Pension fund management services Durham

Pension fund management services Durham

Contract for the Provision of Global Equity/ Emerging Market Pension Fund Investment Manager(s) for Durham County Council Pension Fund.

UK-Durham: pension fund management services

2012/S 197-323749

Contract notice

Services

Directive 2004/18/EC

Section I: Contracting authority

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

Durham County Council
Corporate Procurement, County Hall
For the attention of: Denise Corrigan
DH1 5UL Durham
UNITED KINGDOM
E-mail: denise.corrigan@durham.gov.uk

Internet address(es):

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

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:

Contract for the Provision of Global Equity/ Emerging Market Pension Fund Investment Manager(s) for Durham County Council Pension Fund.
II.1.2)Type of contract and location of works, place of delivery or of performance

Services
Service category No 6: Financial servicesa)Insurances services b)Banking and investment services
NUTS code UKC14

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)

Durham County Council acting in its capacity as Administrating Authority for the Durham County Council Pension Fund (the “Council”) is seeking to appoint up to 3 Investment Manager(s) to run long only global and/or emerging market equity mandates for the Durham County Council Pension Fund (the “Fund”).
The appointed Managers will manage in aggregate 37 % (c. £[700 m]) of the Fund’s total assets (c. £[1 863 m]). Mandates will be awarded in the following proportions:
Up to 3 global equity mandates each of 10 % to 27 % of the Pension Fund’s assets.
Up to 1 emerging market equity mandate of 0 % to 10 % of the Pension Fund’s assets.
In the event that no suitable Emerging Market Manager submits a tender then a bias towards emerging market will be targeted in the global equity allocation.
II.1.6)Common procurement vocabulary (CPV)

66141000

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: no
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:

Durham County Council acting in its capacity as Administrating Authority for the Durham County Council Pension Fund (the “Council”) is seeking to appoint up to 3 investment managers to run long only global and/or emerging market equity mandates for the Durham County Council Pension Fund (the “Fund”).
The appointed managers will manage in aggregate 37 % (c. £[700 m]) of the Fund’s total assets (c. £[1 863 m]). Mandates will be awarded in the following proportions:
Up to 3 global equity mandates each of 10 % to 27 % of the Pension Fund’s assets.
Up to 1 emerging market equity mandate of 0 % to 10 % of the Pension Fund’s assets.
The mandates may use active or quantitative strategies. Passive strategies which target indices that are not market-capitalisation weighted will also be considered.
The Council would prefer global equity strategies which aim to outperform market-capitalisation weighted indices over market cycles in different prevailing economic conditions and in particular to provide protection in falling markets, and emerging market equity strategies which aim to outperform market-capitalisation weighted indices over market cycles whilst participating strongly in rising markets. However the Council would be willing to consider other strategies, in particular in respect of global equity strategies which have a significant bias towards emerging markets. All strategies must exhibit diversification by geographical region (except concentrations arising directly as a result of the strategy being explicitly orientated to emerging markets), industry sector and market capitalisation. Strategies can expect to be benchmarked against market capitalisation weighted indices such as the MSCI World and MSCI AC World for example.
II.2.2)Information about options

Options: no
II.2.3)Information about renewals

This contract is subject to renewal: yes
Number of possible renewals: 2
In the case of renewable supplies or service contracts, estimated timeframe for subsequent contracts:
in months: 36 (from the award of the contract)
II.3)Duration of the contract or time limit for completion

Duration in months: 108 (from the award of the contract)

Section III: Legal, economic, financial and technical information

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

The Council reserves the right to require deposits, guarantees, bonds or other forms of appropriate security. Further details will be set out in the tender documents, if relevant.
III.1.2)Main financing conditions and payment arrangements and/or reference to the relevant provisions governing them:

To be set out in the tender documents.
III.1.3)Legal form to be taken by the group of economic operators to whom the contract is to be awarded:

The contracting authority reserve the right to require groupings of service providers to take a particular legal form or to require a single provider to take primary liability or to require each party to undertake joint and several liability,if relevant. Further details will be set out in the tender documents.
III.1.4)Other particular conditions

The performance of the contract is subject to particular conditions: no
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: In accordance with articles 45 to 50 of Directive 2004/18/EC and Regulations 23 to 29 of the Public Contracts Regulations 2006 and as set in the pre-qualification questionnaire (PQQ) available from the NEPO portal as detailed in section V1.3.
Confirmation that the bidding organisation qualifies as an “investment manager” as defined under Regulation 7 of The Local Government Pension Scheme (Management and Investment of Funds) Regulations 2009 and the bidding organisation is able and willing to manage assets in line with the Statement of Investment Principles of the Durham County Council Pension Fund.
III.2.2)Economic and financial ability

Information and formalities necessary for evaluating if the requirements are met: In accordance with article 47 of Directive 2004/18/EC and Regulation 24 of the Public Contracts Regulations 2006 and as set in the pre-qualification questionnaire (PQQ) available from the.
NEPO portal as detailed in section V1.3.
Minimum level(s) of standards possibly required: The bidding organisation confirms it is able and willing to manage the Pension Fund’s assets on a segregated basis or in a pooled arrangement. If a pooled arrangement is proposed, the organisation can confirm the existing fund size is £750m or more while organisations proposing a segregated solution have £750m or more in total assets under management.
Public Liability – £5 000 000.
Employer’s Liability – £10 000 000.
Professional Indemnity – £10 000 000.
The bidding organisation confirms it has recorded net profits (gross revenues adjusted by and costs expenses, and after all tax payable), as reported in the organisation’s previous 3 annual audited financial statements, and that such net profits are in excess of its statutory capital requirements for each of these years.
III.2.3)Technical capacity

Information and formalities necessary for evaluating if the requirements are met:
In accordance with articles 48 to 50 of Directive 2004/18/EC and Regulation 25 of the Public Contracts Regulations 2006 and as set in the pre-qualification questionnaire (PQQ) available from the NEPO portal as detailed in section V1.3.
Minimum level(s) of standards possibly required:
Essential criteria as outlined in the PQQ documents. Bidders must successfully pass Parts A-F of the PQQ (in line with the evaluation criteria set out in the PQQ documents) to have their responses to the Quantitative Performance Analysis in Part G and Qualitative Assessment in Part H of the PQQ evaluated. Parts A-F of the PQQ include financial assessment; grounds for exclusion; insurance; health and safety, equality and diversity and essential criteria.
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: yes
Reference to the relevant law, regulation or administrative provision: Reference to the relevant law, regulation or administrative provision: Requests to participate will only be accepted from investment managers which conform to the definition of investment manager in Regulation 7 of the Local Government Pension Scheme (Management and Investment of Funds) Regulations 2009. This will include:
(a) firms authorised by the UK Financial Services Authority with permission to manage investments (and which may lawfully manage the assets of occupational pension schemes), and
(b) EEA firms which are authorised in their home state and have permission to manage investments (and may lawfully manage the assets of occupational pension schemes).
The manager would need to comply with the requirements of the Local Government Pension Scheme(Management and Investment of Funds) Regulations 2009.
III.3.2)Staff responsible for the execution of the service

Legal persons should indicate the names and professional qualifications of the staff responsible for the execution of the service: no

Section IV: Procedure

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

Negotiated
Some candidates have already been selected (if appropriate under certain types of negotiated procedures) no
IV.1.2)Limitations on the number of operators who will be invited to tender or to participate

Envisaged number of operators: 10
Objective criteria for choosing the limited number of candidates: In accordance with the Public Contract Regulations 2006 and as outlined in the PQQ. The Council intends to shortlist a total of 20 bids to proceed to the Qualitative Assessment. Therefore, based on the Quantitative performance analysis, between 14 – 20 Global Developed Equity Market/Global (Including Emerging Market) Equity bids and between 0 – 6 Emerging Market Equity bids will proceed to the Qualitative Assessment stage. Following the Qualitative Assessment the Council intends to invite 7 – 10 of the highest scoring Global Developed Equity Market and Global (Including Emerging Market) Equity bids, and 0 – 3 of the highest scoring Emerging Market Equity bids from the Qualitative Assessment to the Invitation to Negotiate stage.
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 no
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:

QTLE-8YXJSC
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: 2.11.2012
Payable documents: no
IV.3.4)Time limit for receipt of tenders or requests to participate

9.11.2012 – 16:00
IV.3.5)Date of dispatch of invitations to tender or to participate to selected candidates

17.12.2012
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 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

This Contract is for an initial period of 3 years with an option for a further 2 x 36 months extension, (9 years in total) at the sole discretion of the Council. Organisations can register electronically for the documents via www.nepoportal.org. Then access the suppliers area and select Durham. Input reference QTLE-8YXJSC.

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 contracting Authority will incorporate a standstill period at the point information of the award of the Contract is communicated to Bidders. The notification will provide full information on the award decision. The standstill period which will be for a minimum of 10 calendar days, provides time for unsuccessful bidders to challenge the award decision before the contract(s) are entered into. The Public Contracts Regulations 2006 (as amended) EN Standard form 02 – Contract notice 12 / 16 provide for aggrieved parties who have been harmed or are at risk of harm by a 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

VI.5)Date of dispatch of this notice:10.10.2012