Internal Audit Services for Government Internal Audit Agency

Internal Audit Services for Government Internal Audit Agency

The primary objective of the procurement is to combine the knowledge and expertise of GIAA with that of the successful third party providers in an effective, efficient and economic way.

United Kingdom-London: Internal audit services

2015/S 092-165695

Contract notice

Services

Directive 2004/18/EC

Section I: Contracting authority

I.1)Name, addresses and contact point(s)

Government Internal Audit Agency (Acting on behalf of HM Treasury)
1 Horse Guards Road
Contact point(s): Agent (for the purposes of this procurement only) Crown Commercial Service. For the attention of Managed Contracts
SW1A 2HQ London
UNITED KINGDOM
Telephone: +44 3450103503
E-mail: supplier@crowncommercial.gov.ukeenablement@crowncommercial.gov.uk

Internet address(es):

General address of the contracting authority: http://www.gov.uk/government/organisations/hm-treasury

Address of the buyer profile: http://gpsesourcing.cabinetoffice.gov.uk

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

Ministry or any other national or federal authority, including their regional or local sub-divisions

I.3)Main activity

General public services
Other: Public Procurement
I.4)Contract award on behalf of other contracting authorities

Section II: Object of the contract

II.1)Description

II.1.1)Title attributed to the contract by the contracting authority:

Internal Audit Services for Government Internal Audit Agency (GIAA).

II.1.2)Type of contract and location of works, place of delivery or of performance

Services
Service category No 27: Other services
Main site or location of works, place of delivery or of performance: Primarily in the UK with some limited requirements overseas.

NUTS code UK

II.1.3)Information about a public contract, a framework agreement or a dynamic purchasing system (DPS)

II.1.4)Information on framework agreement

Framework agreement with several operators
maximum number of participants to the framework agreement envisaged: 12

Duration of the framework agreement

Duration in months: 36

II.1.5)Short description of the contract or purchase(s)

Government Internal Audit Agency (GIAA) (referred to hereafter as the Authority requires external expertise and flexible support to assist in the delivery of internal audit and related assurance services.
Government Internal Audit Agency (GIAA) (Authority) on behalf of HM Treasury (HMT) is seeking to establish a Framework Agreement for the provision of Internal Audit Services for GIAA and other UK Central Government Departments and their Arms Length Bodies (ALB’s), for an initial period of 3 (three) years with the option to extend for a further 1 (one) year period.
The primary objective of the procurement is to combine the knowledge and expertise of GIAA with that of the successful third party providers in an effective, efficient and economic way. In addition, Suppliers shall provide advice to GIAA on best practice and up to date technology and techniques and the further enhancement of GIAA and of its audit methodology. HMT aims to deliver the best possible Internal Audit Service to its Central Government clients. There are five key (but not exclusive) scenarios for calling off work:
— Full annual internal audit;
— Specialist work;
— Individual time-limited work.
Thematic work, for example across the UK or across client entities. Work may be called off in the form of single pieces of work or multiple orders. Suppliers shall note that they will be required to provide services overseas under this Framework Agreement.
A detailed description of the Services that the Potential Provider will be required to supply under this Framework Agreement are set out in full in Part A (Services) of Framework Schedule 2 of the ITT.

II.1.6)Common procurement vocabulary (CPV)

79212200, 66171000, 72810000, 79211200, 79212000, 79212100, 79212300, 79212400, 79212500, 79410000, 79412000, 79414000, 79418000,90714000, 90714200

II.1.7)Information about Government Procurement Agreement (GPA)

The contract is covered by the Government Procurement Agreement (GPA): yes

II.1.8)Lots

This contract is divided into lots: yes
Tenders may be submitted for one or more lots

II.1.9)Information about variants

Variants will be accepted: no
II.2)Quantity or scope of the contract

II.2.1)Total quantity or scope:

This Procurement is being managed and facilitated by Crown Commercial Service (CCS) (referred to as the Agent). The Agent is acting on behalf of the Contracting Authority throughout the procurement process. The Internal Audit Services Framework Agreement will be between the successful suppliers and the Contracting Authority, not the Agent.
This Framework Agreement shall be divided into 3 Lots, which are further described in Annex B of this Contract Notice.
The Authority and other Central Government Departments require external expertise and flexible resource to assist in the delivery of internal audit and related assurance and advisory services. Resource will be required to fill gaps in existing GIAA expertise at short notice, a flexible responsive approach is therefore essential.
Services required will include the provision of effective skills transfer, advice and services; including industry leading skills and expertise to supplement the capabilities of the in-house teams in the following primary areas which are detailed in Part A (Services) of Framework Agreement Schedule 2.
The services required within the Framework Agreement may also involve the review of private sector contractors providing services to the public sector, for example a shared payroll service and other transactional shared services. The Services may also involve the statutory investigations of local government on behalf of central government (but not the external audit of annual financial statements).
Suppliers shall be contractually required to transfer knowledge and skills to GIAA and this should cover all potential geographical locations, including the UK and Overseas (if applicable) as specified by the Authority in the Lotting structures. Staff assigned to complete audit services will require the appropriate levels of security vetting.
A significant element of the work will be to support the requirement to deliver an annual Internal Audit Opinion on the adequacy and effectiveness of the client organisation’s framework of governance, risk management and control.
Estimated value excluding VAT:
Range: between 1 000 000 and 60 000 000 GBP

II.2.2)Information about options

Options: yes
Description of these options: The Framework Agreement will be awarded for an initial term of 36 months with an option to extend for a further period of 12 (twelve) months. The extension will be exercised at the sole discretion of the Authority.
II.2.3)Information about renewals

II.3)Duration of the contract or time limit for completion

Duration in months: 36 (from the award of the contract)

Information about lots

Lot No: 1Lot title: Core Internal Audit Services, including Advisory Services (UK and Overseas):

1)Short description

The provision of internal audit and advisory services for GIAA and other UK Central Government Departments, including the delivery of a complete annual programme of work and opinion, in the following areas:
— IT assurance (other than ‘IT deep specialisms’ listed below);
— Financial Modelling;
— Other Modelling;
— Human Resources;
— Facilities Management;
— Finance, Accounting, Shared Services:
— Finance;
— Payroll shared services;
— Including shared services assurance reporting;
— Corporate social responsibility and sustainability;
— Specific statutory audits of local government, on behalf of central government (not external audit), including under the Secretary of State’s powers related to section 10 of the Local Government Act 1999 (as amended);
— Advisory work linked to and usually contributing to the annual internal audit opinion;
— Other internal audit services;
— Other assurance and similar risk advisory services;
— IT Deep specialisms (including advisory work):
— Cyber security;
— Digital;
— Agile Development;
— Other specialist IT;
— Commercial:;
— Contracting and procurement;
— Supply chain management;
— Complex operating systems;
— Spread sheet and modelling audits work, including data modelling and analysis;
— Programme Management:
— Project and Programme management;
— Change management;
— Development of GIAA:
— Setting direction of GIAA;
— Development of GIAA staff;
— Best practice approaches to the delivery of services.
Work will include: providing advice on an ad hoc basis to GIAA and Arms Length Authorities of each Department on quality assurance, audit tools and techniques, technical updates, change management in an audit context and audit management. Work may be allocated on the basis of themes.
— Client specific development, within framework of GIAA strategy.
— Each supplier contracted to provide lot 1 services may also be asked to provide client specific skills transfer, such as for a departmental group or similar clients, such as regulators.
— Client development for internal audit services outside GIAA.
— Specialism development:
— Each supplier contracted to provide services under this lot will also be required to provide knowledge and skills transfer to develop GIAA specialisms, in particular on Programme Management and Commercial work.
— Secondments:
In addition suppliers may be asked to provide secondees to GIAA and other central government authorities, at rates not more than the established rate cards for the Lot, and accept secondees from the contracting Authorities.

All work undertaken shall be in accordance with GIAA standards Public Sector Internal Audit Standards http://www.cipfa.org/policy-and-guidance/standards/public-sector-internal-audit-standards and GIAA methodology or the methology of the relevant commissioner.

2)Common procurement vocabulary (CPV)

79212200, 79212000

3)Quantity or scope

Services required will include the provision of effective skills transfer, advice and services; including industry leading skills and expertise to supplement the capabilities of the in-house teams in the following primary areas which are detailed in Part A (Services) of Framework Agreement Schedule 2.
The services required within this Framework Agreement may also involve the review of private sector contractors providing services to the public sector, for example a shared payroll service and other transactional shared services. The Services may also involve the statutory investigations of local government on behalf of central government (but not the external audit of annual financial statements).
Suppliers shall be contractually required to transfer knowledge and skills to GIAA and this should cover all potential geographical locations, including the UK and Overseas (if applicable) as specified by the Authority in the Lotting structures. Staff assigned to complete audit services will require the appropriate levels of security vetting.
A significant element of the work will be to support the requirement to deliver an annual Internal Audit Opinion on the adequacy and effectiveness of the client organisation’s framework of governance, risk management and control.
4)Indication about different date for duration of contract or starting/completion
5)Additional information about lots

Lot No: 2Lot title: Forensic Work (UK and Overseas):

1)Short description

The provision of internal audit and advisory services for GIAA and other UK central government internal audit and related services, including the delivery of a complete annual programme of work and opinion, in the following areas:
— Fraud audits.
— Advice and investigations.
— Specialism development:
— Each supplier contracted to provide services under this lot will also be required to provide knowledge and skills transfer to develop GIAA specialisms.
— Secondments:
In addition suppliers may be asked to provide secondees to GIAA and other central government authorities, at rates not more than the established rate cards for the Lot, and accept secondees from the contracting Authorities.

All work undertaken shall be in accordance with Public Sector Internal Audit Standards http://www.cipfa.org/policy-and-guidance/standards/public-sector-internal-audit-standards and GIAA methodology or the methology of the relevant commissioner.

2)Common procurement vocabulary (CPV)

79212200, 79212000

3)Quantity or scope

Services required will include the provision of effective skills transfer, advice and services; including industry leading skills and expertise to supplement the capabilities of the in-house teams in the following primary areas which are detailed in Part A (Services) of Framework Agreement Schedule 2.
The services required within this Framework Agreement may also involve the review of private sector contractors providing services to the public sector, for example a shared payroll service and other transactional shared services. The Services may also involve the statutory investigations of local government on behalf of central government (but not the external audit of annual financial statements).
Suppliers shall be contractually required to transfer knowledge and skills to GIAA and this should cover all potential geographical locations, including the UK and Overseas (if applicable) as specified by the Authority in the Lotting structures. Staff assigned to complete audit services will require the appropriate levels of security vetting.
A significant element of the work will be to support the requirement to deliver an annual Internal Audit Opinion on the adequacy and effectiveness of the client organisation’s framework of governance, risk management and control.
4)Indication about different date for duration of contract or starting/completion
5)Additional information about lots

Lot No: 3Lot title: Regulatory Services, including Advisory Work (UK and Overseas):

1)Short description

The provision of internal audit and advisory services for GIAA and other UK central government internal audit and related services in the following areas:
— EU Regulations and their audit.
— Banking and financial services.
— Banking and financial services Regulations.
— Specialism development:
— Each supplier contracted to provide services under this lot will also be required to provide knowledge and skills transfer to develop GIAA specialisms.
— Secondments:
In addition suppliers may be asked to provide secondees to GIAA and other central government authorities, at rates not more than the established rate cards for the Lot, and accept secondees from the contracting Authorities.

All work undertaken shall be in accordance with GIAA standards Public Sector Internal Audit Standards http://www.cipfa.org/policy-and-guidance/standards/public-sector-internal-audit-standards and GIAA methodology or the methology of the relevant commissioner.

