The Metropolitan Police Authority has selected LogicaCMG to provide a £31m fully-managed payroll and pension administration service.
Serving the Met's 46,000 police officers and staff, the seven-year contract will also require LogicaCMG to provide a pensions service via its partner Paymaster. This arrangement meets the Met's requirement to have a main supplier for both payroll and pensions.
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LogicaCMG will use its human resources software, written specifically for the public sector, to deliver a pay and benefits system. The system will also potentially enable a number of self-service options for staff, which could include booking holidays, for instance.
The payroll and pensions contract comes amid a wider shake-up of the Met's IT.
In February, the police force announced a shortlist of consortia, led by EDS and Capgemini, to run a major consolidation of its IT services. The Met aims to appoint a single core supplier to support its IT and communications systems in a contract that would be worth at least £650m.
The arrangement would streamline contract management and provide improved management reporting and cost data, the Met said.
Contracts with the police force's existing suppliers, including EDS, have been extended to ensure continuity of service as it completes the tender process, the Met said. It would not reveal the value of the consolidated contract.