Further Competition

All Further Competitions run under the National LGPS Framework for Integrated Service Providers (ISP) and Member Data Services have to use the following Evaluation Criteria:

*this evaluation criteria is optional

You can decide what percentage of marks you want to allocate to each of the Evaluation Criteria (within the minimum and maximum amounts allowed). For example, if quality is more important to your specific requirement then you can allocate 80% of your evaluation score to that area and less in other areas, as long as the total equals 100%.

It is important to understand the impact of weightings by modelling different scenarios before you issue your Invitation to Further Competition, as it is not possible to change the award criteria after this point. Once you have decided on the evaluation criteria and weightings for your requirements you can add them to your Invitation to Further Competition.

Quality and Social Value, Climate Change and Carbon Reduction Questions

You will need to add your own questions tailored to your Specification of Requirements in your Invitation to Further Competition.

The number of questions can vary depending on the complexities of your requirements and should be specific to these. However, if you ask too many questions this can mean some (if not all) questions have a very small percentage of the marks and a difference in the scoring has little impact on the overall score. You should read through the Provider Catalogues to understand each Provider’s service.

When creating your own quality questions it helps to:

• have fewer questions that focus on key differentiators
• consider the impact that any suggested response lengths will have on your ability to easily evaluate responses
• add a maximum word count to all questions.

Once you have decided on your tailored questions you will need to add these to your Invitation to Further Competition. You will need to assign weightings to each question to ensure that the most important aspects are given a higher proportion of the marks.

Pricing Schedules

As part of their application to join the National LGPS Framework for Integrated Service Providers (ISP) and Member Data Services, each Service Provider submitted a list of ceiling prices based on different scenarios and model funds. It is important to remember that the ceiling prices quoted are the maximum each service Provider can charge throughout the life of the Framework and we would expect them to be reduced at Further Competition or Direct Award.

Cost Weightings

For the pricing element of your Further Competition you will need to:

• Create a Pricing Model
• allocate weightings against the pricing section of your Further Competition. (Please remember that your weightings combined for Quality, Social Value and Cost must add up to 100%)
• understand the impact of weightings by modelling different scenarios before your Further Competition is issued, as it is not possible to change the award criteria after this point.

Please review the Pricing schedules before finalising the pricing element of your Further Competition

Creating your own Pricing Model

Depending which Lot your requirements falls under you will need to create your own model fund and/or scenarios for Providers to price against.

You can use the ISP and MDS Pricing model template help you. This document is intended to be used as a guide and you will need to populate each tab to reflect your own organisation and requirements.

You will need to set out how long the Further Competition process will take. Consider your current arrangements and the need to inform existing Providers and identify any potential TUPE implications. Things to consider:

• whether you need internal agreement and sign off. You may also need to identify someone to manage the contract after it has been awarded.
• you must allow Providers sufficient time to prepare and submit their bids. This should be proportionate to the number of questions and complexity of your requirements.
• ensure you identify any potential TUPE implications and allow sufficient time for any transition that may be required.
• an implementation period required should the result of the further competition lead to you moving from your existing Provider and any dual running that may be required. (If you have a current Service Provider you may need to check their termination conditions and required period of notice if applicable)

You may wish to include Provider interviews as part of your Further Competition process. If you decide to include interviews you will need to invite all Providers who have realistic chance of winning (You should make it clear in your Invitation to Further Competition document who you will interview e.g. the top three scoring bids who have a realistic chance of winning).

Alternatively, you may choose to use interviews for clarification and to ratify the scores you have awarded as part of the Quality and Social Value criteria. You may not want to interview any Provider that does not have a realistic chance of winning.

Whichever approach you take, you must clearly state your intentions upfront in your Invitation to Further Competition. Please try to avoid carrying out unnecessary interviews or visits for Providers who have no realistic chance of being awarded a contract.

All Providers on the National LGPS Framework for Integrated Service Providers (ISP) and Member Data Services who are capable of meeting your requirements must be invited to Further Competition.

You could invite Providers using a procurement system or alternatively via email to the contacts listed in the Provider Catalogues.

If using a procurement system we strongly recommend you contact the Providers prior to issuing your Further Competition with instructions on how to register or check their contact details on the system are correct. If you are issuing via email we would suggest you add delivery and read receipts to your emails and / or request acknowledgement of receipt from the Providers.

Quality and Social Value - Evaluating your Questions

The evaluation must be conducted in accordance with what you have specified in your Further Competition. An Example Further Competition Scoring Sheet at Annex II and an Example Scoring Matrix at Annex III can be found at the bottom of this page.

Cost - Evaluating Price Elements

The following are examples of evaluation methods for pricing or you can create your own. In any case, you should make it clear within your Invitation to Further Competition what evaluation method will be used. The price evaluation must be conducted in accordance with the method you specify in your Invitation to Further Competition.

Option 1:

Marks are awarded using the following steps:

• Calculate the mean (arithmetic average) for prices submitted
• Half of the points available for the pricing element will be given to the mean (i.e. 2 of 4)
• For prices below the mean, add 2% of the total points (e.g. 0.08 of 4) for each 1% of the tender price below the mean.
• For prices above the mean, deduct 2% of the total price points (e.g. 0.08 of 4) for each 1% of the price above the mean.

Option 2:

Alternatively, pricing can be evaluated with the lowest bid for each pricing element being allocated the maximum available points (e.g. the lowest bid will receive the total marks available). Each of the other tenders will be awarded marks in proportion to this price; for example, a price that is 10% more expensive will receive 10% fewer marks, one that is 20% more expensive will receive 20% fewer marks, etc.

In either case, where you receive bids that appear abnormally low, or abnormally high, you may wish to seek clarification from the bidders before finalising your evaluation.

Once you have decided which supplier you want to award the contract to, you should make sure you get approval to award in line with your organisation’s governance process. You also need to notify both the successful and unsuccessful Providers.

A winning bidder will usually be given feedback on its own scores only while the losing bidders should be given reasons for the decision and the characteristics and relative advantages of the winning tender. However, you must ensure that a losing bidder does not obtain a competitive advantage by way of feedback. In practice, this means you should provide:

• The overall scores for the winning and losing bidders.
• A short rationale for each of the losing bidder’s scores
• An explanation in relation to each of the winning bidder’s scores of – the reasons for the score and, where applicable, it scored higher than the losing bidder.

Ensure that confidential and sensitive commercial information is not disclosed. In particular, ensure confidential technical information and pricing information is not provided in feedback.

The Example Intention to Award and Contract Award Letters provide templates for you to use when advising both successful and unsuccessful Providers of the outcome.

Once you have completed your evaluation, it is recommended that you hold a standstill period, although this is not a requirement. If you elect to hold a standstill period, then you need to issue intention to award letters and provide feedback to Providers. Standstill starts the day after you send out your notification and is for a minimum of 10 days (if you notify by post it must be a minimum of 15 days). Example Intention to Award Letters can be found here.

Once the Standstill Period has been completed you will need to issue a Contract Award Letter (Example Intention to Award and Contract Award Letters) along with the final version of your Order Form and Call-Off Terms and Conditions to the winning Provider. This will form the contract between yourselves and the successful Provider.

The winning Provider should acknowledge the receipt of the Contract Award and Order Form should be signed by both parties according to your internal requirements.

You will need to publish a Contract Award Notice for any contracts you let via the National LGPS Frameworks if their value is over £30,000.

Contract Award Notices should be posted within 90 days from the date the contract was signed by the final party. You can do this via Contracts Finder. Contracts Finder is free to use and is accessible here: www.gov.uk/contracts-finder. Your procurement team should be able to assist you with this.

These requirements differ for Northern Ireland, Scotland and Wales. Please speak to your procurement or legal team to understand the requirements for these areas.