YPO is procuring a new national HR Support Services Framework with an estimated value of £500 million excluding VAT. The framework will give public-sector organisations access to outsourced payroll, HR advice and administration, vetting and compliance, combined HR services and below-threshold recruitment.
The opportunity is relevant to several distinct supplier markets, so businesses should not treat it as a general HR consultancy framework. Payroll bureaux, managed HR providers, screening and compliance specialists, recruitment agencies and integrated service providers will each need to identify the lot that best reflects their operating model. If your organisation is planning to bid, speak to Thornton & Lowe about your YPO submission.
How is the framework structured?
The framework contains nine lots:
- outsourced payroll services;
- outsourced payroll services for education;
- HR advice and administration services;
- HR advice and administration services for education;
- vetting and compliance services;
- combined HR services;
- combined HR services for education;
- below-threshold temporary recruitment;
- below-threshold permanent recruitment.
The separate education lots are aimed at suppliers that can demonstrate an understanding of schools, academies, multi-academy trusts and other educational settings. A provider should not assume that a general public-sector proposition will automatically satisfy the sector-specific requirements.
The YPO tender notice confirms that the framework will run for an initial two years with two possible one-year extensions.
Which suppliers are likely to be competitive?
Strong bidders are likely to fall into one or more of the following groups:
- payroll providers offering fully or partially managed services;
- HR outsourcing teams providing advice, case management and administration;
- screening providers delivering basic, enhanced or specialist vetting;
- integrated suppliers able to combine payroll, HR and compliance;
- temporary recruitment agencies able to manage lower-value public-sector requirements;
- permanent recruitment specialists with compliant, auditable processes.
The combined lots are not simply a broader version of the specialist lots. They will require evidence that multiple services can be governed, integrated and reported consistently. Bidders should explain how responsibilities move between teams, how data is controlled and how customers receive a coherent service rather than separate workstreams.
Our guide to public-sector resourcing explains how permanent recruitment, interim support and outsourced delivery differ, as well as the procurement routes buyers may use for each model.
Framework operation and commercial considerations
YPO intends to appoint an unlimited number of suppliers that meet the required scoring standard. Call-offs may be awarded without competition or through a competitive selection process, depending on the customer's requirement and the framework rules.
Suppliers will pay YPO a 1% rebate across all lots. This should be included in pricing assumptions from the start. Providers should also consider the cost of national delivery, account management, implementation, reporting, technology and service improvement before deciding how aggressively to price.
What evidence should bidders prioritise?
The strongest submissions will connect service features to measurable public-sector outcomes. Evidence may include:
- accuracy, timeliness and control in payroll processing;
- secure handling of employee and candidate data;
- service-level performance and escalation arrangements;
- implementation and transition from incumbent providers;
- specialist knowledge of education employment requirements where relevant;
- candidate safeguarding and vetting controls;
- recruitment fill rates, retention and time-to-hire;
- customer reporting, continuous improvement and social value.
Bidders should use quantified examples wherever possible. Statements about being responsive or customer-focused become more credible when supported by service levels, error rates, satisfaction results and examples of corrective action.
Choose lots based on delivery reality
A supplier may be capable of offering several services, but that does not always make the combined lot the strongest choice. The bid decision should consider operational maturity, contract examples, technology integration, sector knowledge and the resources needed to support national customers.
Before drafting, create a lot-by-lot evidence matrix and identify any gaps that require partners or subcontractors. This will help the submission present a clear service proposition and reduce the risk of claiming breadth that the evidence does not support.
