Financial Auditing Tender
Framework Agreement for Financial Audit and Assurance Services.
United Kingdom-London: Accounting, auditing and fiscal services
Section I: Contracting authority
I.1)Name, addresses and contact point(s)
National Audit Office
157-197 Buckingham Palace Road, Victoria
Contact point(s): Central Procurement Team (CPT)
SW1W 9SP London
Telephone: +44 2077987000
General address of the contracting authority: www.nao.org.uk
Address of the buyer profile: http://nao.g2b.info/
Electronic access to information: www.delta-esourcing.com/delta
Electronic submission of tenders and requests to participate: www.delta-esourcing.com/delta
Further information can be obtained from: The above mentioned contact point(s)
Specifications and additional documents (including documents for competitive dialogue and a dynamic purchasing system) can be obtained from: The above mentioned contact point(s)
Tenders or requests to participate must be sent to: The above mentioned contact point(s)
I.2)Type of the contracting authority
I.4)Contract award on behalf of other contracting authorities
Section II: Object of the contract
II.1.1)Title attributed to the contract by the contracting authority:
II.1.2)Type of contract and location of works, place of delivery or of performance
Service category No 9: Accounting, auditing and bookkeeping services
NUTS code UKI
II.1.3)Information about a public contract, a framework agreement or a dynamic purchasing system (DPS)
II.1.4)Information on framework agreement
maximum number of participants to the framework agreement envisaged: 7
Duration of the framework agreement
Duration in months: 48
Estimated total value of purchases for the entire duration of the framework agreement
Estimated value excluding VAT: 40 000 000 GBP
II.1.5)Short description of the contract or purchase(s)
The NAO is seeking to establish a framework for appointing firms able to deliver, or contribute to the delivery or development of, financial audit and other assurance engagements or related work for and on behalf of the C&AG. This work is required throughout the United Kingdom. The NAO currently has three major client groups (‘Lots’) from which it contracts-out financial audit work to firms providing financial audit and assurance services. The relevant contracts are due to expire, and the NAO intends to replace these groupings with a single framework covering all areas of central government. The contract will commence with work to support the audits of 2016-17 financial statements.
The services to be provided are expected to cover a wide range of resource and expertise and are expected to include, but are not limited to, external audit services, including providing reasonable assurance that income and expenditure have been applied to the purposes intended by Parliament, and that financial transactions conform to the authorities which govern them (‘regularity’), as well as IT audits and information assurance work, related consultancy and provision of staff support and advice and training. This could require firms to undertake a range of work including, but not limited to, complete audits, the provision of specialist expertise on specific account or audit areas, and the provision of contract staff to work as part of NAO audit teams.
II.1.6)Common procurement vocabulary (CPV)
79200000, 79210000, 79212100, 79212000, 79212300
II.1.7)Information about Government Procurement Agreement (GPA)
II.1.9)Information about variants
II.3)Duration of the contract or time limit for completion
Section III: Legal, economic, financial and technical information
III.2.2)Economic and financial ability
Minimum level(s) of standards possibly required: The NAO will use the following formulas in its assessment of the potential provider’s financial and economic standing:
Liquidity ratio expresses a company’s ability to repay short-term creditors out of its total cash. The liquidity ratio is the result of dividing the total cash by short-term borrowings. It shows the number of times short-term liabilities are covered by cash.
Liquidity = (Current assets — Stock) / Current liabilities.
Pass: If the liquidity ratio is equal or greater than 1.00.
The formula/criteria is based around business critical risk as follows:
— High: There is a serious risk to the NAO’s ability to function and provide services to Parliament if the services cannot be provided;
— Medium: There is some risk to NAO’s ability to function efficiently;
— Low: There is little risk on NAO’s ability to perform its services to Parliament and the wider community;
The financial suitability of a supplier to provide services requires the following:
— Business Critical Risk (Low) = Supplier Net Worth must be at least = the total contract;
— Business Critical Risk (Medium) = Supplier Net Worth must be at least 2 times the total contract;
— Business Critical Risk (High) = Supplier Net Worth must be at least 3 times the total contract;
Net Worth = Fixed tangible assets + Current assets — Current liabilities — Long term liabilities;
Pass: If net worth is equal or greater than the contract value.
Please see the NAO ITT for further details.
Please see the NAO ITT for full details.
Minimum level(s) of standards possibly required:
The requirement includes core financial audit, as well as information assurance, and tax work. We therefore require bidders to demonstrate a core of CCAB-qualified accountants, as well as CISA-qualified information assurance and CTA qualified tax practitioners. Further information is available in the ITT.
III.3.1)Information about a particular profession
Reference to the relevant law, regulation or administrative provision: Staff working on financial audits of companies under this framework agreement are required by the Companies Act 2006 to be Registered Auditors.
III.3.2)Staff responsible for the execution of the service
Section IV: Procedure
IV.1.1)Type of procedure
IV.2.2)Information about electronic auction
IV.3.1)File reference number attributed by the contracting authority:
IV.3.2)Previous publication(s) concerning the same contract
Prior information notice
Notice number in the OJEU: 2015/S 206-374007 of 23.10.2015
IV.3.3)Conditions for obtaining specifications and additional documents or descriptive document
Payable documents: no
IV.3.4)Time limit for receipt of tenders or requests to participate
IV.3.6)Language(s) in which tenders or requests to participate may be drawn up
IV.3.7)Minimum time frame during which the tenderer must maintain the tender
IV.3.8)Conditions for opening of tenders
Date: 14.1.2016 – 10:00
Delta esourcing portal.
Persons authorised to be present at the opening of tenders: no
Section VI: Complementary information
VI.1)Information about recurrence
Estimated timing for further notices to be published: 50 months.
VI.2)Information about European Union funds
The NAO is moving away from a system of lots towards a single framework across its portfolio of clients. This is to ensure that NAO teams are able to draw from a wider range of resource and expertise from across the private sector and to drive efficiencies by increasing the volume of work available to our framework partners.
The ‘Main place of performance or of delivery’ at II.1.2) states ‘London’. Please note that services are required throughout the whole of the United Kingdom.
Please note that the date at IV.3.3) Conditions for obtaining specifications and additional documents or descriptive document (in the case of a competitive dialogue) is not applicable.
The procurement for the Financial Audit and Assurance Services Framework Agreement will be managed electronically via BIPs Delta e-Sourcing Suite. To participate in this forthcoming procurement, suppliers must first be registered on the e-Sourcing Suite. If you have not yet registered on the e-Sourcing Suite, this can be done online at www.delta-esourcing.com Potential providers must keep their contact details on the Delta e-Sourcing portal up to date or they will be unable to receive communications from the NAO. If tenderers experience any problems with registering they should contact BiP’s Delta e-Sourcing helpdesk (+44 8452707050) or email: firstname.lastname@example.org for assistance.For more information about this opportunity, please visit the Delta eSourcing portal at:
To respond to this opportunity, please click here:
GO Reference: GO-2015124-PRO-7415379.
VI.4.1)Body responsible for appeal procedures
Body responsible for mediation procedures
National Audit Office
VI.4.2)Lodging of appeals
VI.5)Date of dispatch of this notice: