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PROCUREMENT OPPORTUNITY

Functional Assessment Services (FAS) 2023 – Lot 5

Department for Work and Pensions acting for and on behalf of the Department for Communities (DfC) · compiled

Tender information last checkedLast checked 30 Sept 2026, 00:42.

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. The Functional Health Assessments (“FAS”) contracts were 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 incumbent suppliers 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 assessments across PIP and Work Capability Assessment (“WCA”) (as well as other benefits), and better protects the delivery of the service. Retention of the HP’s into FAS ensured that capacity for assessments will meet the current levels of PIP, WCA and other benefits. Collectively, this helps by reducing the length of a customer's journey and minimise the backlog of claims. In addition to the increased clinical staffing, there were changes to supplier costs to reflect IT solution changes to address technical constraints and levels of integration. Pursuant to regulation 72(1)(b) of the PCR 2015, the Authority agreed a Side Letter with the FAS supplier to vary the FAS contract, and then an extension to the Side Letter, to cover the increased clinical staffing which leads to the provisions of additional services, in addition to the additional costs to reflect the changes to the IT solution to address various technical constraints. The additional services are required to address an increase in the number of FAS assessments over the number initially envisaged during the procurement. Given that the FAS contract was entered into in September 2023 and the FAS supplier completed a lengthy hand over period prior to commencing operational services commencement in September 2024, it would not have been possible to appoint a new supplier to deal with the additional services outlined in this modification notice, as the new supplier would not have had the benefit of the handover period.

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.

Contract value
£165.8m
Awarded
Not supplied
Contract signed
18 Sept 2023
Award ID
018066-2025-ecm_11583-1
Status
active
Location
London, UK, W2 6BD, United Kingdom

Classification

  • CPV85000000 — Health and social work services

Lots

  • Functional Assessment Services (FAS) 2023 – Lot 5Value 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-050a5e
Main Procurement Category
services

Legal basis

Id
32014L0024
Scheme
CELEX

Classification

Id
85000000
Scheme
CPV
Description
Health and social work services

Lots and requirements

Entry 1
Id
Lot 5: Northern Ireland
Title
Functional Assessment Services (FAS) 2023 – Lot 5
Description
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. 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). FAS Suppliers will be expected to deliver functional health assessments in relation to the following benefits: • Personal Independence Payment (PIP)- https://www.gov.uk/pip • Employment Support Allowance (ESA)- https://www.gov.uk/employment-support-allowance • 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 • 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 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. The service will be divided into five (5) geographical lots: Lot 1 – Northern England and Scotland Lot 2 – Midlands and Wales Lot 3 – South West England Lot 4 – London, South East & East Anglia Lot 5 – Northern Ireland

Contract period

Ends
6 Sept 2031, 23:59
Starts
19 Sept 2023, 00:00

Items and delivery

Item 1
Id
Lot 5: Northern Ireland
Related Lot
Lot 5: Northern Ireland

Delivery locations

Entry 1
Region
UK

Additional Classifications

Entry 1
Id
85000000
Scheme
CPV
Description
Health and social work services

Buyer, suppliers and contacts

Organisation 1
Id
GB-FTS-145714
Name
Department for Work and Pensions acting for and on behalf of the Department for Communities (DfC)

Roles

buyer

Address

Region
UK
Locality
Sheffield
Postal Code
S1 2FD
Country Name
United Kingdom
Street Address
Hartshead Square

Details

Identifier

Legal Name
Department for Work and Pensions acting for and on behalf of the Department for Communities (DfC)

Contact

Organisation 2
Id
GB-FTS-145715
Name
CAPITA BUSINESS SERVICES LIMITED

Roles

supplier

Address

Region
UK
Locality
London
Postal Code
W2 6BD
Country Name
United Kingdom
Street Address
First Floor, 2 Kingdom Street

Details

Scale
large

Identifier

Legal Name
CAPITA BUSINESS SERVICES LIMITED
Organisation 3
Id
GB-FTS-16210
Name
Department for Work and Pensions

Roles

reviewBody

Address

Locality
Sheffield
Country Name
United Kingdom

Identifier

Legal Name
Department for Work and Pensions

Award information

Award 1
Id
018066-2025-ecm_11583-1
Status
active

Suppliers

Supplier 1
Id
GB-FTS-145715
Name
CAPITA BUSINESS SERVICES LIMITED

Related lots

Lot 5: Northern Ireland

Contracts and changes

Entry 1
Id
018066-2025-ecm_11583-1
Status
active
Award ID
018066-2025-ecm_11583-1
Date Signed
19 Sept 2023, 00:00

Items

Item 1
Id
Lot 5: Northern Ireland
Title
Functional Assessment Services (FAS) 2023 – Lot 5
Related Lot
Lot 5: Northern Ireland

Classification

Id
85000000
Scheme
CPV
Description
Health and social work services

Delivery locations

Entry 1
Region
UK

Value

Amount
165,836,271
Currency
GBP

Period

Ends
6 Sept 2031, 23:59
Starts
19 Sept 2023, 00:00

Amendments

Entry 1
Id
2
Rationale
Need for additional works, services or supplies by the original contractor/concessionaire: Appointing a new supplier to address the additional services would have also led to a significant duplication of costs, particularly as during the handover period the Department was paying incumbent suppliers to deliver the assessment services. There would be interchangeability issues with a new supplier which would negatively impact the delivery of key services. A change in supplier without the lengthy handover period would risk the delivery of the services which provide critical statutory benefits to vulnerable claimants. The increase in price does not exceed 50% of the value of the original contract.
Description
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. The Functional Health Assessments (“FAS”) contracts were 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 incumbent suppliers 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 assessments across PIP and Work Capability Assessment (“WCA”) (as well as other benefits), and better protects the delivery of the service. Retention of the HP’s into FAS ensured that capacity for assessments will meet the current levels of PIP, WCA and other benefits. Collectively, this helps by reducing the length of a customer's journey and minimise the backlog of claims. In addition to the increased clinical staffing, there were changes to supplier costs to reflect IT solution changes to address technical constraints and levels of integration. Pursuant to regulation 72(1)(b) of the PCR 2015, the Authority agreed a Side Letter with the FAS supplier to vary the FAS contract, and then an extension to the Side Letter, to cover the increased clinical staffing which leads to the provisions of additional services, in addition to the additional costs to reflect the changes to the IT solution to address various technical constraints. The additional services are required to address an increase in the number of FAS assessments over the number initially envisaged during the procurement. Given that the FAS contract was entered into in September 2023 and the FAS supplier completed a lengthy hand over period prior to commencing operational services commencement in September 2024, it would not have been possible to appoint a new supplier to deal with the additional services outlined in this modification notice, as the new supplier would not have had the benefit of the handover period.

Recorded locations

  • Buyer location · Sheffield · UK · S1 2FD · United Kingdom
  • Delivery location · UK

Notice and amendment history

1 published notice version reviewed by ProcuraAxis.

1 VERSION
  1. ocds-h6vhtk-050a5e-2025-04-30T14:49:51+01:00compiled ·