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Payroll Service and HR/Payroll System

London Borough of Hounslow

Awarded
services

This tender has closed

The submission deadline for this contract has passed. There may be more active services tenders from London Borough of Hounslow, and hundreds more across the UK public sector.

Key details

Contracting authority
London Borough of Hounslow
Public authority - sub-central government
Region
Hounslow, London
Delivery: UKI75, United Kingdom
Contract value
£8,316,000ex VAT
Submissions closed
5 September 2025
Published
21 September 2026

Procurement

Contract period
1 October 2027 - 30 September 2033
6 years
Possible extension to 30 September 2035 · 7 years, 11 months in total
Extension terms: A six month notice is required to activate extension clause
Procedure type
Open procedure
CPV classifications
  • 79631000 Personnel and payroll services

What happened

London Borough of Hounslow awarded this contract to MHR INTERNATIONAL UK LIMITED worth £3,593,024 on 8 Sept 2026. The contract runs until 30 Sept 2033.

Description

The London Borough of Hounslow (the "Council") is seeking a Service Delivery Partner ('Delivery Partner') to deliver a fully outsourced Payroll Service and Software-as-a-Service (SaaS) HR/Payroll System from 1 October 2027. The service has been outsourced since October 2017 and TUPE will apply. The incumbent system is iTrent. The Authority will retain an in-house HR operations team responsible for system set-ups and reporting.

The contract covers a fully managed payroll service for:

Council employees

Employees of Council-owned companies (the Lampton Group)

External clients purchasing the service

Councillors' allowances and expenses

Periodic election payrolls

Maintained schools, academies and extended childcare centres including:

  • West Thames College
  • Norwood Green Juniors
  • The Green School Trust
  • BCPS Extended Day Care
  • Beavers Lodge Playgroup
  • Hounslow Action For Youth Association Ltd
  • Riverside Early Risers
  • Springwell + Morning Care
  • Springwell Holiday Scheme

The supplier must provide the employer role for pension administration, covering the Local Government Pension Scheme (LGPS), Teachers' Pension Scheme and other applicable pension arrangements.

The supplier must provide a SaaS HR/Payroll system including payroll, core HR, absence management, recruitment and onboarding, and management of employees and non-employees.

The scope includes implementation, configuration and deployment; data migration and reconciliation; ongoing support, maintenance and upgrades; continuous improvement and

benchmarking; and contract exit and transition support.

The service must comply with all applicable UK legislation and deliver accurate, timely and customer-focused payroll services.

Awarded supplier

Supplier
MHR INTERNATIONAL UK LIMITED
Companies House: 01852206
Award value
£3,593,024
Award date
8 September 2026

Contact

Address
Hounslow House, 7 Bath Road, Hounslow, London, TW3 3EB
Contact name
Olubunmi Akinmade

Identifiers

Buyer reference
DN812800
Notice ID
089105-2026
OCID
ocds-h6vhtk-0567b9

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External ID: fts-ocds-h6vhtk-0567b9 • Added 6 August 2026