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Provision of BACs Processing System
AI Summary
Caerphilly County Borough Council seeks a fully BACS‑approved, cloud‑based (SaaS) payment and Direct Debit processing solution to support its high‑volume, mission‑critical payment operations. The system must be live and functional by 17 July 2027, facilitating secure access for both inbound and outbound transactions such as BACS Direct Credits, payroll, supplier and beneficiary payments, and Direct Debit collections. The Council desires a solution that can be adopted across ten independent business areas while remaining scalable and configurable to future needs.
The procurement requires comprehensive core capabilities including all standard BACS payment types, AUDDIS file submission, sterling transactions to and from UK bank accounts, and 24/7 browser‑based access for multiple concurrent users. It also must provide robust reporting and audit functionalities, granular user permissions with segregation of duties, and safeguards such as payee/payer name verification, bank‑code validation, and bank‑holiday awareness to reduce fraud and failed payments. Automation of Direct Debit processing, electronic management of mandates and schedules, and configurable approval workflows are essential to support organisational governance and a gradual shift toward increased automation.
Implementation support should cover configuration, on‑site or remote training, comprehensive documentation, and a dedicated helpdesk. The solution should be fully accessible via standard web browsers, ideally Microsoft Edge, and support multi‑bank operation for future flexibility. The high‑availability and reliable end‑to‑end performance of the SaaS platform are mandatory, and all key security controls—including multi‑factor authentication, smartcard or smartcard‑free access, granular authorisation, and robust risk management—must be incorporated.
Description
The Council is seeking a BACS‑approved, cloud‑based (SaaS) BACS payment and Direct Debit processing solution to support its high‑volume, mission‑critical payment operations. The solution must enable secure access to BACS for both inbound and outbound transactions, including the receipt of payments via BACS Direct Credits, payroll processing, outbound supplier and beneficiary payments, and Direct Debit collections.
The BACS system must be implemented and operational by 17 July 2027.
The following describes the Council’s current assumptions and initial view of its needs. Suppliers are encouraged to challenge these assumptions and propose alternative approaches where appropriate.
We are interested in understanding how supplier solutions support:
The solution should support:
Core Capabilities
All standard BACs payment types, including payroll, payments (Direct Credits), and Direct Debits
Submission of AUDDIS files
Sterling payments to and from UK bank accounts
24/7 browser-based access, allowing multiple authorised users to operate concurrently
Reporting and audit access, including historical transaction and user activity data
Processing of Payments for 10 independent business areas/External Systems
Scalability and configurable
Security and Risk Management
Key security and control features to include:
Multi-factor authentication, including options for smartcard-based (allowing digital signing of payment files), and/or smartcard‑free access
Granular user permissions and authorisation levels, supporting segregation of duties
Confirmation of Payee and payer name verification, to reduce misdirected payments and fraud risk
Validation of bank account numbers, sort codes and payment dates, including bank holiday awareness
These controls must be designed to support compliance, reduce failed payments and minimise operational risk.
Operational Flexibility and Automation
As part of an ongoing review of how we work, we would like the potential to:
Automate Direct Debit processing
Manage Direct Debit mandates, schedules, and transaction types electronically
Configure payment approval workflows aligned with organisational governance requirements
This flexibility would support the continued use of manual processing where required, while providing the option to progress towards increased automation over time, informed by the outcomes of the review.
Architecture and Deployment
Delivered as a Software as a Service (SaaS) solution
Accessible from standard web browsers, preferably Microsoft Edge
Support multi‑bank operation, enabling bank‑agnostic payment processing and future flexibility
Availability and Reliability
High system availability to ensure consistent access for users
Reliable end‑to‑end performance across submission, validation, and payment management
Support and Implementation
Configuration and implementation support
User training (on‑site or remote)
Documentation, user guides and helpdesk support
The high-level requirements set out above are not exhaustive. Please include any additional information you consider relevant or beneficial.
Estimated date of publication of contract notice: 2026-07-31T23:59:59+01:00
Contract location: UKL16
Engagement process description
With the above requirements in mind, we invite you to respond to the questions below.
1. Experience & Capability
Briefly describe your organisation’s experience in delivering BACS payment solutions, particularly for public sector or complex multi‑service environments.
2. Solution Overview
Please provide a high-level overview of your solution, including:
Key BACS functionality supported
How payments and Direct Debits are managed
3. Security & Controls How does your solution ensure secure and compliant operations, including:
User controls and audit
Fraud prevention / validation
Relevant certifications
4. Integration & Operating Model How does your solution:
Integrate with other systems
Support multiple business areas and banking relationships
5. Commercial & Market Insight
Please provide:
Typical pricing approach and cost drivers
Any key risks or challenges
Any alternative approaches the Council should consider
Whether you would be interested in bidding
Please can the above information be sent to thomaj11@caerphilly.gov.uk by COP on Monday 13 July 2026.
Lot: 1
This contract is subject to renewal: Yes
Languages in which tenders or requests to participate may be submitted: En