2)Common procurement vocabulary (CPV)

79212200, 79212000

3)Quantity or scope

Services required will include the provision of effective skills transfer, advice and services; including industry leading skills and expertise to supplement the capabilities of the in-house teams in the following primary areas which are detailed in Part A (Services) of Framework Agreement Schedule 2.
The services required within this Framework Agreement may also involve the review of private sector contractors providing services to the public sector, for example a shared payroll service and other transactional shared services. The Services may also involve the statutory investigations of local government on behalf of central government (but not the external audit of annual financial statements).
Suppliers shall be contractually required to transfer knowledge and skills to GIAA and this should cover all potential geographical locations, including the UK and Overseas (if applicable) as specified by the Authority in the Lotting structures. Staff assigned to complete audit services will require the appropriate levels of security vetting.
A significant element of the work will be to support the requirement to deliver an annual Internal Audit Opinion on the adequacy and effectiveness of the client organisation’s framework of governance, risk management and control.
4)Indication about different date for duration of contract or starting/completion
5)Additional information about lots

Section III: Legal, economic, financial and technical information

III.1)Conditions relating to the contract

III.1.1)Deposits and guarantees required:

Potential Providers will be advised if this is necessary during the procurement. Parent company and/or other guarantees of performance and financial liability may be required by the Authority if considered appropriate.
III.1.2)Main financing conditions and payment arrangements and/or reference to the relevant provisions governing them:

III.1.3)Legal form to be taken by the group of economic operators to whom the contract is to be awarded:

No special legal form is required but if a contract is awarded to a Group of Economic Operators, the Authority may require the Group of Economic Operators to form a legal entity before entering into the Framework Agreement.

III.1.4)Other particular conditions

The performance of the contract is subject to particular conditions: no
III.2)Conditions for participation

III.2.1)Personal situation of economic operators, including requirements relating to enrolment on professional or trade registers

Information and formalities necessary for evaluating if the requirements are met: Information and formalities necessary for evaluating if the requirements are met; Potential Providers will be assessed in accordance with Section 5 of Chapter 2 of the Public Contracts Regulations 2015, as amended (implementing Title II, Chapter III, Section 3, Sub-section I of Directive 2014/24/EU), on the basis of information provided in response to an Invitation to Tender (‘ITT’).
This procurement will be managed electronically via the Agents e-Sourcing Suite. To participate in this procurement, participants must first be registered on the e-Sourcing Suite. If you have not yet registered on the eSourcing Suite, this can be done online athttps://gpsesourcing.cabinetoffice.gov.uk by following the link ‘Register for CCS eSourcing’. Please note that, to register, you must have a valid DUNS number (as provided by Dun and Bradstreet) for the organisation which you are registering, who will be entering into a contract if invited to do so. Full instructions for registration and use of the system can be found at https://www.gov.uk/government/publications/become-a-crown-commercial-service-supplier/becoming-a-supplier-through-the-crown-commercial-service-what-you-need-to-know

Once you have registered on the eSourcing Suite, a registered user can express an interest for a specific procurement. This is done by emailingexpressionofinterest@crowncommercial.gov.uk.

Your email must clearly state: the name and reference for the procurement you wish to register for; the name of the registered supplier; and the name and contact details for the registered individual sending the email. The Agent will process the email and then enable the supplier to access the procurement online via the e-Sourcing Suite. The registered user will receive a notification email to alert them once this has been done.
As a user of the e-Sourcing Suite you will have access to Emptoris email messaging service which facilitates all messages sent to you and from you in relation to any specific RFX event. Please note it is your responsibility to access these emails on a regular basis to ensure you have sight of all relevant information.

For technical assistance on use of the e-Sourcing Suite please contact Crown Commercial Service Support Desk email:eenablement@crowncommercial.gov.uk

Responses must be published by the date in IV.3.4.

III.2.2)Economic and financial ability

Information and formalities necessary for evaluating if the requirements are met: Candidates will be assessed on the basis of information provided in response to an ITT.

The ITT can be accessed at: https://gpsesourcing.cabinetoffice.gov.uk using the instructions detailed in III.2.1

The Agent may take into account any of the following information:
(a) appropriate statements from banks or, where appropriate, evidence of relevant professional risk indemnity insurance;
(b) the presentation of financial statements or extracts from the financial statements where the position of financial statements is required under the law of the country in which the economic operator is established;
(c) a statement of the undertaking’s overall turnover and, where appropriate, of turnover in the area covered by the contract for a maximum of the last 3 financial years available, depending on the date on which the undertaking was set up or the economic operator started trading, as far as the information on these turnovers is available.

