British Business Bank Plc: Framework Agreements for Fund Management Incorporating the Midlands Engine Investment Fund

UK-Sheffield: Financial and insurance services.
Section I: Contracting Authority
      I.1) Name and addresses
             British Business Bank Investments Limited
             Foundry House, 3 Millsands, Sheffield, S3 8NH, United Kingdom
             Tel. +114 2502893, Email: Pete.Binkiewicz@British-business-bank.co.uk
             Contact: Pete Binkiewicz
             Main Address: www.British-business-bank.co.uk
             NUTS Code: UK
      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: Yes.
      I.3) Communication
      The procurement documents are available for unrestricted and full direct access, free of charge, at: http://www.delta-esourcing.com/tenders/UK-UK-Sheffield:-Financial-and-insurance-services./2WY49EC97Q
      Additional information can be obtained from: the abovementioned address
      Tenders or requests to participate must be sent to the abovementioned address       
      Electronic communication requires the use of tools and devices that are not generally available. Unrestricted and full direct access to these tools and devices is possible, free of charge, at: Not provided
      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: Framework Agreements for Fund Management Incorporating the Midlands Engine Investment Fund       
      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: British Business Bank is conducting this procurement to establish frameworks of fund managers for:-
Lot 1 – equity funds within the framework range value of £80m to £300m across a number of funds;
Lot 2 – debt funds within the framework range value of £120m to £400m across a number of funds
Lot 3 – small business loans funds within the framework range value of £30m to £60m across a number of funds
Lot 4 - proof of concept and early stage funds within the framework range value of £20m to £40m across a number of funds
It is anticipated that the first fund which will call off under the Framework Agreement by way of Mini-Competitions will be The Midlands Engine Fund (MEIF) where there is an expected £250m to be invested in SME's in the Midlands subject to European Funding. However the scope of the Framework extends to other funds which may be identified during the period of the Framework in the MEIF Area       
      II.1.5) Estimated total value:
      Value excluding VAT: 19,000,000       
      Currency: GBP
      II.1.6) Information about lots:
      This contract is divided into lots: Yes       
      Tenders may be submitted for: All lots
      Maximum number of lots that may be awarded to one tenderer: Not provided
      The contracting authority reserves the right to award contracts combining the following lots or groups of lots: Not provided

II.2) Description
II.2) Description Lot No. 1
      
      II.2.1) Title: Equity       
      Lot No: 1       
      II.2.2) Additional CPV codes:
      66000000 - Financial and insurance services.
      66100000 - Banking and investment services.
      66120000 - Investment banking services and related services.
      66122000 - Corporate finance and venture capital services.
      66190000 - Loan brokerage services.
      
      II.2.3) Place of performance:
      UKF EAST MIDLANDS (ENGLAND)
      UKG WEST MIDLANDS (ENGLAND)
      
      II.2.4) Description of procurement: Equity Funds where the authority is looking to commit between £80m and £300m across a number of funds.
Each equity investment must satisfy the following conditions:
1) Be an investment in an SME in the MEIF Area
2) Be an investment in a range size of up to £2,000,000 subject to permitted changes in accordance with the IOGs of the relevant Fund
3) All conditions in the the Investment Operational Guidelines (IOGs), the Limited Partnership Agreement (LPA) and Fund Management Agreement of the relevant Fund

General Requirements applicable to all Lots (including without limit the following):
1.Operating one or more funds in accordance with the terms of the relevant fund management agreement;
2.Identifying SMEs which are eligible for investment in accordance with the rules of the particular fund, conducting appropriate commercial and technical due diligence and structuring deals;
3.Generating deal flow and working with investee companies in the MEIF Area before and after concluding investments;
4.Concluding equity, debt and small business loans investments (as appropriate to the Fund’s investment type), in eligible SMEs in the MEIF Area and in accordance with EC State aid law and all other laws;
5.Maximising, where appropriate, the additional investment made by private sector co-investors into investee companies;
6.Managing the investment portfolio to add value to investee companies and achieve profitable exits for the fund;
7.Managing the investment fund so as to maximise the returns to the investors/legacy fund while minimising the operational costs and the costs to investee companies and whilst delivering the Targets;
8.Monitoring the investment portfolio and providing regular reports on investment activity, fund performance and related outputs to the Authority (and where applicable the relevant Other Contracting Authority); and
9. Marketing the investment fund to the appropriate market sectors and professional services intermediaries and developing, maintaining and exploiting networks in relevant communities and markets relevant to the investment funds.
The figure in II.2.6 is the lowest estimated fee based on the bottom end of the fund size in II.1.4 for this Lot. The actual fee range will be based on bidder's proposals as percentages against the fund size in II.1.4 for this Lot.
      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: 6,500,000       
      Currency: GBP       
      II.2.7) Duration of the contract, framework agreement or dynamic purchasing system:
      Duration in months: 48       
      This contract is subject to renewal: No       
      Description of renewals: Not provided
      
      II.2.10) Information about variants:
      Variants will be accepted: No
      II.2.11) Information about options:
      Options:       No             
      Description of options: Not provided
      II.2.12) Information about electronic catalogues:
      Tenders must be presented in the form of electronic catalogues or include an electronic catalogue: No
      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: Part funded by the European Regional Development Fund and the European Investment Bank             
      II.2.14) Additional information: This Lot is for a Framework Agreement with an envisaged maximum of 3 suppliers. The Framework Agreements will have a term of 4 years and call off contracts under the Framework. It is proposed that MEIF will begin making investment commitments to product sub-funds from early 2017.       
II.2) Description Lot No. 2
      
      II.2.1) Title: Debt       
      Lot No: 2       
      II.2.2) Additional CPV codes:
      66000000 - Financial and insurance services.
      66100000 - Banking and investment services.
      66120000 - Investment banking services and related services.
      66122000 - Corporate finance and venture capital services.
      66190000 - Loan brokerage services.
      
      II.2.3) Place of performance:
      UKF EAST MIDLANDS (ENGLAND)
      UKG WEST MIDLANDS (ENGLAND)
      
      II.2.4) Description of procurement: Debt Funds - where the authority is looking to commit between £120m and £400m. Each loan must satisfy the following conditions:
1) Be a loan to an SME in the MEIF Area
2) Be a loan in a range size of £100,000 to £1,500,000 subject to permitted changes in accordance with the IOGs of the relevant Fund
3) All conditions in the IOGs, LPA and IMA of the relevant Fund

General Requirements applicable to all Lots (including without limit the following):
1.Operating one or more funds in accordance with the terms of the relevant fund management agreement;
2.Identifying SMEs which are eligible for investment in accordance with the rules of the particular fund, conducting appropriate commercial and technical due diligence and structuring deals;
3.Generating deal flow and working with investee companies in the MEIF Area before and after concluding investments;
4.Concluding equity, debt and small business loans investments (as appropriate to the Fund’s investment type), in eligible SMEs in the MEIF Area and in accordance with EC State aid law and all other laws;
5.Maximising, where appropriate, the additional investment made by private sector co-investors into investee companies;
6.Managing the investment portfolio to add value to investee companies and achieve profitable exits for the fund;
7.Managing the investment fund so as to maximise the returns to the investors/legacy fund while minimising the operational costs and the costs to investee companies and whilst delivering the Targets;
8.Monitoring the investment portfolio and providing regular reports on investment activity, fund performance and related outputs to the Authority (and where applicable the relevant Other Contracting Authority); and
9. Marketing the investment fund to the appropriate market sectors and professional services intermediaries and developing, maintaining and exploiting networks in relevant communities and markets relevant to the investment funds.
The figure in II.2.6 is the lowest estimated fee based on the bottom end of the fund size in II.1.4 for this Lot. The actual fee range will be based on bidder's proposals as percentages against the fund size in II.1.4 for this Lot.
      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: 6,000,000       
      Currency: GBP       
      II.2.7) Duration of the contract, framework agreement or dynamic purchasing system:
      Duration in months: 48       
      This contract is subject to renewal: No       
      Description of renewals: Not provided
      
      II.2.10) Information about variants:
      Variants will be accepted: No
      II.2.11) Information about options:
      Options:       No             
      Description of options: Not provided
      II.2.12) Information about electronic catalogues:
      Tenders must be presented in the form of electronic catalogues or include an electronic catalogue: No
      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: Part-funded by the European Regional Development Fund and the European Investment Bank             
      II.2.14) Additional information: This Lot is for a Framework Agreement with an envisaged maximum of 5 suppliers. The Framework Agreements will have a term of 4 years and call off contracts under the Framework. It is proposed that MEIF will begin making investment commitments to product sub-funds from early 2017.       
II.2) Description Lot No. 3
      
      II.2.1) Title: Small Business Loans       
      Lot No: 3       
      II.2.2) Additional CPV codes:
      66000000 - Financial and insurance services.
      66100000 - Banking and investment services.
      66120000 - Investment banking services and related services.
      66122000 - Corporate finance and venture capital services.
      66190000 - Loan brokerage services.
      
      II.2.3) Place of performance:
      UKF EAST MIDLANDS (ENGLAND)
      UKG WEST MIDLANDS (ENGLAND)
      
      II.2.4) Description of procurement: Small Business Loans where the authority is looking to commit between £30m and £60m. Each small business loan must satisfy the following conditions:
1) Be a loan to an SME in the MEIF Area
2) Be a loan in a range size of £25,000 to £100,000 subject to permitted changes in accordance with the IOGs of the relevant Fund
3) All conditions in the IOGs, LPA and IMA of the relevant Fund
General Requirements applicable to all Lots (including without limit the following):
1.Operating one or more funds in accordance with the terms of the relevant fund management agreement;
2.Identifying SMEs which are eligible for investment in accordance with the rules of the particular fund, conducting appropriate commercial and technical due diligence and structuring deals;
3.Generating deal flow and working with investee companies in the MEIF Area before and after concluding investments;
4.Concluding equity, debt and small business loans investments (as appropriate to the Fund’s investment type), in eligible SMEs in the MEIF Area and in accordance with EC State aid law and all other laws;
5.Maximising, where appropriate, the additional investment made by private sector co-investors into investee companies;
6.Managing the investment portfolio to add value to investee companies and achieve profitable exits for the fund;
7.Managing the investment fund so as to maximise the returns to the investors/legacy fund while minimising the operational costs and the costs to investee companies and whilst delivering the Targets;
8.Monitoring the investment portfolio and providing regular reports on investment activity, fund performance and related outputs to the Authority (and where applicable the relevant Other Contracting Authority); and
9. Marketing the investment fund to the appropriate market sectors and professional services intermediaries and developing, maintaining and exploiting networks in relevant communities and markets relevant to the investment funds.
The figure in II.2.6 is the lowest estimated fee based on the bottom end of the fund size in II.1.4 for this Lot. The actual fee range will be based on bidder's proposals as percentages against the fund size in II.1.4 for this Lot.
      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: 1,500,000       
      Currency: GBP       
      II.2.7) Duration of the contract, framework agreement or dynamic purchasing system:
      Duration in months: 48       
      This contract is subject to renewal: No       
      Description of renewals: Not provided
      
      II.2.10) Information about variants:
      Variants will be accepted: No
      II.2.11) Information about options:
      Options:       No             
      Description of options: Not provided
      II.2.12) Information about electronic catalogues:
      Tenders must be presented in the form of electronic catalogues or include an electronic catalogue: No
      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: Part funded by the European Regional Development Fund and the European Investment Bank             
      II.2.14) Additional information: This Lot is for a Framework Agreement with an envisaged maximum of 5 suppliers. The Framework Agreements will have a term of 4 years and call off contracts under the Framework. It is proposed that MEIF will begin making investment commitments to product sub-funds from early 2017.       
II.2) Description Lot No. 4
      
      II.2.1) Title: Proof of Concept and Early Stage       
      Lot No: 4       
      II.2.2) Additional CPV codes:
      66000000 - Financial and insurance services.
      66100000 - Banking and investment services.
      66120000 - Investment banking services and related services.
      66122000 - Corporate finance and venture capital services.
      66190000 - Loan brokerage services.
      
      II.2.3) Place of performance:
      UKF EAST MIDLANDS (ENGLAND)
      UKG WEST MIDLANDS (ENGLAND)
      
      II.2.4) Description of procurement: Proof of Concept and Early Stage Fund where the authority is looking to commit between £20m and £40m.
Each equity, quasi-equity or loan investment must satisfy the following conditions:
1) Be an investment in an SME in the MEIF Area
2) Be an investment in a range size of up to £750,000 subject to permitted changes in accordance with the IOGs of the relevant Fund
3) All conditions in the IOGs, LPA and IMA of the relevant Fund
General Requirements applicable to all Lots (including without limit the following):
1.Operating one or more funds in accordance with the terms of the relevant fund management agreement;
2.Identifying SMEs which are eligible for investment in accordance with the rules of the particular fund, conducting appropriate commercial and technical due diligence and structuring deals;
3.Generating deal flow and working with investee companies in the MEIF Area before and after concluding investments;
4.Concluding equity, debt and small business loans investments (as appropriate to the Fund’s investment type), in eligible SMEs in the MEIF Area and in accordance with EC State aid law and all other laws;
5.Maximising, where appropriate, the additional investment made by private sector co-investors into investee companies;
6.Managing the investment portfolio to add value to investee companies and achieve profitable exits for the fund;
7.Managing the investment fund so as to maximise the returns to the investors/legacy fund while minimising the operational costs and the costs to investee companies and whilst delivering the Targets;
8.Monitoring the investment portfolio and providing regular reports on investment activity, fund performance and related outputs to the Authority (and where applicable the relevant Other Contracting Authority); and
9. Marketing the investment fund to the appropriate market sectors and professional services intermediaries and developing, maintaining and exploiting networks in relevant communities and markets relevant to the investment funds.
The figure in II.2.6 is the lowest estimated fee based on the bottom end of the fund size in II.1.4 for this Lot. The actual fee range will be based on bidder's proposals as percentages against the fund size in II.1.4 for this Lot.
      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: 5,000,000       
      Currency: GBP       
      II.2.7) Duration of the contract, framework agreement or dynamic purchasing system:
      Duration in months: 48       
      This contract is subject to renewal: No       
      Description of renewals: Not provided
      
      II.2.10) Information about variants:
      Variants will be accepted: No
      II.2.11) Information about options:
      Options:       No             
      Description of options: Not provided
      II.2.12) Information about electronic catalogues:
      Tenders must be presented in the form of electronic catalogues or include an electronic catalogue: No
      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: Part funded by the European Regional Development Fund and the European Investment Bank             
      II.2.14) Additional information: This Lot is for a Framework Agreement with an envisaged maximum of 3 suppliers. It is proposed that MEIF will begin making investment commitments to product sub-funds from early 2017.       


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:          
      Tenderers must be authorised by the Financial Conduct Authority 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 Investment Fund Managers Regulations 2013 (SI 2013/1773). If not, Tenderers will be required to confirm that they will have the relevant authorisations before bidding under a mini competition and/or have submitted the tender as a consortium with a hosting organisation for the purpose of meeting that requirement. Please see the ITT for more information and in particular regarding relying on a regulatory hosting or umbrella organisation for the authorisation.    
      III.1.2) Economic and financial standing          
      Selection criteria as stated in the procurement documents       
      List and brief description of selection criteria:       
      Not Provided    
      Minimum level(s) of standards possibly required (if applicable) :       
      Not Provided    
      III.1.3) Technical and professional ability    
      Selection criteria as stated in the procurement documents
      List and brief description of selection criteria:       
      Not Provided      
      Minimum level(s) of standards possibly required (if applicable) :          
      Not Provided   
      III.1.5) Information about reserved contracts (if applicable)   
      The contract is reserved to sheltered workshops and economic operators aiming at the social and professional integration of disabled or disadvantaged persons: No       
      The execution of the contract is restricted to the framework of sheltered employment programmes: No    
      
   III.2) Conditions related to the contract
      III.2.1) Information about a particular profession    
      Reference to the relevant law, regulation or administrative provision:          
      Not Provided    
      III.2.2) Contract performance conditions       
      Please see the ITT for more information          
      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: Yes    

Section IV: Procedure
   IV.1) Description
      IV.1.1) Type of procedure: Open   
   
   IV.1.3) Information about a framework agreement or a dynamic purchasing system    
         The procurement involves the establishment of a framework agreement    
         Framework agreement with several operators       
         Envisaged maximum number of participants to the framework agreement: 16           
         In the case of framework agreements justification for any duration exceeding 4 years: Not Provided    
   
