Social Investment Loan Book Management Contract

Social Investment Loan Book Management Contract

The Cabinet Office (the Client), a central government department in the UK, wishes to procure a loan book manager to manage the Government’s civil society social investment loan books – Futurebuilders (including the Modernisation Fund).

UK-London: Financial and insurance services

2012/S 247-407656

Contract notice

Services

Directive 2004/18/EC

Section I: Contracting authority

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

Cabinet Office
1 Horse Guards Road
For the attention of: Alice Pippard
SW1A 2HQ London
UNITED KINGDOM
Telephone: +44 2072716333
E-mail: alice.pippard@cabinet-office.gsi.gov.uk

Internet address(es):

General address of the contracting authority: http://www.cabinetoffice.gov.uk

Further information can be obtained from: Cabinet Office
1 Horse Guards Road
For the attention of: Louise Beatty
SW1A 2HQ London
UNITED KINGDOM
E-mail: socialinvestmentloanbook@cabinet-office.gsi.gov.uk

Specifications and additional documents (including documents for competitive dialogue and a dynamic purchasing system) can be obtained from: Cabinet Office
1 Horse Guards Road
For the attention of: Louise Beatty
SW1A 2HQ London
UNITED KINGDOM
E-mail: socialinvestmentloanbook@cabinet-office.gsi.gov.uk

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
I.4)Contract award on behalf of other contracting authorities
The contracting authority is purchasing on behalf of other contracting authorities: no

Section II: Object of the contract

II.1)Description
II.1.1)Title attributed to the contract by the contracting authority:
Social Investment Loan Book Management Contract
II.1.2)Type of contract and location of works, place of delivery or of performance
Services
Service category No 6: Financial services a) Insurances services b) Banking and investment services
Main site or location of works, place of delivery or of performance: Various locations through out the UK.
NUTS code UK,UKC,UKD,UKE,UKF,UKG,UKH,UKI,UKJ,UKK,UKL,UKM,UKN
II.1.3)Information about a public contract, a framework agreement or a dynamic purchasing system (DPS)
The notice involves a public contract
II.1.4)Information on framework agreement
II.1.5)Short description of the contract or purchase(s)
The Cabinet Office (the Client), a central government department in the UK, wishes to procure a loan book manager to manage the Government’s civil society social investment loan books – Futurebuilders (including the Modernisation Fund).
The current intention is for loan book management of the Department of Health’s Social Enterprise Investment Fund (SEIF) to be part of this procurement. This decision is subject to formal approval by the Department for Health and the Department has agreed to notify the Client of its decision before the submitted bids are opened. As a consequence, the Client has structured the procurement to allow for two possible options. Option A assumes the SEIF loan book will join the main loan book on 1 June 2014. Option B assumes SEIF will not join the Loan Book and the contract will cover Futurebuilders only. All bidders must be willing to deliver services for both Futurebuilders and SEIF.
At the point when the contract commences (between February 2013 and 1st April 2013), there would be £85.5 million outstanding on the Futurebuilders loan book, including capital and interest repayments. This is spread over 283 organisations, with loan repayments being made up until 2036. Without deducting bad debt, capital and interest returns over the three year period of the proposed initial contract period are projected to be approximately 30.5 million. Bad debt is currently below 8%.
The inclusion of the SEIF loan book in 1 June 2014 is likely to add an additional circa £19 million onto the outstanding capital and interest repayments and approximately 92 more organisations. 2012/13 is the last active investment year of the SEIF, and until this is completed in March 2013 then the exact loan book size and number of organisations will not be known, however bidders can be assured that there is not expected to be much change from these projected figures.
The key aims of the fund management (covering both Futurebuilders and SEIF) are as follows:
– Supports Investees that have existing loans, providing business support to help them access public services delivery opportunities and ensuring high levels of customer satisfaction;
– Learns lessons to support the wider social investment market; and
– Maximises loan returns so that returned funds can be put to good use;
The Client is tendering for the management of the loan books, which are now closed to new applicants, therefore new loans will not be provided under this contract.
The contract will run for an initial three year period through to March 2016, with the possibility of extending for a further three years plus three years (a total of nine years).
II.1.6)Common procurement vocabulary (CPV)

66000000, 66172000, 66140000, 79411100

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: no
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:
The budget for the management fee for the first year of the contract is set at a maximum of £855,000 ex vat per annum for the Futurebuilders elements of the loan book.
The maximum budget for the rescue pot is £500,000 ex vat for the life time of the contract for the Futurebuilders elements of the loan book.
The maximum budget for the one-off mobilisation is set at a maximum of 400,000 ex vat for the Futurebuilders elements of the loan book.
The budget for the management fee is set at a maximum of £171,000 ex vat per annum for the SEIF elements of the loan book.
The maximum budget for the rescue pot is £100,000 ex vat for the life time of the contract for the SEIF elements of the loan book.
The maximum budget for the one-off mobilisation is set at a maximum of 20,000 ex vat for the SEIF elements of the loan book.
The minimum scope of the contract for the FutureBuilders elements of the loan book covers the management fee, the rescue pot and the mobilisation fee for the initial 3 year term.
The maximum scope of contract covers the management fee, the rescue pot and the mobilisation fee for the whole potential length of 9 years, for the Futurebuilders and the SEIF elements of the loan book.
Please note:
1) Payment for mobilisation will by made by the Client.
2) Payment of the management fee will be taken from interest repayments collected from the loan books.
3) Payment of the rescue pot (if approved by the Client) will be taken from interest repayments collected from the loan books.
Estimated value excluding VAT:
Range: between 1 and 10 254 000 GBP
II.2.2)Information about options
Options: yes
Description of these options: Initial contract term of three years with the option to extend for two further periods, each of three years in length.
II.2.3)Information about renewals
This contract is subject to renewal: no
II.3)Duration of the contract or time limit for completion

Section III: Legal, economic, financial and technical information

III.1)Conditions relating to the contract
III.1.1)Deposits and guarantees required:
III.1.2)Main financing conditions and payment arrangements and/or reference to the relevant provisions governing them:
Refer to field ‘II.2.1) Total quantity or scope’ above.
III.1.3)Legal form to be taken by the group of economic operators to whom the contract is to be awarded:
Where consortia or another grouping of applicants submit a proposal, each constituent member may be required to take joint and several liability irrespective of the legal form adopted. Any apportionment of member liability in accordance with their respective percentage stakes in the contract should therefore be agreed by all members, and additionally declared at the outset of the application.
Additionally, consortia or groupings of applications should nominate a lead member to deal with the Client on all matters related to this procurement.
III.1.4)Other particular conditions
The performance of the contract is subject to particular conditions: yes
Description of particular conditions: The Client requires the successful bidder (Provider) to become the sole member of Futurebuilders England Ltd and the Provider’s organisation will be required to enter into a sub-contracting agreement with Futurebuilders England Ltd. Please note that the company is limited by guarantee. Membership only requires an undertaking, and not the purchase of shares, and liabilities would not exceed the nominal amount of £1. The Provider would have to comply with company law and provide annual accounts for the company. Please see the ITT documentation for full details. Copies of the ITT shall be provided upon contacting the named contact point in Annex A.
The Client is committed to transparency. Once awarded the resulting contract must therefore be published on a public portal, as redacted with regard to the provisions of the Freedom of Information Act (2000). Full details are provided in the invitation to tender documentation.
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: The Client will assess the eligibility of applicants in line with Regulations 23 in Part 4 of the Public Contracts Regulations 2006.
III.2.2)Economic and financial ability
Information and formalities necessary for evaluating if the requirements are met: The Client will assess the eligibility of applicants in line with Regulations 24 in Part 4 of the Public Contracts Regulations 2006.
Minimum level(s) of standards possibly required: Insurances will be required to be held by the successful supplier by the award of the contract.
III.2.3)Technical capacity
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: no
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 in the specifications, in the invitation to tender or to negotiate or in the descriptive document
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:
CO/100
IV.3.2)Previous publication(s) concerning the same contract

Prior information notice

Notice number in the OJEU: 2012/S 180-296145 of 19.9.2012

IV.3.3)Conditions for obtaining specifications and additional documents or descriptive document
IV.3.4)Time limit for receipt of tenders or requests to participate
21.1.2013 – 12:00
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: 90 (from the date stated for receipt of tender)
IV.3.8)Conditions for opening of tenders
Date: 21.1.2013 – 14:00
Place:

Cabinet Office, 4th Floor, 1 Horse Guards Road, London, SW1A 2HQ

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
Copies of the Invitation To Tender (ITT) and the supporting Annexes, can be requested from the contact named in Annex A of this notice.
Bidders are required to complete the Annex H of the ITT which will be evaluated in line with the guidance stated within Annex H and those organisations who meet the minimum requirements will proceed to the tender evaluation stage.
All bidders that meet the minimum requirements set out in the Annex H, will have their tenders evaluated by an evaluation panel in line with the Evaluation Matrix (Annex J of the ITT). The first element of the evaluation is to determine if bids are compliant bids, please refer to the Mandatory Requirements section of the Evaluation Matrix (Annex J of the ITT) which lists the confirmations that are required for a compliant bid.
Of the compliant bids, the winning tender will be determined by the highest score bid against the evaluation criteria listed in Annex J of the ITT.
The Client welcomes applications from all types of organisations including, but not limited to, women and black and minority ethnic owned businesses, small and medium enterprises and consortia.
The Client does not bind itself to accept the lowest or any tender.
The Client shall not be liable for any costs incurred by those applicants tendering for this contract. The Client reserves the right to terminate the tendering exercise at any time without the award of a contract.
VI.4)Procedures for appeal
VI.4.1)Body responsible for appeal procedures

Any appeals should be addressed to the Cabinet Office contact named in Annex A

VI.4.2)Lodging of appeals
Precise information on deadline(s) for lodging appeals: An applicant who has any concern about the process should raise them as soon as possible with the contact named in Annex A, and in any case within the time limits specified in law.
Applicants have various rights to information under the Public Contracts Regulations (2006) and the Freedom of Information Act (2000) as well as the Cabinet Office’s general commitments to transparency.
VI.4.3)Service from which information about the lodging of appeals may be obtained

VI.5)Date of dispatch of this notice:17.12.2012

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