UK COMMISSION FOR EMPLOYMENT AND SKILLS - INVITATION TO TENDER
Supplier relationships in finance, legal and accounting services sectors: Can they support
collaborative, employer-led approaches to raising management and leadership capability?
F1C-S04-01 RG
1
GENERAL
1.1
All proposals and questions should be sent electronically to [email protected] and
must arrive by the closing date and time detailed in the Timetable below. Tenders sent by
any other method or route will not be accepted. It is the responsibility of the tendering
organisation to ensure that their proposal reaches the UK Commission by the deadline
date and time, any tenders received late cannot be accepted.
2
SPECIFICATION AND REQUIREMENTS
SUMMARY
BACKGROUND
The UK Commission for Employment and Skills (UKCES) is a social partnership led by
Commissioners from large and small employers, trade unions and the voluntary sector. Our
vision is to create the best opportunities for the talent and skills of people to drive
competitiveness, enterprise and growth in a global economy. Supporting our vision we have
stated three ambitions:
 Create more opportunities for young people to get in and on in work
 Improve the skills, productivity and progression of those in work
 Build vocational pathways in to higher level skills and jobs
Our business plan can be found here. Fostering greater collaboration amongst businesses and
understanding ‘what works’ in addressing workforce development issues are important steps to
achieving our aim.
The UK Futures Programme (UKFP) is designed specifically to encourage employer innovation
and collaboration to address the skills challenges they face. By supporting innovative skills
solutions in this way the UKCES is able to build on its understanding of what works, what doesn’t
and why. The knowledge and understanding gained from the UKFP is complementary to the
UKCES’ business plan objectives.
The UKFP operates through a series of targeted competitions that are designed to further the
UKCES’ three ambitions. Each competition is rooted firmly in evidence describing the skills
challenge to be tackled and a desire to test new possible solutions. The first competition focused
on the specific skills needs that threaten to restrict the growth of the Off-Site Construction sector.
Competition two sought innovative proposals from businesses to raise the capability of managers
and leaders in their supply chains. The third competition has recently been announced and
focuses on creating progression pathways in the hospitality and retail industries to address low
pay.
This invitation to tender relates to the second competition. The competition was shaped by
several pieces of research from the UKCES and beyond that provided convincing or unequivocal
findings about the problem of management and leadership in the UK, the sector pattern of the
problem and of the potential of employer networks to affect behaviour change. The competition
brief can be found here. Please familiarise yourself with the brief before tendering.
More precisely, analysis of the UKCES’ UK Employer Skills Survey1 identified four sectors where
employers report they experience management and leadership deficiencies more acutely than
average and where they report they are less likely to implement high performance working
1
UKCES (2014) UK Employer Skills Survey 2013. UKCES; Wath Upon Dearne
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Supplier relationships in finance, legal and accounting services sectors: Can they support
collaborative, employer-led approaches to raising management and leadership capability?
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practices2. Our Collective Measures3 study of ways to encourage employers to train on a
collective basis identified employer networks as one of the most effective mechanisms to achieve
this as they can overcome a number of barriers to training such as cost and a lack of information.
Subsequent research (Understanding Employer Networks4) identified how different types of
employer networks, including supply chains, are used to tackle workforce development or skills
challenges and their success factors.
With this in mind, the purpose of the competition was to test the notion that supply relationships
in manufacturing, construction, financial services, and legal and accounting services sectors offer
a mechanism by which the management and leadership capability of firms can be raised.
Supply chains are structured in different ways to meet the needs of the sector they serve5. In
sectors such as oil and gas, a high degree of vertical integration is common where, for example,
there is value in managing closely transaction costs and risks to ensure continuous supply. At the
other extreme, the supply chain in construction is highly fragmented reflecting specialisation of
tasks and the transfer of risk within the industry.
Another dimension is the extent to which supply chains rely on imports. The share of foreign
content in value added service exports from the UK is relatively low; 8 per cent for financial
services and 6 per cent for business services6. This indicates UK services activities are less
reliant on global supply chains partly because of the face-to-face nature of these activities. By
contrast, the share of foreign content in the value added of UK manufacturing sectors such as
automotive, aerospace and chemicals is much higher at 20-30 per cent.
The competition has now closed and employers in the manufacturing and construction sectors
responded well to the opportunity, submitting the majority of the proposals. The supply chain in
these sectors is well understood and in manufacturing is already used to drive change in firms
(e.g. SC21 in Aerospace and Defence, and the Advanced Manufacturing Supply Chain Initiative).
The number of proposals from employers in financial services and legal and accounting services
sectors was much less and the success rate lower. This led us to consider whether the notion of
a linear supply chain similar to that in manufacturing and construction is less apparent and if so
whether an alternative form(s) of supplier relationship prevails. Alternative relationships such as
networked organisations, outsourcing, partnering, strategic alliances, and collaborative business
models may operate alongside or instead of a linear supply chain789. For example professional
and business services firms are integrating horizontally because of the need to offer a range of
services to their clients and are using different supplier models to do so10. The same is likely to
be happening in the financial services and legal and accounting services sectors.
2
High performance working (HPW) is a general approach to managing organisations that aims to stimulate
more effective employee involvement and commitment in order to achieve high levels of performance. See
UKCES (2010) High performance working: A synthesis of key literature. UKCES, Wath Upon Dearne.
3 UKCES (2009) Review of Employer Collective measures: Final Report. Evidence Report 10. Wath Upon
Dearne, UKCES
4 UKCES (2013) Understanding Employer Networks. Research Report 66. Wath Upon Dearne, UKCES
5 BIS (2013) Industrial strategy conference 2013: Securing jobs and a stronger economy. BIS Analysis
Paper number 1.
6 OECD (2013) Interconected economies. Benefiting from global value chains. OECD Publishing
http://dx.doi.org/10.1787/9789264189560-en
7 Rubery, J. et al (2010) Blurring Boundaries and Disordering Hierarchies: Challenges for employment and
skills in networked organisations. Praxis number 6. UKCES, Wath Upon Dearne.
8 CIPD (2013a) Beyond the organisation, part 1 of 2. Understanding the business issues in partnering
arrangements. Research Report. London, CIPD.
9 CIPD (2013a) Beyond the organisation, part 2 of 2. Organising HR for partnering success. Research
Report. London, CIPD.
10 BIS (2013) Op. Cit.
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Supplier relationships in finance, legal and accounting services sectors: Can they support
collaborative, employer-led approaches to raising management and leadership capability?
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However, such alternatives are less well understood. The prevalence of these arrangements is
unknown along with the implications for talent management and development1112 and their failure
rate appears high13. Successful supplier relationships or partnering arrangements require those
involved to not always act as single entities but to what extent does this happen? To this, we
would add the question of whether their nature and operation is conducive to tackling skills
challenges such as raising management and leadership capability.
The smaller response from employers in the financial services, and legal and accounting services
sectors has, therefore, prompted us to ask questions about the nature of their supplier
arrangements, whether they would support collaborative skills solutions and how the employers
could be better targeted if the competition was re-launched. For example:









Do employers in these two sectors recognise and accept there is a need to raise
management and leadership capability?
Does the term ‘supply chain’ have currency in these sectors? What is the right
terminology we should use to enable engagement with the sectors?
What would motivate a lead business or customer organisation to act to raise
performance or address deficiencies in a supplier’s or partner’s business?
Do employers consider the capability of staff in supplier and partner firms and are they
willing to act to raise capability?
What is the nature and character of supply relationships? Does the hub and spoke
model dominate rather than a linear supply chain? How many tiers or suppliers are
involved and how clear is the relationship beyond the first supplier or tier? To what extent
are the supply relationships based upon shared business ambitions and values as well as
contractual relations?
How concerned would a customer be with the performance of a supplier several tiers
down the chain?
Would the supply relationship enable or support collaborative skills solutions between
customers and suppliers?
How are supplier relationships managed? Do HR and supply chain or account managers
collaborate on managing suppliers and partners?
How do suppliers perceive an intervention from a customer or lead business? Suppliers
may have multiple customers so how would an initiative led by one customer be
perceived by another?
Prompted by these questions the UK Futures Programme wishes to commission primary
research to meet the aim and objectives stated below.
AIM
The purpose of this research is to help inform whether supplier relationships in the financial
services, and legal and accounting services sectors would support a ‘supply chain’ approach to
raising management and leadership capability and, subsequently, whether to re-issue
competition two in these sectors.
OBJECTIVES
Building on the aim above, the specific objectives for the research are to:
1. Investigate the nature, structure, operation and variety of supply relations in the financial
services and legal and accounting services sectors
11
Rubery, J. et al (2010) Op. Cit.
CIPD (2013a) Op Cit.
13 Hughes and Weiss (2007) Simple rules for making alliances work. Harvard Business Review.
12
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collaborative, employer-led approaches to raising management and leadership capability?
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2. Describe how supply relationships have developed and changed recently and identify
what is driving that change
3. Identify what would motivate a lead business to work with a supplier and how far the
nature of the relationship in these sectors supports that
4. Identify the opportunities and barriers to using the supplier relationships to raise M&L
5. Explore how a supplier would perceive an intervention from a lead business
6. Explore how M&L activity led by one lead business may be perceived by another in the
same sector or one that partners with the same organisation
7. Inform a decision as to whether the UKFP competition two should be re-launched with
these two sectors and, if so, recommend how the competition should be refocused
METHOD
Literature review
The research will need to be founded upon a solid understanding of the nature, structure and
operation of supply chains generally, and specifically in the financial services and legal and
accounting sectors. Recent literature which the review would need to be consider include the
existing and forthcoming reports from the CIPD on managing beyond the organisation. (CIPD,
2013a, b and forthcoming). The literature review will primarily address objectives one and two
although not exclusively.
Qualitative interviews and focus groups
The primary method we envisage using is qualitative interviews with key informants in the sectors
identified above, either face-to-face or by telephone. At this stage we anticipate interviewing a
number of constituents across the supplier relationship. There may also be merit in conducting
focus groups either on a sector or supply chain basis and we are therefore keen to see proposals
include this method. Key contacts from the focus groups may prove to be of benefit to us when
needing to consult employers on the design of the competition if it is re-launched.
We anticipate the primary purpose of these methods is to gauge and test the propensity for
supplier relationships to support collective action to address skills challenges in the sectors i.e.
objectives three to six, although not exclusively.
The research should identify two to three supplier relationships or partnering arrangements in
each of the two sectors. We envisage conducting five interviews per supply partnership (two
interviews being conducted with the lead employer or customer and three with the partner(s)). It
is also likely to be useful to interview sector stakeholders such as trade or representative bodies
(2-3 per sector). Furthermore, there may be other cross-sector stakeholders that can provide a
valuable insight for the project overall such as the Chartered Institute of Procurement and Supply
(www.cips.org.uk) along with academic experts (2-3 for the project as a whole). This approach
would give a range of 29-39 interviews for the project as whole depending on whether a two or
three partnerships are identified per sector.
This approach is indicative and we are open to alternative suggestions of how a similar number
of interviews could be structured to meet the aims and objectives of the research. Building a little
flexibility in to the selection of interviews will also be helpful as it can be informed by the findings
of the literature review and the emerging findings from the primary research. The successful
contractor will need to recommend interviewees and agree them with the UKCES.
KEY DELIVERABLES/OUTPUTS


A research report and executive summary that answers the aim and objectives stated
above. This must be delivered in the UKCES report template and will be provided to the
contractor on appointment.
A set of PowerPoint slides summarising the rationale, approach and findings of the
research. The presentation must make use of text and data visualisation techniques
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Supplier relationships in finance, legal and accounting services sectors: Can they support
collaborative, employer-led approaches to raising management and leadership capability?
F1C-S04-01 RG
throughout. The presentation must be prepared in the UKCES template which will be
provided on appointment.
 A presentation and discussion of the research findings. Please quote a unit cost for this
as there may be opportunities to deliver the presentation more than once.

CONTRACT AND TENDER PERIODS
2.1
You agree that the contents of the tender will remain valid for a period of 6 months from
the closing date for submission of the tender.
3
TIMETABLE
The following timetable will apply for this tender
Activity
Planned
Completion Date
Invitation to tender (ITT) sent out
22 Oct 2014
Closing date for questions on the ITT
Noon 6 Nov
Closing date for UK Commission response to questions to be
published to suppliers
17:00 7 Nov
Closing date for submission of tenders
Shortlisting
3.1
Noon 11 Nov 2014
11-18 Nov
Shortlisted tenderers invited for interview by Project Manager
18 Nov
Unsuccessful tenderers notified via e-mail by Project Manager
18 Nov
UK Commission Panel interviews (if required)
25 Nov
Award made
26 Nov
Unsuccessful interviewees notified by Project Manager
26 Nov
Inception meeting
2 Dec
Commencement of delivery
26 Nov 2014
Completion of delivery
28 Feb 2015
In the event that contractual terms cannot be finalised with the Tenderer selected, the UK
Commission reserves the right to select an alternative.
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collaborative, employer-led approaches to raising management and leadership capability?
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FORMAT OF TENDERS AND GUIDANCE ON CONTENT
YOU WILL NEED TO PREPARE YOUR TENDER FOLLOWING THE FORMAT OF SECTIONS
BELOW.
1
TABLE OF CONTENTS
1.1
You will produce an index to aid navigation through the tender document. The table of
contents will refer to the following sections and sub-sections and the main tender
document will address all of the points required below.
2
MANAGEMENT SUMMARY
2.1
You will produce an overall statement, of approximately 1 page, which concisely brings
together all of the key points made throughout the detailed tender documentation.
3
BASIC DETAILS OF YOUR ORGANISATION
Please complete this section and include it within your tender.
Company
Name
Address
Post Code
Website
Contact 1
Contact 2
Contact 3
Contact Name /
Job Title
Contact
Telephone
Contact e-mail
Please put an x against one box in each section that most closely describes your organisation.
Supplier Type
Company Status
Sector Skills Council
Standard Setting Body
Supplier
Company Size
Small - Up to 50 Employees and less than
£5.6m turnover
Medium - 51 to 250 Employees and less
than £22.8m turnover
Large - Over 250 Employees
Government Statutory Body
Limited by Guarantee Charity
Limited Guarantee Non-charity
Limited Liability Partner
Partnership
Public Limited Company
Private Limited by Shares
Sole Trader
University
VAT Registration Number
Company Registration No
Charity Number
Date of Registration
Date of Registration
Date of Registration
Bank Details
Bank Name
Contact Name
Branch Address
Post Code
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Ultimate Parent Company (if applicable)
Name
Address
Post Code
4
Website
FINANCIAL AND COMMERCIAL CRITERIA (PASS OR FAIL)
Please complete this section and include it within your tender.
How many years have you been trading?
What was your actual turnover in the last 2
financial years?
y/e
y/e
turnover
turnover
What was your actual trading result in the
last 2 financial years? (profit/loss)
y/e
y/e
profit/loss
profit/loss
What were your balance sheet total
reserves in the last 2 financial years?
y/e
y/e
Reserves
Reserves
If asked would you be able to provide at least one of the following:
A copy of your most recent audited accounts.
Yes / No
A statement of your turnover, profit and loss account and cash flow
for the current year of trading.
Yes / No
During the last financial year which single organisation or group
was your primary customer?
What percentage of your annual turnover did this customer account
for?
Has your organisation met the terms of its banking facilities and
loan agreements (if any) during the past 12 months?
Name:
%:
Yes
No
No such terms
If ”No” what were the reasons and what has been done to put things right?
Has your organisation met all its obligations to pay its creditors and
staff during the past 12 months?
Yes / No
If ”No” what were the reasons and what has been done to put things right?
Are you currently involved in any legal disputes or are any
pending?
Have you had any judgements against you for which reparation,
compensation or costs are still outstanding?
Yes / No
Yes / No
If ”Yes” give brief details – sufficient not to prejudice the legal process.
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Supplier relationships in finance, legal and accounting services sectors: Can they support
collaborative, employer-led approaches to raising management and leadership capability?
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Please record the value of insurance cover for current policies where payments are up to
date.
Value of Employers Liability insurance cover
Value of Public Liability insurance cover
Value of Professional Indemnity insurance cover
Value of other cover. Please provide details
5
MEETING THE SPECIFICATION
You will produce a comprehensive but concise document that demonstrates how you will
be able to fulfil the requirements of the specification. In particular, the tender will be
evaluated with due regard to the following sub-sections. Please note that the order in
which the evaluation criteria are listed does not imply relative importance.
5.1
POLICIES AND PROCEDURES CRITERIA (5% OF THE TOTAL SCORE)
Please complete this section and include it within your tender
Marks
available
Criteria
Does your organisation operate health and safety at work
systems and procedures?
Yes / No
1
Does your organisation have a written equal opportunities
and diversity policy that is communicated to your staff?
Yes/No
1
Does your organisation operate environmental
management systems and procedures?
Yes / No
1
Does your organisation operate risk management systems
and procedures?
Yes / No
1
Does your organisation hold a recognised quality
management certificate for example BS/EN/ISO 9000 or
equivalent? If not does your organisation have quality
assurance systems or procedures in place?
Yes / No
1
Does your organisation have Investors in People (IiP)
accreditation?
Yes / No
3
Does your organisation have a policy on training or
workforce development?
Yes / No
1
What is your organisation’s staff turnover?
0-10%
10-20%
1
Over 20%
If you have answered “No” to any of the above, can you describe for each “No” response
how you manage your organisation and staff in the absence of the policy, system or
procedure?
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collaborative, employer-led approaches to raising management and leadership capability?
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5.2
CAPABILITY CRITERIA (70% OF THE TOTAL SCORE)
The format of your response is at your discretion, but will cover the following.
Capability Criteria
Marks
Available
Understanding of the requirements particular to delivering the
specification. To include:
 Understanding the role of the research in informing the UK
Futures Programme
 Understanding the ability of employer networks such as supply
chains or supplier relationships to provide a lever to affect
behaviour change in businesses
 Understanding the importance of raising management and
leadership capability in the UK broadly and specifically in the
financial services and legal and accounting services sectors
15
Feasibility, suitability and efficiency of the proposed approach
and method to deliver the aims and objectives of the research. To
include:
 How the research will be conducted including specific methods
and how they address the aims and objectives
 A justification of the proposed approach and its implications /
limitations
Relevant experience and being able to demonstrate a successful
track record with similar contracts. To include:
 Assessment of particular strengths that you have to deliver the
specification, e.g.
 Sector focused research with businesses and employers
particularly in the financial services and legal and
accounting services sectors
 Experience of applying the methods identified in this
invitation or similar methods to this type of topic
 Identification of efficiencies and synergies that can be achieved
by you from your experience of delivering similar, successful
projects of this nature
Proposals are asked to identify their approach to management and
delivery. To include:
 An assessment of the resources required to deliver the project
successfully, indicating that sufficient numbers of appropriately
skilled staff will be available for its duration, including
contingency for expected delays etc
 All staff should be named, their relevant experience stated
along with the roles in the project and the amount of time to be
committed
 Full and transparent costings based on named individuals
identified tasks
 Key points of contact for the client
 Provide a clear and realistic timetable that meets the
requirement of the project
 How the quality of delivery will be quality assured throughout
the project
 Risks particular to delivering the specification under the control
of the client and the contractor and mitigating actions required
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UK Commission for Employment and Skills
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30
30
25
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5.2.1 Price (25% of the total score) (costs MUST be prepared inclusive AND exclusive
of VAT).
Team Member - Name
5.3
No of
days
Cost Ex VAT
Cost Inc VAT
Travel and Subsistence - Details
Cost Inc VAT
Other Costs - Details
Cost Inc VAT
REFERENCES
These references must be external to the UK Commission. Please provide details of
three recent contracts that are relevant to the UK Commission’s requirement. Where
possible at least one should be from the public sector. If you cannot provide three
references, please explain why.
Reference 1
Reference 2
Reference 3
Customer
Organisation:
Customer Contact
Name and Phone
Number:
Date Contract
Awarded:
Contract
reference & brief
description:
Value:
Date contract was
completed:
Have you had any contracts terminated for poor performance
in the last three years, or any contracts where damages have
been claimed by the contracting authority?
Yes / No
If YES give details – please ensure that the details given do
not prejudice any on-going court cases.
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6
DECLARATIONS
Please complete this section and include it within your tender. Unsigned declarations
submitted with tender documents will be regarded as a non-compliant application.
6.1
I acknowledge that the standard contractual terms and conditions of the UK Commission
will form the basis of any contract between the parties resulting from this invitation to
tender;
IMPORTANT YOU MUST COMPLETE THIS SECTION FOR YOUR APPLICATION TO
BE VALID. THIS IS A LEGALLY BINDING DECLARATION.
6.2
I declare on my honour that, (any of) the director(s) / officer(s) / partner(s) / proprietor(s)
of the organisation, are not currently in, or previously have been in any of the following
situations:

declared bankrupt, been or are being wound up or having any affairs administered by
the courts. Entered into an arrangement with creditors, or have suspended business
activities. Been or are the subject of proceedings concerning any such matters and
in any similar situation arising from a similar procedure provided for in legislation or
regulations;
been convicted of any offence concerning professional judgement by a judgement
which has the force of res judicata14,
been found guilty of any grave professional misconduct proven by any means which
the contracting authority can justify;
failed to fulfil obligations relating to payment of social security contributions or the
payment of taxes in accordance with the legal provisions of the country where
established or with those of the country or the contracting authority or those of the
country where the contract is to be performed;
been the subject of a judgment which has the force of res judicata for fraud,
corruption, involvement in a criminal organisation or any other illegal activity;
been declared to be in serious breach of contract for failure to comply with contractual
obligations.





Any of the events above would exclude us from participating in this procurement
application.
In addition, the undersigned declares on their honour:

that on the date of submission of the tender, the company or organisation I represent
and the staff proposed for this tender are not subject to conflicts of interests in the
context of this invitation to tender; I undertake to inform the UK Commission without
delay of any change to this situation after the date of submission of the tender.
that the information provided to the UK Commission within the context of this invitation
to tender is accurate, sincere and complete.
that the amount or appropriate amount of the tender price has not been
communicated to any other party, other than in confidence and for the express
purpose of obtaining insurances or a bond in connection with this tender;
the tender has not been fixed nor adjusted in collusion with any interested party;
the tender will remain valid for 6 months after the closing date of the tender;




Name
14
Title
res judicata – a matter already settled in court; cannot be raised again.
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Signature
Date
Notes on the Government’s Transparency Agenda
From January 2011 the UK Commission will be required by Cabinet Office to publish all contracts
issued on ContractsFinder website.
As part of this process we are able to redact (edit for publication) any information in the contract
which is considered to be commercially sensitive, e.g. names and telephone numbers of Project
Managers. Contracts will normally not be prepared using Day Rate values; however the financial
details which form part of Schedule 1 Annex 1 must be shown and cannot be redacted.
Should you be successful in winning this contract and you think that there would be anything in
the contract that you feel would be commercially sensitive and you would prefer to be redacted,
please state it in the box below. Items stated in the box below will be considered and will not
prejudice your bid for this work, but will require adequate justification to support your reasons for
redaction.
Commercially Sensitive Item
Justification for Redaction
Name
Title
Signature
Date
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