   
   IV.1.6) Information about electronic auction:
      An electronic auction will be used: No
      Additional information about electronic auction: Not provided
   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 OJ S: Not provided       
      IV.2.2) Time limit for receipt of tenders or requests to participate
       Date: 14/11/2016 Time: 13:00
            
      IV.2.4) Languages in which tenders or requests to participate may be submitted: English,       
      IV.2.6) Minimum time frame during which the tenderer must maintain the tender: Not Provided      
      IV.2.7) Conditions for opening of tenders:
         Date: 14/11/2016
         Time: 15:00
      

Section VI: Complementary Information
   VI.1) Information about recurrence
   This is a recurrent procurement: No    
   Estimated timing for further notices to be published: Not provided
   VI.2) Information about electronic workflows
   Electronic ordering will be used No       
   Electronic invoicing will be accepted No       
   Electronic payment will be used Yes       
   VI.3) Additional Information: The contracting authority considers that this contract may be suitable for economic operators that are small or medium enterprises (SMEs). However, any selection of tenderers will be based solely on the criteria set out for the procurement. 3.1BBB is the United Kingdom’s government-owned economic development bank that makes finance markets for smaller businesses work more effectively, allowing those businesses to prosper, grow and build UK economic activity. The BBB group manages and invests in access to finance programmes for smaller businesses within a single commercially-minded institution. The Authority is a wholly owned subsidiary of BBB and its purpose is to manage certain schemes for the Sponsoring Authority, including MEIF.
The Authority are purchasing the fund management services on behalf of:
(a) itself;
(b) British Business Bank Plc and any members of it's group (within the meaning of the Companies Act 2006)
(c) Midlands Engine Investment Fund; and
(d) the Sponsoring Authority being Department for Business, Energy and Industrial Strategy, the Secretary of State for Business, Energy and Industrial Strategy or the Secretary of State for Business, Innovation and Skills (in each case as the context requires) and any entity owned or controlled by the sponsoring Authority
The Authority will hold two bidder days on 17 October 2016 in Derby and 20 October 2016 in Birmingham for the purposes of presenting the opportunity under the ITT to Tenderers. Tenderers are permitted to send up to two representatives to attend a bidder day and may attend only one bidder day. Please see the ITT for further information.
Candidates wishing to apply for the contract opportunity must complete and submit its tender as set out in the procurement documents before the closing date of 14 November 2016 at 13:00.
The Authority may terminate or suspend the award process at any time without incurring any cost or liability. The Authority does not bind itself to enter into any contract arising out of the procedures envisaged by this notice. No contractual rights expressed or implied arise out of this notice or the procedures envisaged by it. The Authority will not be liable in any way to any candidate or tenderer for any costs incurred in connection with this procurement process. The Authority reserves the right to disqualify any candidate who provides information or confirmations which later prove to be untrue or incorrect; does not supply the information required by this notice or by the procurement documents or as otherwise directed by the Authority during the procurement process; or fulfills any 1 or more of the criteria stated in the procurement documents (including Regulation 57 of the Public Contracts Regulations 2015)
A tenderer will be 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.
For more information about this opportunity, please visit the Delta eSourcing portal at:
https://www.delta-esourcing.com/tenders/UK-UK-Sheffield:-Financial-and-insurance-services./2WY49EC97Q

To respond to this opportunity, please click here:
https://www.delta-esourcing.com/respond/2WY49EC97Q
   VI.4) Procedures for review
   VI.4.1) Review body:
             The High Court of England and Wales
       London, United Kingdom
   VI.4.2) Body responsible for mediation procedures:
             British Business Bank
          Foundry House, 3 Millsands, Sheffield, S3 8NH, United Kingdom
   VI.4.3) Review procedure
   Precise information on deadline(s) for review procedures:    
    Not Provided    
   VI.4.4) Service from which information about the lodging of appeals may be obtained:
          British Business Bank
       Foundry House, 3 Millsands, Sheffield, S3 8NH, United Kingdom
       Tel. +114 2062134
   VI.5) Date Of Dispatch Of This Notice: 05/10/2016

Annex A