Supply NEP Survey to Pay Business Management System

Supply NEP Survey to Pay Business Management System

NEP wishes to replace it’s current P2P system with a Survey to Pay Business Management System.

United Kingdom-Newcastle Upon Tyne: Software package and information systems

2014/S 073-125381

Contract notice


Directive 2004/18/EC

Section I: Contracting authority

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

North East Procurement Ltd
Cobalt Business Exchange, Cobalt Park Way, Silverlink
NE28 9NZ Newcastle Upon Tyne
Telephone: +44 1912804188

Internet address(es):

General address of the contracting authority:

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

Body governed by public law
I.3)Main activity

Other: Purchasing Consortium
I.4)Contract award on behalf of other contracting authorities

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

Members of North East Procurement

Section II: Object of the contract

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

NEP Survey to Pay Business Management System.
II.1.2)Type of contract and location of works, place of delivery or of performance


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 a single operator
Duration of the framework agreement

Duration in years: 20
Justification for a framework agreement, the duration of which exceeds four years: The framework will be for a duration of five years followed by options to extend of 18 months each, up to a maximum of 20 years.
Due to the level of investment and development required to build a system to meet NEP?s requirements, and the length of the system implementation, a framework of four years duration would be commercially unviable.
Estimated total value of purchases for the entire duration of the framework agreement

Estimated value excluding VAT:
Range: between 2 500 000 and 3 500 000 GBP

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

North East Procurement (NEP) was established in 2008 as a North East focused consortium of social landlords, formed to provide efficiencies in the supply chain and deliver social value for Members.
NEP provides a consortium procurement service, which allows social landlords (Members) (and potentially other organisations) access to a number of labour and material Frameworks all of which have been procured following the publication of an OJEU Contract Notice and following Public Procurement Rules.
The Frameworks currently cover elements required by NEP Members to manage their housing stock and support their tenants e.g. Materials (kitchens, electrical, roofing, bathrooms etc.), Labour (installations, repairs etc), Consultants and more. Primarily the Frameworks cover the provision of labour and materials.
NEP offers efficiencies by providing its Members with the ability to aggregate spend and so increase buying power. The purchasing of labour and materials by Members is managed using a P2P system (currently provided by the third party business integrator) on a transactional basis. The system enables NEP to monitor and track transactions.
NEP wishes to replace it”s current P2P system with a Survey to Pay Business Management System.
Fundamentally the aim of any future delivery model is to create/use a platform that enables Members and potential other organisations to purchase labour, materials and services (and potentially others) from contractors and suppliers through exchanges of electronic data.
NEP has identified at a very high level an overview of the requirements of any future IT system. These include:
1. A Catalogue Management System
The solution should support the creation, continuous manipulation and update of e-catalogues that contain rates, prices and associated activities and products for labour, materials and services.
2. Functionality for Contractors and Suppliers to Self-Manage Catalogue Amendments in a Controlled Environment
The data that forms e-catalogues should be able to be populated initially from information sourced at a tender stage. Functionality is required that enables contractors and suppliers to self-manage e-catalogues and deal with price and product changes within a controlled environment.
3. Input of Varying Requirements and Designs
The solution needs to accommodate requirements that arise in a number of different ways, including:
— Planned Transactions (discrete material purchases with and without associated labour
— Responsive Transactions as a result of maintenance calls or other activity undertaken by Direct Labour Organisations (DLOs) and
— Project or Scheme Designs (comprising a significant number of related and dependent Transactions)
The solution should provide the ability to handle each transaction as a discrete order at the same time as retaining the integrity of transactions bundled into a single requirement, arising from any of the approaches described above.
4. Functionality to Manipulate, Create, Update and amend Catalogues to suit customer requirements
Competition processes require NEP, or in some instances Members themselves, to be able to prepare tender documents, labour and material specifications particularly, and to issue these to Contractors and Suppliers to respond to. Clearly the ability for e-catalogues to be created at source at the time of a competition process prevents any subsequent need for tender documentation to then have to be converted from one format to another. Any future IT solution needs to provide the functionality for e-catalogues to be accessed so that prices, quantities and availability etc. can be assessed but also so that landlords can run competition processes between Contractors and Suppliers.
It is an aspiration that project requirements, competition processes particularly and orders be created as simply as possible by the push of a button. This therefore requires as much auto-population of data throughout and across each process as possible.
5. An Ordering and Invoicing Tool
Call offs from a Framework form part of a more general Procure to Pay Process (P2P). An ordering and invoicing tool is required to enable Members, Contractors and Suppliers to interact for ordering, confirmation of goods and services received and invoicing purposes.
6. An Elemental Costing Tool / Reporting Suite
There needs to be functionality that will enable customers to track activities and costs at an elemental level, this could be different per Member i.e. at a property, product or work-stream level.
Any future solution needs to allow projects to be established, delivered and reported on at levels determined by Members to suit individual needs. For example, Members need the ability to drill down to an individual property / address basis and to consider costs and activities accordingly. Any future solution needs to be able to analyse facts, highlight discrepancies and to help provide a mechanism to resolving these.
7. A Rebate and Fee Collection Tool
NEP currently operates on a rebate and fee structure basis i.e. in broad terms, fees are added to labour and material prices and rates. There needs to be functionality to enable different fees and rebates to be added and for these to be tracked, invoiced / credited accurately as part of any overall P2P function. NEP is also willing to consider other forms of fee structures if the bidder considers them more attractive for NEP, such as fixed service charges and automated fee payments against transactions. The basis of any complementary commercial options must be described in the relevant section below, with the supporting functionality described under this requirement heading.
8. Integration/Platform Connectivity
Because NEP is a consortium and its Members have their own internal finance / contract management / asset management arrangements and systems, a key to the success of any future NEP IT solution is the ability for it to interact and connect with these other systems. Where possible, any future IT solution should be effectively integrated with the systems of individual Members (and other potential organisations) or be able to provide comprehensive and flexible export of data using common languages and formats.
9. Category Management Control Panel
NEP works with a number of different Members currently (and potential other organisations in future) as well as huge number of different Contractors and Suppliers. The labour and material supply chains need to be category managed so that service delivery arrangements and efficiencies can be optimised for individual Members and across the NEP consortium as a whole.
Category management arrangements need to integrate and operate within the IT platform ensuring that catalogues are up to date and reflective of the needs of those who use them. Category management needs to be able to support Members in making call offs, whether they be direct award or by way of a competition, and through product and material selection particularly, as well as specification development.
10. Cost Management and Reporting
Capabilities of the solution need to extend beyond P2P so that it provides and facilitates business management and reporting processes enabling users to model and visualise activities on demand. This needs to include spend analysis against contractors and suppliers and component accounting at levels which can be determined by individual landlords (and others) to suit their requirements.
The contract will be for a duration of five years, followed by options to extend of 18 months each up to a maximum of 20 years. Options to extend will be awarded at the sole discretion of NEP and will be subject to satisfactory performance and delivery of the system.
II.1.6)Common procurement vocabulary (CPV)


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

The contract is covered by the Government Procurement Agreement (GPA): yes

This contract is divided into lots: no
II.1.9)Information about variants

Variants will be accepted: yes
II.2)Quantity or scope of the contract
II.2.1)Total quantity or scope:

Estimated value excluding VAT:
Range: between 2 500 000 and 3 500 000 GBP
II.2.2)Information about options

Options: yes
Description of these options: Options to extend of 18 months each up to a maximum contract duration of 20 years.
Provisional timetable for recourse to these options:
in months: 60 (from the award of the contract)
II.2.3)Information about renewals

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

Duration in months: 60 (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:
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
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: Please refer to the invitation to tender.
III.2.2)Economic and financial ability

Information and formalities necessary for evaluating if the requirements are met: Please refer to the invitation to tender.
Minimum level(s) of standards possibly required: Please refer to the invitation to tender.
III.2.3)Technical capacity

Information and formalities necessary for evaluating if the requirements are met:
Please refer to the invitation to tender.
Minimum level(s) of standards possibly required:
Please refer to the invitation to tender.
III.2.4)Information about reserved contracts
III.3)Conditions specific to services contracts
III.3.1)Information about a particular profession
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

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:

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

Prior information notice

of 11.12.2013

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

28.5.2014 – 01:00
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

IV.3.7)Minimum time frame during which the tenderer must maintain the tender

Duration in months: 3 (from the date stated for receipt of tender)
IV.3.8)Conditions for opening of tenders

Persons authorised to be present at the opening of tenders: no

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
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: North East Procurement will incorporate a minimum 10 day standstill period at the point information on the award of the contract is communicated to tenderers. This period allows unsuccessful tenderers to seek further debriefing from the Contracting Authority before the contract is entered into. Applicants have 2 working days from the notification of the award decision to request additional debriefing and that information has to be provided a minimum of 3 working days before the expiry of the standstill period. Should such additional information be required, please contact the person cited in paragraph 1.1 of this form.
If an appeal regarding the award of a contract has not been successfully resolved the Public Contracts Regulations (SI 2006 no 5) 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). Any such action must be brought promptly (within 3 months from the time the aggrieved party knew, or ought to have known, about the alleged breach).
Where a contract has not been entered into the court may order the setting aside of the award decision, or order the Contracting Authority to amend any document and may award damages. If the contract has been entered in to the court may order the setting aside of the contract, may award damages and impose a financial penalty on the Contracting Authority. Damages may also be available to any of the parties involved. The purpose of the standstill period referred to above is to allow parties the opportunity to challenge the award decision made by the Contracting Authority and, where appropriate, issue proceedings against the Contracting Authority which shall have the effect of automatically suspending the contract award procedure until the proceedings have been concluded.
VI.4.3)Service from which information about the lodging of appeals may be obtained

VI.5)Date of dispatch of this notice:9.4.2014