Contract award notice
Results of the procurement procedure
Section I: Contracting
entity
I.1) Name and addresses
Financial Services Compensation Scheme
United Kingdom
10th Floor, Beaufort House, 15 St Botolph Street
London
EC3A 7QU
UK
Telephone: +44 2073758175
E-mail: Procurement@fscs.org.uk
NUTS: UKI
Internet address(es)
Main address: www.fscs.org.uk
I.4) Type of the contracting authority
Body governed by public law
I.5) Main activity
Other: Financial Services Compensation Scheme
Section II: Object
II.1) Scope of the procurement
II.1.1) Title
FSCS Claims Handling Services
II.1.2) Main CPV code
66000000
II.1.3) Type of contract
Services
II.1.4) Short description
FSCS has awarded a contract to Deloitte LLP for the provision of claims handling services.
II.1.6) Information about lots
This contract is divided into lots:
No
II.1.7) Total value of the procurement
Value excluding VAT:
19 000 000.00
GBP
II.2) Description
II.2.3) Place of performance
NUTS code:
UKI
Main site or place of performance:
LONDON.
II.2.4) Description of the procurement
Deloitte will perform the following activities across the claims we receive: evidence checking, including identification documentation to ensure it meets the minimum requirements for the claim type. Monitor and record evidence received. Gather information from third parties (e.g the customer, providers of financial services products, claims management companies or financial regulators) where required and chase as necessary. Determine eligibility of the customer, validity of the claim and complete quantification of compensation — calculation of loss, all in accordance with FCA rules and FSCS’s policies (utilising specialist calculation tools). Review and sign off by an accredited individual. Sanctions checking. Issuing compensation payments and decision documentation.
II.2.5) Award criteria
Price
II.2.11) Information about options
Options:
Yes
Description of options:
The initial term of the contract is until March 2023 with an option for 2 further extensions of up to 12 months per extension.
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
In addition FSCS shall expand the claims handling services during the lifetime of the contract to respond to changes in the portfolio of protection within the financial services industry.
Section IV: Procedure
IV.1) Description
IV.1.1) Type of procedure
Award of a contract without prior publication of a call for competition
Justification for selected award procedure:
The works, supplies or services can be provided only by a particular economic operator for the following reason: absence of competition for technical reasons
Explanation
FSCS has awarded the contract to Deloitte because it is the only firm in the market that has the capability, expertise and sufficiently experienced staff necessary to meet FSCS’ requirements.
Processing and assessing complex pension claims made to FSCS is a technical endeavour requiring a unique set of knowledge and skills. It is not simply an administrative or claim-handling exercise. Any firm/individual dealing with such claims needs to have all of the following expertise:
(a) intimate knowledge of different pension products on the market and the intricacies of how occupational pensions schemes operate, in a constantly changing landscape;
(b) specialist knowledge of the software used to handle pension claims (RECAL); and
(c) ability to understand and apply FCA rules and FSCS’ policies, processes and procedures.
Based on FSCS’ market knowledge and recent contracting experience, FSCS considers that no provider other than Deloitte has the required specialist knowledge, skills, expertise and sufficiently experienced staff to deliver the services to meet FSCS’s requirements for quality and scalability. The complex and bespoke nature of the service (and the vulnerable nature of the customer base who use such services) means that a particularly experienced and skilled cohort of staff is essential for the delivery of the service to the required quality standards. Deloitte has such a cohort of staff (none of whom would be subject to TUPE). FSCS does not consider that it would be possible for any other provider to develop sufficient skills and knowledge nor to recruit and train sufficiently qualified staff within an acceptable time period (FSCS estimates that this would take 12 to 18 months) leading to an unacceptably long transition period given the initial term of the contract would be expected to expire in 2023. Such a long transition period would have an adverse effect on the timely assessment of claims made by claimants including vulnerable people who have lost all their life and retirement savings and would risk destabilising service provision. For all the above reasons, FSCS considers that to award the contract to an alternative provider would lead to an unacceptable degree of risk to the performance of the services and to FSCS being able to discharge its statutory duties.
All of FSCS’ requirements are objectively justified by the nature and complexity of the services and customer base. The absence of competition is not the result of an artificial narrowing down of the parameters of the procurement and no reasonable alternative exists. It is not reasonable to relax any of the above requirements as to do so would expose FSCS and its customers to an unacceptable degree of risk.
FSCS has awarded the contract by virtue of Regulation 32(2)(b)(ii) of the Public Contracts Regulations 2015; the services can only be provided by Deloitte as competition is absent for technical reasons and no reasonable alternative exists.
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 054-129848
Section V: Award of contract
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
10/03/2020
V.2.2) Information about tenders
Number of tenders received: 1
Number of tenders received from SMEs: 0
Number of tenders received from tenderers from EU Member States: 0
Number of tenders received from tenderers from non-EU Member States: 0
Number of tenders received by electronic means: 0
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
Deloitte LLP
OC303675
1 New Street Square
London
EC4A 3HQ
UK
NUTS: UKI
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot:
: 19 000 000.00
GBP
V.2.5) Information about subcontracting
Section V: Award of contract
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
10/03/2020
V.2.2) Information about tenders
Number of tenders received: 1
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
Deloitte LLP
OC303675
1 New Street Square
London
EC4A 3HQ
UK
NUTS: UKI
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot:
: 19 000 000.00
GBP
V.2.5) Information about subcontracting
Section VI: Complementary information
VI.3) Additional information
To view this notice, please click here:
https://www.delta-esourcing.com/delta/viewNotice.html?noticeId=483634901
Go reference: GO-2020325-PRO-16239428
VI.4) Procedures for review
VI.4.1) Review body
Financial Services Compensation Scheme
Beaufort House, 15 St Botolph Street
London
EC3A 7QU
UK
Telephone: +44 2073758175
E-mail: procurement@fscs.org.uk
VI.4.2) Body responsible for mediation procedures
The High Court of England and Wales
Royal Courts of Justice, Strand
London
WC2A 2LL
UK
Internet address(es)
URL: https://courttribumalfinder.service.gov.uk/courts/royal-courts-of-justice
VI.4.4) Service from which information about the review procedure may be obtained
Financial Services Compensation Scheme Ltd
10th Floor,Beaufort House, 15 St Botolph Street
London
EC3A 7QU
UK
VI.5) Date of dispatch of this notice
25/03/2020