Contract award notice
Results of the procurement procedure
Section I: Contracting
entity
I.1) Name and addresses
H M Revenue & Customs
5W Ralli Quays, 3 Stanley Street
Salford
M60 9LA
UK
Contact person: ian anderson
E-mail: ian.anderson1@hmrc.gov.uk
NUTS: UK
Internet address(es)
Main address: https://www.gov.uk/government/organisations/hm-revenue-customs
I.4) Type of the contracting authority
Other: Tax Authority
I.5) Main activity
Other: Tax Authority
Section II: Object
II.1) Scope of the procurement
II.1.1) Title
Third Party Insurance
Reference number: SR768557723
II.1.2) Main CPV code
66510000
II.1.3) Type of contract
Services
II.1.4) Short description
Part VI of the Road Traffic Act 2008 stipulates that third party insurance is required for all vehicles on the road. HMRC
has Crown Exemption from this Act, which entitles HMRC to self-insure for all vehicle business use. However, this exemption does not allow for the self-insurance of:
1. Private usage of vehicles under HMRC's Company Car Scheme (ACS and ACS Lite).
Certain job roles within HMRC allow for a company car whereby the driver pays 3/8s of the associated costs and Benefit in Kind Tax so that they have the benefit of being able to drive the vehicle for private mileage. They are also allowed to nominate 2 Friends and Family as drivers.
2. HMRC vehicles travelling on HMRC business on roads within EU Member States.
The Fraud Investigation Service (FIS) is responsible for the Department's civil and criminal investigations into the most serious fraud and wrongdoing. They use a wide range of powers and approaches to protect UK funding for public services by investigating the most harmful tax cheats.
The Risk & Intelligence Service (RIS) is responsible for understanding and managing the risks to the UK tax system by gathering information and intelligence, which is then fed to FI for investigation and analysed to assess the risks and threats to the UK tax system.
In order to carry out these responsibilities, Officers from FIS and RIS are sometimes required to travel on EU roads, which includes attending UK Customs Sheds housed within France.
HMRC used to have exemption from the requirement of Third Party Vehicle Insurance and to self-insure under EU Directive 72/166/CEE (as amended) However, since 1st January 2021 and BREXIT, the exemption was withdrawn. This has meant that each HMRC Vehicle that travels on EU roads must now hold a valid Green Card and, as there is no equivalent Crown exemption for this, HMRC have no option than to hold a valid Vehicle Insurance Policy for travel on EU roads.
This contract is therefore required to cover the insurance of:
1. The private mileage element of the HMRC Company Car Schemed including: HMRC Drivers; their nominated Friends & Family; and any replacement Courtesy / Hire cars to cover downtime; and
2. Third Party costs where HMRC Operational vehicles are involved in road traffic accidents on EU Roads.
Without a compliant Third Party Vehicle Insurance contract, HMRC would be left without a valid insurance policy, contrary to the Road Traffic Act 2008 and EU Law.
The current contract is a 1 year extension of a Third Party & Associated Services contract with Willis Towers Watson.
The current Third Party Insurer is RMP with Gallagher Basset as the Claims Handler. The current insurance policy is a Long Term Agreement (LTA), which saw reduced premiums over a three year period.
The current insurance cover started on 01/05/2021.
The new Contracted supplier will be require to take over the current 3 year agreement wiith RMP and Gallagher Basset, as well as being responsible for quality assurance, market information, as required, and best practice etc. Should this contract move into the 1 + 1 Year formal extension/s and, due to the LTA on the insurance Policy, the winner of the tender may, or may not have to undertake a market exercise after the 2 year contract term
II.1.6) Information about lots
This contract is divided into lots:
No
II.1.7) Total value of the procurement
Value excluding VAT:
182 000.00
GBP
II.2) Description
II.2.3) Place of performance
NUTS code:
UK
II.2.4) Description of the procurement
Part VI of the Road Traffic Act 2008 stipulates that third party insurance is required for all vehicles on the road. HMRC
has Crown Exemption from this Act, which entitles HMRC to self-insure for all vehicle business use. However, this exemption does not allow for the self-insurance of:
1. Private usage of vehicles under HMRC's Company Car Scheme (ACS and ACS Lite).
Certain job roles within HMRC allow for a company car whereby the driver pays 3/8s of the associated costs and Benefit in Kind Tax so that they have the benefit of being able to drive the vehicle for private mileage. They are also allowed to nominate 2 Friends and Family as drivers.
2. HMRC vehicles travelling on HMRC business on roads within EU Member States.
The Fraud Investigation Service (FIS) is responsible for the Department's civil and criminal investigations into the most serious fraud and wrongdoing. They use a wide range of powers and approaches to protect UK funding for public services by investigating the most harmful tax cheats.
The Risk & Intelligence Service (RIS) is responsible for understanding and managing the risks to the UK tax system by gathering information and intelligence, which is then fed to FI for investigation and analysed to assess the risks and threats to the UK tax system.
In order to carry out these responsibilities, Officers from FIS and RIS are sometimes required to travel on EU roads, which includes attending UK Customs Sheds housed within France.
HMRC used to have exemption from the requirement of Third Party Vehicle Insurance and to self-insure under EU Directive 72/166/CEE (as amended) However, since 1st January 2021 and BREXIT, the exemption was withdrawn. This has meant that each HMRC Vehicle that travels on EU roads must now hold a valid Green Card and, as there is no equivalent Crown exemption for this, HMRC have no option than to hold a valid Vehicle Insurance Policy for travel on EU roads.
This contract is therefore required to cover the insurance of:
1. The private mileage element of the HMRC Company Car Schemed including: HMRC Drivers; their nominated Friends & Family; and any replacement Courtesy / Hire cars to cover downtime; and
2. Third Party costs where HMRC Operational vehicles are involved in road traffic accidents on EU Roads.
Without a compliant Third Party Vehicle Insurance contract, HMRC would be left without a valid insurance policy, contrary to the Road Traffic Act 2008 and EU Law.
The current contract is a 1 year extension of a Third Party & Associated Services contract with Willis Towers Watson.
The current Third Party Insurer is RMP with Gallagher Basset as the Claims Handler. The current insurance policy is a Long Term Agreement (LTA), which saw reduced premiums over a three year period.
The current insurance cover started on 01/05/2021.
The new Contracted supplier will be require to take over the current 3 year agreement wiith RMP and Gallagher Basset, as well as being responsible for quality assurance, market information, as required, and best practice etc. Should this contract move into the 1 + 1 Year formal extension/s and, due to the LTA on the insurance Policy, the winner of the tender may, or may not have to undertake a market exercise after the 2 year contract term
II.2.5) Award criteria
Quality criterion: Technical Merit
/ Weighting: 47.5
Quality criterion: Social Value
/ Weighting: 10
Quality criterion: Management Activity
/ Weighting: 10
Quality criterion: Security Management
/ Weighting: 2.5
Price
/ Weighting:
30
II.2.11) Information about options
Options:
No
II.2.13) Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds:
No
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 procurement falls outside the scope of application of the Directive
Explanation
Call - Off RM 6020 Insurance and Related Services Framework Agreement
IV.1.8) Information about Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement:
Yes
Section V: Award of contract
Lot No: Lot 1
Contract No: CW38173
Title: RM6020 Insurance and Related Service
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
15/02/2022
V.2.2) Information about tenders
Number of tenders received: 1
Number of tenders received by electronic means: 1
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
Willis Limited
3 Temple Quay, Temple Back East
Bristol
BS1 6DZ
UK
NUTS: UK
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot:
: 188 000.00
GBP
V.2.5) Information about subcontracting
The contract is likely to be subcontracted
Value or proportion likely to be subcontracted to third parties
Value excluding VAT: 1.00 GBP
Proportion: 90 %
Short description of the part of the contract to be subcontracted:
The Supplier as an Insurance broker will utilise CCS DPS to award contract for Insurance Services provided by the Company to HMRC for Third Party Insurance claims
Section VI: Complementary information
VI.4) Procedures for review
VI.4.1) Review body
HM Revenue & Customs
5w Ralli Quays, 3 Stanley Street
Salford
M60 9LA
UK
VI.5) Date of dispatch of this notice
15/03/2022