Retrocession Broker Scheme Contract

Retrocession Broker Scheme Contract

As part of such outsourcing, a broker is to be appointed to handle a number of operational or commercial functions that are necessary for Flood Re to be able to effect and carry out reinsurance contracts in compliance with UK law.

United Kingdom-London: Insurance brokerage and agency services

2014/S 195-344827

Contract notice

Services

Directive 2004/18/EC

Section I: Contracting authority

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

Flood Re Limited for itself and on behalf
51 Gresham Street
EC2V 7HQ London
UNITED KINGDOM
Telephone: +44 3450103503
E-mail: supplier@ccs.gsi.gov.ukeEnablement@ccs.gsi.gov.uk

Internet address(es):

General address of the contracting authority: http://ccs.cabinetoffice.gov.uk

Address of the buyer profile: https://gpsesourcing.cabinetoffice.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

Other: Not-for-profit reinsurance company to be designated in secondary legislation as the Flood Re Scheme Administrator pursuant to the Water Act 2014, owned and run by the insurance industry

I.3)Main activity

Economic and financial affairs
Other: Public Procurement

I.4)Contract award on behalf of other contracting authorities

The contracting authority is purchasing on behalf of other contracting authorities: yes

Section II: Object of the contract

II.1)Description

II.1.1)Title attributed to the contract by the contracting authority:

Retrocession Broker Scheme Contract.

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

Services
Service category No 6a:
Main site or location of works, place of delivery or of performance: Primarily in the UK with some limited requirements overseas.

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)

Flood Re is a not-for profit reinsurance company that will be designated as the ‘FR Scheme Administrator’ pursuant to the Water Act 2014. A ‘Memorandum of Understanding’ of June 2013 between the UK government and the Association of British Insurers provided that Flood Re will be owned and managed by insurers, with the aim that the reinsurance effected by Flood Re will result in affordable flood insurance for households in the UK, in particular, over time, by reference to the likelihood and severity of the risks of flooding facing such households. The statutory scheme for flood insurance and reinsurance involving Flood Re is intended to cease after twenty five (25) years.
The planned operating model for Flood Re is to outsource much of its operational or commercial functionality.
As part of such outsourcing, a broker is to be appointed to handle a number of operational or commercial functions that are necessary for Flood Re to be able to effect and carry out reinsurance contracts in compliance with UK law. In particular, such activities include: the selection, negotiation, agreement, administration and appointment of Retrocession/ ART.
The broker will enter into a contract with Flood Re for a period of four (4) years, extendable by Flood Re for further periods so that the contract may be for seven (7) years in total.
In addition to the procurement of the broker, Flood Re is also undertaking a separate procurement for the appointment of a managing agent.
The broker is to be appointed during Q4 2014 to enable Flood Re to progress with the authorisation requirements of the UK’s Prudential Regulatory Authority (PRA) and Financial Conduct Authority (FCA).
As Flood Re will only be classified by the ONS according to the European System of Accounts 2010 after designation in secondary legislation enacted pursuant to the Water Act 2014, there is a future possibility that:
Flood Re will be classified by the ONS as a public entity forming part of central government or government corporation for accounting purposes; or Flood Re’s funds will, in part, be classified as taxation for public accounting purposes. Similarly, following designation, there is a possibility that other public law requirements may apply, including requirements pursuant to: Flood Re being an emanation of the State for ‘pure’ UK law purposes, especially Section 6 of the Human Rights Act 1998; Flood Re being an emanation of the State for EU law purposes, including direct effect: EU public procurement law and compliance with the UK Public Contract Regulations SI 2006/5 (as amended); EU state aid law; Environmental Information Directive (2003/4/EC) and Environmental Information Regulations 2004 requirements; administrative and accountability requirements pursuant to government administrative policy, including principles within Managing Public Money.
Given the possibility of the public procurement requirements applying to Flood Re in the future, Flood Re is voluntarily following a procurement akin to the open procedure process for the appointment of the broker with the assistance of the Crown Commercial Services and external legal advisers. Flood Re makes no admission as to its public or private status by voluntarily adopting a procurement structure akin to those undertaken by contracting authorities in accordance with EU and UK procurement legislation.
During the term of the contract, the broker may be required to undertake procurements on behalf of Flood Re in accordance with EU and UK procurement legislation.

II.1.6)Common procurement vocabulary (CPV)

66518000, 66510000, 66518100, 66700000, 79410000

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

The contract is covered by the Government Procurement Agreement (GPA): no
II.1.8)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:

Estimated value excluding VAT:
Range: between 7 000 000 and 50 000 000 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

in days: 84 (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:

Details of the deposits and guarantees required by Flood Re will be set out in the contract documents.

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

Details of the financing conditions and payment arrangements will be set out in the contract documents.

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

Joint and several.

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: This will be set out in the selection questionnaire. The invitation to tender (which includes the selection questionnaire) is available electronically from https://gpsesourcing.cabinetoffice.gov.uk and must be returned by the date stated in IV.3.4

III.2.2)Economic and financial ability

Information and formalities necessary for evaluating if the requirements are met: This will be set out in the selection questionnaire.

The invitation to tender (which includes the selection questionnaire) is available electronically from https://gpsesourcing.cabinetoffice.gov.uk and must be returned by the date stated in IV.3.4

Minimum level(s) of standards possibly required: This will be set out in the selection questionnaire.

The invitation to tender (which includes the selection questionnaire) is available electronically from https://gpsesourcing.cabinetoffice.gov.uk and must be returned by the date stated in IV.3.4

III.2.3)Technical capacity

Information and formalities necessary for evaluating if the requirements are met:
This will be set out in the selection questionnaire.

The invitation to tender (which includes the selection questionnaire) is available electronically from https://gpsesourcing.cabinetoffice.gov.uk and must be returned by the date stated in IV.3.4

Minimum level(s) of standards possibly required:
This will be set out in the selection questionnaire.

The invitation to tender (which includes the selection questionnaire) is available electronically from https://gpsesourcing.cabinetoffice.gov.uk and must be returned by the date stated in IV.3.4

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

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

RM3706

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

18.11.2014 – 15:00
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

Duration in months: 6 (from the date stated for receipt of tender)

IV.3.8)Conditions for opening of tenders

Place:

Electronically, via web-based portal.

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

Given the possibility of the public procurement regulations applying to Flood Re in the future, Flood Re is voluntarily following a procurement akin to the open procedure process for the appointment of the broker, with the assistance of the Crown Commercial Service and external legal advisors. Flood Re makes no admission as to its public or private status by voluntarily adaopting a procurement structure akin to those undertaken by contracting authorities in accordance with EU and UK legislation. Flood Re reserves the right: to cancel the tender process at any stage for any reason; to amend the terms and conditions of the tender process; and/or to award part only of the broker contract. Flood Re further reserves the right to withdraw from the tendering process at any stage or to vary the scope of the products and services required and Flood Re shall not be liable to any bidder as a result of this action. All bidders are solely responsible for their costs and expenses incurred in connection with the preparation and submission of their tender and the tendering process.
VI.4)Procedures for appeal

VI.4.1)Body responsible for appeal procedures

Royal Courts of Justice
The Strand
WC2A 2LL London
UNITED KINGDOM

VI.4.2)Lodging of appeals

Precise information on deadline(s) for lodging appeals: There is no right of appeal in this procurement. If you have a complaint or seek to challenge the outcome, please follow the guidance on procedure contained in the previous section.

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

Cabinet Office
70 Whitehall
SE1A 2AS London
UNITED KINGDOM

VI.5)Date of dispatch of this notice:

8.10.2014