Contract notice
Section I: Contracting
authority
I.1) Name and addresses
SME Wholesale Finance (London) Limited
71-91 Aldwych
London
WC2B 4HN
UK
Contact person: Mr Gary Seed
E-mail: GARYSEED@TFL.GOV.UK
NUTS: UKI
Internet address(es)
Main address: http://fundinglondon.co.uk
I.3) Communication
The procurement documents are available for unrestricted and full direct access, free of charge at:
https://procontract.due-north.com
Additional information can be obtained from another address:
Transport for London
55 Broadway
London
SW1H 0BD
UK
Contact person: Gary Seed
E-mail: garyseed@tfl.gov.uk
NUTS: UKI
Internet address(es)
Main address: https://tfl.gov.uk
Tenders or requests to participate must be sent electronically to:
https://procontract.due-north.com
I.4) Type of the contracting authority
Body governed by public law
I.5) Main activity
Economic and financial affairs
Section II: Object
II.1) Scope of the procurement
II.1.1) Title
Greater London Investment Fund — supported by European Regional Development Fund — Fund Managers
Reference number: DN328848
II.1.2) Main CPV code
66000000
II.1.3) Type of contract
Services
II.1.4) Short description
Funding London is the trading name of SME Wholesale Finance (London) Limited “the Authority” and is a wholly owned subsidiary of the Greater London Authority (GLA).
The Authority is seeking to enter into Limited Partnership Agreements (LPA’s) with FCA authorised fund management organisations to manage and invest the capital of a new 100 000 000 GBP Fund of Funds that will be invested in 4 new subfunds for SME’s who’s core activities are based in London:
Fund 1 (Lot 1): a 45 000 000 GBP Early Stage Venture and Circular Economy Fund. (14 000 000 GBP ring fenced for Circular Economy);
Fund 2 (Lot 2): a 25 000 000 GBP Small Loan Fund;
Fund 3 (Lot 3): a 25 000 000 GBP Larger Loan Fund.
Fund 4 (Lot 4): a 5 000 000 GBP Micro Loan Fund.
Fund manager organisations can submit tenders to manage one or more of the subfunds. There is no limit to the number of awards that can be made to any one fund manager organisation.
The funds are to deliver European Regional Development Fund (ERDF) outputs.
II.1.5) Estimated total value
Value excluding VAT:
13 100 000.00
GBP
II.1.6) Information about lots
This contract is divided into lots:
Yes
Tenders may be submitted for all lots
II.2) Description
Lot No: 1
II.2.1) Title
Early Stage Venture and Circular Economy Fund
II.2.2) Additional CPV code(s)
66000000
II.2.3) Place of performance
NUTS code:
UKI
II.2.4) Description of the procurement
The Authority is seeking to enter into a Limited Partnership Agreement (LPA) with an FCA authorised fund management organisation to manage and invest the capital which is to be committed to a 45 000 000 GBP Early Stage Venture and Circular Economy Fund. This fund will focus, in accordance with the Authority Brief (Volume 2 of the procurement documents), on the sectors of strategic importance to the London economy. There will be specific support for early stage SMEs in the circular economy. Of the 45 000 000 GBP, at least 14 000 000 GBP will be ring-fenced for investments in circular economy businesses.
In accordance with the Authorities Brief, the selected fund manager will be required to secure investors at the investee company or borrower level to co-invest on a deal by deal basis. In the case of the Equity Fund, the fund manager will be required to secure at least an equal amount from co-investors as it is investing in any one company.
Refer to the procurement documents for a further description of the procurement, in particular the Authority Brief (Volume 2).
II.2.5) Award criteria
Price is not the only award criterion and all criteria are stated only in the procurement documents
II.2.6) Estimated value
Value excluding VAT:
7 600 000.00
GBP
II.2.7) Duration of the contract, framework agreement or dynamic purchasing system
Duration in months: 132
This contract is subject to renewal: No
II.2.9) Information about the limits on the number of candidates to be invited
II.2.10) Information about variants
Variants will be accepted:
No
II.2.11) Information about options
Options:
Yes
Description of options:
The duration of the Fund LPA will be 10 years (the life of the Fund) with an option on behalf of the Authority to extend for a further year. There will be an investment period that will begin on final close of the fund and which will terminate by 31.12.2023. The option to extend may be exercised at any time during the life of the Fund.
II.2.13) Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds:
Yes
Identification of the project:
ERDF funds and European Investment Bank funds.
Lot No: 2
II.2.1) Title
Smaller Loan Fund (small loans focus)
II.2.2) Additional CPV code(s)
66000000
II.2.3) Place of performance
NUTS code:
UKI
II.2.4) Description of the procurement
The Authority is seeking to enter into a Limited Partnership Agreement (LPA) with an FCA authorised fund management organisation to manage and invest the capital which is to be committed to a 25 000 000 GBP Loan Fund (small loans 100 000 GBP to 500 000 GBP). This fund will, in accordance with the Authority Brief (Volume 2 of the procurement documents), provide loans to enterprises in London seeking debt facilities to expand their business.
In accordance with the Authorities Brief, the selected fund manager will be required to secure investors at the investee company or borrower level to co-invest on a deal by deal basis. In the case of the smaller and larger loan funds, the fund manager will be required to syndicate at least 25% of the loans made by value.
Refer to the procurement documents for a further description of the procurement, in particular the Authority Brief (Volume 2).
II.2.5) Award criteria
Price is not the only award criterion and all criteria are stated only in the procurement documents
II.2.6) Estimated value
Value excluding VAT:
2 500 000.00
GBP
II.2.7) Duration of the contract, framework agreement or dynamic purchasing system
Duration in months: 132
This contract is subject to renewal: No
II.2.9) Information about the limits on the number of candidates to be invited
II.2.10) Information about variants
Variants will be accepted:
No
II.2.11) Information about options
Options:
Yes
Description of options:
The duration of the Fund LPA will be 10 years (the life of the Fund) with an option on behalf of the Authority to extend for a further year. There will be an investment period that will begin on final close of the fund and which will terminate by 31.12.2023. The option to extend may be exercised at any time during the life of the Fund.
II.2.13) Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds:
Yes
Identification of the project:
ERDF funds and European Investment Bank funds
Lot No: 3
II.2.1) Title
Larger Loan Fund (larger loans focus)
II.2.2) Additional CPV code(s)
66000000
II.2.3) Place of performance
NUTS code:
UKI
II.2.4) Description of the procurement
The Authority is seeking to enter into a Limited Partnership Agreement (LPA) with an FCA authorised fund management organisation to manage and invest the capital which is to be committed to a 25 000 000 GBP Loan Fund (larger loans 500 000 GBP to 1 000 000 GBP). This fund will, in accordance with the Authority Brief (Volume 2 of the procurement documents), provide loans to enterprises in London seeking debt facilities to expand their business with larger funding requirements.
In accordance with the Authorities Brief, the selected fund manager will be required to secure investors at the investee company or borrower level to co-invest on a deal by deal basis. In the case of the smaller and larger loan funds, the fund manager will be required to syndicate at least 25% of the loans made by value.
Refer to the procurement documents for a further description of the procurement, in particular the Authority Brief (Volume 2).
II.2.5) Award criteria
Price is not the only award criterion and all criteria are stated only in the procurement documents
II.2.6) Estimated value
Value excluding VAT:
2 500 000.00
GBP
II.2.7) Duration of the contract, framework agreement or dynamic purchasing system
Duration in months: 132
This contract is subject to renewal: No
II.2.9) Information about the limits on the number of candidates to be invited
II.2.10) Information about variants
Variants will be accepted:
No
II.2.11) Information about options
Options:
Yes
Description of options:
The duration of the Fund LPA will be 10 years (the life of the Fund) with an option on behalf of the Authority to extend for a further year. There will be an investment period that will begin on final close of the fund and which will terminate by 31.12.2023. The option to extend may be exercised at any time during the life of the Fund.
II.2.13) Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds:
Yes
Identification of the project:
ERDF funds and European Investment Bank funds.
Lot No: 4
II.2.1) Title
Micro Loan Fund
II.2.2) Additional CPV code(s)
66000000
II.2.3) Place of performance
NUTS code:
UKI
II.2.4) Description of the procurement
The Authority is seeking to enter into a Limited Partnership Agreement (LPA) with an FCA authorised fund management organisation to manage and invest the capital which is to be committed to a 5 000 000 GBP Micro Loan Fund (Micro Loans 10 000 GBP to 100 000 GBP). This fund will, in accordance with the Authority Brief (Volume 2 of the procurement documents), focus on micro enterprises, providing loans for new, young or established enterprises.
In accordance with the Authorities Brief, there is no set minimum target for private sector co-investors; however, to the extent possible and appropriate, the selected fund manager will be asked to syndicate a proportion of the loans where there is an opportunity to do so.
Refer to the procurement documents for a further description of the procurement, in particular the Authority Brief (Volume 2).
II.2.5) Award criteria
Price is not the only award criterion and all criteria are stated only in the procurement documents
II.2.6) Estimated value
Value excluding VAT:
500 000.00
GBP
II.2.7) Duration of the contract, framework agreement or dynamic purchasing system
Duration in months: 132
This contract is subject to renewal: No
II.2.9) Information about the limits on the number of candidates to be invited
II.2.10) Information about variants
Variants will be accepted:
No
II.2.11) Information about options
Options:
Yes
Description of options:
The duration of the Fund LPA will be 10 years (the life of the Fund) with an option on behalf of the Authority to extend for a further year. There will be an investment period that will begin on final close of the fund and which will terminate by 31.12.2023. The option to extend may be exercised at any time during the life of the Fund.
II.2.13) Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds:
Yes
Identification of the project:
ERDF funds and European Investment Bank funds.
Section III: Legal, economic, financial and technical information
III.1) Conditions for participation
III.1.1) Suitability to pursue the professional activity, including requirements relating to enrolment on professional or trade registers
List and brief description of conditions:
Bidders must be authorised by the Financial Conduct Authority (“FCA”) as a full scope UK AIFM or a small authorised UK AIFM; or be a full scope EEA AIFM (as each of those terms is defined in the Alternative Fund Managers Regulations 2013 (SI 2013/1773). If not, Bidders will be required to confirm that they will have the relevant authorisations before contract award or will have appropriate arrangements with a regulatory hosting or umbrella organisation.
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:
Please refer to Section III.1.1 above.
III.2.2) Contract performance conditions
Please refer to the procurement documents.
III.2.3) Information about staff responsible for the performance of the contract
Obligation to indicate the names and professional qualifications of the staff assigned to performing the contract
Section IV: Procedure
IV.1) Description
IV.1.1) Type of procedure
Open procedure
IV.1.8) Information about Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement:
Yes
IV.2) Administrative information
IV.2.2) Time limit for receipt of tenders or requests to participate
Date:
14/05/2018
Local time: 12:00
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)
IV.2.7) Conditions for opening of tenders
Date:
14/05/2018
Local time: 12:00
Section VI: Complementary information
VI.1) Information about recurrence
This is a recurrent procurement:
No
VI.2) Information about electronic workflows
Electronic ordering will be used
Electronic invoicing will be accepted
Electronic payment will be used
VI.3) Additional information
The funds are to deliver European Regional Development Fund (ERDF) outputs and fund manager performance fees will be linked to meeting these requirements. The fund manager for each fund must ensure that all investments are made in accordance with the requirements of the Authority Brief, in a State Aid compliant manner and all applicable laws.
The Fund of Funds will be financed via a combination of grant from the European Regional Development Fund (2014-2020) Programme, a grant from the London Waste and Recycling Board, a loan from the European Investment Bank (EIB) and Funding London’s legacy funds. The EIB has provisionally indicated a willingness to provide a 50 000 000 GBP facility subject to its own due diligence and approval processes.
The selected fund managers will be required to invest a minimum amount of between 1,2% and 1,7% (depending upon the Fund) of the funds committed to the relevant fund.
Bidders are required to agree to be audited by the UK audit bodies, the European Commission and the European Court of Auditors along with the funders and their auditors.
Figures given for Estimated Value are based on the Fund size. The actual fee range will be based on bidder’s proposals as percentages against the fund size and investments.
The GLA encourages their suppliers, and those companies interested in tendering for its contracts to undertake their activities in line with the principles contained in its Responsible Procurement Policy. Further information can be obtained from the following website:
https://www.london.gov.uk/sites/default/files/gla_group_rpp_v7.12_final_template_for_web.pdf
The Authority reserves the right, subject to the provisions of the Public Contracts Regulations 2015 to change without notice the basis of any part of the procurement process or to cancel the procurement at any time and not to proceed with the award of any contract at any stage of the procurement process.
Organisations who are not registered on TfL's e-procurement system should register as a new supplier on TfL's e- procurement system https://procontract.due-north.com
Suppliers are advised to allow adequate time for uploading documents and to dispatch the electronic response well in advance of any deadline to avoid any last minute problems.
Tenders and supporting documentation must be priced in sterling and all payments under the contract will be in sterling.
Responsible Procurement Policy: the GLA group has defined “responsible procurement” as the purchase of goods, works and services in a socially and environmentally responsible way that delivers value for money and benefits to the Contracting Authority.
The Contracting Authority encourages their suppliers, and those companies interested in tendering for its contracts to undertake their activities in line with the principles contained in its Responsible Procurement Policy. Further information on the GLA's Responsible Procurement work can be obtained from the following website:
https://www.london.gov.uk/sites/default/files/gla_group_rpp_v7.12_final_template_for_web.pdf
TfL and the Contracting Authority shall not be liable for any costs or expenses incurred by any bidder in connection with the completion and return of the information requested in this Contract Notice, or in the completion or submission of any tender or otherwise in connection with this procurement.
VI.4) Procedures for review
VI.4.1) Review body
HM Courts and Tribunal Service
The Strand
London
WC2A 2LL
UK
Telephone: +44 207947000
VI.4.3) Review procedure
Precise information on deadline(s) for review procedures:
The Contracting Authority will incorporate a minimum 10 calendar days standstill period at the time of the procurement process that information on the award of the contract is communicated to bidders. Aggrieved parties who consider they have been harmed or are at risk of harm should refer to the Public Contracts Regulations 2015.
VI.5) Date of dispatch of this notice
23/03/2018