Dwr Cymru Welsh Water has gone out to tender with an AMP8 framework contract for Recruitment Services Procurement with an estimated value of £24 million including VAT.

Dŵr Cymru Welsh Water (DCC) is seeking to establish a Hybrid Managed Service Provider (MSP) Recruitment Framework to support its in-house recruitment function with the provision of temporary, interim, fixed-term contract (FTC) and permanent recruitment services across a range of specialist disciplines.

DCC currently operates a combination of in-house direct recruitment and recruitment agency support.

The purpose of the procurement is to introduce a Hybrid MSP model that will provide the company with greater control, visibility and consistency across its external recruitment activity, while retaining access to specialist recruitment expertise where required. The Framework is intended to support enhanced value for money, improved management information and expenditure visibility, robust compliance management, effective management of IR35 and payroll requirements, and a streamlined recruitment and workforce management process.

Under the Hybrid MSP model, DCC will retain its in-house recruitment function and overall governance and oversight of its recruitment requirements, while outsourcing defined recruitment and workforce management activities to MSP Suppliers appointed to the Framework. There will be no single lead MSP across the Framework. Instead, MSP Suppliers will be appointed to individual Lots according to their relevant specialist recruitment capability.

For requirements referred to in the Framework, the relevant MSP supplier will be responsible, as applicable, for:

• candidate attraction, sourcing, screening and presentation;
• onboarding and pre-employment compliance activities;
• operational management of IR35 and other applicable tax and employment compliance requirements;
• payroll and bill-pay administration;
• workforce administration;
• the provision of management information, expenditure reporting and associated workforce management services.

DCC will retain overall oversight of these activities, responsibility for its recruitment strategy and final candidate selection and appointment decisions, and responsibility for monitoring and managing MSP Supplier performance against the Service Levels, KPIs and other requirements established under the Framework.

Permanent and FTC recruitment requirements will ordinarily be managed through DCC's in-house recruitment function in the first instance. Where internal sourcing routes have been exhausted, or where a requirement is particularly specialist, difficult to fill or time-critical, DCC may release the requirement to MSP Suppliers appointed to the relevant Lot.

Temporary and interim recruitment requirements may be released to the MSP Suppliers appointed to the relevant Lot according to the nature and specialist requirements of the role. Where more than one MSP Supplier is appointed to a Lot, requirements may be released to capable Suppliers in accordance with the allocation methodology established under the Framework. MSP Suppliers will be responsible for identifying and presenting suitably qualified candidates who meet DCC's requirements.

The Framework is intended to cover the following worker categories:

• Temporary Agency Workers - agency workers engaged on a temporary basis, typically paid hourly, to support requirements such as sickness cover, operational demand or specific projects.
• Interim Workers - contractors or freelance workers, typically paid on a daily-rate basis, engaged temporarily to support specific business requirements.
• Fixed-Term Contract Employees - individuals employed and paid directly by DCC for a defined contractual period, with MSP Suppliers providing candidate-finding services where required.
• Permanent Employees - individuals employed and paid directly by DCC on an ongoing basis, with MSP Suppliers providing candidate-finding services where required.

The requirement is divided into seven Lots, defined by recruitment specialism. DCC intends to appoint up to three MSP Suppliers to each Lot, providing resilience, competition and access to a broader candidate market. Suppliers may tender for one Lot, any combination of Lots, or all seven Lots, subject to demonstrating that they have the capability and capacity to meet the requirements of each Lot for which they tender.

Welsh Water said the Lot structure reflects the breadth of general business and specialist recruitment requirements across DCC and is intended to ensure that recruitment requirements are supported by Suppliers with the appropriate market knowledge, capability and access to suitable candidates.

The commercial arrangements applicable to MSP Suppliers, including recruitment fees, agency mark-ups, MSP management charges and any other relevant charges, will be defined at the ITT stage.

Current estimated start and end contract dates are 31 March 2027 to 30 March 2031 with two further possible extension options to 31 March 2035

The contract is being tendered in the following Lots:

Lot 1. Customer Service

This lot contains omni-channel customer service roles such as Customer Service Advisors, Vulnerable Customer Advisors, Complaint Handlers, Debt Advisors, Receptionists, IT Service Desk Analysts and Social Media Advisors.

Lot 2. Scientific

This lot contains roles such as Sampling Technicians, Process Scientists, Water Quality Scientists, Microbiology Analysts, and laboratory personnel such as Technicians, Analysts and Team Leaders.

