Awarded contract

DWP Digital Channels Contact Centre (DC3)

Details

Value
£265,320,000
Duration
5 years
Topic
Software package and information systems
Published
6 June 2025

Tender description

The existing DWP contact centre is the largest across all UK government departments and is one of the largest contact centres in Europe. The current contact centre platform is delivered on behalf of DWP by a managed service provider. The Contact Centre Modernisation Programme (CCMP) is directly aligned to the DWP Strategy and Departmental plans to transform our services and deliver an effective welfare system for Citizens when they need it, while reducing costs and achieving value for money for taxpayers. The CCMP strategy involves the establishment of a new Digital Channels Contact Centre (DC3) platform with a replacement managed service provider. DC3 will provide enhanced capabilities including softphone inbound and outbound calls, Work Force Optimisation (WFO), webchat, Intelligent Voice Routing (IVR), advisor skills-based call routing, call recording and call transcription. It will be cloud hosted and will integrate with existing platforms that deliver capabilities for Non-Geographic Numbers (0800 etc), Video, Payment Card Industry compliance, and Automated Customer Experience as well as integrations into Business Group CRM and call routing strategies. Additional information: The value of the Contract stated in this notice is an estimated total value based on: a. an estimate of £168.8m (exclusive of VAT) for the contracted services to be provided during (i) the 5-year initial term of the Contract (which is reflective of the accelerated delivery plan submitted by the successful bidder in accordance with the final tender instructions) and (ii) the two optional 1-year extensions to the Contract, including in each case forecast indexation (as appropriate, in line with the associated contractual provisions); and b. an estimate of £52.3m (exclusive of VAT) for (i) the forecast use of the Optional Services specified within the Contract and (ii) ad-hoc Contract Change (based on historic levels of change), excluding in each case forecast indexation (which may need to be applied in future, in line with the associated contractual provisions).

Timeline

  1. Completed: Award date7 May 2025
  2. Completed: Award published6 June 2025
    Current notice
  3. Next: Contract expiry date6 May 2030in 3 years

About the buyer

The Department For Work and Pensions (DWP) delivers the State Pension and working-age benefits to millions of claimants, and buys as a central government ministerial department with its own commercial teams. Framework agreements are called off through the Government Commercial Agency using Public Sector Contract terms. Suppliers can join its low value purchasing system freely, with no cap on numbers. Dynamic purchasing systems cover welfare-to-work and employment support opportunities.

Over the past 5 years, most of DWP's contract awards have been in education and training, IT services and business services.

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Decision makers

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