Investment Management Services for Hertfordshire County Council

Investment Management Services for Hertfordshire County Council

Hertfordshire County Council is inviting suitably qualified and experienced organisations to express interest in being considered for the provision of pension fund investment management services.

UK-Hertford: Pension fund management services

2013/S 025-038593

Contract notice

Services

Directive 2004/18/EC

Section I: Contracting authority

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

Hertfordshire County Council
Strategic Procurement Group, CHN314, County Hall
For the attention of: Sam Brown
SG13 8DE Hertford
UNITED KINGDOM
Telephone: +44 1707292467
E-mail: samantha.brown@hertfordshire.gov.uk
Fax: +44 1992588497

Internet address(es):

General address of the contracting authority: http://www.hertsdirect.org

Address of the buyer profile: http://supplyhertfordshire.g2b.info/hpf/ following the instructions given in VI.3 (Additional Information)
Electronic access to information: http://supplyhertfordshire.g2b.info/hpf/ following the instructions given in VI.3 (Additional Information)
Electronic submission of tenders and requests to participate: http://supplyhertfordshire.g2b.info/hpf/ following the instructions given in VI.3 (Additional Information)
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

Regional or local authority
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:

The Provision of Investment Management Services
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
NUTS code UKH23

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)

Pension fund management services. Pension investment services. Hertfordshire County Council is inviting suitably qualified and experienced organisations to express interest in being considered for the provision of pension fund investment management services. This requirement is split into two Lots:
Lot 1: Actively managed Core Plus UK bond mandate.
Lot 2: Actively managed unconstrained / absolute return global bond mandate.
Applicants may apply for either one or both of the Lots.
Further detail is provided in Annex B.
The Council reserves the right to alter the value of funds awarded and may split the contract among providers.
II.1.6)Common procurement vocabulary (CPV)

66141000, 66131100

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:

Each contract shall have a contract period of 5 years with the option to extend on an annual basis for up to a maximum of a further 5 years at the sole discretion of the Council. However, under the Local Government Pension Scheme Regulations, the Pension Fund may terminate the contract at any time.
The exact size of the investment mandates for Lot 1 and Lot 2 will be affected by market movements. As a guide:
— The assets expected to be managed under Lot 1 total approximately GBP 350,000,000 to GBP 400,000,000.
— The assets expected to be managed under Lot 2 total approximately GBP 150,000,000 to GBP 200,000,000.
The estimated total value of the contract stated below is for both lots and is for the initial five year period only and does not include the value of any extension period.
Further details of the requirement are available on the following link: http://supplyhertfordshire.g2b.info/hpf/

Estimated value excluding VAT:
Range: between 4 500 000 and 16 000 000 GBP

II.2.2)Information about options
II.2.3)Information about renewals
II.3)Duration of the contract or time limit for completion

Duration in months: 60 (from the award of the contract)

Information about lots

Lot No: 1 Lot title: Actively Managed Core Plus UK Bond Mandate

1)Short description
2)Common procurement vocabulary (CPV)

66141000, 66131100

3)Quantity or scope

This mandate is expected to be managed against a Sterling benchmark, most likely an aggregate benchmark of 50 % gilts / 50 % investment grade corporate bonds (all stocks indices).
The investment objective will be to target an excess return of +1.5 % p.a. to +2.5 % p.a. above the benchmark return.
It is expected that a wide range of opportunities will be at the investment manager’s disposal in order to achieve this target. This mandate is however expected to have exposure to spread and duration.
The exact size of the investment mandates for both Lots will be affected by market movements. As a guide, the assets expected to be managed under Lot 1 total approximately GBP 350,000,000 to GBP 400,000,000.
Estimated value excluding VAT:
Range: between 2 625 000 and 6 000 000 GBP
4)Indication about different date for duration of contract or starting/completion
5)Additional information about lots

The estimated value of this Lot stated above is for the initial five year period only and does not include the value of any extension period.
Lot No: 2 Lot title: Actively Managed Unconstrained / Absolute Return Global Bond Mandate

1)Short description
2)Common procurement vocabulary (CPV)

66141000, 66131100

3)Quantity or scope

This mandate is expected to be managed against a cash benchmark (LIBOR or equivalent).
The investment objective will be to target an excess return of +3 % p.a. to +6 % p.a. above the benchmark return.
The mandate is expected to have an absolute return philosophy which seeks to preserve capital in a variety of environments.
We would anticipate that a wide range of asset classes and tools will be used in order to add value.
The exact size of the investment mandates for both Lots will be affected by market movements. As a guide, the assets expected to be managed under Lot 2 total approximately GBP 150,000,000 to GBP 200,000,000.
Estimated value excluding VAT:
Range: between 1 875 000 and 10 000 000 GBP
4)Indication about different date for duration of contract or starting/completion
5)Additional information about lots

The estimated value of this Lot stated above is for the initial five year period only and does not include the value of any extension period.

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:
III.1.3)Legal form to be taken by the group of economic operators to whom the contract is to be awarded:
III.1.4)Other particular conditions
III.2)Conditions for participation
III.2.1)Personal situation of economic operators, including requirements relating to enrolment on professional or trade registers
III.2.2)Economic and financial ability
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
III.3.2)Staff responsible for the execution of the service

Section IV: Procedure

IV.1)Type of procedure
IV.1.1)Type of procedure

Restricted
IV.1.2)Limitations on the number of operators who will be invited to tender or to participate

Envisaged minimum number 6: and maximum number 10
Objective criteria for choosing the limited number of candidates: As set out in the pre-qualification questionnaire, which is available following the instructions given in VI.3 (Additional Information).
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:

HCC Contract Reference Number: HCC1306021. Tender Access Code: DP8F2E9ZMY.
IV.3.2)Previous publication(s) concerning the same contract

no
IV.3.3)Conditions for obtaining specifications and additional documents or descriptive document

Payable documents: no
IV.3.4)Time limit for receipt of tenders or requests to participate

5.3.2013 – 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
IV.3.8)Conditions for opening of tenders

Section VI: Complementary information

VI.1)Information about recurrence
VI.2)Information about European Union funds
VI.3)Additional information

Please read this section carefully as it provides full instructions on how to apply for this requirement.
Hertfordshire County Council has moved to a new way of e-Tendering and worked closely with its Districts and Partners to create a joint procurement website called Supply Hertfordshire. This website is supported by BiP Solutions who provide a system called Delta which is the background platform to Supply Hertfordshire.
The Pre-Qualification Process.
This tender is a two stage process and you will only be invited to tender if you have successfully passed through the Pre-Qualification Questionnaire (PQQ) stage. If you wish to be considered as a tenderer you must complete and submit a completed PQQ by using the Tenderbox through BiP’s Delta by the due date of 12 noon on Tuesday 5th March 2013. PQQs cannot be uploaded after the closing date/time.
Step 1: Registering with Supply Hertfordshire.
To participate in this tender you will need to go into http://supplyhertfordshire.g2b.info/hpf/ and register, thereafter you will be issued with a USERNAME and PASSWORD. (If you have already registered with Delta or Supply Hertfordshire, please follow the link above where you can log on using your existing username and password. If you have registered and have forgotten your Username and Password, please click on the forgotten password link below the log in box.) Please keep this USERNAME and PASSWORD secure, and do not pass it to any third parties.

Step 2: Completing your PQQ.
To complete the PQQ for this tender you will need to go into the Response Manager area and enter the Access Code DP8F2E9ZMY. You will then need to download the relevant PQQ and complete. Any supporting documents should be cross-referenced to the relevant question and detailed in Appendix A of the PQQ. If the Council requires further information concerning your application form, your organisation will be contacted. However, please provide full details and answer all questions, as the Council reserves the right not to ask applicants for any further information or clarification.
Step 3: Uploading Your Completed PQQ.
Once you have completed your PQQ for this tender exercise you must then “upload” your completed response into the Tenderbox (Access Code DP8F2E9ZMY) and ensure it has been submitted as a response.
Please make sure you have submitted your completed PQQ to the correct Access Code, the Council will not be held accountable for any errors made by an applicant in submitting your completed PQQ.
Please ensure that you allow plenty of time when responding to this PQQ prior to the closing date and time, as the uploading of documents can take some time. Multiple documents can only be uploaded one at a time or can all be ‘zipped’ together using an application like WinZip.
If you are experiencing problems, then please contact the Delta helpdesk via email at helpdesk@delta-esourcing.com or call +44 8452707050 (Option 2) Monday to Friday 8:30 – 17:30 for further assistance.

The Council reserves the right at any time to cease the tendering process and not award a contract or to award only part of the opportunity described in this notice. If the Council takes up this right then they will not be responsible for, or pay the expenses or losses, which may be incurred by any tenderer as a result.
The Council undertakes to hold confidential any information provided in the proposal submitted, subject to the Council’s obligations under the law, including the Freedom of Information Act 2000. If the applicant considers that any of the information submitted in the proposal should not be disclosed because of its sensitivity then this should be stated with the reason for considering it sensitive. The Council will then endeavour to consult with the applicant about such sensitive information when considering any request received under the Freedom of Information Act 2000 before replying to such a request.
Due to the current economic climate, Hertfordshire County Council reserves the right to carry out additional financial checks on all companies tendering for this Contract at any time during the procurement process, to ensure that they continue to meet the Council’s requirements and remain financially viable to perform the Contract.
To view this notice, please click here: https://www.delta-esourcing.com/delta/respondToList.html?noticeId=50677525

GO Reference: GO-2013131-PRO-4555926.

VI.4)Procedures for appeal
VI.4.1)Body responsible for appeal procedures

See VI.4.2

VI.4.2)Lodging of appeals

Precise information on deadline(s) for lodging appeals: Hertfordshire County Council will incorporate a minimum 10 calendar day standstill period at the point information on the award of the contract is communicated to tenderers to allow unsuccessful tenderers to raise any complaints before the contract is entered into.
If a complaint between the Council and the tenderer regarding the award of a contract has not been successfully resolved, relevant provisions of the Public Contracts Regulations 2006 (as amended) will apply. The aggrieved party is advised to seek independent legal advice in relation to remedies they can pursue under the Public Contracts Regulations 2006 (as amended).
VI.4.3)Service from which information about the lodging of appeals may be obtained

VI.5)Date of dispatch of this notice:31.1.2013