III.2.3)Technical capacity

Information and formalities necessary for evaluating if the requirements are met:
Candidates will be assessed in accordance with Section 5 of the Regulations implementing the Directive, on the basis of information provided in response to an ITT. The Agent may take into account the following information:
(a) the following lists:
(i) a list of the principal deliveries effected or the main services provided over at the most the past 3 years, with the sums, dates and recipients, whether public or private, involved. Where necessary in order to ensure an adequate level of competition, contracting authorities may indicate that evidence of relevant supplies or services delivered or performed more than 3 years before will be taken into account;

(b) an indication of the technicians or technical bodies involved, whether or not belonging directly to the economic operator’s undertaking, especially those responsible for quality control and, in the case of public works contracts, those upon whom the Supplier can call in order to carry out the work. The ITT can be accessed at: https://gpsesourcing.cabinetoffice.gov.uk using the instructions detailed in III.2.1.

III.2.4)Information about reserved contracts
III.3)Conditions specific to services contracts

III.3.1)Information about a particular profession

Execution of the service is reserved to a particular profession: yes
Reference to the relevant law, regulation or administrative provision: The Supplier shall ensure they have access to sufficient number of appropriately qualified and experienced staff, whom must satisfy the professional qualifications criteria — i.e. that all staff employed on work under any Call Off Contract are full members of Member of the Institute of Internal Auditors (MIIA), a Consultative Committee of Accountancy Bodies (CCAB) Authority, Chartered Institute of Management Accountants (CIMA) or equivalent, and have specialist qualifications where relevant to specialist services.

III.3.2)Staff responsible for the execution of the service

Legal persons should indicate the names and professional qualifications of the staff responsible for the execution of the service: yes

Section IV: Procedure

IV.1)Type of procedure

IV.1.1)Type of procedure

Open
IV.1.2)Limitations on the number of operators who will be invited to tender or to participate
IV.1.3)Reduction of the number of operators during the negotiation or dialogue
IV.2)Award criteria

IV.2.1)Award criteria

The most economically advantageous tender in terms of the criteria stated below

1. Quality. Weighting 70

2. Pricing. Weighting 30

IV.2.2)Information about electronic auction

An electronic auction will be used: no
IV.3)Administrative information

IV.3.1)File reference number attributed by the contracting authority:

RM4167

IV.3.2)Previous publication(s) concerning the same contract

Prior information notice

Notice number in the OJEU: 2014/S 227-401074 of 25.11.2014

IV.3.3)Conditions for obtaining specifications and additional documents or descriptive document

Time limit for receipt of requests for documents or for accessing documents: 8.6.2015 – 13:59

IV.3.4)Time limit for receipt of tenders or requests to participate

8.6.2015 – 14:00
IV.3.5)Date of dispatch of invitations to tender or to participate to selected candidates

IV.3.6)Language(s) in which tenders or requests to participate may be drawn up

English.

IV.3.7)Minimum time frame during which the tenderer must maintain the tender

in days: 120 (from the date stated for receipt of tender)

IV.3.8)Conditions for opening of tenders

Date: 8.6.2015 – 14:01

Place:

Electronically via web based portal.

Section VI: Complementary information

VI.1)Information about recurrence

This is a recurrent procurement: no

VI.2)Information about European Union funds

The contract is related to a project and/or programme financed by European Union funds: no

VI.3)Additional information

Potential Providers should note that, in accordance with the UK Government’s policies on transparency, the Agent intends to publish the Invitation to Tender (ITT) document and the text of any Framework Agreement awarded, subject to possible redactions at the discretion of the Agent. The terms of the proposed Framework Agreement will also permit a public sector Contracting Authority, awarding a contract under this Framework Agreement, to publish the text of that contract, subject to possible redaction’s at the discretion of the Contracting Authority. Further information in transparency can be found at:http://ccs.cabinetoffice.gov.uk/about-government-procurement-service/transparency-and-accountability/ transparency-procurement.

