Public procurement notice: Contract Notice
Published: 2016-11-10
Buyer: Derry City and Strabane District Council
Country: UK
Region: North of Northern Ireland
Contract type: Services
Procedure: Open procedure
CPV classification: 60400000: Air transport services | 60410000: Scheduled air transport services
Submission deadline: 2016-12-30
Award criteria: The most economic tender

Technical requirements: The appointment of an airline Operator to provide a scheduled return air service between City of Derry Airport and a London Area Airport (LON).
Derry City & Strabane District Council is seeking to procure the services of an airline Operator to provide a scheduled air service between City of Derry Airport (CODA) and a London Area Airport (LON). LON has been defined by the Department for Transport (DfT) as any airport that can access transport zone 1of London within 60 minutes by rail.
This will be conducted using an EU Open Procurement procedure with a 2 month tender return period as prescribed in the Regulation (EC) No 1008/2008 of the European Parliament and of the Council on common rules for the operation of air services in the Community.
This document contains information about the procurement process, the Services, and sets out the conditions for submission of a tender.
City of Derry Airport is owned by Derry City & Strabane District Council and is operated by City of Derry Airport Operations Limited, a Private Limited Organisation wholly owned by Derry City & Strabane District Council since the airport company was incorporated in 2010. The annual passenger traffic using the Airport grew historically at a rapid rate and peaked at nearly 450 000 ppa, before the economic downturn, and fell to 338 505ppa in 2010. Over time, the economic recovery led to a steady rise in traffic to approximately 412 000 ppa with a number of new services following incorporation in 2010 but, due to the reduction in services and Ryanair's changing priorities, passenger numbers have has fallen since 2011. In 2015/16 the airport handled 291 000 passengers with about 126 000 on the route between the airport and London Stansted.
In August 2016 Ryanair who currently operate the London Stansted route informed the airport management team that they would be withdrawing the route from end on the winter 2016 season in late March 2017. This is due to a strategic decision by Ryanair to reduce the number of aircraft that they base at London Stansted as a direct consequence of their focus on European markets other than the United Kingdom.
As the London route provides most passenger numbers at the airport, it is likely that there would be a significant reduction in jobs at the airport and elsewhere in the north-west of Ireland if the London service ceased. The significant reduction in passenger numbers could result in the required Council subsidy to continue airport operations becoming unsustainable, which would lead to the closure of the airport to scheduled services. From estimates, this reduction in employment alone would reduce the regions GVA by 10 000 000 GBP, taking account of direct jobs and indirect GVA generated by airport employed staff alone.
City of Derry Airport has been in discussions with other possible Operators, but no new Operator has committed to operating a service between City of Derry and London beyond 26.3.2017.
Derry City & Strabane District Council submitted a Public Service Obligation (PSO) eligibility proposal to the Department for Transport (DfT) in August 2016 for the appointment of an air Operator to provide a twice daily (morning & evening) return service to a London Airport from/to City of Derry Airport. DfT approved the proposal on 20.9.2016.
No deposits will be required but where applicable the successful tenderer (or in the case of a consortium bid, each member of the consortium) may be required to provide a parent company guarantee or alternative performance bond.
Parties will be provided with detailed instructions concerning the information they must provide. This will be contained in the Supplier Eligibility Criteria at Part B of the ITT. Consideration will only be given to those contractors who complete the Supplier Eligibility Criteria.
Economic operators subject to any of the following [may/will] not be considered where the said operator.
(a) is bankrupt or is being wound up, where their affairs are being administered by the court, where they have entered into an arrangement with creditors, where they have suspended business activities or is in any analogous situation arising from a similar procedure under national laws and regulations.
(b) is the subject of proceedings for a declaration of bankruptcy, for an order for compulsory winding up or administration by the court or of an arrangement with creditors or of any other similar proceedings under national laws and regulations.
(c) has been convicted by a final judgment in accordance with the legal provisions of the country of any offence concerning his professional conduct.

Eligibility requirements: Parties will be provided with detailed instructions concerning the information they must provide. This will be contained in the Supplier Eligibility Criteria at Part B of the ITT. Consideration will only be given to those contractors who complete the Supplier Eligibility Criteria. Economic operators subject to any of the following [may/will] not be considered where the said operator. (a) is bankrupt or is being wound up, where their affairs are being administered by the court, where they have entered into an arrangement with creditors, where they have suspended business activities or is in any analogous situation arising from a similar procedure under national laws and regulations. (b) is the subject of proceedings for a declaration of bankruptcy, for an order for compulsory winding up or administration by the court or of an arrangement with creditors or of any other similar proceedings under national laws and regulations. (c) has been convicted by a final judgment in accordance with the legal provisions of the country of any offence concerning his professional conduct. (d) has been guilty of grave professional misconduct proven by any means which the contracting authorities can demonstrate. (e) has not fulfilled obligations relating to the payment of social security contributions in accordance with the legal provisions of the country in which they are established or with those of the country of the contracting authority. (f) has not fulfilled obligations relating to the payment of taxes in accordance with the legal provisions of the country in which they are established or with those of the country of the contracting authority. (g) is guilty of serious misrepresentation in supplying the information required under this section or has not supplied such information. (h) has been the subject of a conviction for participation in a criminal organisation, as defined in Article 2(1) of Council Joint Action 98/733/JHA. (i) has been the subject of a conviction for corruption, as defined in Article 3 of the Council Act of 26 June 1972 and Article 3(1) of Council Joint Action 98/742/JHA3 respectively. (j) has been the subject of a conviction for fraud within the meaning of Article 1 of the Convention relating to the protection of the financial interests of the European Communities. (k) has been the subject of a conviction for money laundering, as defined in Article 1 of Council Directive 91/308/EEC of 10 June 1991 on prevention of the use of the financial system for the purpose of money laundering. (l) has been the subject of a conviction for failing to prevent Bribery or Corruption as stated under section 7 of the Bribery Act 2010. May include, but shall not be limited to: (a) appropriate statements from banks 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) a statement of the undertaking's overall turnover and, where appropriate, of turnover in the area covered by the contract for a maximum of the last three financial years available, depending on the date on which the undertaking was set up or the economic operator started trading, as far as the information on these turnovers is available. (d) the criteria listed in III.2.1; and (e) any other information or documents referred to in the Supplier Eligibility Criteria. Minimum level(s) of standards possibly required: Please refer to the Supplier Eligibility Criteria. May include, but shall not be limited to: (a) a list of the services carried out over the past five years, accompanied by certificates of satisfactory execution for the most important works. These certificates shall indicate the value, date and site of the services and shall specify whether they were carried out according to the rules of the trade and properly completed. Where appropriate, the competent authority shall submit these certificates to the contracting authority direct. (b) a list of the principal deliveries effected or the main services provided in the past three years, with the sums, dates and recipients, whether public or private, involved. Evidence of delivery and services provided shall be given: — where the recipient was a contracting authority, in the form of certificates issued or countersigned by the competent authority, — where the recipient was a private purchaser, by the purchaser's certification or, failing this, simply by a declaration by the economic operator. (c) an indication of the technicians or technical bodies involved, whether or not belonging directly to the economic operator's undertaking, especially those responsible for quality control. (d) Not used. (e) Not used. (f) the educational and professional qualifications of the service provider or contractor and/or those of the undertaking's managerial staff and, in particular, those of the person or persons responsible for providing the services or managing the work. (g) for public works contracts and public services contracts, and only in appropriate cases, an indication of the environmental management measures that the economic operator will be able to apply when performing the contract. (h) a statement of the average annual manpower of the service provider or contractor and the number of managerial staff for the last three years. (i) a statement of the tools, plant or technical equipment available to the service provider or contractor for carrying out the contract. (j) an indication of the proportion of the contract which the services provider intends possibly to subcontract. (k) with regard to the products to be supplied: (i) samples, descriptions and/or photographs, the authenticity of which must be certified if the contracting authority so requests. (ii) certificates drawn up by official quality control institutes or agencies of recognised competence attesting the conformity of products clearly identified by references to specifications or standards. (m) the criteria listed in III.2.1; and (n) any other information or documents referred to in the Supplier Eligibility Criteria. Minimum level(s) of standards possibly required: Please refer to the Supplier Eligibility Criteria.
May include, but shall not be limited to: (a) appropriate statements from banks 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) a statement of the undertaking's overall turnover and, where appropriate, of turnover in the area covered by the contract for a maximum of the last three financial years available, depending on the date on which the undertaking was set up or the economic operator started trading, as far as the information on these turnovers is available. (d) the criteria listed in III.2.1; and (e) any other information or documents referred to in the Supplier Eligibility Criteria. Minimum level(s) of standards possibly required: Please refer to the Supplier Eligibility Criteria.
May include, but shall not be limited to: (a) a list of the services carried out over the past five years, accompanied by certificates of satisfactory execution for the most important works. These certificates shall indicate the value, date and site of the services and shall specify whether they were carried out according to the rules of the trade and properly completed. Where appropriate, the competent authority shall submit these certificates to the contracting authority direct. (b) a list of the principal deliveries effected or the main services provided in the past three years, with the sums, dates and recipients, whether public or private, involved. Evidence of delivery and services provided shall be given: — where the recipient was a contracting authority, in the form of certificates issued or countersigned by the competent authority, — where the recipient was a private purchaser, by the purchaser's certification or, failing this, simply by a declaration by the economic operator. (c) an indication of the technicians or technical bodies involved, whether or not belonging directly to the economic operator's undertaking, especially those responsible for quality control. (d) Not used. (e) Not used. (f) the educational and professional qualifications of the service provider or contractor and/or those of the undertaking's managerial staff and, in particular, those of the person or persons responsible for providing the services or managing the work. (g) for public works contracts and public services contracts, and only in appropriate cases, an indication of the environmental management measures that the economic operator will be able to apply when performing the contract. (h) a statement of the average annual manpower of the service provider or contractor and the number of managerial staff for the last three years. (i) a statement of the tools, plant or technical equipment available to the service provider or contractor for carrying out the contract. (j) an indication of the proportion of the contract which the services provider intends possibly to subcontract. (k) with regard to the products to be supplied: (i) samples, descriptions and/or photographs, the authenticity of which must be certified if the contracting authority so requests. (ii) certificates drawn up by official quality control institutes or agencies of recognised competence attesting the conformity of products clearly identified by references to specifications or standards. (m) the criteria listed in III.2.1; and (n) any other information or documents referred to in the Supplier Eligibility Criteria. Minimum level(s) of standards possibly required: Please refer to the Supplier Eligibility Criteria.