NPS Operations, Maintenance and Modernisation Services

Tender description

The contract is for business application support and maintenance services for HMRC's National Insurance and PAYE System (NPS). The contract includes options to provide business application development and enhancement services and NPS solution modernisation services. The intent of the modernisation service is to disaggregate the NPS solution into a number of components in preparation for going to market in future. The contract will have a duration of 5 years. Lot 1: HMRC has awarded a contract to Accenture plc to provide Business Application Support and Maintenance (BASM) services for HMRC's National Insurance and PAYE System (NPS) ("New Contract"). Prior to this Accenture was the incumbent service provider to HMRC for these services (and other business applications, which are part of other replacement contracts). This expires in June 2022 ("Prime Contract"). The equivalent services under the Prime Contract shall terminate when the New Contract takes full effect. The services under the New Contract are: Business Application Support and Maintenance (BASM) services; and optional business application development services, system integration services; strategy, architecture and feasibility analysis services related to NPS, which HMRC can use on a call off basis. The term of the New Contract is 5 years. NPS is part of HMRC and UK economy Critical National Infrastructure (CNI) collecting 40% of revenues into HMT with nearly 40,000 users in HMRC and DWP. It has hugely complex processing engines, which are critical to calculate tax, as well as the administration of devolved powers at a subnational level between Scotland, Wales and the UK. This is a large, multifaceted service developed over time with complicated integration and interdependencies to other services within HMRC and external parties such as DWP and NS&I. In order to make the services suitable for competition in future and reduce vendor lock-in, the New Contract includes modernisation services which will deliver an NPS Disaggregation Programme. This programme of work will disaggregate the NPS solution into 6 components to provide more open and independently maintainable business focused services. The New Contract value is £70,393,068. Payments are supported by service levels and service credits and are structured as a combination of fixed price support and maintenance charges, rate-card based charges for development projects and delivery milestone payments for disaggregation services (including retention clauses).