Compliance and Enforcement Services for Ministry of Justice
This contract notice relates to a proposed contract for the outsourcing of certain of the main compliance and enforcement activities of HMCTS, further details of which are set out below.
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Section I: Contracting authority
Ministry of Justice (“MoJ” or “Authority”) Procurement
Contact Point: HMCTS Compliance and Enforcement Services Project Team, Ministry of Justice, 1st Floor, (1.17), 102 Petty France, Westminster
SW1H 9AJ London
General address of the contracting authority: https://www.gov.uk/government/organisations/ministry-of-justice and https://www.gov.uk/government/organisations/hm-courts-and-tribunals-service
Address of the buyer profile: https://www.gov.uk/government/organisations/ministry-of-justice/about/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)
Public order and safety
Section II: Object of the contract
Service category No 27: Other services
Main site or location of works, place of delivery or of performance: Her Majesty’s Courts and Tribunal Services (“HMCTS”) currently uses 134 buildings across England and Wales to deliver the Compliance and Enforcement Services. Potential providers of the Compliance and Enforcement Services (“Potential Providers”) will be required as part of the tender process to put forward proposals to transfer delivery of the services to non HMCTS locations, either from service commencement or following a transitional period.
NUTS code UK
This contract notice is a voluntary notice and relates to contracts falling under Part B of Schedule 3 of the Public Contracts Regulations 2006 (the “Regulations”). Accordingly, in conducting this procurement the Authority is required to comply only with those aspects of the Regulations which are applicable to Part B services and it is not obliged to comply with any other aspects of the Regulations. The choice of the negotiated procedure (as set out in Section IV.1.1 below) should therefore not be regarded as an indication that the Authority will follow the detailed rules and timescales for a negotiated procedure under Regulation 17 of the Regulations (which does not apply to Part B services). The Authority intends to tailor the procurement process to meet its specific requirements, further details of which are outlined in the Background Information document and will be set out in the Invitation to Negotiate (“ITN”) documents.
The services being procured are the administration and collection of criminal financial impositions on behalf of HMCTS.
The aim of the procurement is to ensure that the management and payment of criminal fines and financial impositions associated with the police or other public authorities are undertaken in a more compliant, cost effective, efficient and timely manner.
The principal scope of the services is expected to include:
— The collection of criminal fines, costs, compensation, victims surcharge, back-duty and fixed penalties that have been registered as a fine;
— Conditional cautions that have a financial element that have been issued by the Police;
— The collection and enforcement of sureties related to order for Forfeiture of Recognizance issued by the First Tier Asylum and Immigration Tribunal;
— All related back office administrative work, debt management, service centre activity (both inbound and outbound communications) and the administration of the Fines Collection Scheme under Schedule 5, Courts Act 2003;
— All activities currently undertaken by Fixed Penalty Offices including the endorsement of licences, compliance activity, processing of payments and the registration of unpaid notices and orders as fines;
— Activities currently undertaken by Confiscation Units where HMCTS is the Lead Enforcement Authority including compliance and collection activity associated with the management and tracking of confiscation orders with the exception of the court diary management and resulting of cases;
— All activities associated with the management of warrants currently undertaken by HMCTS Civilian Enforcement Officers, contracted Approved Enforcement Agencies and local Police Forces; and
— All relevant financial, accounting and money handling activities including those that support publication of the annual Trust Statement which reports the collection of revenues to be paid to HM Treasury.
These are the services that are currently within scope of the Compliance and Enforcement Services Project. However, the Authority reserves the right to vary these services.
The Government has in place policies for the protection of official information and other assets. Compliance and Enforcement Services work must be undertaken by the chosen provider or their designated sub-contractor in the UK. The chosen provider must ensure that all hosting and support services occur within the UK. All testing must be undertaken in the UK unless full compliance with the MoJ Offshoring policy can be demonstrated. Any offshore testing must be agreed in advance with the Authority’s Senior Information Risk Owner and the Cabinet Office.
The procurement process will be used to satisfy the objectives and requirements for Compliance and Enforcement Services. This is a standalone competitive process and currently envisages the award of a services contract to a single supplier (which could be a single organisation or group (consortium)).
The MoJ reserves the right at any stage and without notice, at its sole discretion, to alter the competition details and arrangements or to terminate this competition.
The indicative contract term is up to five years (from the award of the contract) with two options for the MoJ to extend, each of two years duration, maximum length nine years.
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We are seeking a modernised compliance and enforcement regime pursuing financial debt and enforcing other orders of the court at a significantly lower unit cost whilst at the same time increasing collections through a more proactive, automated, efficient and intelligence-led business model, thereby providing a more credible threat to prolific and persistent defaulters.
In the 12 months ending September 2012, there were 816 600 fines handed down, 99.8 % of these being issued by magistrates’ courts.
As of March 2013 there was approximately GBP 576 million in outstanding fines and related awards, representing the combined amount over a number of years that has not been collected, rescinded or cancelled.
In the year 2012, around GBP 404 million of financial impositions were imposed by the criminal courts, of which around GBP 50 million (12 %) was paid within the imposition month and around GBP 140 (35 %) was paid within three months. Due to the timing of latest published statistics, the Authority is not able to report on the amount paid within six, twelve and eighteen months after the imposition month for the 2012 accounts.
Each year there are a number of financial penalties that are cancelled, either administratively or legally. Legal cancellations can be applied after the case has been reconsidered by a judge or a magistrate and usually follow a change in circumstances. Administrative cancellations are only applied in accordance with a strict write off policy e.g. where the defendant has not been traced. These can then be re-instated if the defaulter is then traced. Further information can be found in the Courts Statistics Quarterly reports on the Ministry of Justice website https://www.gov.uk/government/organisations/ministry-of-justice/series/courts-and-sentencing-statistics
Confiscation orders can be granted by the Crown Court, following a financial investigation into the assets of an offender, and are made by the court for the payment of monies which are deemed to be the benefits of an individual’s criminal activities. During 2011-12 a total of 6 269 confiscation orders were granted and HMCTS is currently leading on the enforcement of 5,519 (88 %) of these. The value of orders granted during 2011-12 was GBP 187 million, of which HMCTS is currently leading on the enforcement of GBP 74 million (40 %). Of those confiscation orders granted in the financial year 2011-12 approximately 40 % have been recovered.
In the most recently published annual statistics (2010) for Fixed Penalty Notices (“FPNs”) the police issued 1.85 million non-endorsable and endorsable FPNs for vehicle and roadside related offences, with HMCTS processing the payment of approximately 1.65 million (89.3 %) notices and registering 147 374 (8 %) of unpaid notices as a fine. In the last set of published statistics for Penalty Notices for Disorder (12 month period ending September 2012) the police issued 109 600 notices with 36.9 % of those subsequently registered as a fine.
HMCTS has, over the last few years, made progress in increasing performance and efficiency in compliance and enforcement services, including through introducing legislative sanctions and implementing the Criminal Enforcement Blueprint. However, for several years, it has been HMCTS’ aspiration to move to a more effective and efficient compliance-led financial imposition collection service rather than a relatively more costly and potentially less efficient enforcement regime. Under the current regime the current costs to Government of collecting financial penalties can be disproportionate to the value of the fine revenue recovered.
The main focuses of the reformed agenda should therefore be increased collections (in terms of value and volume), reduced overall cost of operation and speed of collection. The key outcomes to enabling this vision and ensuring success are:
— improving operational efficiency;
— proactively managing and tailoring compliance and enforcement activity to the individual;
— ensuring the maximum amount of debt is recovered;
— enforcing orders of the court;
— accurately accounting for and reporting on all income and performance;
— a credible deterrent for non-compliance; and
— ensuring timely and robust management of outstanding debt.
The primary ICT application in use in magistrates’ courts is Libra. This is a bespoke application developed by STL Consultancies for the MoJ. A range of supporting systems are in use within the current HMCTS Compliance and Enforcement teams and business processes. Further details relating to Libra and to these supporting systems are set out in the Background Information document. Potential Providers will be required to submit a proposal regarding ICT solutions for Compliance and Enforcement Services. There are two high level options available to Potential Providers:
— delivering Compliance and Enforcement Services using their own ICT; or
— continuing to use some of the Authority’s ICT to deliver Compliance and Enforcement Services, provided that the chosen provider meets the Authority requirements, for a period no longer than approximately 12 months and subsequently transitioning to their own ICT.
Further details of these options are set out in the Background Information document.
The chosen provider’s system will be required to:
— process and store MoJ data with an Impact Level for Confidentiality of Impact Level IL3 (RESTRICTED) for individual records. For aggregated records, the MoJ business data for this service is Impact Level 4-3-3 for Confidentiality, Integrity and Availability respectively;
— comply with current and future HMG Security Policy and MoJ ICT IA security requirements; and
— facilitate future expansion and additional consumers (which may be another MoJ ICT system, solution, external systems or new user interfaces). Further details regarding ICT Standards which the chosen provider must meet are set out in the Background Information document.
Section III: Legal, economic, financial and technical information
Further details will be set out in the ITN documents.
Description of particular conditions: The principal pieces of legislation and regulation applicable to the collection of financial impositions are listed in the Background Information document.
The Background Information document and ITN documents will set out the particular conditions that must be complied with.
The contract will set out the arrangements between the Authority and the chosen provider to deliver the services within a collaborative culture, so that reputational risk can be collectively managed by all parties. For this reason, in selecting the chosen provider, there needs to be a significant focus on establishing the principles of the working relationship, to ensure that it facilitates genuine transparency of costs and performance, and allows the MoJ to support the successful delivery of the services. To help drive the correct behaviours, the contract will stipulate expected behavioural standards.
Further details of these conditions will be set out in the ITN documents.
Minimum level(s) of standards possibly required: Please refer to the PQQ and Guide to Completing the PQQ.
It is the Government policy to ensure that Potential Provider’s past performance is taken into account in this procurement. The minimum standards that Potential Providers have to meet, including those relating to reliability based on past performance are set out below, together with details of how these requirements will be assessed. Refer also to the PQQ and the Guide to Completing the PQQ.
(1) Potential Providers will be required to provide a list comprising a statement of all the relevant services provided in the previous 3 years by the entity or entities specified in A or B below, including contract name, customer organisation, customer website address, contract start date, contract completion date, contract value, brief description of contract and requirements covered (refer to the PQQ for further required details).
“Relevant services” are those services which meet at least one of the following requirements:
— The transfer of a large scale contract from the public sector to the private sector, with a one time or annual contract value in excess of GBP 5 million;
— The TUPE transfer of a substantial number (at least 500) of staff;
— Implementation of ICT solutions, with a one time or annual contract value in excess of GBP 15 million;
— Rationalisation of an operation from multiple sites/locations, with a one time or annual contract value in excess of GBP 5 million;
— Business process redesign, with a one time or annual contract value in excess of GBP 5 million;
— Reputational management, with a one time or annual contract value in excess of GBP 5 million;
— Improving performance including over the contract life cycle, with a one time or annual contract value in excess of GBP 5 million; and
— Debt management experience, with a one time or annual contract value in excess of GBP 1 million.
A. The list should include all contracts under which relevant services have been provided by the Potential Provider. Where the Potential Provider is an entity that is continuing an undertaking or undertakings (or any part of an undertaking or undertakings) which were previously conducted by one or more other entities (each a “predecessor entity”), the list of such contracts must include the contracts under which relevant services were provided by each predecessor entity.
B Alternatively, where the Potential Provider may rely on other entities (including, in the case of a consortium, members of the consortium) to enable it to perform the contract, save as specified below the list must:
(i) describe the function that each such other entity will perform under the contract to be awarded, and
(ii) include at least all contracts in respect of relevant services provided by the Potential Provider (or a predecessor body) and all contracts in respect of relevant services provided by any other entity (including any member of the consortium) on which the Potential Provider may intend to rely to enable it to perform the contract.
Where the Potential Provider is an entity which has been formed for the particular purposes of bidding for the contract the subject of this Notice, the Potential Provider may comply with paragraph B (ii) above by including in its list contracts under which relevant services were provided by those entities on whom the Potential Provider will rely to perform the contract (or their predecessor entities), instead of the Potential Provider itself.
Where it is envisaged that the Potential Provider will rely on one or more sub-contractors to enable it to perform the contract to be awarded, in so far as any sub-contractor has not been appointed, the list should describe the function that sub-contractor will perform but need not include any contract by such a sub-contractor.
(2) The Potential Provider must also provide:
(a) certificates in the form set out in the Appendix 2 of the Guide to Completing the PQQ from those to whom relevant services on the list were provided:
(i) with a one time or annual contract value in excess of GBP 25 million;
(ii) in respect of debt management, with a one time or annual contract value in excess of GBP 1 million; and
(iii) under any other contract in the Potential Provider’s top ten contracts in respect of any relevant service (measured by reference to one time or annual contract value).
(b) if any such certificate cannot be obtained, an explanation of the steps taken to obtain it and why it is not available and a certificate (in the same form) from the entity that provided the services instead;
(c) if the certificate does not state that the services have been provided satisfactorily in accordance with the terms of the contract in question, information to show that any reason why they were not so provided will not recur in the performance of the contract to be awarded.
(3) In considering whether it is satisfied that the minimum standard for reliability based on past performance is met, the Authority reserves the right to verify the information required and to require the Potential Provider /consortium to clarify or supplement it including, without limitation, in order to assess the relevance of the information provided to the satisfactory provision of services pursuant to this procurement.
The information required to demonstrate compliance with the minimum standards for other aspects of technical or professional ability is as set out in the Guide to Completing the PQQ.
Minimum level(s) of standards possibly required:
Any Potential Provider/consortium must meet the minimum standard in relation to reliability based on past performance.
The minimum standard for reliability having regard to past performance is that the Authority is satisfied that the contracts required on the list to be provided have been satisfactorily performed in accordance with their terms and otherwise in a manner which indicates a reliable track record of service provision relevant to this procurement or, where that has not occurred, the reason or reasons why that has not occurred in relation to any such contract, will not recur in the performance of the contract to be awarded.
The Authority will assess whether or not this minimum standard is met at the PQQ stage. In addition the Authority will also re-assess whether this minimum standard is met prior to any shortlisting, the selection of the successful service provider, and/or the conclusion of the contract.
The minimum standards for other aspects of technical or professional ability are as set out in the Guide to Completing the PQQ.
Section IV: Procedure
Some candidates have already been selected (if appropriate under certain types of negotiated procedures) no
Objective criteria for choosing the limited number of candidates: Please refer to Guide to Completing PQQ.
Indicatively, a maximum of seven Potential Providers will be invited to negotiate, though the Authority reserves the right to invite fewer Potential Providers to participate.
The Authority reserves the right to reduce the number of participating Potential Providers further at any stage of the procurement process, taking into account the criteria and requirements provided through the procurement process.
Prior information notice
of 26.2.2013Other previous publications
Section VI: Complementary information
Section II.1.9): Potential Providers who do not wish to adopt the new Government Banking Services will be required to demonstrate to the Authority that they can achieve better value for the Exchequer as a whole through their own banking arrangements. Further details are contained in the Background Information document.
Section II.2.1) Value Basis: The information necessary to estimate the likely annual value of the contract the subject of this contract notice is not currently available. The cost of providing the services which are within the scope of the proposed contract are included within the overall operating costs of HMCTS. It is therefore not possible accurately to state the exact current aggregate annual cost to the Authority of providing the services which are within the scope of the proposed contract, but they could be estimated to be in the region of GBP 45 million.
Section IV.1.2): The minimum and maximum numbers specified relate to the number to be invited to negotiate. The Authority reserves the right to invite fewer Potential Providers to negotiate.
Section IV.3.4): Requests to participate must be made by completing and returning a PQQ by the date and time specified in Section IV.3.4 and in accordance with the instructions set out in the Guide to Completing the PQQ. Completed PQQs submitted after the deadline may not be considered. In order to access the PQQ and accompanying documents, Potential Providers must register with the Authority’s eSourcing Portal.
Section IV.3.4): The MoJ will conduct aspects of this procurement through its eSourcing Portal. The eSourcing Portal is an online application that allows all potential providers to create and submit their responses to any PQQs or ITNs via the internet rather than in paper form (where they have been invited to respond).
If you are not registered on the eSourcing Portal please send an email to email@example.com stating:
Sourcing Reference Number: 2672-2-Projects-MC-RFI
The Authority will then contact you with the registration process.
If you are already registered on the eSourcing Portal please contact firstname.lastname@example.org expressing your interest in this procurement. You will then be notified by email when the PQQ and other documents relevant to this procurement (as applicable) are available to access online.
Requests to register on the eSourcing Portal must be received by no later than two working days before the deadline for receipt of tenders or requests to participate specified in Section IV.3.4).
Section IV.3.5): The date for issue of ITN documents is provisional and may be subject to change. The issue of documents to a Potential Provider who has qualified for the ITN stage will be dependent on receipt of a signed confidentiality agreement. A draft confidentiality agreement in the form currently intended to be used in connection with this procurement is appended to the Background Information document.
Bidders’ Conference: Prior to the issue of the ITN documents, the Authority will hold a Bidders’ Conference on or around 25.9.2013. The Background Information document invites Potential Providers to put forward suggestions for areas/subjects that they would like to be covered at the Bidders’ Conference. Potential Providers are also requested to complete the pro forma within the Background Information document about attendees for the Bidders’ Conference. Further information about the Bidder’s Conference will be sent to those Potential Providers who have qualified for the ITN stage.
Specification: The National Compliance and Enforcement Service within HMCTS continues to look at ways to increase performance and reduce operational costs as a part of its continuous business as usual improvement programme, in line with the HMCTS Business Plan and MoJ Trust Statement. This programme of improvement may result in some changes in the service specification and requirements. Any
changes will be expressed throughout the procurement process in the specification and the ITN documents.
Award of Contract: The MoJ reserves the right at any time and without notice to reject all or any of the bids for the competition and not to award a contract to any Potential Provider, without any liability on its part. The MoJ reserves the right at any time and without notice to terminate the procurement process (or any part of it), or to change the basis of and the procedures for the procurement process, or to procure the contract by alternative means. Under no circumstances shall the MoJ incur any liability for any costs incurred by Potential Providers expressing an interest in tendering for this contract opportunity, nor shall it incur any liability in respect of this procurement process.
Transparency: HM Government requires that tender documentation issued by government departments for contracts with a value exceeding GBP 10 000 over the life of the contract are published online (www.businesslink.gov.uk) for the general public. The resulting contract shall also be published. The MoJ may use its discretion to redact information to protect key commercial interests or on prescribed grounds. Therefore, Potential Providers who wish information not to be published if successful should secure agreement with the MoJ prior to submission. Only documentation relating to awarded
contracts will be published. Key commercial interests would be trade secrets and commercial interests which would be prejudiced by publication, following the tests in section 43 of the Freedom of Information Act 2000 (“FOIA”). http://
The prescribed grounds for redaction are:
(a) national security;
(b) personal data;
(c) information protected by intellectual property law;
(d) information which it is not in the public interest to disclose (following the tests under the FOIA)
(e) third party confidential information;
(f) IT security; or
(g) prevention of fraud.
Small and Medium Enterprises (SMEs): The Authority is keen to encourage the involvement of SMEs, third sector organisations and supplier diversity. SMEs, third sector organisations and other interested suppliers are therefore invited to complete appropriate parts of the PQQ. This information will not be evaluated by the Authority but will be passed on to those potential providers who are invited to negotiate. The Authority will test the potential providers about how they have engaged with the SMEs, third sector organisations and other interested suppliers who responded to the PQQ.
Transparency and Freedom of Information: The Authority is subject to the FOIA. Please refer to the Background Information document which provides further information on the MoJ’s obligations and duties under FOIA in relation to disclosure of information submitted during this procurement process.
The Potential Provider must maintain the tender for the duration of the ITN process or 18 months, whichever is longer.
Ministry of Justice
Procurement Directorate, Clive House, 70 Petty France, Westminster
SW1H 9EX London
Telephone: +44 3000475000
Internet address: https://www.gov.uk/government/organisations/ministry-of-justice
VI.5)Date of dispatch of this notice:22.7.2013