Tender for Financial Risk Management Solution 

Tender for Financial Risk Management Solution

The Bank of England intends to identify an economic operator to provide the Financial risk architecture simplification solution and services.

United Kingdom-London: IT services: consulting, software development, Internet and support

2019/S 151-372733

Contract notice


Legal Basis:

Directive 2014/24/EU

Section I: Contracting authority

I.1)Name and addresses

Bank of England
Threadneedle St.
United Kingdom
Contact person: Paul Abrahart
E-mail: technology.contracts@bankofengland.co.uk
NUTS code: UK
Internet address(es):Main address: http://www.bankofengland.co.uk

Address of the buyer profile: http://www.bankofengland.co.uk

I.2)Information about joint procurement


Access to the procurement documents is restricted. Further information can be obtained at: www.bankofenglandtenders.co.uk
Additional information can be obtained from the abovementioned address
Tenders or requests to participate must be submitted electronically via: www.bankofenglandtenders.co.uk

I.4)Type of the contracting authority

Body governed by public law

I.5)Main activity

Economic and financial affairs

Section II: Object

II.1)Scope of the procurement


Financial Risk Architecture Simplification Solution and Services

Reference number: DN393126

II.1.2)Main CPV code


II.1.3)Type of contract


II.1.4)Short description:

The Bank of England (‘the Bank’) intends to identify an economic operator to provide the Financial risk architecture simplification (FRAS) solution and services. FRAS delivers a new financial risk management framework covering the Bank’s balance sheet and the UK’s foreign exchange reserves. The Bank’s a new Financial risk management solution (FRMS) will favour a Commercial off the Shelf (COTS) software solution that is required to integrate seamlessly with its trading platform (OpenLink FINDUR), a number of internal source systems and in-house developed risk models to answer risk management questions and ensure trading is controlled in real-time according to applicable limits.

II.1.5)Estimated total value

Value excluding VAT: 3 000 000.00 GBP

II.1.6)Information about lots

This contract is divided into lots: no

II.2.2)Additional CPV code(s)


II.2.3)Place of performance

NUTS code: UK

II.2.4)Description of the procurement:

Through this procurement process the Bank is seeking to select an economic operator who can provide the following services*:

— provision of technology products including software,hardware and related services,

— solution capability to support the following functional categories:

(a) modelling — ability to plumb custom built models in the risk system and distribute calculations efficiently;

(b) limits configuration — ability to accurately apply limits at point of trade against a variety of different models and metrics;

(c) trade controls — visibility into real time limits usage, the ability to block trade input that would breach trade limits, and limit reserving/optimisation;

(d) end of day calculations — ability to aggregate data from a variety of systems and databases, call calculations and produce end of day processes;

(e) risk reporting — experience of creating real time risk dashboards, and the ability to allow users to create and customise reports;

(f) analytics and visualisation — visualisation tools and scenario what if capability, covering variations in market data and in portfolio composition.

And has the capability to assist the Bank in:

— successful implementation and integration of the solution,

— strategic planning and execution,

— innovation in the delivery of the services,

— adding additional services and/or removal of scope as required during the term.

*This list of services is not finalized or exclusive and is subject to refinement through the course of the procurement process.

It is anticipated that a maximum of five (5) bidders will receive the invitation to tender (ITT) following the selection questionnaire (SQ). Following the evaluation of the initial tender, the contracting authority reserves the rights to award on an initial tender or short-list three (3) highest scoring bidders and invite to participate in negotiation (ITN) which will be followed by invitation to submit final tender submissions, the highest scoring of which will be the preferred bidder.

II.2.5)Award criteria

Price is not the only award criterion and all criteria are stated only in the procurement documents

II.2.6)Estimated value

Value excluding VAT: 3 000 000.00 GBP

II.2.7)Duration of the contract, framework agreement or dynamic purchasing system

Duration in months: 60
This contract is subject to renewal: yes
Description of renewals:

Renewals after an initial term of 60 months.

II.2.9)Information about the limits on the number of candidates to be invited

Envisaged number of candidates: 5
Objective criteria for choosing the limited number of candidates:

The top ranking tenders that meet the minimum overall weighted score criteria will be selected for the ITT Stage. The contracting authority in accordance with Regulation 57 of the Public Contracts Regulations 2015 and as set out in the SQ.

II.2.10)Information about variants

Variants will be accepted: no

II.2.11)Information about options

Options: yes
Description of options:

The contracting authority reserves the right to extend the initial term for a further period of up to twenty four (24) months of two (2) successive twelve (12) months. Therefore, the total potential term of the contract is eighty four (84) months from the effective date.

II.2.12)Information about electronic catalogues

II.2.13)Information about European Union funds

The procurement is related to a project and/or programme financed by European Union funds: no

II.2.14)Additional information

The contracting authority reserves the right to amend the scale of the requirements at any time during the procurement process, or over the term of the contracts to provide additional scope and/or support any other Bank of England division or models.

Section III: Legal, economic, financial and technical information

III.1)Conditions for participation

III.1.1)Suitability to pursue the professional activity, including requirements relating to enrolment on professional or trade registers

List and brief description of conditions:

The contracting authority’s requirements will be set-out in the selection questionnaire (SQ) and/or subsequent documents issued during the procurement.

