Payment by results – innovation pilots for Ministry of Justice

London: services related to the detention or rehabilitation of criminals

Payment by Results programme. The innovation pilots seek to deliver innovative approaches to tackling the re-offending of those who have served a sentence imposed by a court.

Contract notice

Services

Directive 2004/18/EC

Section I: Contracting authority

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

Ministry of Justice
2nd floor, Clive House 70 Petty France
Contact point(s): Procurement Directorate
For the attention of: Barbara Colgrave/Jon Neville
SW1H 9EX London
UNITED KINGDOM
Telephone: +44 300047-6710
E-mail: barbara.colgrave@noms.gsi.gov.uk

Internet address(es):

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

Address of the buyer profile: http://procurement.hmprisonservice.gov.uk/about

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

Ministry or any other national or federal authority, including their regional or local sub-divisions

I.3)Main activity

General public services
Public order and safety
Social protection
Other: Payment by results

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:

Payment by results – innovation pilots.

II.1.2)Type of contract and location of works, place of delivery or of performance

Services
Service category No 27: Other services
Main site or location of works, place of delivery or of performance: Sites within England and Wales to be determined.
NUTS code UK

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 innovation pilots seek to deliver innovative approaches to tackling the re-offending of those who have served a sentence imposed by a court. We will be procuring the innovation pilots in 2 lots:
— Lot 1 – innovative approach to tackling re-offending of offenders who have served a sentence imposed by a Court and have been released from sentences of less than 12 months,
— Lot 2 – innovative approach to tackling re-offending of offenders; we will accept proposals that focus on offender cohort and any size cohort.
Contract duration is dependent on proposals details. We expect pilots to run for no less than 2 years and not more than 6 years.
We also seek to develop the market for payment by results through innovative forms of finance and strong involvement from voluntary and social enterprise organisations, including smaller organisations and; as part of the payment by results programme of pilots learn what works and develop a broader evidence base to support design of future policy.

II.1.6)Common procurement vocabulary (CPV)

75231200, 66122000, 75230000, 75231000, 75231210, 75231230, 75231240

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:

Contract duration is dependent on proposal details. We expect pilots to run for no less than 2 years and no more than 6 years.
The length of the agreement will depend on the cohort size and the geographical location.
Estimated value excluding VAT:
Range: between 0,00 and 20 000 000,00 GBP

II.2.2)Information about options

Options: no

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

Duration in months: 72 (from the award of the contract)

Information about lots

Lot No: 1 Lot title: Innovative approaches to tackling re-offending of offenders released from sentence of less than 12 months

1)Short description

Lot 1 – innovative approach to tackling re-offending of offenders who have served a sentence imposed by a court and have been released from sentences of less than 12 months.
The full list of CPV codes that apply can be found in section II.1.6 of this notice.

2)Common procurement vocabulary (CPV)

75231200, 66120000

3)Quantity or scope

Lot 1 – innovative approach to tackling re-offending of offenders who have served a sentence imposed by a Court and have been released from sentences of less than 12 months.
We seek to develop the market for payment by results through innovative forms of finance and strong involvement from voluntary and social enterprise organisations, including smaller organisations and; as part of the payment by results programme of pilots learn what works and develop a broader evidence base to support design of future policy.
Contract duration is dependent on proposal details. We expect pilots to run for no less than 2 years and no more than 6 years.
Estimated value excluding VAT:
Range: between 0,00 and 20 000 000,00 GBP

4)Indication about different date for duration of contract or starting/completion

Duration in months: 72 (from the award of the contract)

5)Additional information about lots

Contract duration is dependent on proposal details. We expect pilots to run for no less than 2 years and no more than 6 years.
Up to 20 000 000 GBP has been identified for rewarding successful outcomes of innovation pilots. This funding for outcome payments is for the whole innovation pilots programme. The potential for a small amount of start up funding or working capital is also available. MoJ will consider providing working capital, the precise amount to be negotiated as part of the contracting process.

Lot No: 2 Lot title: Innovative approaches to tackling re-offending of offenders – open to any type and size of cohort

1)Short description

Lot 2 – innovative approach to tackling re-offending of offenders; we will accept proposals that focus on any other offender cohort and any size cohort.
The full list of CPV codes that apply can be found in section II.1.6 of this notice.

2)Common procurement vocabulary (CPV)

75231200, 66122000

3)Quantity or scope

Lot 2 – innovative approach to tackling re-offending of offenders; we will accept proposals that focus on offender cohort and any size cohort.
Contract duration is dependent on proposal details. We expect pilots to run for no less than 2 years and no more than 6 years.
We seek to develop the market for payment by results through innovative forms of finance and strong involvement from voluntary and social enterprise organisations, including smaller organisations and; as part of the payment by results programme of pilots learn what works and develop a broader evidence base to support design of future policy.
Estimated value excluding VAT:
Range: between 0,00 and 20 000 000,00 GBP

4)Indication about different date for duration of contract or starting/completion

Duration in months: 72 (from the award of the contract)

5)Additional information about lots

Contract duration is dependent on proposal details. We expect pilots to run for no less than 2 years and no more than 6 years.
Up to 20 000 000 GBP has been identified for rewarding successful outcomes of innovation pilots. This funding for outcome payments is for the whole innovation pilots programme. The potential for a small amount of start up funding or working capital is also available. MoJ will consider providing working capital, the precise amount to be negotiated as part of the contracting process.

Section III: Legal, economic, financial and technical information

III.1)Conditions relating to the contract
III.1.1)Deposits and guarantees required:

No deposits are required but company guarantees, including parent company or performance bonds may be required. Further details will be outlined in the invitation to participate in dialogue documentation.

III.1.2)Main financing conditions and payment arrangements and/or reference to the relevant provisions governing them:

Conditions and other requirements may be made. Details of financing conditions and payment arrangements will be outlined in the invitation to participate in dialogue documentation.

III.1.3)Legal form to be taken by the group of economic operators to whom the contract is to be awarded:

The Authority intends to enter into a contract with either a prime contractor (which may be an existing company or special purpose vehicle) or consortium. The prime contractor would be expected to be a single legal entity. Where a bidder is a consortium, the Authority may require that each consortium member has joint and several liability. Where necessary for the performance of the contract, the consortium may be required to adopt a specific to adopt a specific legal form. Joint ventures or group bids should make clear the status, shares and stakes of all the partners and the legal entity with whom the Authority would contract. In the event of a joint venture or group bid, the partners must make clear how they intend to deliver the service. Restrictions on consortia may apply and if so, will be set out in the contract documentation provided.

III.1.4)Other particular conditions

The performance of the contract is subject to particular conditions: yes
Description of particular conditions: The pre-qualifying questionnaire (PQQ) and descriptive document set out particular conditions that must be complied with. The invitation to participate in dialogue will also set out further conditions that must be complied with.

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: A request for information (RFI) in the form of a pre-qualification questionnaire (PQQ) must be completed by parties wishing to participate in the competition (VI.3 below sets out how to access the PQQ and related documentation).

III.2.2)Economic and financial ability

Information and formalities necessary for evaluating if the requirements are met: The minimum level(s) of standards required are as set out in the request for information (RFI) and descriptive document. Potential providers are to note that a number of criteria will be assessed on a pass/fail basis. See 111.2.1 also.

III.2.3)Technical capacity

Information and formalities necessary for evaluating if the requirements are met:
See 111.2.1 and 111.2.2.

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

Section IV: Procedure

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

competitive dialogue

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

Envisaged minimum number 3
Objective criteria for choosing the limited number of candidates: Potential providers will be selected to participate in ITPD1 (invitation to participate in dialogue) under competitive dialogue according to the responses given in the PQQ.
The PQQ selection process will be set out in the descriptive document.

IV.1.3)Reduction of the number of operators during the negotiation or dialogue

Recourse to staged procedure to gradually reduce the number of solutions to be discussed or tenders to be negotiated yes

IV.2)Award criteria
IV.2.1)Award criteria

The most economically advantageous tender in terms of the criteria stated below

1. Operational service delivery. Weighting 20

2. Commercial financial. Weighting 20

3. Partnership & stakeholders. Weighting 15

4. Commercial legal. Weighting 10

5. Supply chain management. Weighting 10

6. Implementation. Weighting 10

7. Human resources & organisational change. Weighting 5

8. ICT & information security. Weighting 5

9. Continuous improvement. Weighting 5

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:

1542-1-Reducing Reoffending-MC-Project

IV.3.2)Previous publication(s) concerning the same contract

no

IV.3.3)Conditions for obtaining specifications and additional documents or descriptive document

Time limit for receipt of requests for documents or for accessing documents: 4.1.2012 – 12:00
Payable documents: no

IV.3.4)Time limit for receipt of tenders or requests to participate

12.1.2012 – 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.
Other: Welsh.

IV.3.7)Minimum time frame during which the tenderer must maintain the tender
IV.3.8)Conditions for opening tenders

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

Ministry of Justice.
The Minstry of Justice – Procurement Directorate will be supporting the Authority with the process. The Ministry of Justice came into being on 9.5.2007. It brought together the responsibilities of the Department of Constitutional Affairs, the National Offender Management Service (NOMS) and the Office for Criminal Justice Reform.
Payment by Results – PbR.
Other Government departments are exploring Payment by Results (PbR) approaches; the Department for Work and Pensions is proposing to pay a work programme provider to increase employment and the Department of Health and the Department for Education are piloting a PbR approach where they pay providers by results for helping individuals in the community to recover from their drug dependence.
The Ministry of Justice has directly established two PbR projects in respect of custodial offenders held at Peterborough and Doncaster prisons. Both these prisons are operated by the private sector. Introducing Payment by Results means rewarding providers when they are successful in reducing reoffending levels rather than providing upfront funding regardless of the outcomes achieved.
Objectives.
Primary outcome – reduction in reoffending achieved with evidence and sustained interventions.
Transfer of financial risk – financial risk is transferred from the Ministry of Justice to the provider(s), so that the provider(s) bear the financial liability should the pilot fail to achieve its aims.
Enable innovation – allowing the provider(s) the flexibility to test novel and innovative ways of workings.
Registration:
The Ministry of Justice will be performing events through its eSourcing portal. The eSourcing portal is an online application that allows all potential suppliers to create and submit their responses to any requests for information, requests for quotes, or requests for proposals via the internet rather than in paper form (where they have been invited to respond). The eSourcing portal will also be used by the Ministry of Justice to run reverse auctions.
To express an interest in this event please send an e-mail to: barbara.colgrave@noms.gsi.gov.uk stating:

Company name.
Your name.
Contact e-mail.
Sourcing reference number: 1542-1-Reducing Reoffending-MC-Project.
The buyer will then contact you with the registration process if you are not already registered on the Ministry of Justice eSourcing portal.
Transparency:
HM Government requires that tender documentation issued by government departments for contracts with a value exceeding 10 000 GBP over the life of the contract are published online (http://www.contractsfinder.businesslink.gov.uk) for the general public. The resulting contract shall also be published.

The Ministry of Justice may use its discretion to redact information to protect key commercial interests or on prescribed grounds. Therefore, bidders who wish information not to be published if successful should secure agreement with the Ministry of Justice prior to submission. Only documentation relating to awarded contracts will be published.
This could included 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. http://www.justice.gov.uk/guidance/docs/foi-exemption-s43.pdf.

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 Freedom of Information Act 2000)
(e) Third party confidential information;
(f) IT security; or
(g) Prevention of fraud.
Award criteria:
The Authority and the Ministry of Justice reserve the right to reject all or any bids for the competition and not to award a contract, without any liability on its part. Nothing in this OJEU contract notice shall generate any contractual obligations prior to the signature of a contract.
Contract:
A single contract or multiple contracts for Innovation Pilots covering England and Wales. Contract duration is dependent on proposal details. We expect pilots to run for no less than 2 years and no more than 6 years. The Authority and the Ministry of Justice are keen to encourage the involvement of small and medium enterprises (SMEs) and third sector organisations and are therefore willing to consider a number of options regarding contracting and sub-contracting arrangements.
Freedom of information:
The Freedom of Information Act cam fully into force in 2005. If any organsiation considers that any information supplied by them is either commercially sensitive or confidential in nature, this should be highlighted and the reasons for its sensitivities specified. In such cases the relevant material will be in response to FOI requests be examined in the light of exemptions provided for in the Act.

VI.4)Procedures for appeal
VI.4.1)Body responsible for appeal procedures
VI.4.2)Lodging of appeals

Precise information on deadline(s) for lodging appeals: The Authority will incorporate at least a 10 calendar day standstill period after the decision is taken to award contracts to successful potential providers but before contracts are signed. If any questions have not been successfully resolved the Public Contract Regulations 2006 (SI 2006No.5) and the Public Contracts (Amendment) Regulations 2009 (SI 2009 No. 2992) provide for aggrieved.
Parties who have been harmed or are at risk of harm by breach of the rules to take action in the High Court.
(England, Wales and Northern Ireland).

VI.4.3)Service from which information about the lodging of appeals may be obtained

Ministry of Justice
Clive House, 70 Petty France
SW1H 9EX London
UNITED KINGDOM

VI.5)Date of dispatch of this notice:2.12.2011