By browsing our site you agree to our use of cookies. You will only see this message once. Find out more

UK-Salford: Benefits and Credits, Error and Fraud Adding Capacity

Prior information notice


Directive 2004/18/EC

Section I: Contracting authority

I.1)Name, addresses and contact point(s)

5th Floor West Ralli Quays, 3 Stanley Street
For the attention of: Lee Gibson
M60 9LA Salford
Telephone: +44 3000587790

Internet address(es):

General address of the contracting authority:

Further information can be obtained from: The above mentioned contact point(s)

I.2)Type of the contracting authority
Ministry or any other national or federal authority, including their regional or local sub-divisions
I.3)Main activity
General public services
Other: Direct and Indirect Taxes
I.4)Contract award on behalf of other contracting authorities
The contracting authority is purchasing on behalf of other contracting authorities: no

Section II.B: Object of the contract (Supplies or services)

II.1)Title attributed to the contract by the contracting authority:
UK-Salford: Benefits and Credits, Error and Fraud Adding Capacity
II.2)Type of contract and place of delivery or of performance
Service category No 27: Other services

NUTS code UK

II.3)Information on framework agreement
II.4)Short description of nature and quantity or value of supplies or services:
HMRC are seeking a sustainable, innovative and adaptable service to carry out an end-to-end tax credits error and fraud interventions service compatible with existing HMRC processes. The supplier will be required to demonstrate flexible recruitment capability, meeting BPSS and HMRC standards, commensurate with delivery of the service on a supplier managed estate and maintaining a commensurate workforce throughout the period of the service with the ability to increase and reduce to meet demand. The supplier must be able to mobilise and deliver HMRC and supplier training material and manage an in-year suite of interventions into different tax credit risks, as well as providing ancillary support relating to the provision of these services.
It is currently envisaged that remuneration will be on a payment-by-results basis designed to incentivise suppliers to be innovative and deliver HMRC Annual Managed Expenditure savings to agreed targets. However, this may be subject to change.
As a consequence, the purpose of this Prior Information Notice (PIN) is:
a) To give potential Tenderers advance notice that HMRC is considering undertaking a tendering exercise to award contract(s) for the provision of a service to deliver tax credits compliance interventions, managing all types of customer contact and processing the outputs of those interventions on behalf of HMRC.
b) To request information from the marketplace as to the type of services that may be available to meet HMRC specifications; and
c) To allow potential Tenderers to register for an upcoming Market Engagement Event by contacting HMRC direct to express an interest in attending.
The Requirement:
HMRC would like to add to its existing operational and data analytics capacity to increase the number of successful tax credits error and fraud interventions to further reduce overall losses to, and levels of, error and fraud. HMRC anticipates the supplier(s) undertaking in excess of 4 million reviews and compliance interventions over a three year period compatible with the existing HMRC legislative and procedural framework, adding to HMRC's internal capability. This service needs to be capable of flexing up or down to reflect demand and results. The expectation is that the supplier(s) will help to identify tax credits customer awards that may be subject to error and/or fraud, collect and assess evidence from claimants and make decisions on the circumstances affecting tax credits entitlement. Where amendment to the customer award is required it is envisaged that the supplier(s) will process those changes to the tax credits core IT systems. The supplier would be expected to maintain HMRC customer service and Charter standards throughout the period of the service.
The supplier will be required to operate under strict adherence to HMRC's legislative framework. The process may include risk profiling tax credits data, using HMRC or other data, engaging with tax credits customers to validate the information provided, upon which their awards are calculated and make decisions on their entitlement. Critically, the supplier must meet stringent security demands as it must host HMRC IT Systems on its own estate.
HMRC data security rules mean that no work will be undertaken offshore by the supplier, either directly or indirectly.
Information Request:
Any Supplier wishing to provide details on the types of services that they may be able to provide in respect of the outline requirement referred to above, and thereby assist in the Client's market place knowledge can do so by supplying this information (by e-mail) directly to contact in Section I
Market Engagement Event and Security Accreditation:
HMRC will host a Market Engagement Event on 14.11.2013 in Preston to further develop its understanding of Supplier capabilities and to gain advice from the market about the maturity of its requirement in readiness for a procurement exercise. The precise terms and timetable for the procurement exercise will be determined following the market engagement.
The Market Engagement Event is a significant opportunity for Suppliers to provide input through interaction with the HMRC project team and Subject Matter Experts. The format of the event will consist of an initial briefing by the Senior Responsible Officer of the project, Andrew Farrar to all Suppliers who attend followed by a 1:1 opportunity with key HMRC personnel to explore themes relating to the challenges of delivering Tax Credit Error and Fraud interventions on behalf of HMRC.
HMRC welcomes innovative proposals from Suppliers and wishes to minimise any constraints to potential solutions. Tenderers may also wish to consider consortia or other collaborative means to bring together the best combination of Suppliers including Small and Medium Enterprises.
The Market Engagement Event will also introduce Suppliers to pre-contract award Security Accreditation and Assurance requirements, which will be considered as key criteria during tender evaluation. The type of information Suppliers will be asked to store or handle when providing an end to end tax credit intervention service on behalf of HMRC must be adequately protected. Suppliers will therefore be required to meet information security compliance and assurance requirements consistent with HM Government information security standards.
The sources of HM Government information security standards include the Baseline Control Set (based on ISO 27002) the HM Government Security Policy Framework, and additional guidance in Information Assurance Standards and Good Practice Guides. In some areas, these compliance requirements may require specific or additional controls beyond those already implemented by Suppliers. The Security Accreditation and Assurance process will involve a structured risk assessment with Suppliers providing evidence of implementation of controls to mitigate assessed risks of breaches of confidentiality, integrity and availability of information assets. This evidence will be reviewed by a Government Accreditor.
During the tender process, Suppliers will have to demonstrate to what extent they meet the Security Accreditation requirements. The detail and coverage of the evidence which HMRC will request over the course of the procurement process will be structured to provide an increasing level of confidence around security compliance as the process progresses.
The contracting authority will provide further information on the Security Accreditation requirements at the Market Engagement Event. This information will be presented in a way which is relevant and applicable to delivering tax credit error and fraud interventions on behalf of HMRC.
More information is available in the HM Government Security Policy Framework: The contracting authority recognises that Suppliers are unlikely to be familiar with this government-focused process, and intends to guide Suppliers in understanding and navigating the process.
Event Registration:
To express an interest in attending the Error and Fraud Adding Capacity Market Engagement Event, please send an email entitled "Error and Fraud Adding Capacity Event” to containing the following information;
- Organisation Name and Address
- Contact Name of attendees (Restricted to 2 attendees)
- Contact E-mail Address
- Contact Telephone number
Please note:
Any Suppliers registering after 4.11.2013 will not be guaranteed a place at the Market Engagement Event and will be accommodated only on a reasonable endeavours basis.


