Services - 129848-2020

17/03/2020    S54

United Kingdom-London: Financial and insurance services

2020/S 054-129848

Voluntary ex ante transparency notice

Services

Legal Basis:
Directive 2014/24/EU

Section I: Contracting authority/entity

I.1)Name and addresses
Official name: Financial Services Compensation Scheme
National registration number: United Kingdom
Postal address: 10th Floor,Beaufort House, 15 St Botolph Street
Town: London
NUTS code: UKI LONDON
Postal code: EC3A 7QU
Country: United Kingdom
E-mail: Procurement@fscs.org.uk
Telephone: +44 2073758175
Internet address(es):
Main address: www.fscs.org.uk
I.4)Type of the contracting authority
Body governed by public law
I.5)Main activity
Other activity: Financial Services Compensation Scheme

Section II: Object

II.1)Scope of the procurement
II.1.1)Title:

FSCS Claims Handling Services

II.1.2)Main CPV code
66000000 Financial and insurance services
II.1.3)Type of contract
Services
II.1.4)Short description:

FSCS intends to award a contract to Deloitte LLP for the provision of claims handling services.

FSCS exists to protect customers of financial services firms that have failed. If the company the customer has been dealing with has failed and can’t pay claims against it, FSCS can step in to pay compensation. FSCS covers claims for home finance, deposits, PPI, debt management, insurance, investments and pensions. To do this FSCS runs an outsource claims model to deal with the fluctuating volumes we have. In 2018 FSCS appointed a transformational partner for our claims processing services, however we have identified that we require specific support in processing some of our most complex claims and require increased contingency. FSCS needs the ability to deal with a volatile financial services market with unforeseeable events impacting the claims types, volumes, and complexity since our previous procurement.

II.1.6)Information about lots
This contract is divided into lots: no
II.1.7)Total value of the procurement (excluding VAT)
Value excluding VAT: 19 000 000.00 GBP
II.2)Description
II.2.3)Place of performance
NUTS code: UKI LONDON
Main site or place of performance:

LONDON.

II.2.4)Description of the procurement:

The service provider will perform the following activities across the claims we receive: Evidence checking, including identification documentation to ensure it meets the minimum requirements for the claim type. Monitor and record evidence received. Gather information from third parties (e.g the customer, providers of financial services products, claims management companies or financial regulators) where required and chase as necessary. Determine eligibility of the customer, validity of the claim and complete quantification of compensation — calculation of loss, all in accordance with FCA rules and FSCS’s policies (utilising specialist calculation tools). Review and sign off by an accredited individual. Sanctions checking. Issuing compensation payments and decision documentation.

II.2.5)Award criteria
II.2.11)Information about options
Options: yes
Description of options:

The initial term of the contract is until March 2023 with an option for 2 further extensions of up to 12 months per extension.

II.2.13)Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds: no
II.2.14)Additional information

In addition FSCS shall expand the claims handling services during the lifetime of the contract to respond to changes in the portfolio of protection within the financial services industry.

Section IV: Procedure

IV.1)Description
IV.1.1)Type of procedure
Negotiated procedure without prior publication
  • The works, supplies or services can be provided only by a particular economic operator for the following reason:
    • absence of competition for technical reasons
Explanation:

FSCS intends to award the contract to Deloitte because it is the only firm in the market that has the capability, expertise and sufficiently experienced staff necessary to meet FSCS’ requirements.

Processing and assessing complex pension claims made to FSCS is a technical endeavour requiring a unique set of knowledge and skills. It is not simply an administrative or claim-handling exercise. Any firm/individual dealing with such claims needs to have all of the following expertise:

(a) intimate knowledge of different pension products on the market and the intricacies of how occupational pensions schemes operate, in a constantly changing landscape;

(b) specialist knowledge of the software used to handle pension claims (RECAL); and

(c) ability to understand and apply FCA rules and FSCS’ policies, processes and procedures.

Based on FSCS’ market knowledge and recent contracting experience, FSCS considers that no provider other than Deloitte has the required specialist knowledge, skills, expertise and sufficiently experienced staff to deliver the services to meet FSCS’s requirements for quality and scalability. The complex and bespoke nature of the service (and the vulnerable nature of the customer base who use such services) means that a particularly experienced and skilled cohort of staff is essential for the delivery of the service to the required quality standards. Deloitte has such a cohort of staff (none of whom would be subject to TUPE). FSCS does not consider that it would be possible for any other provider to develop sufficient skills and knowledge nor to recruit and train sufficiently qualified staff within an acceptable time period (FSCS estimates that this would take 12 to 18 months) leading to an unacceptably long transition period given the initial term of the contract would be expected to expire in 2023. Such a long transition period would have an adverse effect on the timely assessment of claims made by claimants including vulnerable people who have lost all their life and retirement savings and would risk destabilising service provision. For all the above reasons, FSCS considers that to award the contract to an alternative provider would lead to an unacceptable degree of risk to the performance of the services and to FSCS being able to discharge its statutory duties.

All of FSCS’ requirements are objectively justified by the nature and complexity of the services and customer base. The absence of competition is not the result of an artificial narrowing down of the parameters of the procurement and no reasonable alternative exists. It is not reasonable to relax any of the above requirements as to do so would expose FSCS and its customers to an unacceptable degree of risk.

FSCS therefore intends to award the contract by virtue of Regulation 32(2)(b)(ii) of the Public Contracts Regulations 2015; the services can only be provided by Deloitte as competition is absent for technical reasons and no reasonable alternative exists.

IV.1.3)Information about framework agreement
IV.1.8)Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: yes
IV.2)Administrative information

Section V: Award of contract/concession

V.2)Award of contract/concession
V.2.1)Date of contract award decision:
10/03/2020
V.2.2)Information about tenders
The contract has been awarded to a group of economic operators: no
V.2.3)Name and address of the contractor/concessionaire
Official name: Deloitte LLP
National registration number: OC303675
Postal address: 1 New Street Square
Town: London
NUTS code: UKI LONDON
Postal code: EC4A 3HQ
Country: United Kingdom
The contractor/concessionaire will be an SME: no
V.2.4)Information on value of the contract/lot/concession (excluding VAT)
Total value of the contract/lot/concession: 19 000 000.00 GBP
V.2.5)Information about subcontracting

Section V: Award of contract/concession

V.2)Award of contract/concession
V.2.1)Date of contract award decision:
10/03/2020
V.2.2)Information about tenders
The contract has been awarded to a group of economic operators: no
V.2.3)Name and address of the contractor/concessionaire
Official name: Deloitte LLP
National registration number: OC303675
Postal address: 1 New Street Square
Town: London
NUTS code: UKI LONDON
Postal code: EC4A 3HQ
Country: United Kingdom
The contractor/concessionaire will be an SME: no
V.2.4)Information on value of the contract/lot/concession (excluding VAT)
Total value of the contract/lot/concession: 19 000 000.00 GBP
V.2.5)Information about subcontracting

Section VI: Complementary information

VI.3)Additional information:

To view this notice, please click here:

https://www.delta-esourcing.com/delta/viewNotice.html?noticeId=481528957

Go reference: GO-2020312-PRO-16160774

VI.4)Procedures for review
VI.4.1)Review body
Official name: Financial Services Compensation Scheme
Postal address: Beaufort House, 15 St. Botolph Street
Town: London
Postal code: EC3A 7QU
Country: United Kingdom
E-mail: procurement@fscs.org.uk
Telephone: +44 2073758175
VI.4.2)Body responsible for mediation procedures
Official name: The High Court of England and Wales
Postal address: Royal Courts of Justice, Strand
Town: London
Postal code: WC2A 2LL
Country: United Kingdom
Internet address: https://courttribumalfinder.service.gov.uk/courts/royal-courts-of-justice
VI.4.4)Service from which information about the review procedure may be obtained
Official name: Financial Services Compensation Scheme Ltd
Postal address: 10th Floor, Beaufort House, 15 St Botolph Street
Town: London
Postal code: EC3A 7QU
Country: United Kingdom
VI.5)Date of dispatch of this notice:
12/03/2020