Lot 3. Professional & Finance

This lot contains professional and finance roles such as Accountants, Finance Professionals, Financial Analysts, Management Accountants, Procurement Specialists, Planning and Forecasting roles, Service Delivery Specialists, Quantity Surveyors, and HR & Legal Professionals.

Lot 4. Technical & Operations

This lot contains roles such as Industrial Electricians, Mechanical Fitters, Instrumentation and Automation Technicians, Process Operators, Tanker Drivers, HGV Technicians, and Clean and Wastewater Network Inspectors.

Lot 5. Engineers

This lot contains roles such as Civil, Process, Electrical and Mechanical Engineers, as well as Design Technicians.

Lot 6. IT & Data

This lot contains roles such as Data Scientists, Cyber Security Specialists, SAP Specialists, Technical Delivery Leads, Database Developers and Analysts, Desktop Engineers, Desktop Applications Support, Network and Telecommunications Engineers, Technical Architects, Solution Architects and Enterprise Architects.

Lot 7. Retail, Catering & Activities

This lot contains roles such as Café and Catering Staff, Chefs, Retail Assistants, Activity Instructors, Rangers, and other leisure and activity-based roles.

Framework operation description

Recruitment requirements under the Framework will be allocated to suppliers appointed to the relevant Lot in accordance with DCC's Hybrid MSP operating model and the allocation methodology established under the Framework.

Permanent and fixed-term contract requirements will ordinarily be considered through DCC's in-house recruitment function first. Where additional external support is required, including where internal sourcing routes are exhausted or a role is specialist, difficult to fill or time-critical, the requirement may be released to Suppliers appointed to the relevant Lot. Temporary and interim requirements may also be released to relevant Framework suppliers.

DCC will determine the most appropriate Lot based on the nature of the role, required skills and qualifications, specialist requirements, location, urgency and other relevant operational considerations.

Within the relevant Lot, DCC may allocate a requirement to an individual MSP supplier or release it to multiple capable MSP suppliers, in accordance with the agreed allocation methodology. There will be no single lead MSP and DCC will retain oversight and control of the Hybrid MSP model.

Supplier performance, including Service Level compliance, candidate quality, fulfilment rates, responsiveness and value for money, may be considered when allocating future requirements, where permitted by the Framework Agreement and applicable procurement documents.

Where suppliers are unable to meet a requirement within the required timescales or Service Levels, DCC may consider suppliers appointed to another Lot where appropriate and where the supplier has the relevant capability. DCC may also procure specialist recruitment services separately where these cannot reasonably be fulfilled through the Framework.

Rates, margins, mark-ups, recruitment fees and other commercial terms shall be subject to the pricing mechanisms and Rate Caps established for the relevant Lot.

DCC reserves the right to determine the appropriate allocation route for each requirement in accordance with the Framework Agreement, allocation methodology, internal governance and applicable procurement documents. No minimum spend, volume or value of work is guaranteed to any supplier or Lot.

Deadline for submission of enquiries about the tender is 2:00pm on 25 September 2026 and tender submission deadline is 2:00pm on 9 October 2026.

Suppliers who are not already registered on Welsh Water’s eSourcing Portal will need to register in order to express their interest in the opportunity.

Click here to access the tender documentation, submission address and any special instructionDocuments can be downloaded after a supplier has expressed interest; expressions of Interest will only be accepted through the eSourcing Portal and all documentation must likewise be returned electronically via the eSourcing Portal,

Estimated contract award decision date is 5 February 2027

The procurement process consists of:

Stage 1 - Conditions of Participation where bidders will be required to:

• satisfy the stated Conditions of Participation and applicable exclusion and declaration requirements;
• provide the required financial and insurance information;
• submit three Case Studies demonstrating relevant experience and capability in delivering recruitment services of the type required by DCC;
• respond to the Technical Questions, including the mandatory pass/fail requirements relating to Additional Screening and Welsh Language Service Provision;
• confirm the Lot or Lots for which they are able to provide recruitment services; and
• provide any other information, declarations or supporting evidence required as part of the Conditions of Participation documents.

Following Stage 1, shortlisted bidders will be invited to participate in Stage 2 - Invitation to Tender (ITT). DCC will undertake an intermediate assessment following receipt of tenders and may exclude bidders that do not meet the applicable minimum requirements or quality thresholds.

Bidders meeting the applicable minimum requirements and quality thresholds will subsequently be invited to Stage 3 - Final Tender (BAFO). The Competitive Flexible Procedure will include negotiation as part of the procurement process. Following Stage 3, DCC will evaluate the Final Tenders against the applicable award criteria and notify bidders of the outcome.