Functional Assessment Services (FAS) 2023 – Lot 5

Opportunity overview

This notice is in relation to modification of an existing Contract, pursuant to regulation 72(1)(b) of the Public Contracts Regulations 2015 (“PCR 2015”) and is published for transparency purposes. This notice relates to a modification to the Functional Assessment Services (“FAS”) contract (Lot 5) (set out in the narrative below) which was signed in September 2023. These modifications were made by way of a deed of variation (“DoV”) dated 19 May 2026, following the conclusion of negotiations and agreement reached between the Authority and the Lot 5 FAS Supplier in relation to additional volumes and associated contractual changes required to support the delivery of those requirements. The DoV supersedes and replaces successive interim amendments dated 26 September 2024, 20 March 2025, 22 October 2025, 18 March 2026 and 28 April 2026 respectively. Those interim amendments were required due to the then ongoing complex discussions between the Authority and the Lot 5 FAS Supplier to address the requirement for additional volumes and the other associated changes required. This DoV will enable the services to be provided at the assessment demand levels needed to support the Authority’s required volumes to meet the service users’ needs, therefore preserving these vital services for benefit service users.The original Functional Health Assessments (“FAS”) contract (Lot 5) was signed in September 2023 and included an assessment of supplier capacity as of November 2021 (the launch of the procurement). In the intervening period demand for Personal Independence Payment (“PIP”) assessments has continued to rise whilst the Authority has worked with the incumbent supplier to successfully recruit and retain a higher number of Health Professionals (“HPs”) which has enabled the highest ever volume delivery of PIP assessments. The increased number of HPs helps the Authority better meet the demand for health assessments across PIP and other benefits; Work Capability Assessments (“WCA”) across UC and ESA and better protects the delivery of the service. Recruitment and retention of the HPs into FAS ensured that capacity for assessments will meet the current levels of PIP, UC, ESA and other benefits. Collectively, this helps by reducing the length of a customer's journey and minimise the backlog of claims, ensuring that all claimants receive the services they are entitled to.In addition to the increased clinical staffing, the modification included some changes to supplier costs to reflect IT solution changes to address technical constraints and levels of integration, as well as higher costs relating to inflation and historical staff salary increases. Pursuant to regulation 72(1)(b) of the PCR 2015, the Authority has therefore agreed a modification with the FAS supplier to vary the Lot 5 FAS contract to cover the increased clinical staffing which leads to the provision of additional services - these additional services are required to address an increase in the number of FAS assessments required over the number initially envisaged during the procurement. The modification also reflects changes to the IT solution to address various technical constraints.Need for additional works, services or supplies by the original contractor/concessionaire. Description of the economic or technical reasons and the inconvenience or duplication of cost preventing a change of contractor:Additional demand for assessment volumes has arisen since Contract Award necessitating these additional services to support the Authority to meet the service users’ needs, therefore preserving these vital services for benefit service usersThere would be interchangeability issues with existing processes and systems with a new supplier which would have an unacceptable impact on the delivery of key services and would result in a high level of cost associated with engaging, mobilising and operating the additional services.

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.

Classification

• CPV85000000 — Health and social work services

Lots

• This contract will be for the use of the Department for Work and Pensions (DWP) (Lots 1 to 4) and the Department for Communities in Northern Ireland (Lot 5). The service provision will be primarily contracted through this procurement to the Authority but may allow other Government Departments and their Agencies, Non-Departmental Public Bodies, and devolved administrations (including but not limited to HM Revenue and Customs, Ministry of Defence, HM Courts and Tribunals Service, National Health and Social Care) to access the services.<br/>To support the determination of an individual’s entitlement to benefit, the Authority requires the delivery of a range of compatible and sympathetic Functional Health Assessments (FAS). The results of these assessments form one part of the evidence utilised by the Authority Decision Maker in making the ultimate decision on benefit entitlement on behalf of the Secretary of State (or in the case of Lot 5, the Department for Communities).<br/>FAS Suppliers will be expected to deliver functional health assessments in relation to the following benefits:<br/>• Personal Independence Payment (PIP)- https://www.gov.uk/pip<br/>• Employment Support Allowance (ESA)- https://www.gov.uk/employment-support-allowance<br/>• Universal Credit (UC)- https://www.gov.uk/government/publications/universal-credit-if-you-have-a-disability-or-health-condition-quick-guide/universal-credit-if-you-have-a-disability-or-health-condition<br/>• The delivery of assessments/advice associated with 15 other specialist benefits, for both DWP and other Government Departments, including Veterans UK, HM Courts and Tribunals Service and HM Revenue and Customs<br/>DWP ran a procurement using the Light Touch Regime and a modified process with commercial dialogue in accordance with Regulations 74 to 76 of the Public Contracts Regulations 2015. For Lot 5, DWP conducted aspects of the procurement process on behalf of the Department for Communities (DfC) in Northern Ireland. The procedure is set out clearly in the published Invitation to Tender document.<br/>The service will be divided into five (5) geographical lots:<br/>Lot 1 – Northern England and Scotland<br/>Lot 2 – Midlands and Wales<br/>Lot 3 – South West England<br/>Lot 4 – London, South East & East Anglia<br/>Lot 5 – Northern IrelandValue not stated