The Agent expressly reserves the right (i) not to award any contract as a result of the procurement process commenced by publication of this notice; and (ii) to make whatever changes it may see fit to the content and structure of the tendering competition; and in no circumstances will the Authority be liable for any costs incurred by the candidates. If the Authority decides to enter into a Framework Agreement with the Potential Providers, this does not mean that there is any guarantee of subsequent contracts being awarded. Any expenditure, work or effort undertaken prior to contract award is accordingly a matter solely for the commercial judgement of Potential Providers. Any orders placed under this Framework Agreement will form a separate contract under the scope of this Framework between the Potential Provider and the specific requesting other Contracting Authority(s). The Authority and other Contracting Authority(s) utilising the Framework reserve the right to use any electronic portal during the life of the agreement. The duration referenced in Section II.1.4 is for the placing of orders.
The value provided in Section II.1.4 is only an estimate. We cannot guarantee to Potential Providers any business through this Framework Agreement.
In further reference to Section II.1.4, where the maximum number of participants envisaged is stated as 12 for the Framework Agreement, the breakdown for each Lot is as follows:
Lot 1 — 6 Suppliers, Lot 2 — 3 Suppliers, Lot 3 — 3 Suppliers
The number of Suppliers awarded in each Lot may increase only where two or more Potential Providers have tied scores and are placed in the last position in respect of each Lot. The Agent will award a Framework Agreement to additional Potential Providers where their Final Score is within 1 % of the original awarded last place position only. For the avoidance of doubt, last position is 6th for Lot 1, 3rd for Lot 2 and 3rd for Lot 3.

Potential Providers have the opportunity to bid for all or any combination of Lots, however the Agent reserves the right to award each Lot separately.
For the Authority to conclude a Framework Agreement with the Potential Provider, it will be essential for the Potential Provider to meet the requirements of the Cyber Essentials Scheme, introduced in June 2014.
This scheme defines a set of controls which, when properly implemented, provides organisations with basic protection from the most prevalent forms of threat that come from the internet.
Potential Providers can view the details of the Cyber Essentials Scheme at:

https://www.gov.uk/government/publications/cyber-essentials-scheme-overview

From 1.10.2014, suppliers must be compliant with the new Cyber Essentials controls if bidding for government contracts which involve the handling of sensitive and personal information and the provision of certain technical products and services. The easiest way to demonstrate that the Cyber Essentials requirements are met is to gain the Cyber Essentials certificate. The Cyber Essentials Assurance Framework, leading to the award of Cyber Essentials and Cyber Essentials Plus certificates for organisations, has been designed in consultation with SMEs, including the Federation for Small Business, to be ‘lighttouch’ and achievable at low cost. The two options give organisations a choice over the level of assurance they wish to gain and the cost of doing so. This scheme offers the right balance between providing additional assurance of an organisation’s commitment to implementing cyber security to third parties, while retaining a simple and low cost mechanism for doing so. The need to meet the requirements of the Cyber Essentials Scheme will extend to Sub-Contractors of the Supplier where such Sub-Contractors are involved, on behalf of the Supplier, in the handling of sensitive and personal information and the provision of certain technical products and services. The Supplier and any Sub-Contractors will need to renew their evidence of Cyber Essentials compliance at least annually. Please refer to the ITT and its attachments for further information relating to Cyber Essentials.
The Authority wishes to establish a Framework Agreement for use by the following UK public sector bodies (and any future successors to these organisations):

UK central government bodies including departments, their executive agencies and non-department public bodies and any other public body classified as ‘central government’ from time-to-time by UK government classification guidance. As at the publication of this Contract Notice the latest list of UK central government bodies can be found in the Office for National Statistics’ Public Sector Classification Guide — April 2015 (see the ‘Central Government’ worksheet in the ‘Public Sector Classification Guide — April 2015′ spreadsheet found at http://www.ons.gov.uk/ons/publications/re-reference-tables.html?edition=tcm%3A77-391123

VI.4)Procedures for appeal
VI.4.1)Body responsible for appeal procedures
VI.4.2)Lodging of appeals
VI.4.3)Service from which information about the lodging of appeals may be obtained

VI.5)Date of dispatch of this notice:

8.5.2015

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