Tender for Commercial Property Management Services

Tender for Commercial Property Management Services

Lancashire County Council and London Pension Fund Authority Property Management – National Portfolios – Lot No: 1.

United Kingdom-London: Property management services of real estate on a fee or contract basis

2018/S 007-011522

Contract notice

Services

Directive 2014/24/EU

Section I: Contracting authority

I.1)Name and addresses

Knight Frank Investment Management LLP (acting as agents on behalf of Lancashire County Council and London Pensions Fund Authority)
Sixth Floor, One Crown Court, Cheapside
London
EC2V6LR
United Kingdom
Telephone: +44 2078611220
E-mail: john.styles@kf-im.com
NUTS code: UKI32
Internet address(es):Main address: www.kf-im.com

I.1)Name and addresses

London Pensions Fund Authority
London
United Kingdom
E-mail: john.styles@kf-im.com
NUTS code: UKI44
Internet address(es):Main address: https://www.lpfa.org.uk

I.1)Name and addresses

Lancashire County Council
Lancashire
United Kingdom
E-mail: john.styles@kf-im.com
NUTS code: UKD4
Internet address(es):Main address: https://www.lancashire.gov.uk

I.2)Joint procurement

The contract involves joint procurement

I.3)Communication

The procurement documents are available for unrestricted and full direct access, free of charge, at: http://www.delta-esourcing.com/tenders/UK-UK-London:-Property-management-services-of-real-estate-on-a-fee-or-contract-basis./2823B87ZQA
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

Body governed by public law

I.5)Main activity

General public services

Section II: Object

II.1)Scope of the procurement

II.1.1)Title:

Commercial Property Management Services- Project Pendolino

II.1.2)Main CPV code

70330000 – IA01

II.1.3)Type of contract

Services

II.1.4)Short description:

Lancashire County Council and the London Pensions Authority (the “Authorities”) have pooled their assets under the management of the Local Pensions Partnership (“LPP”) and are retendering the property management services for four property investment portfolios as further described below. Knight Frank Investments Management LLP (“KFIM”) is managing this procurement process on behalf of the authorities, and will follow the competitive dialogue process in accordance with the public contracts regulations 2015. This opportunity is divided into 2 lots as further described below.

II.1.5)Estimated total value

Value excluding VAT: 8 648 000.00 GBP

II.1.6)Information about lots

This contract is divided into lots: yes
Tenders may be submitted for all lots
Maximum number of lots that may be awarded to one tenderer: 2
The contracting authority reserves the right to award contracts combining the following lots or groups of lots:

The authorities may wish to award both lots to the highest scoring Bidder in respect of Lot 1. Therefore, bidders who wish to bid for Lot 1 must also submit a bid for Lot 2. Further details are provided below /within the procurement documents.

II.2)Description

II.2.1)Title:

Lancashire County Council and London Pension Fund Authority Property Management – National Portfolios

Lot No: 1

II.2.2)Additional CPV code(s)

70332200
70330000
79993000
70332000
70332100
70332300
79993100

II.2.3)Place of performance

NUTS code: UK
Main site or place of performance:

UNITED KINGDOM.

II.2.4)Description of the procurement:

Lot 1 consists of the following opportunities:

— Lancashire County Pension Fund National Portfolio (“LCPF National”). Approximate asset value: 600 000 000 GBP. Approximate allocation to be invested: 100 000 000 GBP. Expected timeframe: 2 years,

— London Pensions Fund Authority Core Portfolio (“LPFA”). Approximate asset value: 150 000 000 GBP. Approximate allocation to be invested: 150 000 000 GBP. Expected timeframe: 2 years.

An asset pooling vehicle is currently being established to acquire future property investments for the 2 authorities jointly, the timing for creation of this vehicle is yet to be confirmed. The allocations shown above will be invested in the LCPF National or LPFA portfolios or in the new pooling vehicle depending on when the vehicle is incorporated. When the vehicle is incorporated, the property manager appointed for Lot 1 will be required to enter into a contract with the pooling vehicle on the same terms as its contracts in respect of the LCPF National and LPFA portfolios.

The LCPF National and LPFA portfolios, and the portfolio to be acquired in the pooling vehicle will have the same investment strategy, namely to provide a total return of CPI plus 4-6 % per annum by investment in and active management of a portfolio of commercial property assets balanced across the retail, office, industrial and “alternative” sectors and across the geographic regions of the UK.

Details of the existing properties owned in all Lot 1 portfolios are provided in the tenderbox facility via the portal.

The services to be provided under the contracts for the Lot 1 portfolios will include the complete property management service from rent collection to service charge management and financial reporting. Candidates will be expected to have knowledge of and manage compliance processes and sustainability matters. Full details of the services to be provided are contained in the Lot 1 specification which is available in the tenderbox.

The estimated contract value is based on the total estimated income over the full contract period. The authorities may either (i) make separate appointments in respect of Lot 1 and Lot 2; or (ii) make a single appointment encompassing both Lots 1 and 2 to the highest scoring Bidder of Lot 1 in accordance with the criteria set out in the procurement documents.

It is anticipated that the authorities will require their costs incurred in connection with the procurement, up to a cap of 50 000 GBP to be offset against the 1st year’s fees payable to the appointed property manager. Bidders will get an opportunity to comment on this during the dialogue sessions.

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

Value excluding VAT: 7 891 600.00 GBP

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

Duration in months: 120
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: 5

II.2.10)Information about variants

Variants will be accepted: no

II.2.11)Information about options

Options: no
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

It is envisaged that there are likely to be TUPE requirements as part of the handover of this contract. Full details will be given at the request for outline solutions stage.

II.2)Description

II.2.1)Title:

Lancashire County Council Property Management – County Portfolio

Lot No: 2

II.2.2)Additional CPV code(s)

70330000
70332000
70332100
70332200
70332300
79993000
79993100

II.2.3)Place of performance

NUTS code: UKD4
Main site or place of performance:

Lancashire.

II.2.4)Description of the procurement:

Lot 2 consists of the following opportunity:

— Lancashire County Pension Fund County Portfolio (“LCPF County”). Approximate asset value: 60 000 000 GBP. Approximate allocation to be invested: 90 000 000 GBP. Expected timeframe: 3 years.

The investment strategy of the LCPF County portfolio requires a total return of CPI plus 4-6 % per annum by investment in and active management of a portfolio of commercial property assets balanced across the retail, office, industrial and “alternative” sectors. It is, however, restricted to investment within the County of Lancashire (NB: This excludes the Metropolitan Counties of Greater Manchester and Merseyside).

Details of the existing properties owned in the Lot 2 portfolio are provided in the tenderbox facility via the portal.

The services to be provided under the Lot 2 contract will include the complete property management service from rent collection to service charge management and financial reporting. Candidates will be expected to have knowledge of and manage compliance processes and sustainability matters. Full details of the services to be provided are contained in the specification documents which are available in the tenderbox.

The estimated contract value is made up of the total estimated income over the full contract period.

Note that bidders who wish to be considered for Lot 1 must also bid for Lot 2. However, Bidders which are interested in Lot 2 only, are not required to also submit a bid for Lot 1. As part of this procurement exercise, the Authorities wish to explore whether economies of scale could be achieved by awarding both Lots to the Lot 1 provider. Bidders should therefore note that the authorities may either (i) make separate appointments in respect of Lot 1 and Lot 2; or (ii) make a single appointment encompassing both Lots 1 and 2 to the highest scoring Bidder of Lot 1 in accordance with the criteria set out in the procurement documents. In expressing interest in Lot 2 only, those Bidders acknowledge that ultimately, the Bidder which achieves the highest score following completion of the evaluation exercise for Lot 2 may not be awarded the Lot 2 opportunity, as the authorities may decide to award the Lot 2 opportunity to the highest scoring bidder for Lot 1 if certain criteria are met. Those criteria are further described within the procurement documents available via the tenderbox.

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

Value excluding VAT: 756 400.00 GBP

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

Duration in months: 120
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: 5

II.2.10)Information about variants

Variants will be accepted: no

II.2.11)Information about options

Options: no
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

It is envisaged that there are likely to be TUPE requirements as part of the handover of this contract. Full details will be given at the request for outline solutions stage.

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

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
III.2.2)Contract performance conditions:
III.2.3)Information about staff responsible for the performance of the contract

Section IV: Procedure

IV.1)Description

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

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

Date: 09/02/2018
Local time: 12:00

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

Date: 21/02/2018

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

English

IV.2.6)Minimum time frame during which the tenderer must maintain the tender

Duration in months: 6 (from the date stated for receipt of 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:

The contracting authority considers that this contract may be suitable for economic operators that are small or medium enterprises (SMEs). However, any selection of tenderers will be based solely on the criteria set out for the procurement.The process (which will be structured in broadly the same way for each Lot) will involve submitting 2 submissions to KFIM (outline solution and detailed solution), which will be discussed over 2 stages of dialogue. Bidders will then be invited to submit final tenders following closure of dialogue and on receipt of feedback on their detailed solutions from KFIM. Further information concerning the structure of the process is set out within the procurement documents available via the portal (see link at I.3 above). In the 1st instance, bidders will be invited to fill out a selection questionnaire (“SQ”), and will be furnished with a specification and high level heads of terms. Bidders have also been provided with a draft version of the invitation to submit outline solutions (“ISOS”), which explains how the next stage of the process is intended to take shape. The SQ will be evaluated according to the marking procedure outlined in the SQ. Following evaluation, 5 candidates will be selected to move forward to the second stage of the tender process in respect of each Lot (the submission of Outline Solutions).

The 5 shortlisted candidates from the SQ stage will be sent a final version of the ISOS and will be asked to submit their outline solutions. KFIM will review the outline solutions, and intends to provide feedback on the content of those submissions during dialogue sessions as further described in the timetable set out within the procurement documents. Following this, Bidders will then receive an invitation to submit detailed solutions (“ISDS”) and will be required to submit their Detailed Solutions. The ISDS Stage of the process will essentially enable KFIM to informally ‘test’ bidders’ solutions against the evaluation criteria it intends to use at the final stage of the process. KFIM then intends to invite bidders to attend a further dialogue session to provide feedback on their detailed solutions and take part in an interview. Following closure of dialogue, Bidders will be provided with the invitation to submit final tenders (“ISFT”) and will be asked to submit their Final tender response. Final tenders will then be evaluated according to the criteria which will be confirmed in the ISFT (albeit a high level indication of the price /quality criteria which will apply at Final tenders stage is provided in the draft ISOS). The successful Bidder will then be informed of the award decision, and following a 10 day standstill period, the contract will be executed.

KFIM believes that face to face interaction with bidders will be an important part of this procurement process, in light of some of the complexities involved connected to each contract. KFIM has therefore opted to utilise the competitive dialogue procedure in respect of this procurement. KFIM will, however, endeavour to operate a streamlined and efficient procurement process, so as to reduce the amount of face to face dialogue required with bidders and achieve a timely contract award. Bidders will remain responsible for all costs and expenses incurred by them or by any 3rd party acting under instructions from Bidders in connection with taking part in this procurement, regardless of whether such costs arise as a consequence direct or indirect of any amendments made to the procurement documents by KFIM at any time.

KFIM reserves the right at any time to:

i) reject any /all responses and to cancel or withdraw this procurement at any stage,

ii) award a contract without prior notice,

iii) change the basis, the procedures and the timescales set out or referred to within the procurement documents,

iv) require a bidder to clarify any submissions in writing and/or provide additional information (failure to respond adequately may result in disqualification),

v) terminate the procurement process,

vi) withdraw one Lot and continue the competition in respect of the other lot, and

vii) amend the terms and conditions of the selection and evaluation process.

For more information about this opportunity, please visit the Delta eSourcing portal at:

https://www.delta-esourcing.com/tenders/UK-UK-London:-Property-management-services-of-real-estate-on-a-fee-or-contract-basis./2823B87ZQA

To respond to this opportunity, please click here:

https://www.delta-esourcing.com/respond/2823B87ZQA

GO Reference: GO-201819-PRO-11695383.

VI.4)Procedures for review

VI.4.1)Review body

High Court of England and Wales
Royal Courts of Justice, Strand
London
WC2A 2LL
United Kingdom
Telephone: +44 2079477882Internet address:http://www.justice.gov.uk
VI.4.2)Body responsible for mediation procedures

VI.4.3)Review procedure

Precise information on deadline(s) for review procedures:

Any review proceedings should be promptly brought to the attention of John Styles of Knight Frank Investment Management LLP, Sixth Floor, One Crown Court, 66 Cheapside, London, and will be dealt with in accordance with the requirements of the public contracts regulations 2015 (“PCR 2015”). Any review proceedings must be brought within the timescales specified by the applicable law, including, without limitation, PCR 2015. In accordance with PCR 2015, KFIM will incorporate a minimum 10 calendar days standstill period from the date information on the award of the contract is communicated to tenderers.

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

VI.5)Date of dispatch of this notice:

09/01/2018

 

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