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02 Contract Notice

SME Housing Fund - Procurement of a Fund Manager

  • First published: 19 February 2021
  • Last modified: 19 February 2021
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Contents

Summary

OCID:
ocds-kuma6s-108369
Published by:
Cardiff Council
Authority ID:
AA0422
Publication date:
19 February 2021
Deadline date:
22 March 2021
Notice type:
02 Contract Notice
Has documents:
No
Has SPD:
No
Has Carbon Reduction Plan:
N/A

Abstract

Cardiff Council is seeking to procure a FCA accredited fund manager / advisor on behalf of Cardiff Capital Region (CCR) to provide certain services and to manage the capital allocated under a 10 million GBP housing investment fund for the benefit of SME developers (developers with less than 250 employees) operating in the South East Wales region. CPV: 66000000, 66100000, 66140000.

Full notice text

Contract notice

Section I: Contracting authority

I.1) Name and addresses

Cardiff Council

County Hall, Atlantic Wharf

Cardiff

CF10 4UW

UK

Telephone: +44 2920873732

E-mail: procurement@cardiff.gov.uk

NUTS: UKL22

Internet address(es)

Main address: www.cardiff.gov.uk

Address of the buyer profile: https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0422

I.1) Name and addresses

Blaenau Gwent County Borough Council

Municipal Offices, Civic Centre

Ebbw Vale

NP23 6XB

UK

Telephone: +44 1495311556

E-mail: procurement@cardiff.gov.uk

NUTS: UKL16

Internet address(es)

Main address: http://www.blaenau-gwent.gov.uk/

Address of the buyer profile: https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0278

I.1) Name and addresses

Bridgend County Borough Council

Bridgend County Borough Council, Procurement Unit, Civic Offices, Angel Street

Bridgend

CF31 4WB

UK

Telephone: +44 1656642596

E-mail: procurement@cardiff.gov.uk

NUTS: UKL17

Internet address(es)

Main address: www.bridgend.gov.uk

Address of the buyer profile: https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0417

I.1) Name and addresses

Caerphilly County Borough Council

Penallta House, Tredomen Park, Ystrad Mynach

Hengoed

CF82 7PG

UK

Telephone: +44 1443863161

E-mail: procurement@cardiff.gov.uk

Fax: +44 1443863167

NUTS: UKL16

Internet address(es)

Main address: www.caerphilly.gov.uk

Address of the buyer profile: https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0272

I.1) Name and addresses

Merthyr Tydfil County Borough Council

Unit 5,, Triangle Business Park, Pentrebach

Merthyr Tydfil

CF48 4TQ

UK

Telephone: +44 1685725000

E-mail: procurement@cardiff.gov.uk

NUTS: UKL15

Internet address(es)

Main address: http://www.merthyr.gov.uk

Address of the buyer profile: https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0347

I.1) Name and addresses

Monmouthshire County Council

County Hall, Rhadyr

Usk

NP15 1GA

UK

Telephone: +44 1633644644

E-mail: procurement@cardiff.gov.uk

NUTS: UKL21

Internet address(es)

Main address: http://www.monmouthshire.gov.uk

Address of the buyer profile: https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0277

I.1) Name and addresses

Newport City Council

Civic Centre

Newport

NP20 4UR

UK

Telephone: +44 1633656656

E-mail: procurement@cardiff.gov.uk

NUTS: UKL21

Internet address(es)

Main address: www.newport.gov.uk

Address of the buyer profile: https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0273

I.1) Name and addresses

Rhondda Cynon Taf CBC

The Pavilions, Clydach Vale

Tonypandy

CF40 2XX

UK

Telephone: +44 1443

E-mail: procurement@cardiff.gov.uk

NUTS: UKL15

Internet address(es)

Main address: http://www.rctcbc.gov.uk/

Address of the buyer profile: https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0276

I.1) Name and addresses

Torfaen County Borough Council

Civic Centre, Pontypool

Torfaen

NP4 6YB

UK

Telephone: +44 1495762200

E-mail: procurement@cardiff.gov.uk

NUTS: UKL16

Internet address(es)

Main address: www.torfaen.gov.uk

Address of the buyer profile: https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0498

I.1) Name and addresses

Vale of Glamorgan Council

Civic Offices, Holton Road

BARRY

CF63 4RU

UK

Telephone: +44 1446709767

E-mail: procurement@cardiff.gov.uk

NUTS: UKL22

Internet address(es)

Main address: http://www.valeofglamorgan.gov.uk

Address of the buyer profile: https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0275

I.2) Joint procurement

The contract involves joint procurement

I.3) Communication

The procurement documents are available for unrestricted and full direct access, free of charge at:

https://supplierlive.proactisp2p.com


Additional information can be obtained from the abovementioned address


Tenders or requests to participate must be sent electronically to:

https://supplierlive.proactisp2p.com


I.4) Type of the contracting authority

Regional or local authority

I.5) Main activity

General public services

Section II: Object

II.1) Scope of the procurement

II.1.1) Title

SME Housing Fund - Procurement of a Fund Manager

Reference number: ERFX 1007376

II.1.2) Main CPV code

66000000

 

II.1.3) Type of contract

Services

II.1.4) Short description

Cardiff Council is seeking to procure a FCA accredited fund manager / advisor on behalf of Cardiff Capital Region (CCR) to provide certain services and to manage the capital allocated under a 10 million GBP housing investment fund for the benefit of SME developers (developers with less than 250 employees) operating in the South East Wales region.

II.1.5) Estimated total value

Value excluding VAT: 2 500 000.00  GBP

II.1.6) Information about lots

This contract is divided into lots: No

II.2) Description

II.2.2) Additional CPV code(s)

66100000

66140000

II.2.3) Place of performance

NUTS code:

UKL

II.2.4) Description of the procurement

Cardiff Capital Region City Deal is a 1.1bn GBP economic growth programme which was agreed in 2016 between UK Government, Welsh Government and ten local authorities in South East Wales (the "Region") to bring about significant economic growth in the Region through investment, upskilling, and improved physical and digital connectivity.

The CCR local authorities are: Blaenau Gwent, Bridgend, Caerphilly, Cardiff Council, Merthyr Tydfil, Monmouthshire, Newport, Rhondda Cynon Taf, Torfaen and Vale of Glamorgan.

Work undertaken to date has demonstrated to CCR that a key challenge in the Region's housing market is the requirement for vital financing support for SME developers with less than 250 employees and turnover under 50 million EURO ("SMEs") that play a valuable role in local house-building for relatively small housing schemes that fall outside of the mainstream developers' line of sight.

To address this, CCR is seeking to establish an initial 10 million GBP investment sub-fund to target the substantial number of SME controlled smaller sites in the Region and provide finance support to SME developers who are unable to proceed with developments due to a lack of available funding support, particularly for the required upfront costs in the delivery cycle (the "Fund"). The term of the Fund is anticipated to be 11 years (approximately 1 year bedding in period and 10 years of investment), with the possibility of an extension by CCR for further period(s) of up to 10 years. CCR reserves the right to increase value of its investment in the Fund over this period. The principal objectives of the Fund, investment products, investment criteria, eligibility criteria and target outputs are set out in the Investment Strategy which has been issued alongside this Contract Notice.

CCR is seeking to commission an FCA accredited fund manager / adviser to, amongst other matters, help market the Fund, source a pipeline of projects, undertake due diligence on applicants and manage the capital allocated under the Fund on CCR's behalf. It is intended that CCR will hold the 10 million GBP which will be loaned directly by CCR to successful applicants upon the Fund Manager's formal recommendation and that a successful applicant will make repayments on the loan to CCR directly. As CCR is not itself a corporate vehicle, Cardiff Council shall hold and manage the allocated 10 million investment; and procure and enter into a services contract for fund management services in respect of the Fund on behalf of CCR. CCR anticipates that the duration of the fund manager's services contract will align with the duration of the Fund.

It is anticipated the fund manager/adviser shall perform loan origination and servicing services alongside general services and reporting services which shall include (amongst other matters): (a) advice upon and finalisation of the Investment Strategy for the Fund; (b) marketing, promoting and securing a pipeline of suitable applicants; (c) reviewing applications and conducting due diligence on a applicant's suitability for the Fund; (d) making recommendations to CCR's investment board in respect of suitable applicants; (e) ongoing monitoring, scrutiny and management of investments made and any potential or actual risks arising and how these may be managed; and (f) fulfilling the role of a FCA accredited fund manager for the Fund. The Fund Manager should also have direct access to third party advisers (in-house or otherwise) (such as valuers and professional advisers) in order to provide the full scope of services on behalf of CCR. The full scope of services is set out in Fund Manager Services Contract which has been issued alongside this Contract Notice.

CCR is now inviting suitably qualified organisations to submit a response to the standard selection questionnaire (SQ) for this contract opportunity. Details of where to obtain the SQ and other documentation being released at this stage can be found in Section I of this contract notice.

II.2.5) Award criteria

Price is not the only award criterion and all criteria are stated only in the procurement documents

II.2.7) Duration of the contract, framework agreement or dynamic purchasing system

Duration in months: 252

This contract is subject to renewal: No

II.2.9) Information about the limits on the number of candidates to be invited

Envisaged number of candidates: 3

II.2.10) Information about variants

Variants will be accepted: No

II.2.11) Information about options

Options: Yes

Description of options:

See section 11.2.7 for details

II.2.13) Information about European Union funds

The procurement is related to a project and/or programme financed by European Union funds: No

II.2.14) Additional information

Please note the estimated value at is based on the maximum 21 year duration of services.

CCR previously engaged with potential suppliers via a soft market testing exercise to discuss this opportunity (see OJEU PIN reference 2020/S 103-249508). The responses confirmed that the Fund was viable, there is a need for the Fund, and the market would be interested in the opportunity.

Section III: Legal, economic, financial and technical information

III.1) Conditions for participation

III.1.2) Economic and financial standing

Selection criteria as stated in the procurement documents


III.1.3) Technical and professional ability

Selection criteria as stated in the procurement documents


III.2) Conditions related to the contract

III.2.1) Information about a particular profession

Participation is reserved to a particular profession: Yes

Reference to the relevant law, regulation or administrative provision:

Provider must be FCA registered

III.2.2) Contract performance conditions

Please refer to the contract, the form of which is made available from the address at 1.3 and the terms of the ISIT.

Section IV: Procedure

IV.1) Description

IV.1.1) Type of procedure

Competitive procedure with negotiation

IV.1.8) Information about Government Procurement Agreement (GPA)

The procurement is covered by the Government Procurement Agreement: Yes

IV.2) Administrative information

IV.2.1) Previous publication concerning this procedure

Notice number in the OJ S:

2020/S 103-249508

IV.2.2) Time limit for receipt of tenders or requests to participate

Date: 22/03/2021

Local time: 12:00

IV.2.3) Estimated date of dispatch of invitations to tender or to participate to selected candidates

Date: 31/03/2021

IV.2.4) Languages in which tenders or requests to participate may be submitted

EN

IV.2.6) Minimum time frame during which the tenderer must maintain the tender

Duration in months: 6 (from the date stated for receipt of tender)

Section VI: Complementary information

VI.1) Information about recurrence

This is a recurrent procurement: No

VI.3) Additional information

To register your interest in this notice and obtain any additional information please visit https://supplierlive.proactisp2p.com ERFX1007376

CCR is conducting this procurement using the Competitive Procedure with Negotiation. Following assessment of SQ submissions, 3 candidates will be invited to submit an initial tender. Please see the SQ for further details. CCR then intends to conduct a focussed and effective negotiation stage with the aim of enabling tenderers to submit a final tender that meets CCR’s requirements. The Draft Invitation to Submit Initial Tender (ISIT) is being issued with the Contract Notice for information only and contains additional information on the anticipated procurement process and draft contract terms.

Candidates are solely responsible for their costs and expenses incurred in connection with this procurement. Under no circumstances (including circumstances where CCR cancels or varies the procurement) will CCR or Cardiff Council or any of its advisers be liable for any costs or expenses borne or incurred by the candidates or their advisers.

NOTE: To register your interest in this notice and obtain any additional information please visit the Sell2Wales Web Site at https://www.sell2wales.gov.wales/Search/Search_Switch.aspx?ID=108369.

Under the terms of this contract the successful supplier(s) will be required to deliver Community Benefits in support of the authority’s economic and social objectives. Accordingly, contract performance conditions may relate in particular to social and environmental considerations. The Community Benefits included in this contract are:

See tender pack

(WA Ref:108369)

The buyer considers that this contract is suitable for consortia.

VI.4) Procedures for review

VI.4.1) Review body

High Court

Royal Courts of Justice, The Strand

London

WC2A 2LL

UK

Telephone: +44 2079477501

VI.4.3) Review procedure

Precise information on deadline(s) for review procedures:

In accordance with the Public Contract Regulations 2015, CCR will incorporate a minimum 10 calendar days standstill period from the date information on award of contract is communicated to tenderers.

VI.5) Date of dispatch of this notice

19/02/2021

Coding

Commodity categories

ID Title Parent category
66100000 Banking and investment services Financial and insurance services
66000000 Financial and insurance services Finance and Related Services
66140000 Portfolio management services Banking and investment services

Delivery locations

ID Description
1017 Bridgend and Neath Port Talbot
1022 Cardiff and Vale of Glamorgan
1015 Central Valleys (Merthyr Tydfil, Rhondda Cynon Taf)
1016 Gwent Valleys (Torfaen, Blaenau Gwent, Caerphilly)
1021 Monmouthshire and Newport

Alert region restrictions

The buyer has restricted the alert for this notice to suppliers based in the following regions.

ID Description
There are no alert restrictions for this notice.

About the buyer

Main contact:
procurement@cardiff.gov.uk
Admin contact:
N/a
Technical contact:
N/a
Other contact:
N/a

Further information

Date Details
No further information has been uploaded.

0800 222 9004

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Rydym yn croesawu galwadau'n Gymraeg.

We welcome calls in Welsh.