INVITATION TO TENDER
To undertake an ex-ante appraisal of the case for 2013-20 ERDF investment by
two North West LEPs into a new UDF established under the EC’s JESSICA
initiative
1. INTRODUCTION
1.1
Background
The Joint European Support for Sustainable Investment in City Areas (JESSICA) is
a European funding mechanism to promote investment in urban development
projects. A North West JESSICA Holding Fund was established by the Northwest
Development Agency in 2009, utilising European Regional Development Fund (ERDF)
resources from the North West Operational Programme. This North West Urban
Investment Fund (the NWUIF) oversaw the investment of the ERDF and matched
resources in projects in the region via two urban development funds (UDFs); one
established for Merseyside and the other for the rest of the North West (RONW) i.e.
Cheshire, Cumbria, Greater Manchester and Lancashire.
The RONW UDF, branded as the Evergreen Fund, was launched in 2011 and since
that time has progressed 11 investments involving over £70m of ERDF resources. Of
the 11 investments, eight are located in Greater Manchester and three in Cheshire.
Greater Manchester is working with DCLG, as Managing Authority, on development
of a call to support the creation of a new UDF for Greater Manchester for the 2013-20
ERDF period.
The intention is that this new UDF, once established, will also be the bidding vehicle
for the ERDF allocations of other RONW LEPs, subject to these areas being able to
justify the case for investing resources through such an instrument.
.
1.2
Summary of Requirements
The areas of Cheshire and Warrington and Lancashire need to evidence, to the
satisfaction of DCLG, the case for distributing ERDF through an UDF in accordance
with the allocations identified in their European Structural and Investment Fund (ESIF)
Strategies.
They therefore need to complete an ex-ante appraisal to consider, firstly, the question
of whether there is a market failure in the investment priorities that is sufficient to justify
the commitment of ERDF funds and, secondly, the nature of the products required to
address that market failure (e.g. debt, equity etc).
In addition, Cheshire and Warrington are currently considering their investment
strategy for deploying £12.1m of recycled Growing Places Fund (GPF).
The ex-ante appraisal should therefore also consider to what extent this funding could
be deployed to complement potential ERDF eligible developments across Cheshire
and Warrington or help address access to finance issues for ERDF ineligible
development such as retail and residential schemes.
2. DETAILED REQUIREMENTS
2.1
Specification
The ex-ante appraisal must be in accordance with the European Investment Bank’s
(EIB) ‘Ex-ante assessment methodology for financial instruments in the 2014-2020
programming period’ and meet the requirements of DCLG as Managing Authority.
The appraisal must demonstrate, for both the Cheshire and Warrington and
Lancashire areas;
 Analysis of development activity, across the investment priorities set out within
the ESIF strategies, to identify market failures or suboptimal investment
situations; evidencing the particular markets and targets affected; and analysis
of the estimated level and scope of public investment needs;
 Assessment of the value added that a UDF would achieve and commentary on
the appropriateness of such a vehicle given other forms of public intervention
accessible to the affected targets and markets, noting any possible State aid
implications;
 An estimate of the additional public and private resources that could be
generated by the UDF, including an assessment of any preferential terms and
remuneration that would be required to secure this; and
 Identification and incorporation of lessons learnt recommendations arising from
the Evergreen 1 project particularly with regard to project origination and
governance arrangements.
The appraisal must make clear recommendations, in response to the market
assessment work per above, as to an appropriate investment strategy for ERDF
funding deployed through the UDF, specifically identifying the;




target markets
target beneficiaries;
financial products that would meet the needs of the target beneficiaries; and
any changes to project origination and governance arrangements per
Evergreen 1 that would enhance the number and quality of projects brought
forward for investment consideration.
The appraisal must interface with the ESIF Local Implementation Plans for both
Cheshire and Warrington and Lancashire areas and set out expectations for the
results and contributions of UDF investment to the thematic objectives. This should
be in the form of recommendations as to the indicators and measures of success and
the target levels that could reasonably be set for such investment.
For Cheshire and Warrington, a further piece of work is required to understand the
extent to which Growing Places Funding is required to support market failure or suboptimal investment situations in markets ineligible for ERDF support, primarily
residential house building and retail led development.
The work should justify the development activity to be considered in scope for
assessment, with reference to the LEP’s Strategic Economic Plan (SEP) and the
outcomes of the ERDF ex-ante appraisal above. The assessment will need to;
 Demonstrate analysis of development activity across the in-scope areas to
identify market failures or suboptimal investment situations; evidencing the
particular markets and targets affected; and analysis of the estimated level and
scope of public investment needs;
 Recommend a proposed investment strategy, including an assessment, where
applicable, of combining with other initiatives and programmes, options for
implementation arrangements, investment vehicles and target groups;
 Specification of expected results including suggested measurement indicators.
2.2
Delivery Approach
The Appointed Consultants will be expected to:



2.3
Engage with the LEP Executives of both Cheshire and Warrington and
Lancashire LEPs, their respective ESIF Committees, and representatives of
Greater Manchester and DCLG
Adhere to the proposed time table and performance management
arrangements.
Have cognisance of development pipelines in both Cheshire and Warrington
and Lancashire borne from their own commercial activity and desk top
analysis and research of publically available information including;
o Local authority planning portals and planning departments
o Industry journals and media releases
o Strategic Economic Plan (2013 and updates)
o Enquiries with relevant property agents and developers
Programme Management Arrangements
Day to day project management will be provided by Martin Forbes, LEP Project
Manager. The successful consultant will be expected to attend regular (fortnightly)
progress meetings during the course of the commission and liaison via telephone
and e-mail with officers and key stakeholders as necessary.
Any clarifications to information contained in this document must be submitted by
email to Martin no later than 11th March 2016. Any additional information provided
will be made available to all potential Tenderers via the LEP website after this date
www.871candwep.co.uk.
Email: [email protected]
2.4
Timescales
The key dates for this procurement (Timetable) are currently anticipated to be as
follows:
Event
Date
Deadline for receipt of clarifications
17.00 P.M. 11th March 2016
Deadline for receipt of Tenders
10.00 A.M. 18th March 2016
Evaluation of Tenders
w/c 21st March 2016
Approvals and Contract Agreement
w/c 28th March 2016
Contract start date
Upon contract agreement
Final Report
End of May 2016
3 RESPONDING TO THIS SPECIFICATION
Tenders must address all the requirements and be in the format requested below.
Tenders not in this format will not be considered. Tenderers are requested to
provide core information in summary form with detail in appendices.
The following must be supplied:
3.1
General
i. Organisation identity including name, address, telephone number, email address, company registration number, VAT registration number
and website address (if applicable).
ii. Details of the main point of contact within the organisation for this
tender.
iii. Name, address, telephone number and e-mail address of any third
parties involved in this tender.
iv. Response to Schedule 1
v. Completed and signed Schedule 2
3.2
Pricing
The cost associated with delivering this commission should be presented as shown
in the table below.
Market
Assessment
& Investment
Strategy
(ERDF)
Cheshire and Warrington
Lancashire
Market
Assessment &
Investment
Strategy (NonERDF)
Total
(£)
n/a
Total (£)
All prices must be fixed and firm, quoted in pounds sterling and exclusive of VAT.
Tenderers should detail any ancillary costs and expenses included in the price. Note
that the total budget for this work is in the region of £30k (plus VAT if applicable).
3.3
Submission Instructions
The LEP will only accept tender submissions made via e-mail to
[email protected]. The deadline for submission of completed tenders
is 10.00 A.M. 18th March 2016. The completed tender submission must be
submitted by no later than the time and date specified above. Bidders are advised to
allow adequate time for uploading documents and to dispatch the electronic
response well in advance of the closing time to avoid any last minute problems.
Failure to submit the tender submission as required will result in the relevant Bidder
being excluded from any further participation in this procurement. Any tender
submitted and or received after the time specified above will not be considered and
the Bidder will be advised of this. Please note that submissions not received via the
means identified in the ITT will not be accepted or considered.
Bidders are also welcome to provide hard copies of their tender following submission
of their bid in accordance with above. Any hard copies should be addressed as
follows:
Name:
Address:
Martin Forbes
Cheshire and Warrington LEP
Richmond House, Gadbrook Business Park, Rudheath,
Northwich, CW9 7TN
4 EXAMINATION AND EVALUATION OF TENDERS
4.1
Award Criteria
Tenders will be assessed initially by reference to the following pass / fail criteria:
(i) Completeness of proposals and tender documentation as specified in Section
3 (Responding to this Specification);
(ii) Stated ability of the Tenderer to meet all of the requirements specified in
Section 2 of this document;
The Bidder which passes the pass/fail criteria above and is awarded the highest
combined mark in the ‘Price’ and ‘Quality’ sections will be awarded the contract.
In the Price section, the LEP is evaluating how the Bidder cost compares against the
cost of other submitted tenders. There are 40 points available for Price and the
lowest cost bid will be awarded 100% of these with the other bids receiving a
proportion based on the following formula:
Bid's Score = 40 x (lowest total cost / bid cost)
In the Quality section, the LEP is evaluating how the Bidder will ensure it delivers the
services in a way which complies with the LEP’s requirements in relation to the
Specification (Section 2.1) and the Delivery Approach (Section 2.2). Schedule 1 sets
out six questions which explore these aspects and the responses will be scored
using the pre-determined scoring system set out below.
Excellent
76-100%
A comprehensive response which provides
information that is highly relevant and fully
answers the question.
Good
51-75%
A detailed response which provides information
that is relevant and substantially answers the
question.
Satisfactory
26-50%
A response which provides information that is
generally relevant and answers the majority of the
question.
Poor
1-25%
A response which provides information which is
only partially relevant and/ or answers only a small
proportion of the question.
Unsatisfactory
0%
A response which does not provide information
which is relevant and does not answer the question
or no response is provided.
There are 60 points available for Quality with these being allocated as follows:
Question
1
2
3
4
5
6
Total
4.2
Maximum Points
Available
12
15
16
7
5
5
90
Clarification
During the evaluation period, clarification may be sought via e-mail from Tenderers.
Responses to requests for clarification may not materially change any of the
elements of the tenders submitted.
The LEP may choose to invite bidders to make presentations on their proposals for
the purpose of elaboration, clarification and / or aiding mutual understanding.
Presentations would be held on 23rd March 2016.
5 GENERAL INFORMATION
5.1
Financial Arrangements
Payments for services covered by this invitation to tender will be on submission of
appropriate invoices, subject to Cheshire and Warrington LEP’s standard payment
terms, and which will be based on agreed deliverables. Invoicing arrangements will
be agreed with the successful provider, following the award of contract.
5.2
Contract
A contract will be awarded to the Tenderer whose proposal is deemed to be the most
economically advantageous subject to agreement on conditions of that contract.
Please note that the LEP reserves the right to cancel the Tender process at any time
prior to a contract being entered into.
The LEP is not bound to accept the lowest price, or any tender submitted.
Schedule 1 – Information Requirements
1. Please set out your experience of undertaking ex-ante appraisals of relevance
to this assignment, detailing the nature of the commissions and identifying the
personnel involved and their roles. (12 points)
2. Please provide the names and CVs of the team that you would deploy on this
assignment along with a description of their respective roles, particularly
highlighting their specific experience of EU final instruments and urban
development funds. (15 points)
3. Please provide a method statement that details how you will deliver this
commission, particularly addressing how you will secure the necessary
information and evidence to support the required market assessments and
management and delivery recommendations. The statement should
reference the key information sources you intend to rely upon. The response
should be structured such that it clearly identifies the separate requirements
of the three assessments in respect of;
 ERDF investment by Lancashire LEP
 ERDF investment by Cheshire and Warrington LEP
 Growing Places Fund investment by Cheshire and Warrington LEP
(16 points)
4. Please provide a project delivery plan with supporting narrative that aligns to
your method statement, illustrates the tasks and dependencies involved and
explains the project management approach that will be deployed. (7 points)
5. Please provide a risk register that features your assessment of the key risks
associated with the delivery of this commission and appropriate management
and mitigation steps. (5 points)
6. Please describe how you will quality assure the delivery of your work. (5
points)
Schedule 2 - Declaration
I/We the undersigned, hereby quote to supply the goods / service / products detailed in this
tender, at the respective prices quoted. (Prices must not include VAT).
I certify that as far as I know, the information I have supplied is accurate.
I/We agree that this tender shall remain open to be accepted or not by the LEP for a period
of six months from the closing date for the receipt of tenders.
I/We agree that the LEP may discontinue the tendering arrangements at any time before a
tender has been accepted.
I/We accept the specification and terms and conditions accompanying the request for tender
and undertake to be bound by them if my/our tender is accepted by the LEP.
I/We certify that I/we have not now or will in the future, canvassed or solicited any
representative or employee of the LEP and any other companies in the group of which the
LEP forms part, in connection with this tender and that to the best of our knowledge and
belief no person employed by me/us or acting on my/our behalf has done such an act.
I/We understand that the LEP is not bound to accept any tender and will not be liable under
any circumstances whatsoever for the costs I/we have incurred in preparing the tender.
The tender submitted herewith is a bona fide tender intended to be competitive.
We have not fixed or adjusted the amount of the tender by or under or in accordance with
any collusive agreement or arrangement with any other person.
NAME OF CONTACT:
DESIGNATION:
COMPANY NAME:
ADDRESS (including postcode)
TELEPHONE:
FAX:
EMAIL:
SIGNATURE:
DATE: