon" is an aging platform, has an inflexible monolithic architecture that makes technology change difficult. It was not designed for multi-channel digital operations. The services cannot for economic and technical reasons be provided by a contractor other than the original contractor before the expiry of the Horizon Agreement because of the specific interoperability requirements and the highly complex nature of the existing infrastructure and the Authority's business model and operating procedures. A change of contractor would result in disproportionate technical difficulties in implementation as well as operation and maintenance. Awarding the contract to a different contractor would also cause significant inconvenience in terms of service delivery, reliability, and continuity of service, not least because of risk of incomplete transfer of know-how. Changing the original contractor would result in a number of sunk costs, including an increase in run costs, dual running costs, and additional exit/transition costs for a 2-year service term. There would also be significant service risk as a result of engaging in two transitions of service provider within the relatively short time period of 2-3 years whereas an extension with the original contractor would just require one such transition. In summary, a change of contractor cannot be made for technical or economic reasons and would cause substantial inconvenience and duplication of costs for the Authority in accordance with Regulation 72(1)(b) of the Public Contracts Regulations 2015. The increase in price as a result of the modified contract is less than 50 % of the original contract value.

Legal basis

Id
32014L0024
Scheme
CELEX

Classification

Id
72000000
Scheme
CPV
Description
IT services: consulting, software development, Internet and support

Procedure reasons

Entry 1
Id
D_TECHNICAL
Scheme
TED_PT_AWARD_CONTRACT_WITHOUT_CALL
Description
The works, supplies or services can be provided only by a particular economic operator due to absence of competition for technical reasons
Entry 2
Id
D_ADD_DELIVERIES_ORDERED
Scheme
TED_PT_AWARD_CONTRACT_WITHOUT_CALL
Description
Additional deliveries by the original supplier ordered under the strict conditions stated in the directive

Lots and requirements

Entry 1
Id
1
Status
cancelled
Has Options
Yes
Description
Continuing provision of application and service management, maintenance, development and support services under an existing software and IT services agreement relating to Point of Sale/Service ('POS') customer facing transactions across multiple channels. Other than the extension of the term of the agreement, all other terms and conditions shall remain the same with the exception of FSL obligations in respect of: End of Service Life (EOSL) Impact and Relief Principles, improved Governance for better management, Removal of Redundant Clauses and Schedules, maintenance of software that resides on HNG-X system and licenses required, from the date of the execution of the modification; and NB: Any investment will be subject to POL agreeing suitable work orders with FSL.

Options

Description
Option to extend for a further 12 month term.

Award criteria

Criteria

Criterion 1
Type
price

Contract period

Duration In Days
360

Items and delivery

Item 1
Id
1
Related Lot
1

Delivery locations

Entry 1
Region
UK
Entry 2
Region
UK
Entry 3
Region
UK
Entry 4
Region
UK
Entry 5
Region
UK
Entry 6
Region
UKI
Entry 7
Region
UK
Entry 8
Region
UKJ
Entry 9
Region
UKK
Entry 10
Region
UKN
Entry 11
Region
UKJ
Entry 12
Region
UKK
Entry 13
Region
UKN

Buyer, suppliers and contacts

Organisation 1
Id
GB-FTS-11239
Name
Post Office Limited

Roles

buyer

Address

Region
UK
Locality
London
Postal Code
EC2Y 9AQ
Country Name
United Kingdom
Street Address
Finsbury Dials, 20 Finsbury Square

Details

Classifications

Entry 1
Id
BODY_PUBLIC
Scheme
TED_CA_TYPE
Description
Body governed by public law
Entry 2
Id
01
Scheme
COFOG
Description
General public services

Identifier

Legal Name
Post Office Limited

Contact

Organisation 2
Id
GB-FTS-11240
Name
Fujitsu Services Limited

Roles

supplier

Address

Region
UK
Locality
London
Postal Code
W1U 3BW
Country Name
United Kingdom

Details

Scale
large

Identifier

Legal Name
Fujitsu Services Limited
Organisation 3
Id
GB-FTS-88
Name
Royal Courts of Justice

