Procurement at HMRC

Information about doing business with HMRC and guidance for those who want to become an HMRC supplier.

1. What we buy

We procure a range of goods and services to aid with the delivery of the work undertaken by the department.

HMRC contracts are let and managed by our Commercial Directorate, a team of commercial specialists who hold responsibility for procurement and contract management across the department. Their work relates to commercial arrangements made as part of HMRC’s annual external spend, from everyday commodities to more complex procurement exercises to meet specific business requirements.

2. Public sector procurement

As with other government departments, HMRC conducts its procurement activity in line with public sector procurement legislation and wider Cabinet Office guidance to ensure transparency, open and fair competition, equal opportunity and value for money through our commercial activity.

Key legislation and central government guidance that underpins public sector procurement includes:

Additional information and guidance for suppliers on The Procurement Act 2023 is available from the Government Commercial Function here: Information and Guidance for Suppliers.

3. Supplying to HMRC

Unless they can be procured from an existing contract or framework agreement, HMRC contractual opportunities are generally advertised and opened to an appropriate degree of competition.

The precise procurement route and degree of advertising will depend on the regulatory requirements, the nature of the goods and/or services being procured and the estimated full life value of the contract.

In line with requirements under The Procurement Act 2023, relevant contract opportunities will be advertised on the government’s Find a Tender service (FTS).

4. How to tender with HMRC

HMRC use the SAP Ariba eSourcing system. The system allows our commercial directorate and suppliers to undertake procurement and post contract award commercial activity online.

SAP Ariba offers compliance with public procurement electronic communications requirements and provides an efficient and secure means of managing tendering activities for both HMRC commercial professionals and suppliers.

The eSourcing portal enables suppliers to register/express interest in procurement opportunities and participate in tendering activities by completing and submitting proposals for our advertised contract opportunities.

Potential suppliers should register an account with SAP Ariba to view tender opportunities and submit tender responses. You can register an account with SAP Ariba.

For tenders in scope of The Procurement Act 2023, suppliers need  to complete key supplier information, covering areas such as basic supplier information, economic and financial standing and exclusion grounds, on the government’s Central Digital Platform (CDP).

This information will be extracted from the CDP and input directly into SAP Ariba for relevant procurement processes. This allows suppliers to provide this information once, removing the need to complete this data each time a tender is submitted. You can access the Central Digital Platform

5. HMRC conditions of contract

HMRC use a range of different contract types dependant on the route to market, value and complexity of the goods/services procured. Unless an agreement requires bespoke contract terms, the standard forms of contract typically used for HMRC agreements are as follows (HMRC refine the standard contract terms to ensure suitability with specific contract/HMRC requirements):

Contracts awarded under Crown Commercial Service (CCS) agreements

HMRC is required to adhere to the contractual terms stipulated by CCS for the respective agreement when procuring contracts through existing CCS Frameworks/Dynamic Markets.

You can access current CCS agreements

6. Transparency

Government departments are subject to a variety of transparency requirements connected to their commercial activity which help the public hold public bodies to account. This includes commitments relating to public expenditure and information on contracts awarded.

The Procurement Act 2023 includes transparency requirements, including the need for HMRC to publish the following information relating to its commercial activity for in scope procurements:

  • tender advertisement/award notices
  • contract documents
  • procurement pipeline data
  • Key Performance Indicators (KPI) performance data
  • contract modifications
  • contract termination notices

This information will be published on the government’s Central Digital Platform.

Suppliers intending to bid for public sector contracts should be aware of the various transparency requirements, including, subject to certain limited exemptions, the obligation to publish details of contracts awarded and the resulting contract between the supplier and HMRC.

7. Small and Medium Sized Enterprises (SMEs)

The overwhelming majority of UK businesses are SMEs, with government figures identifying over 99% fall under this definition. Where feasible, HMRC wants to trade with SMEs to support economic growth and sustainability within this important business sector.

HMRC support and encourage a diverse range of suppliers to bid for our contracts and we monitor the level of business SMEs receive from us.

We periodically publish and update our SME Action Plan, outlining how we work with SMEs.

8. Sustainable procurement

Sustainable procurement is a process whereby organisations meet their needs for goods, services, works and utilities in a way that achieves value for money and generates benefits not only to HMRC, but also to society and the economy too, while minimising damage to the environment. Our goal is to become a national leader within government on sustainable procurement.

To help HMRC meet its sustainability strategy, social value is considered by HMRC throughout the various stages of the procurement process. HMRC is implementing the requirements outlined in the Social Value Model (SVM), first introduced under Procurement Policy Note (PPN) 06/20 as part of in scope procurement exercises, this includes:

  • provision of at least one social value award question, with a minimum 10% of the total tender weighting
  • responses provided by bidders will be evaluated in line with the corresponding award criteria included in the SVM
  • social value deliverables identified in the winning tenderer’s proposal will be incorporated into the contract in readiness for managing them through the contract lifespan
  • social value key performance indicators will be agreed with the successful supplier based on reporting metrics included in the SVM and the commitments made in the supplier’s response.

In addition, HMRC has incorporated sustainability and social value elements as part of the procurement process prior to the introduction of the SVM. These areas continue to be included where deemed relevant and proportionate to the contract procured. Relevant areas covered by our standard procurement question set include, but are not limited to, assessment of:

  • environmental misconduct
  • requirements for suppliers to confirm their commitment to achieving Carbon Net Zero by 2050
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