Public procurement notice: Contract Notice
Published: 2018-04-10
Buyer: Ministry of Defence, C&C, Other
Country: UK
Contract type: Services
Procedure: Negotiated procedure
CPV classification: 66520000 | 72222300: Information technology services | 75112000 | 79512000 | 79631000
Estimated value:  GBP
Submission deadline: 2018-05-07
Award criteria: The most economic tender

Technical requirements: Future Service Delivery Contract (FSDC): Provision of Armed Forces Pay, Pensions and Military HR and Administrative Services
Administrative services for business operations. Information technology services. Call centre. Personnel and payroll services. Miscellaneous business and business-related services. Pension services. The proposed FSDC will cover the Armed Forces and Veterans Defence Business Services (DBS) services that are currently outsourced, which at a high level consist of:
a. A variety of personnel support services for the Royal Navy, Army and Royal Air Force, in the form of Joint personnel administration (JPA), which is the MOD’s current Military Payroll and Expenses HR system, and pensions; and
b. The development and maintenance of a range of supporting Information system (IS) applications and elements of IS infrastructure.
c. Potentially expand the current contract scope by including services currently carried out in house by Defence.
A detailed Service requirement document (SRD) and Data room has been developed and will be issued to those potential providers who are successful at the Pre-qualification Questionnaire (PQQ) stage as part of the Invitation to negotiate (ITN) documentation.
The accompanying Information memorandum provides background information and an overview of the scale and scope of the services to be delivered, including the commercial approach to the negotiation, evaluation and contract. The key components of the FSDC requirement are listed below:
a. Payroll and expenses, controls and accounting services (including financial accounting with interfaces to other MOD and other Government Department (OGD) systems);
c. The administration of several Military pension and Compensation schemes (including payment and financial accounting with interfaces to other MOD and Other Government Department (OGD) financial systems);
d. An Information system (IS) service in support of JPA, Pensions and compensation schemes and a broad range of complementary applications and interfaces;
e. A Personnel Administration Centre incorporating User access control (UAC), with an incident and issue management matrix and capability including an Enquiry service, with multiple support channels for self-service, professional and corporate users of JPA, Pensions, Compensation schemes and IS/Information technology (IT);
f. The provision of Personnel services in support of the Armed Forces with significant Business processing operations (BPO);
g. Delivery of a full change programme to both Information technology operations (ITO) and BPO. Provide a more flexible approach to the change delivery process.
h. The MOD will rely upon a successful contract to enable their own change strategies for personnel to be delivered; and
The delivery of these services/outputs will initially be supported by a range of existing applications and technologies that are already in place; these include Oracle Human resource management system (HRMS) configured to deliver JPA, plus various Compensation and pensions systems (with varying degrees of integration to JPA). In addition there are several other complementary applications and a Management information platform. Multiple interfaces exist between internally hosted applications and also with external organisations and their applications.

Eligibility requirements: (a) Appropriate statements from the economic operator's bankers or where appropriate, evidence of relevant professional risk indemnity insurance (b) The presentation of balance-sheets or extracts from the balance-sheets, where publication of the balance-sheet is required under the law of the country in which the economic operator is established (c) where appropriate, a statement, covering the 3 previous financial years of the economic operator, of: (i) the overall turnover of the business of the economic operator; and (ii) where appropriate, the turnover in respect of the work, works, goods or services which are of a similar type to the subject matter of the contract. The following additional financial information will be required for pre qualification in accordance with Regulation 24 of the DSPCR 2011: — Alternative means of demonstrating financial status (if trading less than a year). — 3 years of certified audited accounts in statutory form, including profit and loss account, balance sheet and a cash flow statement. The Authority will request this information through a formal pre-qualification questionnaire which will be issued to parties that respond to this contract notice expressing an interest. In addition to the above the Authority also reserves the right to request any additional information which it considers necessary in order to demonstrate that the Potential Provider has sufficient economic and financial resources to deliver the contract.
The estimated annual contract value is 50 000 000 GBP. If the estimated annual contract value is greater than 25 % of the supplier’s turnover, the Authority reserves the right to exclude the supplier from being selected to tender except where the supplier provides, to the satisfaction of the Authority, evidence showing it has sufficient economic and financial capability, e.g. such evidence may include: (1) Any additional information proving it has sufficient economic and financial resources to deliver the requirement; and (2) State whether the supplier is willing to provide the Authority with an indemnity, guarantee or bank bond. A financial assessment will be undertaken on the supplier’s financial status. An overall pass / fail judgement will be made after considering areas such as turnover, profit, net assets, liquidity, gearing and capacity. This assessment will include the Parent company where applicable. An independent financial assessment obtained from a reputable credit rating organisation will be utilised as part of this process.
(m) in the case of contracts involving, entailing or containing classified information, evidence of the ability to process, store and transmit such information at the level of protection required by the contracting authority The Authority will request the information listed above and other information through a formal Pre-qualification Questionnaire. In addition to the above the Authority also reserves the right to request any additional information which it considers necessary in order to demonstrate that the Potential Provider has sufficient technical and/or professional capacity to deliver the contract. Minimum standards are set out in the PQQ and section III.1.4 of this Notice.
(m) in the case of contracts involving, entailing or containing classified information, evidence of the ability to process, store and transmit such information at the level of protection required by the contracting authority The Authority will request the information listed above and other information through a formal Pre-qualification Questionnaire. In addition to the above the Authority also reserves the right to request any additional information which it considers necessary in order to demonstrate that the Potential Provider has sufficient technical and/or professional capacity to deliver the contract.
Minimum standards are set out in the PQQ and section III.1.4 of this Notice.
The main contractor will be required to provide evidence of its subcontractor’s ability to process, store and transmit classified information in accordance with the standards set out in section III.1.4 of this notice.
The Authority reserves the right under Article 21(5) of Directive 2009/81/EC to reject any subcontractor chosen by the main contractor at any stage of the contract award procedure or during performance of the contract if that subcontractor: (1) requires access to classified information at Official – Sensitive including Official – Sensitive personal; and (2) fails to provide evidence to the satisfaction of the Authority that it has the capability to protect that level of classified information in accordance with Article 42.1(j) of Directive 2009/81/EC.