Roles

reviewBody

Address

Locality
London
Postal Code
WC2A 2LL
Country Name
United Kingdom
Street Address
Strand

Identifier

Legal Name
Royal Courts of Justice
Organisation 4
Id
GB-FTS-15206
Name
Post Office Limited

Roles

reviewBody

Address

Region
UK
Locality
London
Country Name
United Kingdom

Details

Classifications

Entry 1
Id
BODY_PUBLIC
Scheme
TED_CA_TYPE
Description
Body governed by public law
Entry 2
Scheme
COFOG
Description
Postal services

Identifier

Legal Name
Post Office Limited

Contact

Organisation 5
Id
GB-FTS-12512
Name
Fujitsu Services Ltd

Roles

supplier

Address

Region
UK
Locality
London
Country Name
United Kingdom

Details

Scale
large

Identifier

Legal Name
Fujitsu Services Ltd
Organisation 6
Id
GB-FTS-92
Name
Royal Courts of Justice

Roles

reviewBody

Address

Locality
London
Country Name
United Kingdom

Identifier

Legal Name
Royal Courts of Justice
Organisation 7
Id
GB-FTS-15207
Name
Fujitsu Services Limited

Roles

supplier

Address

Region
UK
Locality
London
Country Name
United Kingdom

Details

Scale
large

Identifier

Legal Name
Fujitsu Services Limited
Organisation 8
Id
GB-COH-02154540
Name
Post Office Limited

Roles

buyer

Address

Region
UKI
Locality
London
Postal Code
EC2V7ER
Country Name
United Kingdom
Street Address
100 Wood Street

Details

Classifications

Entry 1
Id
BODY_PUBLIC
Scheme
TED_CA_TYPE
Description
Body governed by public law
Entry 2
Scheme
COFOG
Description
Retail, banking and postal services

Identifier

Id
02154540
Scheme
GB-COH
Legal Name
Post Office Limited

Contact

Organisation 9
Id
GB-COH-00096056
Name
Fujitsu Services Limited

Roles

supplier

Address

Region
UKK
Locality
Bracknell
Postal Code
RG12 8SN
Country Name
United Kingdom
Street Address
Lovelace Road

Details

Scale
large

Identifier

Id
00096056
Scheme
GB-COH
Legal Name
Fujitsu Services Limited
Organisation 10
Id
GB-COH-0096056
Name
Fujitsu Services Limited

Roles

supplier

Address

Region
UK
Locality
Bracknell
Country Name
United Kingdom

Details

Scale
large

Identifier

Id
0096056
Scheme
GB-COH
Legal Name
Fujitsu Services Limited
Organisation 11
Id
GB-COH-OC301540
Name
KPMG LLP

Roles

supplier

Address

Region
UK
Locality
London
Country Name
United Kingdom

Details

Scale
large

Identifier

Id
OC301540
Scheme
GB-COH
Legal Name
KPMG LLP

Award information

Award 1
Id
006992-2021-1
Status
active

Suppliers

Supplier 1
Id
GB-FTS-11240
Name
Fujitsu Services Limited

Related lots

1
Award 2
Id
009752-2021-1
Status
active

Suppliers

Supplier 1
Id
GB-FTS-12512
Name
Fujitsu Services Ltd

Related lots

1
Award 3
Id
009753-2021-N/A-1
Status
active

Suppliers

Supplier 1
Id
GB-FTS-15207
Name
Fujitsu Services Limited
Supplier 2
Id
GB-FTS-12512
Name
Fujitsu Services Ltd

Related lots

1
Award 4
Id
010251-2023-N/A-1
Status
active

Suppliers

Supplier 1
Id
GB-COH-00096056
Name
Fujitsu Services Limited

Related lots

1
Award 5
Id
034447-2023-N/A-1
Status
active

Suppliers

Supplier 1
Id
GB-COH-0096056
Name
Fujitsu Services Ltd

Related lots

1
Award 6
Id
032026-2024-1
Status
active

Suppliers

Supplier 1
Id
GB-COH-OC301540
Name
KPMG LLP

Related lots

1
Award 7
Id
009521-2025-C100147-1
Status
active

Suppliers

Supplier 1
Id
GB-COH-00096056
Name
Fujitsu Services Limited

Related lots

1
Award 8
Id
073336-2025-C100147-1
Status
active

Suppliers

Supplier 1
Id
GB-COH-00096056
Name
Fujitsu Services Limited

Related lots

1

Contracts and changes

Entry 1
Id
006992-2021-1
Status
active
Award ID
006992-2021-1
Date Signed
6 Apr 2021, 00:00

Value

Amount
42,500,000
Currency
GBP
Entry 2
Id
009752-2021-1
Status
active
Award ID
009752-2021-1
Date Signed
30 Apr 2021, 00:00

Value

Amount
42,500,000
Currency
GBP
Entry 3
Id
009753-2021-N/A-1
Status
active
Award ID
009753-2021-N/A-1
Date Signed
30 Apr 2021, 00:00

Items

Item 1
Id
1
Related Lot
1

Classification

Id
72000000
Scheme
CPV
Description
IT services: consulting, software development, Internet and support

Delivery locations

Entry 1
Region
UK

Value

Amount
2,322,500,000
Currency
GBP

Period

Duration In Days
720

Amendments

Entry 1
Id
1
Rationale
Need for additional works, services or supplies by the original contractor/concessionaire: This notice relates to the modification of an existing contract that has been necessary due to the following reasons. The existing Horizon system is a highly complex, legacy platform, written in outdated versions of software languages, and incorporates five 'systems' in one i.e. financial services, banking, government services, mails, and retail. "Horizon" is an aging platform, and has an inflexible monolithic architecture that makes technology change difficult. It was not designed for multi-channel digital operations. The services cannot for economic and technical reasons be provided by a contractor other than the original contractor before the expiry of the Horizon Agreement because of the specific interoperability requirements and the highly complex nature of the existing infrastructure and the Post Office's business model and operating procedures. A change of contractor would result in disproportionate technical difficulties in implementation as well as operation and maintenance. Awarding the contract to a different contractor would also cause significant inconvenience in terms of service delivery, reliability, and continuity of service, not least because of risk of incomplete transfer of know-how. Changing the original contractor would result in a number of sunk costs, including an increase in run costs, dual running costs, and additional exit/transition costs for a 2-year service term. There would also be significant service risk as a result of engaging in two transitions of service provider within the relatively short time period of 2-3 years whereas an extension with the original contractor would just require one such transition. In summary, a change of contractor cannot be made for technical or economic reasons and would cause substantial inconvenience and duplication of costs for the Post Office in accordance with Regulation 72(1)(b) of the Public Contracts Regulations 2015. The increase in price as a result of the modified contract is less than 50 % of the original contract value.
Description
The following key amendments will be made to the Horizon Agreement: Extension period: Additional period of up to twenty-four months post-31st March 2023 to assist transition of services as per description below. Services during the extension period: o In line with the development and modernisation of the HNG-X system, on-premises hosting and data centre operations services and central network services will not be extended and will expire on 31 March 2023 (to be replaced by a separately procured cloud hosting solution). It is anticipated that Post Office will exercise its existing rights in the Horizon Agreement to terminate these services prior to that date and that amendments will need to be made to the ongoing operational services to reflect this change. o Certain digital development services and Post Office's obligation to purchase the services of a standing team of IT developers will also expire on 31 March 2023. Financial matters: Certain financial matters, and in particular relating to charges, financial savings and spend commitments, will be amended to reflect the above changes in the scope of service. Arrangements for exit: o A process will be added to facilitate access to specified Fujitsu intellectual property so as to assist the Post Office on its development and modernisation of the HNG-X system and exit from the Horizon Agreement. o A structured process will be added for addressing the replacement of end of life hardware and software components. o As part of the transitional support, Post Office has requested that Fujitsu Services provides certain termination services and cooperation to facilitate the orderly transfer of responsibility to a new supplier(s).
Entry 4
Id
010251-2023-N/A-1
Status
active
Award ID
010251-2023-N/A-1
Date Signed
1 Apr 2023, 00:00

Items

Item 1
Id
1
Related Lot
1

Classification

Id
72000000
Scheme
CPV
Description
IT services: consulting, software development, Internet and support

Delivery locations

Entry 1
Region
UK
Entry 2
Region
UK

Value

Amount
2,339,000,000
Currency
GBP

Period

Duration In Days
360

Amendments

Entry 1
Id
2
Rationale
Need for additional works, services or supplies by the original contractor/concessionaire: This Notice relates to the modification of an existing contract that has been necessary due to the following reasons: The existing Horizon System is a highly complex platform, written in legacy versions of software languages and which incorporates five "systems" in one i.e. financial services, banking, government services, mails and retail. "Horizon" itself is an aging platform constructed on an inflexible monolithic architecture that makes technology change difficult. Accordingly, the Program to transfer the services to the Cloud encountered fundamental technical challenges that Post Office could not economically and technically overcome, and the business has taken the decision to pivot back to the existing Data Centres until the successful transfer of services out of Horizon and into its replacement NBIT ("New Branch IT"). The Data Centre Operations and Central Network Services cannot be transferred away from the original contractor in the short term because of the specific interoperability requirements, compounded by the highly complex nature of the existing infrastructure and the Post Office's business model and operating procedures. A change of contractor would result in disproportionate technical difficulties in implementation as well as operation and maintenance at this time. Awarding the services to a different contractor would also cause significant inconvenience in terms of service delivery, reliability and continuity of service including because of incomplete transfer of know-how. Therefore, Post Office has modified the contract in accordance with Regulation 72 (1) (b) of the Public Contracts Regulations 2015. The increase in price as a result of the modified contract is less than 50% of the original contract value. The Data Centre Operations and Central Network Services have thereby been extended for an additional period of 1 year from the 1st April 2023.
Description
The following key amendments will be made to the Horizon Agreement. A 1 year extension of the Data Centre Operations and Central Network Services.
Entry 5
Id
034447-2023-N/A-1
Status
active
Award ID
034447-2023-N/A-1
Date Signed
3 Nov 2023, 00:00

Items

Item 1
Id
1
Related Lot
1

Classification

Id
72000000
Scheme
CPV
Description
IT services: consulting, software development, Internet and support

Delivery locations

Entry 1
Region
UKI

Value

Amount
2,375,000,000
Currency
GBP

Period

Ends
31 Mar 2025, 23:59
Starts
1 Apr 2024, 00:00

Amendments

Entry 1
Id
3
Rationale
Need for additional works, services or supplies by the original contractor/concessionaire: This Notice relates to the modification of an existing contract that has been necessary due to the following reasons: The existing Horizon System is a highly complex platform, written in legacy versions of software languages and which incorporates five "systems" in one i.e. financial services, banking, government services, mails and retail. As an aging platform, the inflexible nature of the construction of the architecture of "Horizon" itself makes technology change challenging. Accordingly, the Program to transfer the services to the Cloud encountered fundamental technical challenges that Post Office could not economically and technically overcome, and the business has taken the decision to pivot back to the existing Data Centres until the successful transfer of services out of Horizon and into its replacement NBIT ("New Branch IT"). The Data Centre Operations and Central Network Services cannot be transferred away from the original contractor in the short term because of the specific interoperability requirements, compounded by the highly complex nature of the existing infrastructure and the Post Office's business model and operating procedures. A change of contractor would result in disproportionate technical difficulties in implementation as well as operation and maintenance at this time. Awarding the services to a different contractor would also cause significant inconvenience in terms of service delivery, reliability and continuity of service including because of incomplete transfer of know-how. Therefore, Post Office has modified the contract in accordance with Regulation 72 (1) (b) of the Public Contracts Regulations 2015. The increase in price as a result of the modified contract is less than 50% of the original contract value. The Data Centre Operations and Central Network Services have thereby been extended for an additional period of 1 year from the 1st April 2024.
Description
The following key amendments will be made to the Horizon Agreement. A 1 year extension of the Data Centre Operations and Central Network Services (including Test Infrastructure).
Entry 6
Id
032026-2024-1
Status
active
Award ID
032026-2024-1
Date Signed
1 Aug 2024, 00:00

Value

Amount
12,000,000
Currency
GBP
Entry 7
Id
009521-2025-C100147-1
Status
active
Award ID
009521-2025-C100147-1
Date Signed
29 Nov 2024, 00:00

Items

Item 1
Id
1
Related Lot
1

Classification

Id
72000000
Scheme
CPV
Description
IT services: consulting, software development, Internet and support

Delivery locations

Entry 1
Region
UKJ
Entry 2
Region
UKK
Entry 3
Region
UKN

Value

Amount
2,438,000,000
Currency
GBP

Period

Duration In Days
360

Amendments

Entry 1
Id
5
Rationale
Need for additional works, services or supplies by the original contractor/concessionaire: This notice relates to the modification of an existing contract under regulation 72(1)(b) of the Public Contracts Regulations 2015 ("PCR"). The modification has become necessary because delays to Post Office Limited's ("POL") New Branch IT ("NBIT") project meant that it would not be possible to transition from its legacy system, Horizon - provided by Fujitsu Services Limited ("FSL"), to the new NBIT system before POL's contract with FSL expires by effluxion of time on 31st March 2025. By the time significant delays to the NBIT project had become apparent in October 2023, any alternative tendered solution to replace Horizon would not have been mobilised and transitioned to prior to 31st March 2025. It was, therefore, necessary to extend POL's contract with FSL for ongoing support of the Horizon system. A change of contractor cannot be made for technical reasons. The existing Horizon system is a highly complex legacy platform, written in outdated versions of software languages, and incorporates five 'systems' in one (i.e., financial services, banking, government services, mails, and retail). "Horizon" is an aging platform and has an inflexible monolithic architecture that makes technology change difficult. It would not be possible to simply hand this system over to another supplier. A change of contractor would result in disproportionate technical difficulties in implementation as well as operation and maintenance. Furthermore, while there are other similar systems to Horizon available on the market, there are no alternative systems that currently meet all of Post Office's business needs without significant development or customisation. It would not, therefore, be technically possible to mobilise a replacement system before 31 March 2025. On that basis, there are technical reasons why a change of contractor cannot be made. Changing contractor would cause significant inconvenience and duplication of costs. It would cause service disruption, cause significant data migration issues, require substantial business change at short notice, threaten continuity of service and create risk in the transfer of know-how. Furthermore, changing contractor would result in sunk costs, including an increase in run costs, dual running costs, and additional exit/transition costs. The modification is less than 50% of the original contract value. The Horizon support agreement was originally valued at approximately £846,700,000. The maximum value of the extension, if all options are called on during its term is approximately £63,000,000. The increase is, therefore, approximately 7.4% of the original contract value. In summary, a change of contractor cannot be made for technical or economic reasons and would cause substantial inconvenience and duplication of costs for the Post Office. The value of the extension is substantially less than 50% of the original contract value. Accordingly, Post Office is satisfied that the modification can be made under regulation 72(1)(b) of the PCR.
Description
A one year extension of all Services from the 1st April 2025 to the 31st March 2026. Other than the extension of the term of the agreement, all other terms and conditions shall remain the same with the exception of the removal of FSL obligations in respect of:  Court Support Services, Litigation Support and prosecution support from both the Clauses and the Security Management Service: Service Description as well as Schedule A4 from the date of the execution of the modification; and  Delivery of the Payment and Banking Service from 31st March 2025 or such earlier date as agreed between the Parties. Additional upgrades to address legacy technical debt issues estimated at £21,000,000 is also included in the modification value. NB: Any investment will be subject to POL agreeing suitable work orders with FSL.
Entry 8
Id
073336-2025-C100147-1
Status
active
Award ID
073336-2025-C100147-1
Date Signed
4 Nov 2025, 00:00

Items

Item 1
Id
1
Related Lot
1

Classification

Id
72000000
Scheme
CPV
Description
IT services: consulting, software development, Internet and support

