Voluntary Ex Ante Transparency Notice for extension to Cabinet Office Call Off from Independent Shared Service Centre 2 (ISSC2 Framework)

This notice signals the intention of the Cabinet Office to modify the Call-Off Contract held with Shared Services Connected Limited (SSCL) under the ISSC2 Framework by extending the term for an additional 18 months. The original contract was awarded in 2013 following a competitive procurement published in the OJEU.

The proposed extension is required to secure the continued provision of business-critical back-office operations, including human resources, finance and accounts, payroll and procurement to maintain operational continuity while transitioning services to replacement service providers under the Matrix programme. The modification will be executed pursuant to Regulation 72(1)(b) of the Public Contracts Regulations 2015.

A change of contractor cannot be made for technical and economic reasons, as an interim solution would cause significant service disruption, technical incompatibility, and substantial duplication of costs. The current contract expires on 30 April 2027, The extension will start from 1 May 2027 and run for a period of 18 months.

The Cabinet Office intends to enter into an extension of up to 18 months to its Call-Off Contract held with Shared Services Connected Limited (SSCL) under the ISSC2 Framework. The contract provides essential shared back-office services across central government operations.

The scope of services includes: -Core HR and business process services -Payroll processing for departmental employees -Financial administration and accounting operations -Technology and infrastructure support for the Single Operating Platform (SOP). The underlying Call-Off Contract was awarded in 2013 following a competitive procurement procedure published in the Official Journal of the European Union (OJEU).

A competitive re-procurement exercise has been conducted for replacement services under the cross-government Matrix Programme cluster (on behalf of participating central government departments, including the Cabinet Office). Due to significant delays in system implementation from the legacy Single Operating Platform (SOP), transition cannot be completed prior to the current contract expiry date.

The proposed modification is lawful pursuant to Regulation 72(1)(b) of the Public Contracts Regulations 2015 (additional works, services or supplies by the original contractor). The existing SOP platform represents a highly integrated, complex architecture supported by SSCL and specialised sub-contractors.

Transitioning to an interim solution prior to the Matrix go-live presents severe technical impediments, fragmentation of critical technology, and business-critical operational risks to essential government services (including payroll, HR, and financial administration). Procuring an interim solution would require at least 21 months to procure and transition, exceeding the target transition timeline and creating substantial, unnecessary duplication of costs.

The value of the 18-month modification is £22,918,000, which brings the total contract value from £116,827,000 to £139,745,000. The modification value represents 27.8% of the derived original contract baseline (£82,413,000), remaining within the 50% threshold set out in Regulation 72(1)(b).

The Cabinet Office is observing a 10-calendar-day standstill period following the publication of this notice prior to entering into the contract modification. The current contract expires on 30 April 2027, The extension will start from 1 May 2027 and run for a period of up to 18 months.