Public Sector Network Tender Alert

 

407656-2012: UK-London: Financial and insurance services

The Cabinet Office (the Client), a central government department in the UK, wishes to procure a loan book manager to manage the Government's civil society social investment loan books – Futurebuilders (including the Modernisation Fund).
The current intention is for loan book management of the Department of Health's Social Enterprise Investment Fund (SEIF) to be part of this procurement. This decision is subject to formal approval by the Department for Health and the Department has agreed to notify the Client of its decision before the submitted bids are opened. As a consequence, the Client has structured the procurement to allow for two possible options. Option A assumes the SEIF loan book will join the main loan book on 1 June 2014. Option B assumes SEIF will not join the Loan Book and the contract will cover Futurebuilders only. All bidders must be willing to deliver services for both Futurebuilders and SEIF.
At the point when the contract commences (between February 2013 and 1st April 2013), there would be £85.5 million outstanding on the Futurebuilders loan book, including capital and interest repayments. This is spread over 283 organisations, with loan repayments being made up until 2036. Without deducting bad debt, capital and interest returns over the three year period of the proposed initial contract period are projected to be approximately 30.5 million. Bad debt is currently below 8%.
The inclusion of the SEIF loan book in 1 June 2014 is likely to add an additional circa £19 million onto the outstanding capital and interest repayments and approximately 92 more organisations. 2012/13 is the last active investment year of the SEIF, and until this is completed in March 2013 then the exact loan book size and number of organisations will not be known, however bidders can be assured that there is not expected to be much change from these projected figures.
The key aims of the fund management (covering both Futurebuilders and SEIF) are as follows:
- Supports Investees that have existing loans, providing business support to help them access public services delivery opportunities and ensuring high levels of customer satisfaction;
- Learns lessons to support the wider social investment market; and
- Maximises loan returns so that returned funds can be put to good use;
The Client is tendering for the management of the loan books, which are now closed to new applicants, therefore new loans will not be provided under this contract.
The contract will run for an initial three year period through to March 2016, with the possibility of extending for a further three years plus three years (a total of nine years).

Ref: CO/100,

Contact:

Cabinet Office
1 Horse Guards Road
For the attention of: Alice Pippard
SW1A 2HQ London
UNITED KINGDOM
Telephone: +44 2072716333
E-mail: alice.pippard@cabinet-office.gsi.gov.uk
Internet address(es):
General address of the contracting authority: http://www.cabinetoffice.gov.uk
Further information can be obtained from: Cabinet Office
1 Horse Guards Road
For the attention of: Louise Beatty
SW1A 2HQ London
UNITED KINGDOM
E-mail: socialinvestmentloanbook@cabinet-office.gsi.gov.uk
Specifications and additional documents (including documents for competitive dialogue and a dynamic purchasing system) can be obtained from: Cabinet Office
1 Horse Guards Road
For the attention of: Louise Beatty
SW1A 2HQ London
UNITED KINGDOM
E-mail: socialinvestmentloanbook@cabinet-office.gsi.gov.uk
Tenders or requests to participate must be sent to: The above mentioned contact point(s)

Contract value: The budget for the management fee for the first year of the contract is set at a maximum of £855,000 ex vat per annum for the Futurebuilders elements of the loan book.The maximum budget for the rescue pot is £500,000 ex vat for the life time of the contract for the Futurebuilders elements of the loan book.The maximum budget for the one-off mobilisation is set at a maximum of 400,000 ex vat for the Futurebuilders elements of the loan book.The budget for the management fee is set at a maximum of £171,000 ex vat per annum for the SEIF elements of the loan book.The maximum budget for the rescue pot is £100,000 ex vat for the life time of the contract for the SEIF elements of the loan book.The maximum budget for the one-off mobilisation is set at a maximum of 20,000 ex vat for the SEIF elements of the loan book.The minimum scope of the contract for the FutureBuilders elements of the loan book covers the management fee, the rescue pot and the mobilisation fee for the initial 3 year term.The maximum scope of contract covers the management fee, the rescue pot and the mobilisation fee for the whole potential length of 9 years, for the Futurebuilders and the SEIF elements of the loan book.Please note:1) Payment for mobilisation will by made by the Client.2) Payment of the management fee will be taken from interest repayments collected from the loan books.3) Payment of the rescue pot (if approved by the Client) will be taken from interest repayments collected from the loan books.Estimated value excluding VAT: Range: between 1 and 10 254 000 GBP

Published: 22 Dec 2012, Receipt by: 21 Jan 2013