In the circumstances where Invest NI is entering into a Programme Partnership or a Strategic Partnership it should satisfy itself that the proposed EDO is the only potential supplier of the service. This rationale must be documented and approved. In the circumstances where Invest NI cannot satisfy itself that a single point tender is appropriate then it should revert to a competitive tendering process. Single point tender approval requires sign off by the Executive Director of Finance and Operations with final approval by the Chief Executive. EDO compliance with Public Procurement One of the key principles of engagement with EDOs is “EDOs should comply with Public Procurement rules in respect of activities funded by Invest NI. If an EDO obtains the majority of its income from government sources, it should comply with Public Procurement rules in respect of all expenditure”. To ensure compliance with this requirement Invest NI should ensure that all contractual documentation provides the EDO with guidance in respect of its procurement obligations. CPD can provide specific advice in this regard. A summary of current guidance is contained in Procurement Guidance Note 01/07 The Use of Grant for Procurement (Available at: )
Category Attributes Examples Issues Current guidance Form of contract Monitoring and control Programme Delivery Invest NI designed and controlled programme Part of Invest NI’s suite of programmes addressing needs of Invest NI’s client base (in narrow sense) Delivery of programme is undertaken by an external agent, chosen by public tender Often a private sector delivery agent No direct client contact for Invest NI SEFP Jobs Fund (Ortus) Procurement, VFM, form and content of contract, monitoring and control Collection of fees Exercise of discretion by Agent guidance Contract in line with terms and conditions of agreed Casework Submission (based on CPD standard contract terms) Clearly defined inputs and target outputs Regular monitoring by Client Executive backed up by a focused inspection process Assurance Statement Prompt evaluation Paid in arrears against vouched claims
Programme Partnership Externally designed and controlled programme Not part of Invest NI’s Business development Solutions but does address perceived needs of Invest NI’s client base (in broad sense) Often delivered by a Public Benefit Enterprise Craft NI, BioBusiness VFM, form and content of contract, monitoring and control Exercise of discretion by Agent guidance Contract in line with terms and conditions of agreed Casework Submission (based on CPD standard contract terms) In some instances Funding agreement in line with terms and conditions of agreed Casework Submission Clearly defined inputs and target outputs Regular monitoring by Client Executive backed up by a full inspection process Prompt evaluation Assurance Statement Paid in arrears against vouched claims
Strategic Partnership No specific programmes delivered from Invest NI funding Invest NI provides core funding as benefits perceived to be derived from the partnership for a variety of reasons Momentum, HALO VFM, form and content of contract, monitoring and control, reserves Some strategic partners may have specific programmes which fall into Programme Delivery or Programme Partnership categories guidance Contract in line with terms and conditions of agreed Casework Submission (based on CPD standard contract terms) In some instances Funding agreement in line with terms and conditions of agreed Casework Submission Clearly defined inputs and target outputs Regular monitoring by Client Executive backed up by a full inspection process Prompt evaluation Funded on a basis according to need and determined by an annual business plan appraisal May require capital funding to create reserves
Fund Management/Financial Contracted Service Funded, wholly or partly, by Invest NI to provide finance for end clients VC and loan funds A range of technical and structural issues. Business Appraisal team must be involved guidance Contract in line with terms and conditions of agreed Casework Submission (based on CPD standard contract terms) Monitored by Client Executive with assistance by Business Appraisal Team All new proposals for funding to be subject to a business appraisal A full comprehensive inspection process
7.1 Are there any risks or uncertainties associated with the proposal? YES/NO 7.2 If YES - Please give details of any risks and uncertainties and the countermeasures that will be put in place to minimise their impact. Also indicate for each option whether the level of risk is low, medium or high; this will determine the overall level of risk for each option and enable a comparison to be made. Description of Risk Option 1 Option 2 Option 3 Countermeasures (if appropriate) Risk 1 Risk 2 Risk 3 Risk 4 Assessment of Overall Risk (low, medium, high) 8. Summary & Recommendations (Where value less than £5,000 provide information for proposal only –treat as “optional”. Summary Table Option 1 Option 2 Option 3 Total Monetary Benefits if any (£)
(NPVs) ASSESS UNCERTAINTIES period, adjusted for inflation, optimism bias and (where relevant) displacement and tax differences. Calculate NPV (or NPC) for each option, using correct discount rate. Include spreadsheets detailing the calculations, including disaggregation of cost/benefit items. Show, for each year, the discount factors used, the total NPV for the year, and the cumulative NPV to that year. Identify the price basis and base year for discounting. Test and interpret the sensitivity of the NPVs (or NPCs) to changes in important assumptions, and explain choice of variations covered. Interpret the results e.g. estimate the probability of various possible outcomes and implications for option ranking. Provide sufficient detail to enable checking of calculations. Green Book chapter 5 and Annex 6 9. ASSESS ARRANGEMENTS FOR FINANCING, MANAGEMENT, PROCUREMENT, MARKETING, MONITORING EX POST EVALUATION Financing: Include budget, cash flow and funding statements, phased over time. Management: Give details of proposed personnel, procurement method, timetable, benefits realisation plan, accommodation needs, staffing issues etc. Marketing: Provide market assessment and marketing plan as appropriate Monitoring: Indicate how the proposed option will be monitored during and after implementation. Evaluation: Record levels of resource use and service provision. Indicate factors to be evaluated, when, how and by whom. „ Where funding the non-Govt sector is in view:- Assess Viability i.e. examine cash flows, management & financial arrangements to ensure that funding is not wasted on proposals that will fail prematurely. NI Practical Guide sections 2.9, 10 & 11 Green Book chapters 6 & 7 NI Practical Guide section 4.5 10. ASSESS THE BALANCE BETWEEN THE OPTIONS PRESENT THE RESULTS & Write up the steps of the appraisal in the order shown here. Give details of assumptions and calculations, using appropriate appendices. NI Practical Guide section 2.10 Green Book chapter 6