Delivery locations

Entry 1
Region
UKJ
Entry 2
Region
UKK
Entry 3
Region
UKN

Value

Amount
2,479,000,000
Currency
GBP

Period

Duration In Days
360

Amendments

Entry 1
Id
6
Rationale
Need for additional works, services or supplies by the original contractor/concessionaire: This notice relates to the modification of an existing contract under regulation 72(1)(b) of the Public Contracts Regulations 2015 ("PCR"). Post Office Limited ("POL") requires a 12-month extension to its contract with Fujitsu Services Limited ("FSL") for the provision of its core trading platform Horizon (the "Contract"), from 01 April 2026 to 31 March 2027. The modification has become necessary because POL is in the process of procuring a replacement service provider ("Replacement Provider") to manage Horizon (the "Procurement") and that procurement activity and the mobilisation of the Replacement Provider will not be complete by 31 March 2026 when the Contract expires by effluxion of time. POL commenced the Procurement in the summer of 2025 and has been conducting the procedure at pace. POL expects that the Procurement will conclude and a new contract with the Replacement Provider put in place in Summer 2026 with transition activity commencing upon execution. It is necessary, therefore, to extend the Contract by 12 months to 31 March 2027. It would not have been possible for POL to have competed the opportunity to support Horizon during this period as any alternative tendered solution would not have been mobilised and transitioned to prior to 31st March 2026. A change of contractor cannot be made for technical reasons. The existing Horizon system is a highly complex legacy platform, written in outdated versions of software languages, and incorporates five 'systems' in one (i.e., financial services, banking, government services, mails, and retail). Horizon is an aging platform and has an inflexible monolithic architecture that makes technology change difficult. It would not be possible to simply hand this system over to another supplier. A change of contractor would result in disproportionate technical difficulties in implementation as well as operation and maintenance. Furthermore, while there are other similar systems to Horizon available on the market, there are no alternative systems that currently meet all of Post Office's business needs without significant development or customisation. It would not, therefore, be technically possible to mobilise a replacement system before 31 March 2026. On that basis, there are technical reasons why a change of contractor cannot be made. Changing contractor would cause significant inconvenience and duplication of costs. It would cause service disruption, cause significant data migration issues, require substantial business change at short notice, threaten continuity of service and create risk in the transfer of know-how. Furthermore, changing contractor would result in sunk costs, including an increase in run costs, dual running costs, and additional exit/transition costs. The modification is less than 50% of the original contract value. The Horizon support agreement was originally valued at approximately £846,700,000. The maximum value of the extension, if all options are called on during its term is approximately £41,000,000. The increase is, therefore, approximately 4.8% of the original contract value. In summary, a change of contractor cannot be made for technical or economic reasons and would cause substantial inconvenience and duplication of costs for the Post Office. The value of the extension is substantially less than 50% of the original contract value. Accordingly, Post Office is satisfied that the modification can be made under regulation 72(1)(b) of the PCR.
Description
A one year extension of all Services from the 1st April 2026 to the 31st March 2027. Other than the extension of the term of the agreement, all other terms and conditions shall remain the same with the exception of FSL obligations in respect of: End of Service Life (EOSL) components, improved Governance for better management, Removal of Redundant Clauses and Schedules, maintenance of software that resides on HNG-X system, licenses required, updated contractors used by FSL and replacement of the current Fujitsu Services WAN, from the date of the execution of the modification; and Additional upgrades to address legacy End of Service Life components is estimated at £3,000,000 is also included in the modification value. NB: Any investment will be subject to POL agreeing suitable work orders with FSL.

Recorded locations

  • Buyer location · London · UKI · EC2V7ER · United Kingdom
  • Delivery location · UK
  • Delivery location · UKI
  • Delivery location · UKJ
  • Delivery location · UKK
  • Delivery location · UKN

Notice and amendment history

1 published notice version reviewed by ProcuraAxis.

1 VERSION
  1. ocds-h6vhtk-02a2c1-2025-11-12T17:11:39Zcompiled ·