Own Art interest free credit scheme
A tender opportunity is offered by Creative Sector Services CIC (trading as Creative United), for the provision of consumer credit services for the Own Art scheme commencing 16.6.2014 for a period of 24 months, with provision for extension for two further 12 month periods (subject to annual review).
United Kingdom-London: Loan brokerage services
Section I: Contracting authority
Creative Sector Services CIC
Room T3, Somerset House, Strand
Contact point(s): Creative United
For the attention of: Alexander Tucker
WC2R 1LA London
Telephone: +44 2077591110
General address of the contracting authority: www.creativeunited.org.uk
Electronic access to information: http://www.ownart.org.uk/credit-provider-procurement/
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)
Section II: Object of the contract
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: England.
NUTS code UK
A tender opportunity is offered by Creative Sector Services CIC (trading as Creative United), for the provision of consumer credit services for the Own Art scheme commencing 16.6.2014 for a period of 24 months, with provision for extension for two further 12 month periods (subject to annual review)
Creative United is a Community Interest Company established to provide a range of products and services that support the development, growth and productivity of a wide range of organisations and enterprises operating within the cultural and creative industries.
The company has been set up with the support of Arts Council England with a remit to develop the programmes of work previously delivered on its behalf by ArtCo Trading Ltd (a wholly owned subsidiary of Arts Council England). The current portfolio of projects include Take it away, Own Art and Creative Industry Finance.
It is an Arts Council England objective to increase public participation and engagement with in the arts. As part of that objective, Arts Council England launched the Own Art scheme in 2004 as a means of encouraging increased sales of contemporary art and craft to individuals, and in particular to first-time buyers.
Creative United is now responsible for the running of Own Art and receives an annual grant from Arts Council England for scheme administration, marketing and payment of loan subsidy charges to the Credit Provider. Creative United have confirmed funding up to the end of March 2015 and expect to receive a further funding commitment in October 2014 for the forthcoming financial year/s.
The Credit Provider contract for the Own Art scheme is currently assigned to Hitachi Capital UK PLC.
4. Tender opportunity
A tender opportunity is being offered for the provision of credit services for the Own Art scheme in England, Scotland and Northern Ireland for a period of 24 months commencing on 16.6.2014 with provision for extension for two further 12 month periods (subject to annual review).
5. The service
Own Art is an Arts Council England initiative designed to support and develop the visual arts market by offering individuals an interest free loan of between 100 GBP and 2 000 GBP for the purchase of contemporary works or art or craft.
Own Art is operated by Creative United, on behalf of Arts Council England. The scheme is made available to the public via a network of commercial galleries and other visual arts venues and organisations across both England and Scotland and Northern Ireland. A full list of current participating member retailers can be seen at http://www.ownart.org.uk/find-a-gallery/.
The awarded contract would cover the provision of the scheme in England, Scotland and in Northern Ireland.
The opportunity may also exist for the scheme to be extended to cover galleries in Wales, subject to the agreement and financial support of the respective Arts Council.
Arts Council England has ownership of the Own Art trademark which is licensed to Creative United. Creative United have responsibility for the production and distribution of marketing materials, including point of sale materials.
All point of sale materials are supplied to participating galleries free of charge. Galleries are encouraged to include the Own Art scheme logo and information on their individual websites and other marketing materials which they may produce in order to communicate the scheme to existing and potential customers.
Creative United also actively promotes the scheme through print and online advertising, attendance at trade shows, and through strategic partnerships to deliver projects and events to raise awareness of the scheme.
6. Financial structure
— The scheme is operated on a split subsidy basis with a fixed dealer charge. Whereby the cost of loan subsidy is split approximately 50/50 between the gallery brokering the agreement and Creative United
— The loan subsidy payable by the brokering gallery is deducted from the sum remitted to the gallery by the Credit Provider.
— Creative United is responsible for paying the remaining balance of the costs in accordance with the subsidy charge agreed with the Credit Provider for the provision of the service
— This loan subsidy charge is to be invoiced to Creative United on a monthly basis by the Credit Provider
— The scheme offers customers an unsecured loan of between 100 GBP to 2 000 GBP repayable over 10 months with no deposit.
— Customers are given an instant decision at the point of sale and may take their purchase away with them immediately, subject to approval and completion of the loan agreement and direct debit mandate
7. Customer criteria
— The scheme is open to all UK residents over the age of 18.
8. Criteria for gallery membership
— Membership of the scheme is by application to Creative United and is open to galleries that specialise in the sale of contemporary art and craft
— All applications will be subject to assessment by Creative United in order to ensure that all prospective members meet the quality and service standards required for membership of the scheme
— All applicants are subject to an assessment process in order to establish their eligibility for membership of the scheme. However, the overall criterion is that the prospective member should be committed to promoting and selling contemporary art and craft.
— All galleries that are accepted for membership of the scheme are required to have (or be willing to obtain) a valid Consumer Credit Licence covering them for credit brokerage
— Any additional qualifying criteria that the Credit Provider may require of new businesses registering for membership of the scheme will be subject to prior agreement with Creative United
— Creative United considers new applications for membership on an ongoing basis.
— The current membership includes a total of 228 galleries in England, 37 galleries in Scotland and 2 galleries in Northern Ireland.
— Further information regarding guidelines for gallery membership can be found under section 3 in the scheme rules (Appendix 2).
— Own Art is currently projecting credit sales of 3.9 m GBP for the year ending 31.3.2014
— It is anticipated that turnover will rise to c.£4.2 m per annum in 2014/15
— The current average loan value is 784.00 GBP
— Acceptance rates are currently averaging at 93 %
10. Description of Services required
The provision of a Fixed-Sum Loan Agreement regulated by the Consumer Credit Act 1974 for:
(a) Providing loans to Customers attending a member gallery’s premises when applying for the loan for the purpose of acquiring contemporary art and craft.
(b) Customers acquiring contemporary art and craft, through remote channels such as e-commerce and/or Mail-Order processes.
The loan provided by the Credit Provider to eligible Customers will be repaid by the Customer in ten instalments without interest (0 % APR) by way of ten equal instalments to be paid monthly by direct debit.
The Credit Provider must be willing and able to accept on to the scheme any retail business that Creative United approves for membership, subject to their ability to meet the criteria for membership as may be agreed between Creative United and the Credit Provider.
The Credit Provider must be willing and able to provide, at its cost, appropriate training and support to all member galleries in the processing of loan applications. This will include group training sessions co-ordinated and supported by Creative United of which the Credit Provider must be willing to attend. This may also include site visits when required, with/or without a member of the Creative United team.
The Customer application and loan approval process should be made available to participating galleries as an electronic (online) process.
The Credit Provider will be expected to provide support to galleries via telephone and email from centralised location and through face to face interaction with outlets. The Credit Provider will also be expected to provide appropriate printed and/or electronic manuals to galleries on demand.
The Credit Provider must provide free of charge to all member retailers the proposal system and all relevant log-in facilities to enable them to propose credit sales. The Credit Provider should also provide contingency measures and manual application forms allowing member retailers to conduct credit sales in the event of a system outage.
On receipt of a correctly completed loan agreement, the Credit Provider must remit by BACS to the member gallery the loan amount less the fixed gallery charge within 3 working days.
The Credit Provider must supply to Creative United a monthly invoice and sales report in electronic format detailing the total number and value of all proposals, acceptances and declines emanating from each member gallery. The report shall also summarise the total number and value of paid out business for the month.
Creative United shall pay to the Credit Provider a loan subsidy in accordance with the prevailing rate agreed with the Credit Provider.
11. Evaluation and monitoring
The Credit Provider will be required to assist Creative United in the collection of data relating to customers who successfully apply for an Own Art loan. Creative United will use this to report back to government on the ability of the scheme to deliver against the aims and objectives agreed with Arts Council England, Creative Scotland, the Arts Council of Northern Ireland and other scheme providers.
Data collection and monitoring will be as follows
a) Customer survey for completion after the agreement of the loan. This will be in the form of an e-survey sent directly to the customer via the email address that they provide at the point of application. Email addresses must be sent on a monthly basis to Creative United by the Credit Provider with the sales schedule.
b) Quarterly and annual analysis of demographic profile of Own Art customers, to be generated based on data collected by the Credit Provider through the loan application process. Reports must include tables showing age, gender, residential status and income level.
c) Annual ‘Acorn’ socio-economic profile of Own Art customers based on postcode analysis – postcodes must be sent on a monthly basis to Creative United by the Credit Provider with the sales schedule
d) Annual e-survey prepared by Creative United for issue to all Own Art customers who have used the service in the preceding 12 months – email addresses must be sent on a monthly basis to Creative United by the Credit Provider with the sales schedule.
12. Service requirements and standards
The Credit Provider shall, at its cost, employ a sufficient number of suitably trained, experienced and qualified personnel for the purposes of authorising and processing loan applications and enquiries received from member galleries in regard to the Own Art scheme.
The Credit Provider shall support loan applications, authorisations and gallery enquiries 7 days per week for a minimum of 9 hours a day (09:00–18:00).
The Credit Provider shall ensure that in its dealings with member galleries and Customers it is helpful, prompt and courteous. Enquiries will be dealt with efficiently and promptly.
The Credit Provider must take a positive approach to gallery relationship management with all membership by providing account managers able to respond to any training, support and technical needs of the member galleries.
The Credit Provider shall be responsible for the handling and resolution of any enquiries from member galleries relating to the functionality and use of the Credit Provider’s proposal software.
The Credit Provider should take steps to ensure compliance from member galleries in regards to consumer credit regulation and make regular checks to ensure that all member galleries hold a valid Consumer Credit Licence with the Financial Conduct Authority with effect from 1.4.2014.
The Credit Provider’s acceptance criteria for customers should be as inclusive as possible in order ensure access to this scheme for people from all sections of the community.
The Credit Provider must agree not to contact Own Art customers for reasons other than those relating specifically to the repayment of their loan. This shall exclude the Credit Provider from cross-selling products and services including third party marketing and promotions to Own Art scheme customers, other than those that have been expressly agreed in advance with Creative United.
Creative United will require a service level agreement to be put in place for the term of the contract to be awarded. This will be agreed with the service provider prior to the contract stage of this process.
13. Value of the contract
The value of the contract will be in the region of 250 000 GBP and 300 000 GBP per annum, based on the subsidy charged on estimated Own Art sales of c£4m per annum.
14. Additional Projects
Creative United is currently seeking ways to add value to the Own Art offer. We are looking at ways that will be able to extend the reach of the brand and enhance the social benefits surrounding the provision of finance for contemporary art and craft. Therefore, tenderers should demonstrate a willingness to work with Creative United to deliver projects involving:
— Personal Finance Options
— Revolving Credit
— Interest bearing, retail credit with longer repayment terms
15. Tender response
All tender responses must:
— Include a fully complete the Tender Supplier Appraisal Form (Appendix 1);
— provide details of the management team and dedicated account manager who would be responsible for delivering this contract;
— provide a time table and outline plan for the transfer of the service from the current Credit Provider (if applicable);
— Indicate a willingness to work in partnership with Creative United, Arts Council England, Creative Scotland, Arts Council of Northern Ireland and other relevant agencies and commercial partners to help extend the reach and impact of the Own Art scheme in line with our aims and objectives;
— respond to each of the scoring criteria detailed in the table below.
Range: between 500 000 and 700 000 GBP
Number of possible renewals: Range: between 1 and 2
In the case of renewable supplies or service contracts, estimated timeframe for subsequent contracts:
in months: 12 (from the award of the contract)
Section III: Legal, economic, financial and technical information
(b) is the subject of proceedings for a declaration of bankruptcy, for an order for compulsory winding up or administration by the court or of an arrangement with creditors or of any other similar proceedings under national laws and regulations;
(c) has been convicted by a judgement which has the force of res judicata in accordance with the legal provisions of the country of any offence concerning his professional conduct;
(d) has been guilty of grave professional misconduct proven by any means which the contracting authorities can demonstrate;
(e) has not fulfilled obligations relating to the payment of social security contributions in accordance with the legal provisions of the country in which he is established or with those of the country of the contracting authority;
(f) has not fulfilled obligations relating to the payment of taxes in accordance with the legal provisions of the country in which he is established or with those of the country of the contracting authority;
(g) is guilty of serious misrepresentation in supplying the information required under this Section or has not supplied such information;
(h) has been the subject of a conviction for participation in a criminal organisation, as defined in Article 2(1) of Council Joint Action 98/733/JHA;
(i) has been the subject of a conviction for corruption, as defined in Article 3 of the Council Act of 26 May 1972 and Article 3(1) of Council Joint Action 98/742/JHA3 respectively;
(j) has been the subject of a conviction for fraud within the meaning of Article 1 of the Convention relating to the protection of the financial interests of the European Communities;
(k) has been the subject of a conviction for money laundering, as defined in Article 1 of Council Directive 91/308/EEC of 10 June 1991 on prevention of the use of the financial system for the purpose of money laundering.
(b) the presentation of balance-sheets or extracts from the balance-sheets, where publication of the balance-sheet 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 three 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.
Section IV: Procedure
Prior information notice
Notice number in the OJEU: 2010/S 62-092388 of 30.3.2010
Payable documents: no
Section VI: Complementary information
Estimated timing for further notices to be published: 24 months.
this tender opportunity is offered by Creative Sector Services CIC trading as Creative United for a period of 24 months, with provision for extension for two further 12 month periods.
The High Court, The Royal Courts of Justice
WC4A 2LL London
Telephone: +44 207946000
VI.5)Date of dispatch of this notice:4.3.2014