Provision of Payment Acceptance

Overview

Barnsley Metropolitan Borough Council (BMBC) intends to enter into a further contract with Barclays Bank for the provision of Merchant Services/ Payment Acceptance. These services are already embedded within the Council's existing infrastructure and form a critical component of its financial operations. Direct award justification Additional or repeat goods, services or works - extension or partial replacement Single supplier - technical reasons Section 41 (Schedule 5) would be the most suitable justification to evidence a direct award: - a change in supplier would result in the contracting authority receiving goods, services or works that are different from, or incompatible with, the existing goods, services or works, and - the difference or incompatibility would result in disproportionate technical difficulties in operation or maintenance. BMBC's situation meets these criteria due to: - Deep integration of Barclays' systems with Council infrastructure. - Customised workflows and security protocols that would require significant redevelopment if a new supplier was introduced. Technical Compatibility - Barclays' merchant services are embedded within BMBC's payment architecture. - Switching suppliers would need re-engineering of payment gateways, APIs, and back-office systems demanding significant officer time and organisational resources to implement and test these changes. - Risk of service disruption during migration, delays in payment processing impacting revenue collection and customer experience. - The work would require specialist technical resource (including payments integration and security assurance capability). Where this expertise is not held in house at the required depth, external specialist support would be required to deliver and assure the transition safely. Operational Continuity - The current solution is proven in service and supports operational continuity for critical payment enabled processes. Transitioning supplier would require extensive process redesign and staff retraining, alongside dual running / cutover planning and heightened support during stabilisation. The operational burden is a direct consequence of replacing an embedded, integrated service rather than procuring a standalone, self‑contained product. - Any material interruption or degradation in payment processing would create operational risk for services reliant on timely payment acceptance and could affect BMBC's ability to meet operational obligations where payments are integral to delivery. Compliance Continuity - Payment Card Industry Data Security Standard, designed to protect payment card data. BMBC is now fully compliant and has established processes with the Barclaycard Security Team. - Moving to a new supplier introduces additional risk and a need for extensive internal work. - This may lead to delays in certification, potential fines, and implementation costs. Current capacity does not allow for the significant resource demands of onboarding a new PCI DSS auditor. Financial Impact - Transitioning our in-house Income Management solution to new provider would require temporary contractor(s) to support BMBC ICT requirements. - Integrations with other systems across the Council would require detailed requirements gathering, implementation work, thorough testing, and ongoing support through third party/ external support. - Potential PCI-DSS Compliance Consultancy costs