III.1.2)Economic and financial standing

Selection criteria as stated in the procurement documents

III.1.3)Technical and professional ability

Selection criteria as stated in the procurement documents
III.1.5)Information about reserved contracts
III.2)Conditions related to the contract
III.2.1)Information about a particular profession

III.2.2)Contract performance conditions:

A form of bond, guarantee or parent company guarantee may be required from the successful bidder.

III.2.3)Information about staff responsible for the performance of the contract

Section IV: Procedure


IV.1.1)Type of procedure

Competitive procedure with negotiation
IV.1.3)Information about a framework agreement or a dynamic purchasing system
IV.1.4)Information about reduction of the number of solutions or tenders during negotiation or dialogue

IV.1.5)Information about negotiation

The contracting authority reserves the right to award the contract on the basis of the initial tenders without conducting negotiations
IV.1.6)Information about electronic auction

IV.1.8)Information about the Government Procurement Agreement (GPA)

The procurement is covered by the Government Procurement Agreement: yes
IV.2)Administrative information
IV.2.1)Previous publication concerning this procedure

IV.2.2)Time limit for receipt of tenders or requests to participate

Date: 04/09/2019
Local time: 12:00
IV.2.3)Estimated date of dispatch of invitations to tender or to participate to selected candidates

IV.2.4)Languages in which tenders or requests to participate may be submitted:


IV.2.6)Minimum time frame during which the tenderer must maintain the tender

Duration in months: 6 (from the date stated for receipt of tender)
IV.2.7)Conditions for opening of tenders

Section VI: Complementary information

VI.1)Information about recurrence

This is a recurrent procurement: no
VI.2)Information about electronic workflows

VI.3)Additional information:

FRAS will be a key part of the Bank’s processes. The nature of the solution means that strict security controls are deployed to protect the service. As such, the Bank will, where required, apply such measures throughout the procurement process as necessary (in accordance with Regulation 15(2) of the Public Contract Regulations 2015), to protect the essential security interests of the UK.

Initially, in accordance with the ability for the Bank to impose requirements aimed at protecting the confidential nature of the information in the procurement documents access to procurement documents (other than the SQ) is restricted to those bidders who are invited to the next stage of the procurement process following evaluation of all responses to the SQ.

All bidders will be required to enter into a non-disclosure agreement (NDA) with the Bank prior to the SQ phase.

Electronic access to the non-disclosure agreement (NDA) is available at: www.bankofenglandtenders.co.uk

Electronic access to the selection questionnaire (SQ) is available at: www.bankofenglandtenders.co.uk

Suppliers who wish to participate in this procurement process must submit their expressions of interest with a signed NDA at the earliest to gain access to the SQ.

Any variant bids will only be acceptable if the Bank agrees to any variation in advance of a bid being submitted.

Subject to the below, bidders will remain responsible for all costs and expenses incurred by them or by any third party acting under instructions from bidders in connection with taking part in this procurement, regardless of whether such costs arise as a consequence direct or indirect of any amendments made to the procurement documents by the Bank at any time. The Bank reserves the right at any time to:

(i) reject any or all responses and to cancel or withdraw this procurement at any stage;

(ii) award a contract without prior notice;

(iii) change the basis, the procedures and the timescales set out or referred to within the procurement documents;

(iv) require a bidder to clarify any submissions in writing and/or provide additional information (failure to respond adequately may result in disqualification);

(v) terminate the procurement process; and

(vi) amend the terms and conditions of the selection and evaluation process.

The Bank is a public authority subject to the off-payroll working in the public sector legislation which came into force in April 2017 (see Sections 61K to 61X of Chapter 10 of Part 2 of the Income Tax (Earnings and Pensions) Act 2003). The off-payroll working rules require, in circumstances where an individual providing services through a personal services company would have been an employee for tax purposes if they were providing their services directly to a public authority, that the individual pays broadly the same income tax and national insurance contributions as an employee. Prior to entering into any contract the Bank will assess whether the legislation applies to any individual assigned by a successful supplier to work on the programme and inform it of the outcome of its assessment. Where the off-payroll working rules apply income tax and employee national insurance contributions will need to be deducted from payments made to the relevant individual’s personal services company. In addition employer national insurance contributions and possibly apprenticeship levy will need to be paid by the entity making the payments to that personal services company. Any successful supplier would need to take make its own determination as to their obligations under such provisions.

VI.4)Procedures for review

VI.4.1)Review body

High Court of England and Wales
Royal Courts of Justice, Strand
United Kingdom
VI.4.2)Body responsible for mediation procedures

VI.4.3)Review procedure

Precise information on deadline(s) for review procedures:

Any review proceedings will be dealt with in accordance with the requirements of the Public Contracts Regulations 2015 (‘PCR 2015’). Any review proceedings must be brought within the timescales specified by the applicable law, including, without limitation, PCR 2015. In accordance with PCR 2015, the contracting party will incorporate a minimum ten (10) calendar day standstill period from the date information on the award of the contract is communicated to tenderers. The notification will provide full information on the award decision.

VI.4.4)Service from which information about the review procedure may be obtained

Bank of England
Threadneedle Street
United Kingdom

VI.5)Date of dispatch of this notice: