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Services - 42079-2016

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06/02/2016    S26

United Kingdom-London: Auction software package

2016/S 026-042079

Prior information notice

Services

Directive 2004/18/EC

Section I: Contracting authority

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

Official name: Department of Energy and Climate Change (DECC)
Postal address: 3 Whitehall Place
Town: London
Postal code: SW1Y 2AW
Country: United Kingdom
For the attention of: Steve Plant
E-mail: euetsauctionplatform@decc.gsi.gov.uk
Telephone: +44 3000688436

Internet address(es):

General address of the contracting authority: http://www.decc.gov.uk/en/content/cms/emissions/eu_ets/phase_iii/phase_iii.aspx

Address of the buyer profile: www.delta-esourcing.com

Further information can be obtained from:
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
General public services
Environment
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: no

Section II.B: Object of the contract (Supplies or services)

II.1)Title attributed to the contract by the contracting authority:
EU Emissions Trading System: Procurement of an opt out auctioning platform and related services by the UK Government.
II.2)Type of contract and place of delivery or of performance
Service category No 27: Other services

NUTS code UK UNITED KINGDOM

II.3)Information on framework agreement
II.4)Short description of nature and quantity or value of supplies or services:
The purpose of this Prior Information Notice (PIN) is to:
(i) inform the market of a prospective contract opportunity in connection with the procurement of an auction platform and related services by the UK government for the auctioning of greenhouse gas emissions allowances from late 2017 as part of continued implementation of Phase III of the EU Emissions Trading System (EU ETS); and
(ii) request information that may be relevant to the procurement strategy that may be adopted by the contracting authority.
The EU ETS is at the heart of UK Government policy to tackle climate change. The system covers sectors responsible for around half of the UK's carbon dioxide emissions. The EU ETS works on a ‘cap and trade’ basis. A cap is set on EU Member State's emissions, which declines over time. Allowances can be allocated for free or auctioned by Member States.
Commission Regulation (EU) No 1031/2010 of 12.11.2010 on the timing, administration and other aspects of auctioning of greenhouse gas emission allowances (the ‘Auctioning Regulation’) sets out the regulatory framework for auctioning general allowances (EUAs) for phase III of the EU ETS (2013-2020) and for aviation (EUAAs).
Pursuant to Article 30(1) of the Regulation, the UK has opted to retain its own national auction platform to auction its share of allowances upon expiry of the contract with the national auction platform current supplier in November 2017.
The auction platform will provide the services including:
a) auctioning of allowances for the UK pursuant to Article 31(1) (which in turn refers to the obligations in article 27) of the Auctioning Regulation;
b) assisting in the development of the UK auction calendars.
The contract will cover auctions of the UK's share of both EUAs and EUAAs and will initially be expected to run for three years, with an option to extend for a further two years, subject to satisfactory performance of the supplier and Ministerial consent. This is in line with the current provisions in the Auctioning Regulation.
For further information please scroll down to II.7 — Additional Information.
Estimated cost excluding VAT: 0,01 GBP

Lots

This contract is divided into lots: no
II.5)Common procurement vocabulary (CPV)

48470000 Auction software package, 72212470 Auction software development services, 79957000 Auction organisation services, 72000000 IT services: consulting, software development, Internet and support, 66133000 Processing and clearing services, 66150000 Financial markets administration services, 66171000 Financial consultancy services, 66172000 Financial transaction processing and clearing-house services

II.6)Scheduled date for start of award procedures
10.11.2017
II.7)Information about Government Procurement Agreement (GPA)
The contract is covered by the Government Procurement Agreement (GPA): yes
II.8)Additional information:
The Auctioning Regulation also sets out the detailed requirements for the auctioning of aviation and phase III general allowances. The preferred supplier will be expected to follow the provisions set out in that Regulation. Potential bidders should note however that a review of the Auctioning Regulation is due to take place during 2016 and that there could be changes to the requirements set out in the Regulation. Whilst the tender document when published (anticipated to be in the week commencing the 4.4.2016) will reflect any changes to the extent that they are known at the time, the supplier will need to accommodate any changes to the Auctioning Regulation.
 The auction platform must also be a regulated market pursuant to EU financial markets legislation and is governed also by such legislation. The supplier will also need to accommodate any forthcoming changes to the financial regulations such as the Market Abuse Directive and the Market in Financial Instruments Directive.
 Auctioning of EU ETS allowances is now a well-established practice. The UK currently auctions approximately 10 % of the EUA allowances available for auction. In 2016, this will amount to approximately 84 million EUA allowances (approximately 3 500 000 allowances per auction). In addition, the UK will hold one aviation auction of 921 000 EUAA allowances. The number of allowances to be auctioned is determined annually with the European Commission and the supplier will be engaged in publishing the annual auction calendar.
 From 2019, the Market Stability Reserve (MSR), a mechanism designed to manage the supply of EUA allowances entering the market through variable auctioning volumes, will become operational. New arrangements will need to be agreed by Member States and the Commission on how to manage this process and the supplier will need to adhere to these new rules. This will also have an impact on the number of allowances available for auctioning.
 If there is agreement from UK Ministers to extend the contract for a further two years, this would extend the contract into Phase IV of the EU ETS and the supplier may need to accommodate additional rule changes to meet the requirements of the revised EU ETS Directive.
 Following the expiration of regulation (EU) No 421/2014 of the European Parliament and of the Council of 16.4.2014 amending Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowance trading within the Community, the Contractor may need to assist in the development and implementation of a mechanism for auctioning of aviation allowances in view of the implementation by 2020 of an international agreement applying a single global market-based measure to international aviation emissions.
 At this stage, we are interested to hear from parties who may wish to be considered for any future contract to provide auctioning and related services for an auction platform. This will allow us to include those parties in the circulation of further information and seek their input in order to inform the process for any future procurement of the services. As set out above, interested parties should note that eligibility for running these auctions is tightly defined within EU Regulation 1031/2010.
 Pending any potential changes to the Auctioning Regulation, potential bidders should take note of the following provisions in the current Regulation:
 The service of auctioning of allowances pursuant to Article 27 of the Auctioning Regulation will be paid through fees paid by the persons admitted to bid in the auctions and successful bidders in the auctions, pursuant to Articles 51 and 52 of the Auctioning Regulation.
 Tenderers should in particular take note of the following provisions of the Auctioning Regulation:
 — pursuant to Article 27(2) ‘[…] the auction platform shall be connected to at least 1 clearing system or settlement system’,
 — pursuant to Article 35(1) ‘Auctions shall only be conducted on an auction platform authorised as a regulated market whose operator organises a market in allowances or allowance derivatives’. In addition, Articles 35, 36, 43, 55 and 56 of the Auctioning Regulation provide further requirements on authorisation, notification, supervision and enforcement of the auctioning activity.
 The contractor may also be required, among other things, to demonstrate that the clearing system or settlement system connected to the platform is designated pursuant to the Directive 98/26/EC on settlement finality in payment and securities settlement systems.
 Final decisions on the scope of the tender have therefore not yet been taken owing to potential changes to the Auctioning Regulation. In the interim, the current requirements of the Auctioning Regulation will need to be followed. The UK intends to hold an ‘interested bidders’ day' in London on 10th March to provide you with further information ahead of the launch of the tender exercise, which is expected to take place between April and May 2016.

Interested parties should, in the first instance, respond to this PIN via the following email address: euetsauctionplatform@decc.gsi.gov.uk and express their wish to receive further information, including participation in the interested bidders' day. The form of response should be limited to the provision of a single point of contact (name, job title, organisation name, email address and phone number). Responses should be received by DECC by 3.3.2016. Non-attendance at the interested bidders' day does not preclude you from further involvement in the tender process. Any further questions can also be asked to the contacts named above and all responses will be provided and published to all interested parties.

As set out above, this notice is intended only to inform the market of a prospective contract opportunity and to request information which may be relevant to the development of any eventual procurement strategy. In developing this strategy consideration will be given, among other things, to the most appropriate procurement route.
 Potential bidders will not be prejudiced by any response to this PIN, or failure to respond. This PIN does not formally signify the beginning of a procurement and does not constitute a commitment by DECC to undertake any procurement exercise. In the event that DECC decides to formally commence the procurement of national auction platform a separate notice will be issued.
 Relevant governmental Internet sites where information can be obtained:

Auctioning Regulations: http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2010:302:0001:0041:EN:PDF

Further information on the EU emissions trading system can be found at: http://ec.europa.eu/clima/policies/ets/index_en.htm

For background information, the full specification and further information on this project please see the ITT which will be published around the time of the week commencing 4.4.2016.

Section III: Legal, economic, financial and technical information

III.1)Conditions relating to the contract
III.1.1)Main financing conditions and payment arrangements and/or reference to the relevant provisions governing them:
III.2)Conditions for participation
III.2.1)Information about reserved contracts

Section VI: Complementary information

VI.1)Information about European Union funds
VI.2)Additional information:
II.2.1)Total quantity or scope:
 Estimated value excluding VAT:
 Range between: 0 GBP — costs can be recovered by the supplier through a fee charged per allowance auctioned, in line with the Auctioning Regulation. The fee charged and its make-up will be assessed as part of the tender to ensure value for money for auction participants.
 Currency: The fee charged will be in Euros (EUR).
 Duration Of The Contract will be up to 60 months.
 To view this notice, please click here:

https://www.delta-esourcing.com/delta/viewNotice.html?noticeId=187901146

GO Reference: GO-201624-PRO-7708651.
VI.3)Information on general regulatory framework
VI.4)Date of dispatch of this notice:
4.2.2016