INVITATION TO TENDER ERDF

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1 INVITATION TO TENDER To undertake an ex-ante appraisal of the case for ERDF investment by two North West LEPs into a new UDF established under the EC s JESSICA initiative 1. INTRODUCTION 1.1 Background The Joint European Support for Sustainable Investment in City Areas (JESSICA) is a European funding mechanism to promote investment in urban development projects. A North West JESSICA Holding Fund was established by the Northwest Development Agency in 2009, utilising European Regional Development Fund (ERDF) resources from the North West Operational Programme. This North West Urban Investment Fund (the NWUIF) oversaw the investment of the ERDF and matched resources in projects in the region via two urban development funds (UDFs); one established for Merseyside and the other for the rest of the North West (RONW) i.e. Cheshire, Cumbria, Greater Manchester and Lancashire. The RONW UDF, branded as the Evergreen Fund, was launched in 2011 and since that time has progressed 11 investments involving over 70m of ERDF resources. Of the 11 investments, eight are located in Greater Manchester and three in Cheshire. Greater Manchester is working with DCLG, as Managing Authority, on the creation of a new UDF for Greater Manchester for the ERDF period. The intention is that this new UDF, once established, will also be the bidding vehicle for the ERDF allocations of other RONW LEPs, subject to these areas being able to justify the case for investing resources through such an instrument Summary of Requirements The areas of Cheshire and Warrington and Lancashire need to evidence, to the satisfaction of DCLG, the case for distributing ERDF through an UDF in accordance with the allocations identified in their European Structural and Investment Fund (ESIF) Strategies. They therefore need to complete an ex-ante appraisal to consider, firstly, the question of whether there is a market failure in the investment priorities that is sufficient to justify the commitment of ERDF funds and, secondly, the nature of the products required to address that market failure (e.g. debt, equity etc). In addition, Cheshire and Warrington are currently considering their investment strategy for deploying 12.1m of recycled Growing Places Fund (GPF). The ex-ante appraisal should therefore also consider to what extent this funding could be deployed to complement potential ERDF eligible developments across Cheshire

2 and Warrington or help address access to finance issues for ERDF ineligible development such as retail and residential schemes. 2. DETAILED REQUIREMENTS 2.1 Specification The ex-ante appraisal must be in accordance with the European Investment Bank s (EIB) Ex-ante assessment methodology for financial instruments in the programming period and meet the requirements of DCLG as Managing Authority. The appraisal must demonstrate, for both the Cheshire and Warrington and Lancashire areas; Analysis of development activity, across the investment priorities set out within the ESIF strategies, to identify market failures or suboptimal investment situations; evidencing the particular markets and targets affected; and analysis of the estimated level and scope of public investment needs; Assessment of the value added that a UDF would achieve and commentary on the appropriateness of such a vehicle given other forms of public intervention accessible to the affected targets and markets, noting any possible State Aid implications; An estimate of the additional public and private resources that could be generated by the UDF, including an assessment of any preferential terms and remuneration that would be required to secure this; and Identification and incorporation of lessons learnt recommendations arising from the Evergreen 1 project particularly with regard to project origination and governance arrangements. The appraisal must make clear recommendations, in response to the market assessment work per above, as to an appropriate investment strategy for ERDF funding deployed through the UDF, specifically identifying the; target markets target beneficiaries; financial products that would meet the needs of the target beneficiaries; and any changes to project origination and governance arrangements per Evergreen 1 that would enhance the number and quality of projects brought forward for investment consideration. The appraisal must interface with the ESIF Local Implementation Plans for both Cheshire and Warrington and Lancashire areas and set out expectations for the results and contributions of UDF investment to the thematic objectives. This should be in the form of recommendations as to the indicators and measures of success and the target levels that could reasonably be set for such investment.

3 For Cheshire and Warrington, a further piece of work is required to understand the extent to which Growing Places Funding is required to support market failure or suboptimal investment situations in markets ineligible for ERDF support, primarily residential house building and retail led development. The work should justify the development activity to be considered as in scope for assessment, with reference to the LEP s Strategic Economic Plan (SEP) and the outputs of the ERDF ex-ante appraisal above. The assessment will need to; Demonstrate analysis of development activity across the in-scope areas to identify market failures or suboptimal investment situations; evidencing the particular markets and targets affected; and analysis of the estimated level and scope of public investment needs; Recommend a proposed investment strategy, including an assessment, where applicable, of combining with other initiatives and programmes, options for implementation arrangements, investment vehicles and target groups; Specify expected results and suggest appropriate measurement indicators. 2.2 Delivery Approach The Appointed Consultants will be expected to: Engage with the LEP Executives of both Cheshire and Warrington and Lancashire LEPs, their respective ESIF Committees, and representatives of Greater Manchester and DCLG Adhere to the proposed time table and performance management arrangements Have a good understanding and knowledge of physical development activity in both Cheshire and Warrington and Lancashire arising from their own general commercial activity, desk top analysis and research of publically available information including; o Local authority planning portals and planning departments o Industry journals and media releases o Strategic Economic Plan (2013 and updates) o Enquiries with relevant property agents and developers 2.3 Programme Management Arrangements Day to day project management will be provided by Martin Forbes, LEP Project Manager. The successful consultant will be expected to participate in regular progress meetings during the course of the commission and liaise via telephone and with officers and key stakeholders as necessary. Any clarifications to information contained in this document must be submitted by to Martin no later than 18 th April Any additional information provided will

4 be made available to all potential Tenderers via the LEP website after this date Timescales The key dates for this procurement (Timetable) are currently anticipated to be as follows: Event Date Deadline for receipt of clarifications P.M. 18 th April 2016 Deadline for receipt of Tenders A.M. 25 th April 2016 Evaluation of Tenders w/c 25 th April 2016 Approvals and Contract Agreement w/c 9 th May 2016 Contract start date Upon contract agreement Final Report End of July RESPONDING TO THIS SPECIFICATION Tenders must address all the requirements and be in the format requested below. Tenders not in this format will not be considered. Tenderers are requested to provide core information in summary form with detail in appendices. The following must be supplied: 3.1 General i. Organisation identity including name, address, telephone number, e- mail address, company registration number, VAT registration number and website address (if applicable). ii. Details of the main point of contact within the organisation for this tender. iii. Name, address, telephone number and address of any third parties involved in this tender. iv. Response to Schedule 1

5 3.2 Pricing v. Completed and signed Schedule 2 The cost associated with delivering this commission should be presented as shown in the table below. Cheshire and Warrington Lancashire Total ( ) Market Assessment & Investment Strategy (ERDF) Market Assessment & Investment Strategy (Non- ERDF) n/a Total ( ) All prices must be fixed and firm, quoted in pounds sterling and exclusive of VAT. Tenderers should detail any ancillary costs and expenses included in the price and be explicit as to any assumptions or qualifications attached to their pricing. Please note that current budget assumptions are that this work will cost in the region of 30k (plus VAT if applicable) to complete. 3.3 Submission Instructions The LEP will only accept tender submissions made via to martin.forbes@local.gov.uk. The deadline for submission of completed tenders is A.M. 25 th April The completed tender submission must be submitted by no later than the time and date specified above. Bidders are advised to allow adequate time for uploading documents and to dispatch the electronic response well in advance of the closing time to avoid any last minute problems. Failure to submit the tender submission as required will result in the relevant Bidder being excluded from any further participation in this procurement. Any tender submitted and or received after the time specified above will not be considered and the Bidder will be advised of this. Please note that submissions not received via the means identified in the ITT will not be accepted or considered. Bidders are also welcome to provide hard copies of their tender following submission of their bid in accordance with above. Any hard copies should be addressed as follows: Name: Address: Martin Forbes Cheshire and Warrington LEP

6 Richmond House, Gadbrook Business Park, Rudheath, Northwich, CW9 7TN 4 EXAMINATION AND EVALUATION OF TENDERS 4.1 Award Criteria Tenders will be assessed initially by reference to the following pass / fail criteria: (i) Completeness of proposals and tender documentation as specified in Section 3 (Responding to this Specification); (ii) Stated ability of the Tenderer to meet all of the requirements specified in Section 2 of this document; The Bidder which passes the pass/fail criteria above and is awarded the highest combined mark in the Price and Quality sections will be awarded the contract. In the Price section, the LEP is evaluating how the Bidder cost compares against the cost of other submitted tenders. There are 40 points available for Price and the lowest cost bid will be awarded 100% of these with the other bids receiving a proportion based on the following formula: Bid's Score = 40 x (lowest total cost / bid cost) In the Quality section, the LEP is evaluating how the Bidder will ensure it delivers the services in a way which complies with the LEP s requirements in relation to the Specification (Section 2.1) and the Delivery Approach (Section 2.2). Schedule 1 sets out six questions which explore these aspects and the responses will be scored using the pre-determined scoring system set out below. Excellent % A comprehensive response which provides information that is highly relevant and fully answers the question. Good 51-75% A detailed response which provides information that is relevant and substantially answers the question. Satisfactory 26-50% A response which provides information that is generally relevant and answers the majority of the question. Poor 1-25% A response which provides information which is only partially relevant and/ or answers only a small proportion of the question.

7 Unsatisfactory 0% A response which does not provide information which is relevant and does not answer the question or no response is provided. There are 60 points available for Quality with these being allocated as follows: Question Maximum Points Available Total Clarification During the evaluation period, clarification may be sought via from Tenderers. Responses to requests for clarification may not materially change any of the elements of the tenders submitted. The LEP may choose to invite bidders to make presentations on their proposals for the purpose of elaboration, clarification and / or aiding mutual understanding. Presentations would be held w/c 2 nd May GENERAL INFORMATION 5.1 Financial Arrangements Payments for services covered by this invitation to tender will be on submission of appropriate invoices, subject to Cheshire and Warrington LEP s standard payment terms, and which will be based on agreed deliverables. Invoicing arrangements will be agreed with the successful provider, following the award of contract. 5.2 Contract A contract will be awarded to the Tenderer whose proposal is deemed to be the most economically advantageous subject to agreement on conditions of that contract. Please note that the LEP reserves the right to cancel the Tender process at any time prior to a contract being entered into. The LEP is not bound to accept the lowest price, or any tender submitted.

8 Schedule 1 Information Requirements 1. Please set out your experience of undertaking ex-ante appraisals of relevance to this assignment, detailing the nature of the commissions and identifying the personnel involved and their roles. (12 points) 2. Please provide the names and CVs of the team that you would deploy on this assignment along with a description of their respective roles, particularly highlighting their specific experience of EU final instruments and urban development funds. (15 points) 3. Please provide a method statement that details how you will deliver this commission, particularly addressing how you will secure the necessary information and evidence to support the required market assessments and management and delivery recommendations. The statement should reference the key information sources you intend to rely upon. The response should be structured such that it clearly identifies the separate requirements of the three assessments in respect of; ERDF investment by Lancashire LEP ERDF investment by Cheshire and Warrington LEP Growing Places Fund investment by Cheshire and Warrington LEP (16 points) 4. Please provide a project delivery plan with supporting narrative that aligns to your method statement, illustrates the tasks and dependencies involved and explains the project management approach that will be deployed. (7 points) 5. Please provide a risk register that features your assessment of the key risks associated with the delivery of this commission and appropriate management and mitigation steps. (5 points) 6. Please describe how you will quality assure the delivery of your work. (5 points)

9 Schedule 2 - Declaration I/We the undersigned, hereby quote to supply the goods / service / products detailed in this tender, at the respective prices quoted. (Prices must not include VAT). I certify that as far as I know, the information I have supplied is accurate. I/We agree that this tender shall remain open to be accepted or not by the LEP for a period of six months from the closing date for the receipt of tenders. I/We agree that the LEP may discontinue the tendering arrangements at any time before a tender has been accepted. I/We accept the specification and terms and conditions accompanying the request for tender and undertake to be bound by them if my/our tender is accepted by the LEP. I/We certify that I/we have not now or will in the future, canvassed or solicited any representative or employee of the LEP and any other companies in the group of which the LEP forms part, in connection with this tender and that to the best of our knowledge and belief no person employed by me/us or acting on my/our behalf has done such an act. I/We understand that the LEP is not bound to accept any tender and will not be liable under any circumstances whatsoever for the costs I/we have incurred in preparing the tender. The tender submitted herewith is a bona fide tender intended to be competitive. We have not fixed or adjusted the amount of the tender by or under or in accordance with any collusive agreement or arrangement with any other person. NAME OF CONTACT: DESIGNATION: COMPANY NAME: ADDRESS (including postcode) TELEPHONE: FAX: SIGNATURE: DATE: