Financial Services Compensation Scheme: FSCS Claims Handling Services

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UK-London: Financial and insurance services.

Section I: Contracting Authority

   I.1) Name, Addresses and Contact Point(s):
       Financial Services Compensation Scheme, United Kingdom
       10th Floor, Beaufort House, 15 St Botolph Street, London, EC3A 7QU, United Kingdom
       Tel. +44 2073758175, Email: Procurement@fscs.org.uk
       Main Address: www.fscs.org.uk
       NUTS Code: UKI

   I.2) Joint procurement:
      The contract involves joint procurement: No          
      In the case of joint procurement involving different countries, state applicable national procurement law: Not Provided
      The contract is awarded by a central purchasing body: No

   I.4)Type of the contracting authority:
      Body governed by public law

   I.5) Main activity:
      Other activity: Financial Services Compensation Scheme

Section II: Object Of The Contract

   II.1) Scope of the procurement

      II.1.1) Title: FSCS Claims Handling Services            
      Reference number: Not Provided

      II.1.2) Main CPV code:
         66000000 - Financial and insurance services.


      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 (excluding VAT)
          Value: 19,000,000
                  
         Currency:GBP            

   II.2) Description

      II.2.2) Additional CPV code(s):
      Not Provided

      II.2.3) Place of performance
      Nuts code:
      UKI - LONDON
   
      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 & 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 - Weighting: 10
            

      II.2.11) Information about options
         Options: Yes
         Description of these 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 in the Official Journal of the European Union in the cases listed below (please complete Annex D1)


   IV.1.3) Information about a framework agreement or a dynamic purchasing system
      The procurement involves the establishment of a framework agreement: No       
      

   IV.1.6) Information about electronic auction
      An electronic auction has been used: No

   IV.1.8) Information about the 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 OJEU: 2020/S 54-129848
      
   

   IV.2.9) Information about termination of call for competition in the form of a prior information notice
      The contracting authority will not award any further contracts based on the above prior information notice: No

Section V: Award of contract

Award Of Contract (No.1)

   Contract No: Not Provided    
   Lot Number: Not Provided    
   Title: Not Provided

   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 (SME - as defined in Commission Recommendation 2003/361/EC)          
         Number of tenders received from tenderers from other EU Member States: 0          
         Number of tenders received from tenderers from non-EU Member States: 0          
         Number of tenders received by electronic means: 0

      V.2.3) Name and address of the contractor

      The contract has been awarded to a group of economic operators: No
         
         Contractor (No.1)
             Deloitte LLP, OC303675
             1 New Street Square, London, EC4A 3HQ, United Kingdom
             NUTS Code: UKI
            The contractor is an SME: No

      V.2.4) Information on value of the contract/lot (excluding VAT)
         Initial estimated total value of the contract/lot: Not Provided          
         Total value of the contract/lot: 19,000,000
         Currency: GBP

      V.2.5) Information about subcontracting
         The contract is likely to be subcontracted: No
         

Award Of Contract (No.2)

   Contract No: Not Provided    
   Lot Number: Not Provided    
   Title: Not Provided

   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: Not Provided          
         Number of tenders received from tenderers from other EU Member States: Not Provided          
         Number of tenders received from tenderers from non-EU Member States: Not Provided          
         Number of tenders received by electronic means: Not Provided

      V.2.3) Name and address of the contractor

      The contract has been awarded to a group of economic operators: No
         
         Contractor (No.1)
             Deloitte LLP, OC303675
             1 New Street Square, London, EC4A 3HQ, United Kingdom
             NUTS Code: UKI
            The contractor is an SME: No

      V.2.4) Information on value of the contract/lot (excluding VAT)
         Initial estimated total value of the contract/lot: Not Provided          
         Total value of the contract/lot: 19,000,000
         Currency: GBP

      V.2.5) Information about subcontracting
         The contract is likely to be subcontracted: No
         
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

   VI.4) Procedures for review

      VI.4.1) Review body
          Financial Services Compensation Scheme
          Beaufort House, 15 St. Botolph Street, London, EC3A 7QU, United Kingdom
          Tel. +44 2073758175, Email: 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, United Kingdom
          Internet address: https://courttribumalfinder.service.gov.uk/courts/royal-courts-of-justice

      VI.4.3) Review procedure
         Precise information on deadline(s) for review procedures: Not Provided

      VI.4.4) Service from which information about the review procedure may be obtained
          Financial Services Compensation Scheme Limited
          10th Floor,Beaufort House, 15 St Botolph Street, London, EC3A 7QU, United Kingdom

   VI.5) Date of dispatch of this notice: 25/03/2020




ANNEX D

   1. Justification for the choice of the negotiated procedure without prior publication of a call for competition in accordance with Article 32 of Directive 2014/24/EU

      No tenders or no suitable tenders/requests to participate in response to: Not Provided

            
      
      The works, supplies or services can be provided only by a particular economic operator for the following reason: absence of competition for technical reasons

      Extreme urgency brought about by events unforeseeable for the contracting authority and in accordance with the strict conditions stated in the directive: No

      Additional deliveries by the original supplier ordered under the strict conditions stated in the directive: No

      New works/services, constituting a repetition of existing works/services and ordered in accordance with the strict conditions stated in the directive: No
            Service contract to be awarded to the winner or one of winners under the rules of a design contest: No
      

      Purchase of supplies or services on particularly advantageous terms: No


   3. 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