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Cabinet Office on behalf of HM Government is seeking a private sector partner (the Connected Partner) interested in subscribing for a majority shareholding (up to 75%) of the equity of SSCL, a new company set up to deliver a range of business ...

Contract award notice


Directive 2004/18/EC

Section I: Contracting authority

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

Cabinet Office
ISSC2 Crown Oversight Function (COF), Yellow Zone, 4th Floor, 1 Horse Guards Road
Contact point(s): Supplier Support
For the attention of: ISSC2 Crown Oversight Function
SW1A 2HQ London
Telephone: +44 3450103503

Internet address(es):

General address of the contracting authority:

Address of the buyer profile:

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
General public services
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
Shared Services Connected Ltd (SSCL).
II.1.2)Type of contract and location of works, place of delivery or of performance
Service category No 27: Other services
Main site or location of works, place of delivery or of performance: Main site or location of works, place of delivery or of performance: Various across the United Kingdom.

NUTS code UK

II.1.3)Information about a framework agreement or a dynamic purchasing system (DPS)
The notice involves the establishment of a framework agreement
II.1.4)Short description of the contract or purchase(s)
Cabinet Office on behalf of HM Government is seeking a private sector partner (the "Connected Partner") interested in subscribing for a majority shareholding (up to 75%) of the equity of SSCL, a new company set up to deliver a range of business services to various Government Departments and other public sector bodies. SSCL will initially be owned 100% by the Cabinet Office on behalf of HM Government. Following the acquisition by the Connect Partner of a majority stake in SSCL (and subject to any employee incentivisation arrangements introduced by the Connected Partner), HM Government intends to retain a substantial minority stake in SSCL.
The successful Connected Partner is expected to bring a combination of:
- funding for investment in SSCL and service provision to existing and future customers;
- experience of working successfully in joint ventures and partnerships with the public or private sector;
- the ability to deliver reliable, high-quality business services at competitive prices;
- well-proven transition and transformation capabilities, and the ability to build a growing, profitable, sustainable business;
- a demonstrable commitment to employee incentivisation (through, for example, profit share schemes, mutualisation or other means); and
- capacity and capability in the development, promotion, sale and delivery of business services, including the development and provision of other value added services to other customers, both in the private and public sectors.

SSCL is being established, pursuant to the Government's Next Generation Shared Services Strategic Plan

HM Government proposes to make an initial investment in SSCL through the divestment to it of shared service centres currently operated by the Department for Work and Pensions ("DWP"), Department of Environment and Rural Affairs (Defra) and the Environment Agency ("EA"). With effect from 1 April 2015, certain of the services provided by the shared service centre operated by UK Shared Business Services Ltd (formerly known as Research Councils UK Shared Services Limited) are also expected to be transferred to SSCL. The shared service centres operated by DWP, Defra and EA had a total employee base of approximately 1,100 Full Time Equivalents ("FTE") as at 28.2.2013 and have an associated cost of c GBP 65-70 million on the latest outturn financials for the year to 31.3.2013, after adjustments to reflect the services in scope for transfer and allocation of shared costs.
HM Government acting through the Cabinet Office will award to SSCL a Framework Agreement in accordance with the terms of this Notice. Call Off Contracts will then be entered into between SSCL and the initial customers of SSCL ("Initial Customers") which are expected to comprise the existing customers of the shared service centres operated by DWP, Defra, the Environment Agency, and, with effect from 1.4.2015, UK Shared Business Services Ltd (a list of the Initial Customers is available in the Pre Qualification Questionnaire documentation referred to in this Notice). The composition of participating Departments and Initial Customers could be subject to change during the approval process. Together these Initial Customers represent a current user community of some 140,000 - 150,000 users.
Business services expected to be provided by SSCL under the Framework Agreement and Call off Contracts awarded pursuant to this Notice include HR, Finance and Accounts, Payroll and Procurement transactional services, as well as a range of other value added business services.
The successful candidate for the role of Connected Partner will, through the procedure contemplated by this Notice, acquire and hold equity share capital in SSCL through a Shareholders' Agreement, Articles of Association, Subscription Agreement and related documents. As described, SSCL will have the benefit of the Framework Agreement and Call off Contracts awarded pursuant to this Notice.
In addition to the Initial Customers referred to above, it is intended that the Framework Agreement will allow SSCL to provide the services specified above to other public sector bodies including but not limited to all UK Government Departments and their Arm's Length Bodies and Agencies; Non Departmental Public Bodies (NDPBs); and NHS bodies and Local Authorities (together the 'Participating Bodies'). See Section VI of the Contract Notice for further details of those Participating Bodies that will be able to use the Framework Agreement and enter into Call Off Contracts under it.
II.1.5)Common procurement vocabulary (CPV)

79000000, 48400000, 48440000, 48443000, 48444000, 48444100, 48490000, 48812000, 48900000, 48920000, 66170000, 66172000, 72000000, 72212440, 72212443, 72212450, 72212451, 72212490, 72222300, 72250000, 72253000, 72300000, 72310000, 72316000, 72322000, 72510000, 72512000, 75100000, 75130000, 75131100, 79000000, 79200000, 79210000, 79211000, 79211100, 79211110, 79211120, 79211200, 79212500, 79400000, 79414000, 79418000, 79500000, 79600000, 79630000, 79631000, 79635000, 79990000

II.1.6)Information about Government Procurement Agreement (GPA)
The contract is covered by the Government Procurement Agreement (GPA): yes
II.2)Total final value of contract(s)
II.2.1)Total final value of contract(s)
Value: 2 000 000 000 GBP
Excluding VAT

Section IV: Procedure

IV.1)Type of procedure
IV.1.1)Type of procedure
Negotiated with a call for competition
IV.2)Award criteria
IV.2.1)Award criteria
The most economically advantageous tender in terms of
1. Whole Life Value - Whole Life Service Cost. Weighting 30
2. Whole Life Value - Retained Equity Value. Weighting 17
3. Whole Life Value - Strength of Model & Underlying Assumptions. Weighting 8
4. Service Solution Quality - Delivery of Services. Weighting 15
5. Service Solution Quality - Transformation of Services. Weighting 10
6. Service Solution Quality - Growth of Services. Weighting 5
7. Service Solution Quality - Employee Incentivisation & Engagement. Weighting 5
8. Service Solution Quality - Legal and Risk Allocation. Weighting 10
IV.2.2)Information about electronic auction
An electronic auction has been 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

Contract notice

of 29.3.2013

Section V: Award of contract

Contract No: 2013/S 063-105796 Lot title: Shared Services Connected Ltd
V.1)Date of contract award decision:
V.2)Information about offers
Number of offers received: 3
V.3)Name and address of economic operator in favour of whom the contract award decision has been taken

Steria Limited
Three Cherry Trees Lane Hemel Hempstead
HP2 7AH Hertfordshire
Internet address:

V.4)Information on value of contract
Initial estimated total value of the contract:
Value: 2 000 000 000 GBP
Excluding VAT
V.5)Information about subcontracting
The contract is likely to be sub-contracted: yes
Value or proportion of the contract likely to be sub-contracted to third parties:
Proportion: 67 %
Short description of the value/proportion of the contract to be sub-contracted: This is an approximate figure. Key sub-contractor is a shareholder in Shared Services Connected Ltd. ERP and elements of IT provision will also be sub-contracted.

Section VI: Complementary information

VI.1)Information about European Union funds
The contract is related to a project and/or programme financed by European Union funds: no
VI.2)Additional information:
The exact contract value is dependent upon the number of contracts awarded during the term of the framework agreement. The figure quoted in this notice is the estimated value.
VI.3)Procedures for appeal
VI.3.1)Body responsible for appeal procedures

ISSC2 Crown Oversight Function (COF)
Cabinet Office, Yellow Zone, 4th Floor, 1 Horse Guards Road
SW1A 2HQ London
Telephone: +44 3450103503
Internet address:

Body responsible for mediation procedures

Centre for Effective Dispute Resolution
International Dispute Resolution Centre, 70 Fleet Street
EC4Y 1EU London
Telephone: +44 2075366000
Internet address:
Fax: +44 2075366001

VI.3.2)Lodging of appeals
Precise information on deadline(s) for lodging appeals: In accordance with the Public Contracts Regulations 2006 (SI 2006 No 5) (as amended) the contracting authority incorporated a minimum 10 calendar day standstill period when information relating to the award of the contract was communicated to tenderers.
The Public Contracts Regulations 2006 (SI 2006 No. 5) (the "Regulations") 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 periods (in general 30 days beginning with the date when the economic operator first knew or ought to have known that the grounds for starting the proceedings had arisen). Where a contract has not been entered into, the Court may order the setting aside of the award decision or order the contracting authorities (as defined in the Regulations) 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 contracting authorities to pay a fine, and/or order that the duration of the contract be shortened.
VI.3.3)Service from which information about the lodging of appeals may be obtained

ISSC2 Project Office
Cabinet Office, 3rd Floor, 1 Horse Guards Road
SW1A 2HQ London
Telephone: +44 3450103503
Internet address:

VI.4)Date of dispatch of this notice: