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Outsource Services.

Contract notice


Directive 2004/18/EC

Section I: Contracting authority

I.1)Name, addresses and contact point(s)

National Savings and Investments
1 Drummond Gate
For the attention of: Malcolm Edwards
SW1V 2QX London
Telephone: +44 2079326873

Internet address(es):

General address of the contracting authority:

Further information can be obtained from: The above mentioned contact point(s)

Specifications and additional documents (including documents for competitive dialogue and a dynamic purchasing system) can be obtained from: The above mentioned contact point(s)

Tenders or requests to participate must be sent to: The above mentioned contact point(s)

I.2)Type of the contracting authority
Ministry or any other national or federal authority, including their regional or local sub-divisions
I.3)Main activity
Economic and financial affairs
I.4)Contract award on behalf of other contracting authorities
The contracting authority is purchasing on behalf of other contracting authorities: yes

Section II: Object of the contract

II.1.1)Title attributed to the contract by the contracting authority:
Outsource Services.
II.1.2)Type of contract and location of works, place of delivery or of performance
Service category No 7: Computer and related services
Main site or location of works, place of delivery or of performance: Throughout the UK. The current provider currently delivers services from the NS&I; locations at London, Glasgow, Blackpool, Durham and from their own location in Chennai, India.

NUTS code UK

II.1.3)Information about a public contract, a framework agreement or a dynamic purchasing system (DPS)
The notice involves a public contract
II.1.4)Information on framework agreement
II.1.5)Short description of the contract or purchase(s)

NS&I; (National Savings and Investments) is a government department and Executive Agency of the Chancellor of the Exchequer. It is one of the UK's largest retail savings and investments organisations with invested assets of circa 100 000 000 000 GBP from approximately 26 000 000 customers (2011). NS&I;'s role is to help reduce the cost to the taxpayer of UK Government borrowing. This is achieved by offering a portfolio of secure retail financial savings and investments products to UK customers, providing a cost effective means of contributing towards the national debt compared with raising funds on the wholesale market. Our products are available direct through our website and our UK call centres. We work closely with the Post Office Ltd and WHSmith, and financial intermediaries. NS&I; is based predominantly in a single London office. As a government agency, we are not regulated by the FSA, but we aim to follow its principles where they are relevant to our business, especially with regard to "treating customers fairly". We pride ourselves on delivering excellent customer service and this, together with the security we can offer to customers, forms the key element of our customer proposition. NS&I; outsourced its operational services in 1999 and is now seeking to retender these operational services, including all processing of customer interactions and servicing (eg sales, after sales management and payments including via telephone, internet and mail); service management; IT development and implementation; and other services (eg complaint handling, channel management, customer management, print and document management, customer market research and analysis, campaign management, compliance, management information etc), and other related ancillary services that support the business operation of NS&I.; In addition NS&I; now delivers similar operational services (so called B2B services) to other public sector organisations. We intend to expand this B2B service during the lifetime of the contract to deliver to other organisations, potentially resulting in significant growth of the outsourced operational services. NS&I; intends to structure the contract so that it may be used by other central government departments (including their executive agencies and non-departmental public bodies) and by local authorities. NS&I; also intends to permit the contractor to make the services provided under the contract available to private sector entities provided that this does not affect the provision of service to NS&I.; NS&I; expects to work in partnership with its selected provider and as part of that relationship the provider will be required to operate in a completely open and transparent fashion with full disclosure of its costs and performance to NS&I.; Please register your interest at 1. Click on Current Tender Opportunities 2. Click on ‘NS&I; Business Process Outsourcing Services re-tender’ You will then be able to access the Pre-Qualification Questionnaire and Prospectus which will give you more information regarding the opportunity and the procurement process to be followed.

II.1.6)Common procurement vocabulary (CPV)

66110000, 22140000, 22150000, 22160000, 22440000, 22813000, 22822000, 32420000, 32500000, 48170000, 48440000, 48444000, 48445000, 48463000, 48500000, 48612000, 48700000, 48811000, 48812000, 48820000, 48990000, 50300000, 51611000, 51611100, 64214000, 64215000, 66115000, 66171000, 66172000, 66500000, 66510000, 66600000, 70332000, 72000000, 75110000, 75112000, 75112100, 75120000, 75130000, 75131000, 79211200, 79342000, 79342100, 79342200, 79342310, 79400000, 79420000, 79512000, 79993000, 79999100

II.1.7)Information about Government Procurement Agreement (GPA)
The contract is covered by the Government Procurement Agreement (GPA): yes
This contract is divided into lots: no
II.1.9)Information about variants
Variants will be accepted: yes
II.2)Quantity or scope of the contract
II.2.1)Total quantity or scope:
Scope of the contract will be for business process outsourcing services and application services for an initial period of 8 years of which it is expected transition will last for up to a year prior to delivery of the services. Duration of the contract is 96 months (from the award of the contract), extendable for a further 36 months. Average estimated annual volumes for 26 million customers (excluding B2B services) are:
- 14 000 000 000 - 15 000 000 000 GBP of receipts,
- 12 000 000 000 GBP of payments,
- 55 000 000 transactions,
- 4 000 000 telephone calls Contract range up to approximately 2 000 000 000 GBP, with a likely contract range of approximately 1 250 000 000 to 1 500 000 000 GBP, depending upon the uptake of B2B services.
Estimated value excluding VAT:
Range: between 1 250 000 000 and 2 000 000 000 GBP
II.2.2)Information about options
Options: yes
Description of these options: Option to extend up to a maximum 11 years total contract life.
II.2.3)Information about renewals
II.3)Duration of the contract or time limit for completion
Duration in months: 96 (from the award of the contract)

Section III: Legal, economic, financial and technical information

III.1)Conditions relating to the contract
III.1.1)Deposits and guarantees required:
The Authority reserves the right to request an ultimate parent company guarantee or performance bond as a condition of awarding any contract.
III.1.2)Main financing conditions and payment arrangements and/or reference to the relevant provisions governing them:
To be outlined in the draft bidders pack and part of competitive dialogue.
III.1.3)Legal form to be taken by the group of economic operators to whom the contract is to be awarded:
A prime/sub-contractor arrangement. A single economic operator should act as prime contractor with other economic operators as sub-contractors to the prime as necessary.
III.1.4)Other particular conditions
The performance of the contract is subject to particular conditions: no
III.2)Conditions for participation
III.2.1)Personal situation of economic operators, including requirements relating to enrolment on professional or trade registers
III.2.2)Economic and financial ability
Information and formalities necessary for evaluating if the requirements are met: See Supplier Selection Questionnaire for details.
III.2.3)Technical capacity
Information and formalities necessary for evaluating if the requirements are met:
See Supplier Selection Questionnaire.
III.2.4)Information about reserved contracts
III.3)Conditions specific to services contracts
III.3.1)Information about a particular profession
Execution of the service is reserved to a particular profession: no
III.3.2)Staff responsible for the execution of the service
Legal persons should indicate the names and professional qualifications of the staff responsible for the execution of the service: no

Section IV: Procedure

IV.1)Type of procedure
IV.1.1)Type of procedure
competitive dialogue
IV.1.2)Limitations on the number of operators who will be invited to tender or to participate
Envisaged minimum number 3: and maximum number 5
Objective criteria for choosing the limited number of candidates: Provided in the Supplier Selection Questionnaire.
IV.1.3)Reduction of the number of operators during the negotiation or dialogue
Recourse to staged procedure to gradually reduce the number of solutions to be discussed or tenders to be negotiated yes
IV.2)Award criteria
IV.2.1)Award criteria
The most economically advantageous tender in terms of the criteria stated in the specifications, in the invitation to tender or to negotiate or in the descriptive document
IV.2.2)Information about electronic auction
An electronic auction will be used: no
IV.3)Administrative information
IV.3.1)File reference number attributed by the contracting authority:
IV.3.2)Previous publication(s) concerning the same contract

Prior information notice

Notice number in the OJEU: 2011/S 117-193376 of 21.6.2011

IV.3.3)Conditions for obtaining specifications and additional documents or descriptive document
Payable documents: no
IV.3.4)Time limit for receipt of tenders or requests to participate
23.12.2011 - 12:00
IV.3.5)Date of dispatch of invitations to tender or to participate to selected candidates
IV.3.6)Language(s) in which tenders or requests to participate may be drawn up
IV.3.7)Minimum time frame during which the tenderer must maintain the tender
IV.3.8)Conditions for opening tenders

Section VI: Complementary information

VI.1)Information about recurrence
This is a recurrent procurement: no
VI.2)Information about European Union funds
The contract is related to a project and/or programme financed by European Union funds: no
VI.3)Additional information
The Authority reserves the right to: - accept all or part of any tender unless the tenderer expressly stipulates otherwise; - abandon the procurement process and not award any contract; - make any changes it sees fit to the procurement process; - award more than one contract and/or - remove and/or amend element(s) from the scope of the requirements The Authority shall in no event be liable for any costs incurred by any party as a result of its participation in this procurement process.
VI.4)Procedures for appeal
VI.4.1)Body responsible for appeal procedures
VI.4.2)Lodging of appeals
Precise information on deadline(s) for lodging appeals: The Authority will incorporate a minimum 10 calendar day standstill period at the point information on the award of the contract is communicated to tenderers. Applicants who are unsuccessful shall be informed by the Authority as soon as possible after the decision has been made as to the reasons why the Applicant was unsuccessful. The Public Contracts Regulations 2006 (SI 2006 No. 5) provide for aggrieved parties who have been harmed or are at risk of harm by breach of the rules to take legal action. Any such action must be brought within the applicable limitation period. Where a contract has not been entered into, the Court may order the setting aside of the award decision or order the authority to amend any document and may award damages. If the contract has been entered into the Court may, depending on the circumstances, award damages, make a declaration of ineffectiveness, order the Authority to pay a fine, and/or order that the duration of the contract be shortened. The purpose of the standstill period referred to above is to allow the parties to apply to the Courts to set aside the award decision before the contract is entered into.
VI.4.3)Service from which information about the lodging of appeals may be obtained

National Savings & Investments
1 Drummond Gate
SW1V 2QX London
Internet address:

VI.5)Date of dispatch of this notice: