Non Clinical Payroll and Associated Services

Scope, procedure and submissions

Id

ACE-0835-2025-MSE

Status

complete

Procurement Method

direct

Procurement Method Details

Direct award

Why this procedure was chosen

The main reason for this decision is because a change of supplier would result in the contracting authority receiving services that are different from, or incompatible with, the services, and that difference or incompatibility would result in disproportionate technical difficulties in operation or maintenance. Since January 2025, MSE ICB has been working in collaboration with Mid and South Essex University FT (MSEFT), and Essex Partnership University FT (EPUT) to jointly procure a payroll services contract across all three organisations. The Invitation to Tender was published to the market by MSEFT in June 2025 and names MSE ICB as a Contracting Authority that will be party to the contract. However, the decision whether to remain in the joint procurement or pause it and find a different compliant option for an interim 12-month period is being driven by externally influencing events since March 2025, including major devolution reforms, ICB boundary reconfigurations, and national restructuring of NHS governance and ICB responsibilities. These events have rendered the original procurement route less viable within the available timescales, due to their direct impact on commissioning geography and system relationships. The urgency is not due to ICB delay or poor planning. A competitive process was actively planned and had indeed been published in June 2025, demonstrating the ICB's intention to comply with the Procurement Act 2023. The need to pause and redirect was triggered by external changes beyond the ICB's control, including: • Government confirmation of the Greater Essex devolution programme, • National announcements about the abolishment of NHS England and ICB cost-cutting, • The publication of the ICB blueprint reshaping commissioning roles and accountability. These developments were not foreseeable during planning and fundamentally altered the strategic context in which the original joint-procurement had proceeded. Continuing with the planned competitive process may now risk misaligning with future joint commissioning structures and priorities. Any future contract is likely to be much more attractive to the market if the ICB decides to consolidate payroll systems across multiple NHS organisations in the future, potentially digitally transforming the payroll function, or moving to a shared service model. An urgent direct award is required to maintain essential BAU services with the existing provider and avoid a change in service provider for only a short-term period where differences in models/systems/service as a result of that change, pose several strategic, operational, and financial risks, particularly during this period of structural change and externally imposed reforms. A change of supplier would result in the contracting authority receiving services that are different from, or incompatible with, the existing services, and that difference / incompatibility would result in disproportionate technical difficulties in operation or maintenance: Disruption to business continuity • Short transition window may result in incomplete or rushed onboarding of any new provider. • Potential for missed or incorrect payments, which can seriously impact staff morale and trust. • Risk of data migration issues (e.g. pension records, historic pay adjustments, overpayments). 2. Increased operational burden • HR, finance, and IT teams must divert attention and capacity to managing the transition. This competes with resources needed to support broader reforms and restructuring. 3. Short-termism • A 12-month contract offers little incentive for provider investment in quality, innovation, or relationship building. • There may be limited contractual levers for performance improvement, given the short duration. 4. Change fatigue • Repeated organisational change can create staff disengagement and fatigue-especially if payroll reliability becomes a concern. • Risk of "transition overload" when paired with wider NHS reforms (e.g. national digital transformation, workforce redesign). 5. Integration and system risks • Payroll is often linked to HR systems (ESR), pensions (NHSPS), finance (Oracle, SBS). • Disrupting this during larger structural changes risks integration errors or misaligned data flows. 6. Financial risk • Switching providers incurs transition costs (e.g. project management, training, dual running). • Risk of non-value for money: onboarding costs are high relative to the short contract lifespan. 7. Reputational risk • A payroll failure (e.g. missed NHS pay runs) could trigger negative attention from unions, regulators, or media-especially during a politically sensitive reform period.

Lots and requirements

Published documents

Buyer, suppliers and contacts

Award information

Recorded locations

• Buyer location · Basildon · UKH37 · SS14 3HG · United Kingdom