Decision

To award a three-year contract for the provision of corporate postal services to Royal Mail Group Ltd and approve the direct award under Contract and Tendering Procedure Rules due to the absence of viable competition and Royal Mail's statutory role as the Universal Service Provider.

Reasons for the decision

Royal Mail is the UK's designated Universal Service Provider under the Postal Services Act 2011 and is the only provider capable of delivering nationwide statutory and operational postal services required by RBWM.

Market testing confirmed no alternative supplier could provide equivalent coverage, statutory obligations or delivery standards. A competitive tender would not generate meaningful competition or improve value for money.

Alternative options considered

1. Continue direct award to Royal Mail (recommended).
2. Undertake a competitive tender (not recommended as no equivalent suppliers exist).
3. Do nothing (not recommended as this would risk loss of critical postal services and statutory compliance).