Services - 440502-2015

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16/12/2015    S243    European Central Bank - Services - Contract notice - Negotiated procedure 

Germany-Frankfurt-on-Main: ECB - Investment manager services for the ECB's pension fund

2015/S 243-440502

Contract notice

Services

Directive 2004/18/EC

Section I: Contracting authority

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

Official name: European Central Bank
Postal address: Sonnemannstraße 22
Town: Frankfurt-on-Main
Postal code: 60314
Country: Germany
For the attention of: Ellinoora Peltonen
E-mail: procurement@ecb.europa.eu
Telephone: +49 6913440
Fax: +49 6913447110

Internet address(es):

General address of the contracting authority: http://www.ecb.europa.eu

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
European institution/agency or international organisation
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: no

Section II: Object of the contract

II.1)Description
II.1.1)Title attributed to the contract by the contracting authority:
Investment manager services for the ECB's pension fund.
II.1.2)Type of contract and location of works, place of delivery or of performance
Services
Service category No 6: Financial services a) Insurances services b) Banking and investment services
Main site or location of works, place of delivery or of performance: Frankfurt-on-Main and at the contractor's premises.

NUTS code DE712

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)
The ECB is seeking to appoint 2 external investment managers for the pension funds for ECB staff. The pension funds are ECB assets currently managed as segregated unitised accounts, including 7 standard asset classes. The management task will be split into 2 mandates that will be awarded to different external managers.
II.1.6)Common procurement vocabulary (CPV)

66141000

II.1.7)Information about Government Procurement Agreement (GPA)
The contract is covered by the Government Procurement Agreement (GPA): yes
II.1.8)Lots
This contract is divided into lots: no
II.1.9)Information about variants
Variants will be accepted: no
II.2)Quantity or scope of the contract
II.2.1)Total quantity or scope:
Overview:
The ECB is seeking 2 investment managers for the management of its pension fund assets. The managers are expected to have the ability to run global passive mandates on the basis of several segregated, unitised accounts for equity and fixed income assets. For some asset classes, pooled funds may be considered.
The ECB aims to select the 2 investment managers in parallel (where available). To this end, the overall management of the pension fund will be split into 2 mandates (mandate A and B) which will be covered by 2 service contracts. The 2 mandates will be identical in terms of the asset classes under management, but different in terms of both the amount of assets under management at the outset and the pace of growth due to pension contributions. The split into 2 mandates reflects the ECB's aim to diversify manager risks and to evaluate and manage the contractual performance of the investment managers via periodic reviews for the duration of the contracts.
Candidates are required to bid for both mandates. The candidates are expected to be able to provide services regarding both mandates, so as to ensure the interchangeability of the mandates in case of need. The evaluation of the candidates will be conducted on the basis of identical selection and evaluation criteria for both mandates; therefore it will establish 1 consolidated ranking. The first-ranked tenderer will be asked to decide which one of the 2 mandates it wishes to manage. The second-ranked tenderer will be awarded a contract covering the remaining mandate.
Initial assets under management (AuM) in mandate A are expected to amount to around 360 000 000 EUR at the inception of the mandate, while AUM for mandate B are expected to amount to around 600 000 000 EUR. Mandate A is expected to grow faster.
The ECB is seeking a solutions-based approach for the management of these assets including, for example, advice on optimal deviation bands (that allow for a temporary deviation from the strategic asset allocation weights), optimal rebalancing rules (back to the strategic asset allocation) for the different asset classes and potential ways to incorporate a socially responsible investment (SRI) approach for the entire ECB pension fund.
Taking into account the current strategic asset allocation, the investment managers are expected to manage the following asset classes: euro area equities, non-euro area developed market equities, emerging market equities, euro area sovereign bonds, euro area inflation-linked sovereign bonds, euro corporate bonds and euro cash.
The custodian for the pension funds will be awarded in parallel and investment managers are expected to collaborate with the selected custodian.
Contract:
The ECB envisages concluding contracts with 2 investment managers for an initial period of 96 months. The contracts could be further extended for a period of 24 months, subject to an independent review and its conclusion that the service levels and the prices are in line with market practices.
The successful candidates will be required to sign service contracts with the ECB. The contracts are envisaged to start as soon as possible, but not earlier than the first quarter of 2017. The changeover period to new investment managers, including the preparation, the implementation and the completion of the transition, is envisaged to last no longer than 1 month. The shortlisted candidates will be informed in more detail regarding the contractual conditions as part of the invitation to tender documentation.
II.2.2)Information about options
Options: yes
Description of these options: Both contracts will contain an option for additional services consisting of taking over the mandate of the other contractor, as a whole or in part, in case that contract terminates or the mandate cannot be properly performed any longer.
II.2.3)Information about renewals
This contract is subject to renewal: yes
Number of possible renewals: Range: between 1 and 2
II.3)Duration of the contract or time limit for completion
Duration in months: 120 (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:
No deposit required.
III.1.2)Main financing conditions and payment arrangements and/or reference to the relevant provisions governing them:
Details will be set out in the invitation to tender that will be sent to shortlisted candidates.
III.1.3)Legal form to be taken by the group of economic operators to whom the contract is to be awarded:
Please see the details in the documentation to be requested from the contact point indicated in Sections I.1 and VI.3.
III.1.4)Other particular conditions
The performance of the contract is subject to particular conditions: yes
Description of particular conditions: Please see the details in the documentation to be requested from the contact point indicated in Sections I.1 and VI.3.
III.2)Conditions for participation
III.2.1)Personal situation of economic operators, including requirements relating to enrolment on professional or trade registers
Information and formalities necessary for evaluating if the requirements are met: Information on the requirements:
The tender procedure shall be open on equal terms to all natural or legal persons resident or located in the European Union and to all natural and legal persons resident or located in a country which has ratified the World Trade Organisation Agreement on Government Procurement or has concluded with the European Union a bilateral agreement on procurement under the conditions laid down in the said agreements.
The ECB shall exclude candidates that are in one of the situations described in Article 24(4) of Decision of the European Central Bank (ECB/2007/5) (e.g. conviction for fraud or corruption) or put on a blacklist in accordance with Article 24(7) of Decision of the European Central Bank (ECB/2007/5). Candidates that have been convicted for one of the reasons outlined in Article 24(4) may still be invited to tender on the basis of Article 24(7), subject to the ECB's discretion taking into account measures taken by the candidate to avoid similar offences in the future.
The ECB may exclude candidates that are in one of the situations described in Article 24(5) of Decision of the European Central Bank (ECB/2007/5) (e.g. insolvency; grave professional misconduct; misrepresentation).
The ECB shall exclude the candidates that do not have a certificate for the quality of internal control systems. This includes ISAE 3402, SSAE 16 or equivalent.
The ECB shall exclude the candidates that are not signatories of the United Nations Principles of Responsible Investment (UNPRI) or of any other type of social responsible investment principles and have a verifiable performance record covering, at least, 2 years in managing at least 1 active or passive equity or bond mandate that applies socially responsible investment (SRI) considerations in the investment process, including a description of the SRI criteria applied.
The ECB shall exclude the candidates that do not confirm that they are willing to work with the custodian selected by the ECB.
Please see the details in the documentation to be requested from the contact point indicated in Sections I.1 and VI.3.
Information on the formalities:
The candidates must fill in and submit the annexes to the call for application documentation, which may be requested from the contact point indicated in Sections I.1 and VI.3.
III.2.2)Economic and financial ability
Information and formalities necessary for evaluating if the requirements are met: The candidates must fill in and submit the annexes to the call for application documentation, which may be requested from the contact point indicated in Sections I.1 and VI.3.
Minimum level(s) of standards possibly required: Candidates must meet the following minimum requirements:
Total institutional assets under management (AuM) as of September 2015 must be at least 15 000 000 000 EUR and total institutional AuM following passive mandates must be at least 10 000 000 000 EUR.
III.2.3)Technical capacity
Information and formalities necessary for evaluating if the requirements are met:
The candidates must fill in and submit the annexes to the call for application documentation, which may be requested from the contact point indicated in Sections I.1 and VI.3.
Minimum level(s) of standards possibly required:
The candidate must have:
Proven performance record, covering the period from 1.1.2013 up to and including 30.9.2015, in managing on an index tracking basis (passive management) for each of the following asset classes:
(i) developed market equities;
(ii) emerging market equities;
(iii) inflation-linked bonds;
(iv) euro corporate bonds;
(v) euro area sovereign bonds.
A track record managing euro money market funds. There is an exception for inflation-linked bonds where candidates may solely have active mandates rather than passive.
Proven experience in managing equity and fixed income mandates via segregated accounts for institutional investors. A segregated account is an account in which the assets belong to 1 client only, i.e., funds are held separately from the funds of other clients and from the asset manager company's own assets.
The ability to unitise segregated accounts.
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: yes

Section IV: Procedure

IV.1)Type of procedure
IV.1.1)Type of procedure
Negotiated
Some candidates have already been selected (if appropriate under certain types of negotiated procedures) no
IV.1.2)Limitations on the number of operators who will be invited to tender or to participate
Envisaged minimum number 5: and maximum number 8
Objective criteria for choosing the limited number of candidates: Please see the details in the documentation to be requested from the contact point indicated in Sections I.1 and VI.3.
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:
PRO-000976.
IV.3.2)Previous publication(s) concerning the same contract
no
IV.3.3)Conditions for obtaining specifications and additional documents or descriptive document
Time limit for receipt of requests for documents or for accessing documents: 22.1.2016 - 17:00
Payable documents: no
IV.3.4)Time limit for receipt of tenders or requests to participate
25.1.2016 - 18:00
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
English.
IV.3.7)Minimum time frame during which the tenderer must maintain the tender
IV.3.8)Conditions for opening of 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 documentation for this procurement can be downloaded from an Internet platform. If you are interested in participating in the procurement procedure please register via the Internet platform using the following Internet address, user name and password:
User ID: 26951/H/RCO/2013
Password: B5E517

Internet address: https://www.ecb.europa.eu/secure/procurement/

After you have registered an e-mail will be sent to you with a new user name and password. The Internet address will remain the same. Please use the new user name and password to download the application documentation.
However, your mere registration and downloading the documentation does not constitute an application. You must submit your application in hard copy version to the ECB, on time, in the format requested and including the content as further instructed in the application documentation.

Should you experience any problems in accessing the Internet platform for registration and/or downloading the application documentation please do not hesitate to contact the ECB at the following e-mail address: procurement@ecb.europa.eu quoting the procurement number and problem experienced. The ECB shall endeavour to answer all queries concerning access as quickly as possible but cannot guarantee a minimum response time. The ECB shall not be bound to reply to queries received less than 7 calendar days before the time limit for the submission of applications.

The tender procedure shall be open on equal terms to all natural or legal persons resident or located in the European Union and to all natural and legal persons resident or located in a country which has ratified the World Trade Organisation Agreement on Government Procurement or has concluded with the European Union a bilateral agreement on procurement under the conditions laid down in the said agreements.

The tender procedure is conducted in accordance with Decision of the European Central Bank of 3.7.2007 laying down the Rules on Procurement (ECB/2007/5) (as amended), available on the ECB website at http://www.ecb.europa.eu (please look for the link ‘for suppliers’).

During the tender procedure tenderers shall not contact any other ECB staff members or organisations/persons working for the ECB with regard to this tender procedure other than the person indicated in Section I.1). Tenderers shall also not contact potential competitors unless they intend to form a temporary grouping with them or to involve them as subcontractors. Any violation of this communication rule may lead to the exclusion of the tenderer in question.
VI.4)Procedures for appeal
VI.4.1)Body responsible for appeal procedures

Official name: Procurement Review Body of the ECB, c/o Legal Advice Team
Postal address: Sonnemannstraße 22
Town: Frankfurt-on-Main
Postal code: 60314
Country: Germany
Telephone: +49 6913440
Fax: +49 6913446886

Body responsible for mediation procedures

Official name: European Ombudsman
Postal address: 1 avenue du Président Robert Schuman
Town: Strasbourg
Postal code: 67001
Country: France

VI.4.2)Lodging of appeals
Precise information on deadline(s) for lodging appeals: 15 days from the receipt of the information specified in Article 28(3) of Decision of the European Central Bank of 3.7.2007 laying down the Rules on Procurement (ECB/2007/5) or, if no information is requested, 15 days from the receipt of the notification to unsuccessful tenderers. Further requirements are outlined in Article 33 of this Decision. A complaint to the European Ombudsman does not affect the deadline for lodging appeals.
VI.4.3)Service from which information about the lodging of appeals may be obtained

Official name: Central Procurement Office
Postal address: Sonnemannstraße 22
Town: Frankfurt-on-Main
Postal code: 60314
Country: Germany
Telephone: +49 6913440

VI.5)Date of dispatch of this notice:
4.12.2015