This contract is divided into lots: no
II.5)Common procurement vocabulary (CPV)

79512000, 75112000, 64122000, 72316000, 75300000

II.6)Scheduled date for start of award procedures
II.7)Information about Government Procurement Agreement (GPA)
The contract is covered by the Government Procurement Agreement (GPA): yes
II.8)Additional information:
Subject to finalising the scope of the requirement and obtaining approval to proceed, it is intended that the tendering exercise will be conducted in January 2014, with the relevant Contract Notice to be published in OJEU in December 2013.Tenderers will be required to provide their tender response electronically using the HMRC eSourcing system, which utilises a web-based portal. Further details about the eSourcing system can be found in the Suppliers guide for selling to HM Revenue & Customs (HMRC) using the following link:

Interested parties may want to familiarise themselves with the content of the Suppliers guide which includes training on the use of the eSourcing system. Further details of the requirement will be provided in due course in the contract notice and tender documentation.
HMRC is fully committed to Centralised Procurement, an Efficiency and Reform Group (ERG) led initiative to centralise spend on common goods and services in order to 'buy once' on behalf of government, increase leverage to negotiate on price and deliver significant savings. This requires all departments, their arm's length bodies, non departmental public bodies and agencies to move their spend on common goods and services to centrally arranged deals. Any contract awarded by HMRC may at some future date be covered by a centralised agreement and potentially be novated to such an agreement.

Section III: Legal, economic, financial and technical information

III.1)Conditions relating to the contract
III.1.1)Main financing conditions and payment arrangements and/or reference to the relevant provisions governing them:
Full details regarding legal, economic, financial and technical information to be provided at the tender stage will be detailed in the Contract Notice and/or in the tender documentation. Potential Tenderers should be aware, however, that they may be required to forward the following information:
(a) A copy of the most recent audited accounts covering the Tenderer's last 3 years of trading (or for the period that is available if trading for less than 3 years) or
(b) For the most recent full year of trading, where this information is not available in audited form, a copy of the draft or unaudited financial accounts or equivalent information showing the Tenderer's turnover, profit and loss and cash flow position and an end period balance sheet or, where this cannot be provided, a statement signed by the finance director or similar responsible person detailing any major changes in the current financial position since the date of the latest audited accounts provided.
Any contract or framework agreement awarded will be subject to the Authority's Conditions of Contract.
III.2)Conditions for participation
III.2.1)Information about reserved contracts

Section VI: Complementary information

VI.1)Information about European Union funds
The contract is related to a project and/or programme financed by European Union funds: no
VI.2)Additional information:
To view this notice, please click here:

GO Reference: GO-20131015-PRO-5197797
VI.3)Information on general regulatory framework
Relevant governmental Internet sites where information can be obtained
Tax legislation
Environmental protection legislation
Employment protection and working conditions
VI.4)Date of dispatch of this notice: