Department for Business Innovation & Skills
Invitation to Tender Reference P2120068BIS
Long Run Income Elasticity’s of Import Demand
Contract Requirement
The Department for Business, Innovation and Skills (BIS) is
commissioning a research project to estimate long run income
elasticity’s of imports on a by country and by commodity basis
with respect to the world and the UK. This project also aims to
assess how changes in different components of aggregate
demand may impact import demand. The purpose of this
exercise is to obtain a better understanding of the future
demand for British exports. The results of this analysis will be
required by 26th of March 2013.
Deadline for Bids
Midday December 28th 2012 GMT
Section 1 - Introduction and Index
1.1
This Invitation to Tender (“ITT”) has been prepared by the RCUK SSC Ltd acting as agents on
behalf of the Department for Business, Innovation and Skills (“BIS”) for the purpose of
inviting proposals from your organisation and others for the provision of the
goods/services described in the Specification in Section 3 of this document. The tender
process will be conducted in a manner that ensures tenders are evaluated fairly to
ascertain the economically most advantageous tender.
1.2
This ITT is divided into the following sections
(1)
Introduction and Index
(2)
Instructions to Tenderers
(3)
Specification
(4)
Questionnaire that tenderers must address as part of their proposal
(5)
Evidence of insurance
(6)
Pricing Schedule
1.3
(7)
Evaluation Criteria
(8)
Terms and conditions
(9)
A Statement of Non-Collusion and a Form of Tender which tenderers must
complete and return with their Proposal
In order to bid for this contract you are required to submit a Proposal explaining how you
will meet BIS’ requirements described in the Specification. Your Proposal must additionally
include the answers to the specific questions in section 4 of this ITT. You will need to prove
that you have the type and amount of insurance cover described in section 5. You must
use the pricing schedule in section 6 to explain how you will charge for the work you do.
You also need to complete and return the Statement of Non-Collusion and the Form of
Tender in section 9.
Section 2 - Instructions to Tenderers
2.1
Please read the instructions on the tendering procedures carefully. Failure to comply with
them or to return any of the required documents or information may invalidate your
tender which must be returned by the date and time given below.
Questions about this ITT
2.2
If having read the specification and you decide to submit a tender by the required deadline
and wish to receive details of any questions & answers related to this ITT then please can
you inform Nicola Turner at [email protected] no later than Midday December
19th 2012 GMT. Emails received after this deadline will not receive this information. The
submission of questions is as applicable in 2.3 and 2.4 and below.
2.3
You may submit, by no later than Midday December 14th 2012 GMT any questions that you
have relating to this ITT. Please submit such questions by email to
[email protected]
2.4
Any questions should clearly reference the appropriate paragraph in the documentation
and, to the extent possible, should be aggregated rather than sent individually. As far as is
reasonably possible, RCUK SSC will respond to all reasonable requests for clarification of
any aspect of this ITT and supporting documents in accordance with the following
paragraph, provided they are received before the above deadline. No questions received
after the above deadline will be answered.
2.5
Answers to questions received by RCUK SSC will be circulated by email to all potential
tenderers (without revealing the identity of the individual bidder that put forward a
particular question).
Instructions for return of tenders
2.6
You are encouraged to be innovative in your thinking when preparing your bid and to
provide any suggestions and solutions that may provide a more cost efficient and value for
money solution. Any such proposal which alters the requirements of the specification
must be in the form of a variant bid, must be clearly marked “variant bid”, and must be
submitted at the same time as the fully compliant bid requested in this ITT.
2.7
Copies of your tender Proposal must be received in PDF format addressed to
[email protected] no later than Midday December 28th 2012 GMT.
Please note that the Reference Number: P2120068BIS MUST be included in the subject line
of your e-mail response.
Alternatively three hard copies of your tender Proposal must be received in Microsoft
Word format no later than Midday December 28th 2012 GMT.
Please use the address label below
Tender Address
Label.doc
2.8
Late tenders will not be considered unless BIS is satisfied that the delay was caused by
reasons outside of your control.
If sending by post, envelopes and packages used to return tenders must bear no reference to
the tenderer by name; franking machines which automatically print your company’s name
should not be used. Tenders will be received up to the time and date stated. Those received
before the due date will be retained unopened until then. It is your responsibility to ensure
that your tender is delivered not later than the appointed time.
2.9
Following the selection of the preferred supplier BIS will provide unsuccessful tenderers
with the reasons for its decision. Where applicable BIS will observe the procedure in
paragraphs 32 and 32A of the Public Contracts Regulations 2006 concerning the
information that must be provided to unsuccessful bidders and the observance of the
standstill period.
Freedom of Information and transparency
2.10
The Freedom of Information Act 2000 (“FOIA”) and the Environmental Information
Regulations 2004 (“EIR”) apply to BIS and it’s Agents. You should be aware of BIS’
obligations and responsibilities under FOIA or EIR to disclose, on written request, recorded
information held by BIS. Information provided by you in connection with this procurement
exercise, or with any contract that may be awarded as a result of this exercise, may
therefore have to be disclosed by BIS in response to such a request, unless BIS decides that
one of the statutory exemptions under the FOIA or the exceptions in the EIR applies. If you
wish to designate information supplied as part of this response as confidential, or if you
believe that its disclosure would be prejudicial to any person’s commercial interests, you
must provide clear and specific detail as to the precise information involved. Such
designation alone may not prevent disclosure if in BIS’ reasonable opinion publication is
required by applicable legislation or Government policy or where disclosure is required by
the Information Commissioner or the First-tier Tribunal (Information Rights).
2.11
Additionally, the Government’s transparency agenda requires that tender documents
(including ITTs such as this) are published on a designated, publicly searchable web site
which is called “Contracts Finder”. The same applies to other tender documents issued by
BIS (including the original advertisement and the pre-qualification questionnaire (if used)),
and any contract entered into by BIS with its preferred supplier once the procurement is
complete. By submitting a tender you agree that your participation in this procurement
may be made public. The answers you give in this response will not be published on the
transparency web site (but may fall to be disclosed under FOIA or EIR (see above)). Where
tender documents issued by BIS or contracts with its suppliers fall to be disclosed BIS will
redact them as it thinks necessary, having regard (inter alia) to the exemptions/exceptions
in the FOIA or EIR.
Intellectual Property
2.12
All intellectual property rights in this ITT and all material provided by BIS to applicants in
connection with this ITT are and shall remain the property of the Crown.
Warnings/Disclaimers
2.13
Offering an inducement of any kind in relation to obtaining this or any other contract with
BIS will disqualify your tender from being considered and may constitute a criminal
offence.
2.14
You must not:

tell anyone else what your tender price is or will be, before the time limit for delivery of
tenders

try to obtain any information about anyone else's tender or proposed tender before
the time limit for delivery of tenders

make any arrangements with another organisation about whether or not they should
tender, or about their or your tender price
Failure to comply with any of these conditions may disqualify your tender.
2.15
Nothing contained in this ITT or any other communication made between BIS or its
representatives and any person shall constitute an agreement, contract or representation
(except for the formal written contract between BIS and its preferred supplier). Receipt by
the tenderer of this ITT does not imply the existence of a contract or commitment by or
with BIS for any purpose and tenderers should note that this ITT may not result in the
award of any business.
2.16
It is the responsibility of tenderers to obtain for themselves at their own expense all
additional information necessary for the preparation of their response to this ITT. No
claims of insufficient knowledge will be entertained.
2.17
The information contained in this ITT and the supporting documents and in any related
written or oral communication is believed to be correct at the time of issue but BIS will not
accept any liability for its accuracy, adequacy or completeness and no warranty is given as
such. This exclusion does not extend to any fraudulent misrepresentation made by or on
behalf of BIS.
2.18
BIS reserves the right to change any aspect of, or cease, the tender process at any time.
2.19
By issuing this ITT BIS is not bound in any way and does not have to accept the lowest or
any tender.
2.20
You will not be entitled to claim from BIS any costs or expenses which you may incur in
preparing your tender whether or not your tender is successful and regardless of whether
a contract is awarded.
Tender Validity
2.21
Your tender should remain open for acceptance of a period of 90 days from the last date
for receipt of tenders which is Midday December 28th 2012 GMT. A tender valid for a
shorter period may be rejected.
Consortia Bids
2.22
If you are bidding for this contract in association with another supplier you must explain
the structure of your bid. Failure to do so may lead to your bid being disqualified.
For example if you are bidding as a lead partner you must explain how the other
organisations involved with your team will support you, and take over responsibility for
performing the contract in the event that for some reason you are unable to continue.
If you are intending to bid as a consortium and to establish a new legal entity to perform
the contract please give full details of how that entity will be constituted, including its legal
status, who will own it and in what proportions. BIS may require cross guarantees to be
provided by all members of the consortium.
Summary of timetable
2.23
This is a summary of the timetable that applies to this procurement. BIS reserves the right
to alter this timetable by notice to tenderers
Event
Date
ITT issued
26/11/2012
Deadline for ITT clarification questions
Midday
December 14th
2012 GMT
Deadline for ITT responses circulation
Midday
December 19th
2012 GMT
Deadline for receipt of tenders
Midday
December 28th
2012 GMT
*Final evaluation of tenders
January 4th
2013
*Successful/unsuccessful tenderers notified no sooner
than
* Tenderers should note that the above dates are only
provisional and may be amended by BIS at any time.
January 8th
2012
Checklist of documents to be returned
2.24
You are required to return the following documents
(a)
Your tender Proposal, this including the answers to the specific questions in section 4 of
this ITT
(b)
Copies of the insurance documents listed in Section 5
(c)
The Pricing Schedule in Section 6
(d)
The completed and signed Statement of Non-Collusion in section 9
(e)
The completed and signed Form of Tender also in section 9
Section 3 - The Specification
Long Run Income Elasticity’s of Import Demand
3.1 The project has three objectives. The successful contractor will be expected to:
Objective 1:
Estimate the long run income elasticity of aggregate world import demand by product
(disaggregated to level of detail as is practical – see trade data section for more detail) and
long run income elasticity of import demand by product for country groups. For example, how
total import demand for product X will change in response to a Y% rise in income;
See countries section for more information on country groups.
Objective 2:
Estimate the long-run income elasticity of demand for UK exports by product and key countries
and country groups. For example, how demand for UK exports in country Z for product X will
change in response to a Y% rise in income in country Z.
See countries section for more information on country groups and countries.
Objective 3:
Estimate how changes in different components of aggregate demand may impact on import
demand by product for country groups (consumption, investment, government spending and
exports). This should be disaggregated to level of detail as is practical 1. For example, how a 1%
increase in government expenditure in BRICs will impact on import demand for product X.
The analysis should be based on the estimation of an econometric model. The detailed
specification of the model is to be decided by the successful contractor. However, it is
suggested to use an imperfect substitutions model which is widely used in the trade literature
(panel data). The chosen model needs to be based on economic theory and satisfy all
necessary conditions for a well-specified econometrics model (e.g. satisfying standard
diagnostics tests). The contractor will need to perform quality checks of the results. Any
counterintuitive results (e.g. very large elasticises) should be highlighted, and explained if
possible
1
Please note that it does not have to be disaggregated to the same level as for objectives 1 and 2. For example, it is
possible that disaggregation to the 2-digit level may not be feasible.
Trade data
The study should examine both trade in goods and services.
For goods, as a starting point, it is suggested to use 2-digit level data using the Harmonised
System (HS). This provides a breakdown of goods into categories, which can recognisably be
linked to a number of broad sectors such as aerospace, pharmaceuticals etc. However, some
categories are broader than others – machinery and equipment (HS 84, HS 85) accounts for
nearly a fifth of world trade and covers everything from capital goods to computers.
As such, it could be necessary to interrogate the data to a greater degree of detail into more
meaningful categories (e.g. capital goods, ICT, consumer electronics etc).
Data on services are far more limited (see below) and are generally only available at a very
high level of aggregation (e.g. Travel, Communications, Construction etc) – particularly in the
case of developing economies. In order to gain maximal coverage across countries we would
suggest using UN Service Trade database at the second highest level of aggregation (11 broad
services categories).
Countries
Country groups should include the following:
North America (Canada + USA)
BRIC (Brazil, India, Russia and China)
High-income Asia (South Korea, Japan, Singapore, Hong Kong, Taiwan)
Middle-income Asia (Malaysia, Indonesia, Thailand, Vietnam)
Middle-East (Egypt, Qatar, UAE, Saudi Arabia)
Large European (France, Germany, Spain, Italy, Netherlands, Belgium, Ireland)
Central Europe (Slovak Republic, Slovenia, Poland, Hungary, Czech Republic)
The data on individual countries to be examined will depend on the data availability and the
cost. The main countries of interest are included in table 1 (Option1), Additional countries are
listed below table 1 (Option2).It is possible that the data is not available for all the countries
listed below.
The two options need to be priced in the proposal. Based on the list of countries provided,
tenderer should provide the list of countries he is planning to look at under each of the options
(based on the data availability).
Table 1: List of countries: option 1
OECD:
Australia
Belgium
Canada
France
Germany
Ireland
Italy
Japan
Korea
Mexico
Netherlands
Spain
Sweden
Switzerland
Turkey
United Kingdom
United States
NON-OECD:
Brazil
China
Hong Kong
India
Indonesia
Malaysia
Russia
Saudi Arabia
Singapore
South Africa
Thailand
UAE
Option 2 would include all OECD countries, non-OECD countries listed in Option 1 plus
Colombia, Qatar and Vietnam.
Budget/ costs
3.2 The schedule of cost information must be presented separately to the proposal. The total
cost of the project (exclusive of VAT) must be clearly stated. The total and breakdown of
the costs should be presented (see section 6 for more details).
Deliverables
3.3 The project will involve the following deliverables with the final research delivery by the
26th of March, at the latest:
a) An inception meeting to discuss the objectives of the study/ methodology
b) Monthly update of research progress (by email)
c) An interim meeting to be held in BIS in January to discuss research progress and
preliminary results
d) Delivery of the final dataset to BIS by 26h of March including:
a. data used for estimation (raw and transformed; excel format)
b. main econometric results (excel format)
c. full results of econometrics estimations (including required diagnostics tests)
e) Technical annex – model specification and the rationale for the choice of a specific
model and its limitations. Assumptions made must be clearly stated.
f) Presentation of the findings to BIS ( within 10 working days of dataset delivery)
Section 4 - Questionnaire
4.1
You must respond in full to each of the questions set out in all sections of this
questionnaire to allow BIS to make an informed selection of the most appropriate solution.
Any alternative options should be made clear.
4.2
You should repeat the question in your tender Response and then include your answer.
4.3
Please number every page sequentially in the main body of your Response and include the
date and title of your document on each page of the main body.
4.4
Please submit your Proposal in pdf or Microsoft word format.
4.5
Your Proposal must be in the English language.
4.6
BIS endorses the UK Government policy on sustainable development and where possible,
and practicable, tenders should be produced on recycled paper containing at least 80%
post-consumer waste and printed double-sided.
4.7
Any additional pre-existing material which may expand upon your Proposal should be
included as appendices with cross-references to this material in the main body of your
Proposal.
4.8
While promotional material may be included or referred to in your Proposal, you are asked
not to include it in substitution of responding fully to all questions.
4.9
You are required to reply to all questions in this questionnaire even if you have previously
provided this information. This is to ensure that BIS can compare each of the options and
the suppliers in a fair, like-for-like and reasonable manner. If a question is similar to a
question included elsewhere in the questionnaire, you should repeat your Proposal and
expand upon it where necessary.
4.10
Tenders may be rejected if the information asked for in this ITT is not given at the time of
tendering.
Evaluation Questions
Section A - Qualities and Resources
Question 1
Please demonstrate that you have an understanding of what BIS requires,
Section B - Personnel
Question 2
Please identify the individuals to whom you would, if successful, allocate the work
under the contact and provide brief curriculum vitae for each
Question 3
Please say who BIS’ main point of contact would be
Question 4
How will tasks be allocated between the various grades of fee earner?
Section C - Methodology
Question 5
Please outline the specification of the econometric model you intend to use
including information on the dataset, data availability and the main assumptions.
Section D - Costing
Question 6
Please see the Pricing Schedule in Section 6 and in particular, please ensure the
costs for option 1 and 2 are clearly stated including the list of countries which will
be examined under each of the options.
Section 5 – Insurance
5.1 Please enclose documentary evidence to show that you have the following types and
amounts of insurance cover. This should be a copy of the relevant policy together with
proof of payment of the current years’ premium.
5.2 Employers Liability Cover – minimum cover £5 million
5.3 Public Liability Insurance Cover – minimum cover £2 million per claim
5.4 Professional Indemnity Insurance – minimum cover £2 million for claims arising from a
single event or series of related events in a single calendar year.
Section 6 - Pricing Schedule
6.1 All pricing should be in pound sterling (£GBP).
6.2 If applicable please convert your currency into UK sterling using the rate published by the
European Central Bank on the date you submit your tender
6.3 The schedule of cost information must be presented separately to the proposal. The total cost
of the project (exclusive of VAT) must be clearly stated. Where options are suggested the total
and breakdown of the costs should be presented with each option.
6.4 Proposals should include details of a proposed work programme, with timings and a table
specifying separately the costs and researcher days for each element of the work programme.
Researcher days should be identified for each team member.
6.5 The contractor is invited to provide a menu of cost options for the quantitative aspects of the
study and their feasibility within a given budget.
6.6 Proposals should identify and address potential difficulties which may arise in undertaking the
research.
6.7 Proposals should specify separately the following elements of costs:
Researcher/consultancy days and daily rate costs, identified separately for each team
member: A daily fee rate for each of the various direct staff to be involved in the work
should be shown in a labour cost table
- support staff costs
- travel and subsistence costs
- other overheads
- VAT.
6.8 Any proposed use of contractors should be identified separately, with costs specified in the
same categories as above. Any sub-contractors who will be responsible for carrying out the
required fieldwork should be identified by name in the proposal, with documentation
demonstrating implementation of robust quality control procedures.
6.9 Proposals should outline the approach which the researchers would take, including a detailed
schedule of work, showing the dates by which outputs could be delivered, and should be
accompanied by:
- a statement indicating researcher availability within the required time period
- a summary of relevant previous work, with electronic links to recent examples where
possible
- CVs with references and a publications list.
Section 7 - Evaluation Criteria
Where a question is scored the scores will range from 0 to 5. Each score has the following
meaning:
0.
1.
2.
3.
4.
5.
Unacceptable
Unsatisfactory - below requirement
Weak - well below requirement
Mostly meets the requirement
Good – completely meets the standard with moderate levels of assurance
Outstanding – completely meets the standard with high levels of assurance
Weightings are given to each of the questions that are scored. Your total score will be determined
by the aggregate of the scores for each question once multiplied by the applicable weighting.
Weight
15%
Selection Criteria
Grasp of research issues and track record of
studies in this area
25%
Appropriate design and methodology
15%
Acceptable and realistic timetable
15%
Appropriately qualified and experienced staff
30%
Cost and value for money
Section 8 - Terms and Conditions
The contract that BIS wishes to let following this procurement is intended to begin on 8th of
January and last for around 11 weeks.
The contract will incorporate BIS’ standard terms and conditions of contract, a copy of which is
available at
GPF 04 - BIS terms
and conditions.docx
Section 9
Statement of non collusion
To
The Department for Business, Innovation and Skills, 1 Victoria Street, London, SW1H 0ET
1.
We recognise that the essence of competitive tendering is that BIS will receive a bona fide
competitive tender from all persons tendering. We therefore certify that this is a bona fide
tender and that we have not fixed or adjusted the amount of the tender or our rates and
prices included therein by or in accordance with any agreement or arrangement with any
other person.
2.
We also certify that we have not done and undertake not to do at any time before the hour
and date specified for the return of this tender any of the following acts:
(a)
Communicate to any person other than BIS the amount or approximate amount of our
proposed tender, except where the disclosure, in confidence, of the approximate amount
is necessary to obtain any insurance premium quotation required for the preparation of
the tender;
(b)
Enter into any agreement or arrangement with any other person that he shall refrain for
submitting a tender or as to the amount included in the tender;
(c)
offer or pay or give or agree to pay or give any sum of money, inducement or valuable
consideration directly or indirectly to any person doing or having done or causing or having
caused to be done, in relation to any other actual or proposed tender for the contract any
act, omission or thing of the kind described above.
3.
In this certificate, the word “person” shall include any person, body or association,
corporate or unincorporated; and “any agreement or arrangement” includes any such
information, formal or informal, whether legally binding or not.
……………………………………………………………………………….….
Signature (duly authorised on behalf of the Tenderer)
……….………………………………………………………………………….
Print name
…………………………………………………………….…………………….
On behalf of (organisation name)
…………………………………………………………………….…………….
Date
Form of Tender
Long Run Income Elasticity’s of Import Demand
To: The Department for Business, Innovation and Skills, 1 Victoria Street, London, SW1H 0ET
1.
Having considered the invitation to tender and all accompanying documents (including
without limitation, the terms and conditions of contract and the Specification) we confirm
that we are fully satisfied as to our experience and ability to deliver the goods/services in
all respects in accordance with the requirements of this invitation to tender.
2.
We hereby tender and undertake to provide and complete all the goods/services required
to be performed in accordance with the terms and conditions of contract and the
Specification for the amount set out in the Pricing Schedule.
3.
We agree that any insertion by us of any conditions qualifying this tender or any
unauthorised alteration to any of the terms and conditions of contract made by us may
result in the rejection of this tender.
4.
We agree that this tender shall remain open to be accepted by BIS for 90 days from the last
date for the receipt of tenders.
5.
We understand that if we are a subsidiary (within the meaning of section 1159 of (and
schedule 6 to) the Companies Act 2006) if requested by BIS we may be required to secure a
Deed of Guarantee in favour of BIS from our holding company or ultimate holding
company, as determined by BIS in their discretion.
6.
We understand that BIS is not bound to accept the lowest or any tender it may receive.
7.
We certify that this is a bona fide tender.
…………………………………………………………………………........
Signature (duly authorised on behalf of the tenderer)
…………………………………………………………………………………
Print name
………………………………………………………………………….
On behalf of (organisation name)
………………………………………………………………………….
Date