Shared Services for Cabinet Office
Cabinet Office on behalf of HM Government is seeking a private sector partner (the ‘Connected Partner’) interested in subscribing for a majority shareholding (up to 75 %) of the equity of SSCL, a new company set up to deliver deliver a range of business services to various Government Departments and other public sector bodies.
UK-London: Business services: law, marketing, consulting, recruitment, printing and security
Section I: Contracting authority
3rd Floor, 1 Horse Guards Road
Contact point(s): Supplier Support
For the attention of: ISSC2 Project Office
SW1A 2HQ London
Telephone: +44 3450103503
General address of the contracting authority: https://www.gov.uk/government/organisations/cabinet-office
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)
Section II: Object of the contract
Service category No 27: Other services
Main site or location of works, place of delivery or of performance: Main site or location of works, place of delivery or of performance: Various across the United Kingdom.
NUTS code UK
Duration of the framework agreement
Duration in years: 5
Justification for a framework agreement, the duration of which exceeds four years: The notice involves the establishment of a Framework Agreement between the Cabinet Office and a newly established company, Shared Services Connected Ltd. (‘SSCL’) (which will provide services under that framework to existing and future users of those services) and the issue of new shares in SSCL to a Private Sector Partner (the ‘Connected Partner’) selected through this procurement.
The Framework Agreement involves the transfer and sale of assets, including property and technology platforms. SSCL is likely to require capital investment over a period in order to transform the legacy service and complete initial migrations before it is in a position to offer its services to new customers.
Estimated total value of purchases for the entire duration of the framework agreement
Estimated value excluding VAT: 2 000 000 000,00 GBP
The successful Connected Partner is expected to bring a combination of:
– funding for investment in SSCL and service provision to existing and future customers;
– experience of working successfully in joint ventures and partnerships with the public or private sector;
– the ability to deliver reliable, high-quality buisiness services at competitive prices;
– well-proven transition and transformation capabilities, and the ability to build a growing, profitable, sustainable business;
– a demonstrable commitment to employee incentivisation (through, for example, profit share schemes, mutualisation or other means); and
– capacity and capability in the development, promotion, sale and delivery of business services, including the development and provision of other value added services to other customers, both in the private and public sectors.
SSCL is being established, pursuant to the Government’s Next Generation Shared Services Strategic Plan http://www.gov.uk/government/uploads/system/uploads/attachment_data/file/83717/19284_Next_Generation_3rd_Online.pdf
HM Government proposes to make an initial investment in SSCL through the divestment to it of shared servive centres currently operated by the Department for Work and Pensions (‘DWP’), Department of Environment and Rural Affairs (Defra) and the Environment Agency (‘EA’). With effect from 1.4.2015, certain of the services provided by the shared service centre operated by UK Shared Business Services Ltd (formerly known as Research Councils UK Shared Services Limited) are also expected to be transferred to SSCL. The shared service centres operated by DWP, Defra and EA had a total employee base of approximately 1 100 Full Time Equivalents (‘FTE’) as at 28.2.2013 and have an associated cost of c GBP 65-70 million on the latest outturn financials for the year to 31.3.2013, after adjustments to reflect the services in scope for transfer and allocation of shared costs.
HM Government acting through the Cabinet Office will award to SSCL a Framework Agreement in accordance with the terms of this Notice. Call Off Contracts will then be entered into between SSCL and the initial customers of SSCL (‘Initial Customers’) which are expected to comprise the existing customers of the shared service centres operated by DWP, Defra, the Environment Agency, and, with effect from 1.4.2015, UK Shared Business Services Ltd (a list of the Initial Customers is available in the Pre Qualification Questionnaire documentation referred to in this Notice). The composition of participating Departments and Initial Customers could be subject to change during the approval process. Together these Initial Customers represent a current user community of some 140 000 – 150 000 users.
Business services expected to be provided by SSCL under the Framework Agreement and Call off Contracts awarded pursuant to this Notice include HR, Finance and Accounts, Payroll and Procurement transactional services, as well as a range of other value added business services.
The successful candidate for the role of Connected Partner will, through the procedure contemplated by this Notice, acquire and hold equity share capital in SSCL through a Shareholders’ Agreement, Articles of Association, Subscription Agreement and related documents. As described, SSCL will have the benefit of the Framework Agreement and Call off Contracts awarded pursuant to this Notice.
In addition to the Initial Customers referred to above, it is intended that the Framework Agreement will allow SSCL to provide the services specified above to other public sector bodies including but not limited to all UK Government Departments and their Arm’s Length Bodies and Agencies; Non Departmental Public Bodies (NDPBs); and NHS bodies and Local Authorities (together the ‘Participating Bodies’). See Section VI for further details of those Participating Bodies that will be able to use the Framework Agreement and enter into Call Off Contracts under it.
Further information can be found in the Pre Qualification Questionnaire (‘PQQ’).
79000000, 48400000, 48440000, 48443000, 48444000, 48444100, 48490000, 48812000, 48900000, 48920000, 66170000, 66172000, 72000000, 72212440, 72212443, 72212450, 72212451, 72212490, 72222300, 72250000, 72253000, 72300000, 72310000, 72316000, 72322000, 72510000, 72512000, 75100000, 75130000, 75131100, 79000000, 79200000, 79210000, 79211000, 79211100, 79211110, 79211120, 79211200, 79212500, 79400000, 79414000, 79418000, 79500000, 79600000, 79630000, 79631000, 79635000, 79990000
Description of these options: The Framework Agreement will have a duration of 5 years.
Call Off Contracts under the Framework Agreement may be awarded for a period of up to 7 years with an option for the customer to extend by a further period of up to 3 years.
Section III: Legal, economic, financial and technical information
This procurement will be managed electronically via the Government Procurement Service’s e-Sourcing Suite. To participate in this procurement, participants must first be registered on the e-Sourcing Suite.
If you have not yet registered on the eSourcing Suite, this can be done online at: https://gpsesourcing.cabinetoffice.gov.uk by following the link ‘Register for GPS eSourcing’. Please note that, to register, you must have a valid DUNS number (as provided by Dun and Bradstreet) for the organisation you are registering. Full instructions for registration and use of the system can be found at:
Once you have registered on the eSourcing Suite, a registered user can express an interest for a specific procurement. This is done by emailing : ExpressionOfInterest@gps.gsi.gov.uk
Your email must clearly state: the name and reference for the procurement you wish to register for; the name of the registered supplier; and the name and contact details for the registered individual sending the email. Government Procurement Service will process the email and then enable the supplier to access the procurement online via the eSourcing Suite. The registered user will receive a notification email to alert them once this has been done.
As a user of the eSourcing Suite you will have access to the Emptoris email messaging service which facilitates all messages sent to you and from you in relation to any specific RFX event.
Please note it is your responsibility to access these emails on a regular basis to ensure you have sight of all relevant information.
For technical assistance on use of the eSourcing Suite please contact the Government Procurement Service Helpdesk : Freephone: +44 3450103503
Responses must be uploaded by the date in IV.3.4.
The PQQ and associated documents can be accessed at: https://gpsesourcing.cabinetoffice.gov.uk using the instructions detailed in III.2.1
Information and formalities necessary for evaluating if the requirements are met:
The minimum level(s) of standards required are as set out in the PQQ. See conditions set out in the PQQ. Potential Connected Partners should note that a number of criteria will be assessed on a pass/fail basis.
The minimum standard for reliability having regard to past performance is that the Authority is satisfied that the contracts that each potential Connected Partner is required to provide have been satisfactorily performed in accordance with their terms or, where that has not occurred, the reason or reasons why that has not occurred, will not recur in the performance of the Framework Agreement the subject of the OJEU Notice or of any Call Off Contract under it.
In addition, under the policy, the Authority will re-assess reliability based on past performance before key points in the procurement process (i.e. short listing, preferred bidder status, conclusion of contract etc.). Bidders will be asked to update the evidence they provide in relation to past performance to reflect more recent performance on new or existing contracts (or to confirm that nothing has changed).
The Authority will also assess whether the minimum standard is met on request from any potential user of that Framework Agreement prior to conclusion of a Call-Off Contract with a value of GBP 50 million or greater (excluding VAT). Failure to meet the minimum standard set will render the selected supplier ineligible for that Call-Off Contract.
Pursuant to the Cabinet Office Procurement Policy Note 09/12 ‘Taking Account of Bidders Past Performance’ as part of your company’s response to this PQQ, please provide a list comprising a statement of the relevant principal services provided by you, in the previous 3 years.
For the purposes of assessing reliability having regard to past performance the list should include contracts in respect of services which are similar services in both scope and complexity to those covered by the Contract Notice within the past 3 years and/ or which have an annual value greater than GBP 25m per annum. In addition to the list, you will be required to provide performance certificates for these contracts as set out in the PQQ document. The PQQ can be accessed at https://gpsesourcing.cabinetoffice.gov.uk using the instructions detailed in III.2.1.
Section IV: Procedure
Some candidates have already been selected (if appropriate under certain types of negotiated procedures) no
Objective criteria for choosing the limited number of candidates: Envisaged number of operators: Maximum number up to 4, although the Authority reserves the right to take through 3 Bidders.
Objective criteria for choosing the limited number of candidates: Pre-qualification criteria as set out in the PQQ.
Payable documents: no
Section VI: Complementary information
Potential Connected Partners should also note that, in accordance with the UK Government’s policies on transparency, the Authority intends to publish the PQQ, the Invitation to Negotiate document and the text of any resulting contractual arrangements, subject to possible redactions at the discretion of the Authority. The terms of the Framework Agreement will also permit a public sector contracting authority, awarding a contract under the Framework Agreement, to publish the text of the contract, subject to possible redactions, at the discretion of the contracting authority. Further information on transparency can be found at:
The PQQ referred to in this Notice includes an Initial Descriptive Document. Please note that the Initial Descriptive Document is directed only at persons who are:
(i)’investment professionals’ falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the ‘Order’);
(ii) are high net worth entities falling within Article 49(2) (a) to (d) of the Order; or
(iii) are other persons to whom the Initial Descriptive Document may be otherwise lawfully communicated,
Any person who is not an Eligible Recipient may not rely on the Initial Descriptive Document and investment in SSCL will not be available to such persons.
Nothing in this Notice, the PQQ, the Initial Descriptive Document or any related document constitutes investment advice.
The Authority expressly reserves the right (i) not to award or enter into any Framework Agreement, Call Off or other contract as a result of this procurement process commenced by the publication of this notice; and (ii) to make whatever changes it may see fit to the content and structure of the tendering competition; and in no circumstances will the Authority be liable for any costs incurred by the Bidders. If the Authority decides to enter into a Framework Agreement with SSCL, this does not mean there is any guaranteed minimum level of contracted business or subsequent Call Offs. Any expenditure, work or effort undertaken prior to contract award is accordingly a matter solely for the commercial judgement of potential Bidders.
The Framework Agreement will be available for use by the following UK public sector bodies (and any future successors): DWP, Defra, EA and the Department for Busines, Innovation and Skills (BIS) as well as all other Central Government Departments, Executive Agencies, NDPBs and UK Contracting Authorities listed in the PQQ.
http://www.direct.gov.uk/en/Dl1/Directories/A-ZOfCentralGovernment/index.htm and Local Authorities http://openlylocal.com/councils/all
A Bidder Briefing session will be held on 9.4.2013 at 10.00am-12.00pm at the QEII Centre, Broad Sanctuary, London, SW1P 3EE. The purpose of the Bidder Briefing is to provide a forum for potential Bidders to gain a broad understanding of the requirements and the procurement strategy for SSCL. Those wishing to attend the Bidder Briefing session should indicate their interest at email@example.com by 17.00 on Friday 5.4.2013.
The PQQ will be available at https://gpsesourcing.cabinetoffice.gov.uk from the date of the dispatch of this notice.
ISSC2 Project Office,
Cabinet Office, 3rd Floor, 1 Horse Guards Road
SW1A 2HQ London
Telephone: +44 3450103503
Internet address: http://gps.cabinetoffice.gov.uk
Body responsible for mediation procedures
Centre for Effective Dispute Resolution
International Dispute Resolution Centre, 70 Fleet Street
EC4Y 1EU London
Telephone: +44 2075366000
Internet address: http://www.cedr.com
Fax: +44 2075366001
The Public Contracts Regulations 2006 (SI 2006 No 5) (as amended) 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). Interested service providers who are unsuccessful shall be informed as soon as possible after the decision has been made as to the reasons why they were unsuccessful. If an appeal regarding the award of the contract has not been successfully resolved, The Public Contracts Regulations 2006 (SI 2006 No. 5) (the ‘Regulations’) provide for aggrieved parties who have been harmed or are at risk of harm by breach of the rules to take legal action. Any such action must be brought within the applicable limitation periods (in general 30 days beginning with the date when the economic operator first knew or ought to have known that the grounds for starting the proceedings had arisen). Where a contract has not been entered into, the Court may order the setting aside of the award decision or order the contracting authorities (as defined in the Regulations) to amend any document and may award damages. If the contract has been entered into, the Court may, depending on the circumstances, award damages, make a declaration of ineffectiveness, order the contracting authorities to pay a fine, and/or order that the duration of the contract be shortened. The purpose of the standstill period referred to above is to allow an application to be made to the Courts to set aside the award decision before the contract is entered into.
VI.5)Date of dispatch of this notice:27.3.2013
Requirement: Shared Services