DfE Contract Notice for Early Years Investment Fund Manager

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

2016/S 170-305930

Contract notice


Directive 2014/24/EU

Section I: Contracting authority

I.1)Name and addresses

Department for Education
Sanctuary Buildings, Great Smith Street
United Kingdom
Contact person: Emily Braid, Jamilah Shah
E-mail: earlyyears.FUND@education.gsi.gov.uk
NUTS code: UKI
I.2)Joint procurement


The procurement documents are available for unrestricted and full direct access, free of charge, at: https://files.mills-reeve.com/app?operation=pubopp&id=1472566682987X10A1A21A8Rwb8r
Additional information can be obtained from the abovementioned address
Tenders or requests to participate must be submitted to the abovementioned address

I.4)Type of the contracting authority

Ministry or any other national or federal authority, including their regional or local subdivisions

I.5)Main activity


Section II: Object

II.1)Scope of the procurement


Early Years Investment Fund Manager.

II.1.2)Main CPV code


II.1.3)Type of contract


II.1.4)Short description:

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

Value excluding VAT: 8 000 000.00 GBP

II.1.6)Information about lots

This contract is divided into lots: no

II.2.2)Additional CPV code(s)


II.2.3)Place of performance

NUTS code: UK
Main site or place of performance:

England only.

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.2.5)Award criteria

Price is not the only award criterion and all criteria are stated only in the procurement documents
II.2.6)Estimated value

II.2.7)Duration of the contract, framework agreement or dynamic purchasing system

Duration in months: 264
This contract is subject to renewal: no

II.2.9)Information about the limits on the number of candidates to be invited

Envisaged number of candidates: 3
Objective criteria for choosing the limited number of candidates:

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

Variants will be accepted: yes

II.2.11)Information about options

Options: yes
Description of options:

The contract length may be subject to up to 2 extensions each of up to 1 year in length.

II.2.12)Information about electronic catalogues

II.2.13)Information about European Union funds

The procurement is related to a project and/or programme financed by European Union funds: no
II.2.14)Additional information

Section III: Legal, economic, financial and technical information

III.1)Conditions for participation

III.1.1)Suitability to pursue the professional activity, including requirements relating to enrolment on professional or trade registers

List and brief description of conditions:

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

Selection criteria as stated in the procurement documents

III.1.3)Technical and professional ability

Selection criteria as stated in the procurement documents
III.1.5)Information about reserved contracts
III.2)Conditions related to the contract

III.2.1)Information about a particular profession

Execution of the service is reserved to a particular profession
Reference to the relevant law, regulation or administrative provision:

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

Obligation to indicate the names and professional qualifications of the staff assigned to performing the contract

Section IV: Procedure


IV.1.1)Type of procedure

Competitive dialogue
IV.1.3)Information about a framework agreement or a dynamic purchasing system

IV.1.4)Information about reduction of the number of solutions or tenders during negotiation or dialogue

Recourse to staged procedure to gradually reduce the number of solutions to be discussed or tenders to be negotiated
IV.1.6)Information about electronic auction

IV.1.8)Information about the Government Procurement Agreement (GPA)

The procurement is covered by the Government Procurement Agreement: yes
IV.2)Administrative information

IV.2.1)Previous publication concerning this procedure

Notice number in the OJ S: 2016/S 132-237500

IV.2.2)Time limit for receipt of tenders or requests to participate

Date: 03/10/2016
Local time: 12:00

IV.2.3)Estimated date of dispatch of invitations to tender or to participate to selected candidates

Date: 17/10/2016

IV.2.4)Languages in which tenders or requests to participate may be submitted:

IV.2.6)Minimum time frame during which the tenderer must maintain the tender
IV.2.7)Conditions for opening of tenders

Section VI: Complementary information

VI.1)Information about recurrence

This is a recurrent procurement: no
VI.2)Information about electronic workflows

VI.3)Additional information:

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.

VI.4)Procedures for review

VI.4.1)Review body

Department for Education
Sanctuary Buildings, Great Smith Street
United Kingdom
E-mail: earlyyears.FUND@education.gsi.gov.uk
VI.4.2)Body responsible for mediation procedures

VI.4.3)Review procedure

Precise information on deadline(s) for review procedures:

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.4.4)Service from which information about the review procedure may be obtained

VI.5)Date of dispatch of this notice:



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