Provision of Fuel Hedging Services

Provision of Fuel Hedging Services

This includes a Treasury Management Service which operates current competitive framework arrangements with accredited commercial and investment institutions to deliver a fuel hedging service.

UK-Glasgow: Financial markets administration services

2013/S 025-038721

Contract notice

Services

Directive 2004/18/EC

Section I: Contracting authority

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

DE&S Commercial, DE&S
Kentigern House, Level 2, 65 Brown Street
For the attention of: Alison Lees
G2 8EX Glasgow
UNITED KINGDOM
Telephone: +44 1412242716
E-mail: des-comrcl-cc-hocs-cm2a@mod.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

Ministry or any other national or federal authority, including their regional or local sub-divisions
I.3)Main activity

Defence
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:

Provision of Fuel Hedging 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 UK

II.1.3)Information about a public contract, a framework agreement or a dynamic purchasing system (DPS)

The notice involves the establishment of a framework agreement
II.1.4)Information on framework agreement

Framework agreement with several operators
Duration of the framework agreement

Duration in years: 3
Estimated total value of purchases for the entire duration of the framework agreement

Estimated value excluding VAT:
Range: between 1 000 000 and 30 000 000 USD

II.1.5)Short description of the contract or purchase(s)

Financial markets administration services. The Ministry of Defence (MOD) Financial Management Policy and Accounting team (FMPA) provides financial management services for the MOD. This includes a Treasury Management Service which operates current competitive framework arrangements with accredited commercial and investment institutions to deliver a fuel hedging service. The existing framework arrangements are due to expire on 31 July 2013 and the MOD seeks to have new fuel hedging arrangements in place for 3 years with effect from 1 August 2013. The service will cover bulk aviation (jet fuel), marine diesel and ground fuel and will provide instruments (swaps) over three years (on a rolling quarterly basis) from 2014/15-2016/17. Annual expenditure on aviation, marine diesel and ground fuel is forecast at over £600m. Under the arrangement(s) swaps will be offered for some 80% of the MOD forecast demand, on a quarterly basis, layered over three years.
II.1.6)Common procurement vocabulary (CPV)

66150000

II.1.7)Information about Government Procurement Agreement (GPA)

The contract is covered by the Government Procurement Agreement (GPA): no
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:

Details at II.1.5.
II.2.2)Information about options

Options: no
II.2.3)Information about renewals

This contract is subject to renewal: yes
II.3)Duration of the contract or time limit for completion

Starting 1.8.2013. Completion 31.7.2016

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

The performance of the contract is subject to particular conditions: yes
Description of particular conditions: As detailed in the Invitation to Tender.
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: The MOD invites Expressions of Interest for its requirement. Please note, however, that there will be no Pre Qualification Questionnaire (PQQ) process undertaken. Therefore interested parties must provide the required supplementary information (identified below) to accompany their Expression of Interest which will be assessed and evaluated. The evaluation will provide the process to down select companies (to a maximum of 6) to receive an invitation to tender. The evidence to be provided shall include evidence of legal status, economic standing and technical capacity in line with the evaluation criteria listed below. For transparency purposes, each criterion will be assigned a weighting and scoring mechanism to allow interested parties visibility of the MOD’s decision making process.
Note the maximum score for each criterion is the sum of the weighting multiplied by the score applied based on the evidence provided. For criterion d) the absence of proof of FSA registration will result in elimination from the competition as we will be unable to proceed without this.
On receipt of an Expression of Interest, interested parties will be sent a certificate which is a Statement Relating to Good Standing. This will require a certified official, on behalf of the interested party, to sign the Statement and return it to the contact addressee. Failure to do so will result in exclusion from the competitive process.
The criteria, weighting and scoring are as follows:
a) Evidence of the organisation’s mission, size and structure. This evidence should include a copy of the organisation’s most recent financial accounts. 10% Weighting. Scoring mechanism 1 = organisation does have size and structure capable of meeting requirement. 0 = does not
b). Evidence that the organisation is Active in the fuel trading market having extensive experience of commodity hedging most notably in the areas of marine diesel, jet and ground fuels. 30% Weighting. Scoring mechanism 5 = examples of current activity in all 3 commodities. 3 = examples of current activity in any 2 of the commodities. 1 = examples of current activity in only commodity 0 = no examples of current activity in any commodities.
c). Evidence that they are able to provide instruments (swaps) out to four years. 20% Weighting. Scoring mechanism 1 = evidence of swaps out to 4 years provided. 0 = no evidence provided.
d). Evidence that the Organisation is regulated/authorised by the FSA with FSA registration number. Weighting Pass/Fail
e). Details of any similar activities carried out with private industry, MOD or Other Government Departments (OGD) within the last 3 years. 10% Weighting. Scoring mechanism 1 = examples and evidence provided. 0 = no evidence or examples provided
f) Evidence of current Moody’s, S&P or Fitch Credit rating. Weighting – 30% Scoring 5 = Extremely Strong capacity to meet financial commitments. 3 = Very Strong capacity to meet financial commitments. 1 = Strong capacity to meet financial commitments. 0 = any rating less than Strong
Expressions of interest accompanied with evidence of the criteria above are required to be submitted to the Commercial Branch detailed above by 04 March 2013.
Late or incomplete applications will not be considered.
III.2.2)Economic and financial ability

Information and formalities necessary for evaluating if the requirements are met: Details at III.2.1.
III.2.3)Technical capacity

Information and formalities necessary for evaluating if the requirements are met:
See III.2.1
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: Financial Services Authority registration.
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

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

Envisaged number of operators: 6
Objective criteria for choosing the limited number of candidates: The criteria is detailed at III.2.1
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:

CTLBC/2099.
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

4.3.2013 – 16:00
IV.3.5)Date of dispatch of invitations to tender or to participate to selected candidates

20.3.2013
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

The contract is related to a project and/or programme financed by European Union funds: no
VI.3)Additional information

Suppliers interested in working with the Ministry of Defence should register on the MOD Supplier Information Database (SID) Register, available at www.contracts.mod.uk. The MOD SID is a database of active and potential suppliers available to all MOD and UK Defence procurement personnel, and is the main supplier database of MOD Procurement organisations. Please note: the registration and publication of a company profile on the MOD SID does not mean or imply that the supplier has in any way been vetted or approved by the MOD. Suppliers wishing to compete for advertised MOD contracts must respond to any specific call for competition by submitting a separate expression of interest in accordance with the instructions of the purchasing organisation.

Advertising Regime OJEU:- This contract opportunity is published in the Official Journal of the European Union (OJEU),the MoD Defence Contracts Bulletin and www.contracts.mod.uk GO Reference: GO-201321-DCB-4559033

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

DE&S Commercial, DE&S
Kentigern House, Level 2, 65 Brown Street
G2 8EX Glasgow
UNITED KINGDOM
E-mail: DES-Comrcl-CC-HOCS-CM2a@mod.uk
Telephone: +44 1412242716

Body responsible for mediation procedures

DE&S Commercial, DE&S
Kentigern House, Level 2, 65 Brown Street
G2 8EX Glasgow
UNITED KINGDOM
E-mail: DES-Comrcl-CC-HOCS-CM2a@mod.uk
Telephone: +44 1412242716

VI.4.2)Lodging of appeals
VI.4.3)Service from which information about the lodging of appeals may be obtained

DE&S Commercial, DE&S
As above

VI.5)Date of dispatch of this notice:

1.2.2013