DfE Contract Notice for Early Years Investment Fund Manager
The DfE wishes to appoint a supplier which will (a) establish the funding vehicle (the EYIF).
United Kingdom-London: Financial and insurance services
Section I: Contracting authority
I.1)Name and addresses
Sanctuary Buildings, Great Smith Street
Contact person: Emily Braid, Jamilah Shah
NUTS code: UKI
Internet address(es):Main address: https://www.gov.uk/government/organisations/department-for-education
I.4)Type of the contracting authority
Section II: Object
Early Years Investment Fund Manager.
II.1.2)Main CPV code
II.1.3)Type of contract
This Contract Notice is issued by the Department for Education (DfE) and is an opportunity relating to the establishment of a funding vehicle (the ‘Early Years Investment Fund’ (‘EYIF’)) designed to increase the provision of early years places in England, focusing on those private and voluntary providers who will deliver the 30 hours free childcare that will be available to working families from September 2017.
The DfE wishes to appoint a supplier which will (a) establish the funding vehicle (the EYIF); and (b) establish a General Partner to act in such a capacity to the EYIF — raising investment for the EYIF (through open competition), together with managing and administering the EYIF (either directly or via its appointed Fund Manager). Further details of the opportunity are set out in Section II.2.4) and the procurement documents which are available from the contact point (URL) in Section I.3).
II.1.5)Estimated total value
II.1.6)Information about lots
II.2.2)Additional CPV code(s)
II.2.3)Place of performance
II.2.4)Description of the procurement:
By increasing the availability of 30 hour places, the EYIF aims to create a work incentive for families with young children. Alongside the work incentive, the funding vehicle will focus on providers who are able to demonstrate social impact, directly through the provision of their childcare services and/or through provision of additional services in the wider community. It is anticipated that loan investments made to providers from the EYIF will be used for working capital (including operating costs); traditional capital builds (including new builds, expansions and refurbishments) and maintenance and infrastructure improvement projects.
The General Manager (or its appointed Fund Manager) will also be responsible for establishing and administering a Support Grant Facility (approx. 2 000 000 GBP to be funded by the DfE) to support providers accessing the EYIF. It is anticipated that support through the Support Grant Facility may include but is not necessarily limited to: grants for business planning support, capital build advisory support and for working capital. At this stage the DfE is not limiting the approach to the Support Grant Facility but the preferred option, where professional support is required, is that the Fund Manager will be responsible for the competitive procurement of a panel of approved advisors to deliver support to successful applicants.
DfE’s initial investment to the EYIF is anticipated to be in the region of 10 000 000 GBP (excluding the Support Grant Facility) and the Fund Manager will seek to attract — through an open competitive process — further investment (approx. 20 000 000 GBP) from commercial and social investors creating a larger pot for distribution (as loans) directly to providers.
The initial term of the General Partner’s (and Fund Manager’s) role is anticipated to be 13-20 years, including an investment period of approximately three years. This contract length may be subject to up to two extensions each of up to 1 year in length. Please note this is an indicative contract length only as the length of contract will be somewhat contingent on the fund products proposed, which will be 1 aspect to be explored as part of the Competitive Dialogue process.
The EYIF management fee will be a key subject of the dialogue process and will be focussed on the following principles:
1) Suppliers are required to propose a fund management fee structure that aligns interests, incentivises the manager, and provides value for money for the DfE –including, for example, performance based elements- but the precise details and commercial arrangements in relation to the fee will be subject to the dialogue process.
2) The DfE expects Suppliers to propose a management fee that is commensurate with the shifting responsibilities of the Fund Manager across the lifetime of the EYIF.
3) Suppliers will be required to provide a breakdown of the costs anticipated for managing the EYIF and associated loan portfolio.
4) In addition, details in relation to the costs of administering the Support Grant Facility will also be required.
As part of the procurement the DfE will be evaluating the costings of various proposals on the basis of how closely they adhere to the above principles.
The indicative contract value is anticipated to be in the range of 3 000 000 GBP – 8 000 000 GBP over the life of the EYIF to be met primarily by returns to the EYIF.
It is anticipated that the EYIF will be established as a UK Limited Partnership and that the General Partner will enter into a Services Agreements with the DfE for the establishing, raising investment for and managing the EYIF and for its role in managing and administering the Support Grant Facility.
Further details regarding the opportunity are set out in the procurement documents which are available from the contact point (URL) in Section I.3).
II.2.7)Duration of the contract, framework agreement or dynamic purchasing system
II.2.9)Information about the limits on the number of candidates to be invited
In accordance with Article 57, 58 and 65 of the Directive 2014/24/EU and Regulation 57, 58 and 65 of the Public Contracts Regulations 2015 and as set out in the procurement documents which are available from the contact point (URL) in section I.3.
II.2.10)Information about variants
II.2.11)Information about options
The contract length may be subject to up to 2 extensions each of up to 1 year in length.
II.2.13)Information about European Union funds
Section III: Legal, economic, financial and technical information
III.1.1)Suitability to pursue the professional activity, including requirements relating to enrolment on professional or trade registers
In accordance with Articles 57 and 58 of Directive 2014/24/EU and Regulations 57 and 58 of the Public Contracts Regulations 2015 and as set out in the procurement documents which are available from the contact point (URL) in section I.3.
The Fund Manager appointed by the General Partner of the EYIF must also be authorised and regulated by the Financial Conduct Authority.
III.1.2)Economic and financial standing
III.1.3)Technical and professional ability
III.2.1)Information about a particular profession
As set out at III.1.1) the Fund Manager appointed by the General Partner of the EYIF must also be authorised and regulated by the Financial Conduct Authority.
III.2.2)Contract performance conditions:
As set out in the procurement documents.
III.2.3)Information about staff responsible for the performance of the contract
Section IV: Procedure
IV.1.1)Type of procedure
IV.1.4)Information about reduction of the number of solutions or tenders during negotiation or dialogue
IV.1.8)Information about the Government Procurement Agreement (GPA)
IV.2.1)Previous publication concerning this procedure
IV.2.2)Time limit for receipt of tenders or requests to participate
IV.2.3)Estimated date of dispatch of invitations to tender or to participate to selected candidates
IV.2.4)Languages in which tenders or requests to participate may be submitted:
Section VI: Complementary information
VI.1)Information about recurrence
With reference to section II.2.7): The period stated in section II.2.7) is based on and inclusive of an indicative contract term of between 13 to 20 years with up to two further extensions each of up to one year in length.
With reference to section II..2.10) (variant bids)_ — the DfE reserves the right to permit variant bids. Where permitted, the requirements for any variant bids will be set out in the invitation to participate in dialogue and/or the invitation to submit final tenders.
With reference to section II.2.11) (options) — The contract term may be subject to two further extensions each of up to 1 year in length.
The contract value excluding VAT is 3 000 000-8 000 000 [indicative only] Currency: GBP.
Registering to use Huddle and submission of PQQ responses: Requests to participate must be made by completion and return of a Pre-qualification questionnaire (PQQ). The PQQ and other procurement documents (including the Descriptive Document) are available from the contact point (URL) in section 1.3).
In order to submit a completed PQQ response Suppliers must register to use ‘Huddle’ (which is the on-line platform to be used by the DfE for the remainder of this procurement process and through which completed PQQ responses must be submitted). Suppliers should therefore read the ‘Instructions to Suppliers’ document, which is also available through the URL link at section 1.3), and ensure they follow the instructions and register to use Huddle in good time to be able to submit a PQQ response by the PQQ response deadline stated in section IV.2.2).
The DfE reserves the right to discontinue the procurement process at any time, which shall include the right not to award contract/s, and does not bind itself to accept the lowest tender, or any tender received, and reserves the right to award contract/s in part, or to call for new tenders should it consider this necessary.
The DfE shall not be liable for any costs or expenses incurred by any candidate in connection with the completion and return of the information requested in this Contract Notice, or in participating in this procurement process, irrespective of the outcome of the competition or if the competition is cancelled or postponed.
All dates, time periods and values specified in this notice are provisional and the DfE reserves the right to change these.
Sanctuary Buildings, Great Smith Street
The DfE will incorporate a standstill period from the date when information on the award of the contract/s is communicated to tenderers. That notification will provide full information on the award decision. The standstill period, which will be for a minimum of 10 calendar days, provides time for unsuccessful tenderers to challenge the award decision before the contract is entered into. Part 3 of the Public Contracts Regulations 2015 provides for aggrieved parties who have been harmed or are risk of harm by a breach of the Regulations to take action in the High Court (England and Wales). Any such action must be brought within the applicable limitation periods.
VI.5)Date of dispatch of this notice: