Published date: 29 April 2015

Awarded contract - This means that the contract has been awarded to a supplier.


Closing: 27 March 2014

Contract summary

Industry

  • IT services: consulting, software development, Internet and support - 72000000

  • Programming services of application software - 72212000

  • Data services - 72300000

    • Research services - 73110000

    • Experimental development services - 73120000

    • Research and development consultancy services - 73200000

    • Design and execution of research and development - 73300000

    • Administration services - 75100000

    • Legal advisory and representation services - 79110000

    • Legal advisory and information services - 79140000

    • Accounting and auditing services - 79210000

    • Custom broker services - 79223000

    • Marketing services - 79342000

    • General management consultancy services - 79411000

    • Financial management consultancy services - 79412000

    • Telephone-answering services - 79510000

    • Mailing-list compilation and mailing services - 79570000

    • Supply services of office personnel - 79621000

    • Detective agency services - 79721000

    • Collection agency services - 79940000

Location of contract

Any region

Value of contract

£500,000,000

Procurement reference

BAK-2014-Debt Market Integrator-484

Published date

29 April 2015

Closing date

27 March 2014

Contract start date

17 March 2015

Contract end date

16 April 2020

Contract type

Service contract

Procedure type

Negotiated procedure

Contract is suitable for SMEs?

No

Contract is suitable for VCSEs?

No

Description

The Cabinet Office, on behalf of HM Government (HMG) has appointed a Private Sector Partner (PSP) to establish, & be majority shareholder in, Integrated Debt Services Ltd, a Company that is capable of delivering a suite of debt management services to a range of UK government departments and other UK Contracting Authorities.
Integrated Debt Services Ltd will offer a range of existing & new services that provide improved debt management & increased net yield through better debt analytics, debt collection, debt enforcement, litigation and fraud & error services and possibly debt sales.
It is expected that the PSP, through Integrated Debt Services Ltd, will have/provide:
1. A proven ability to deliver reliable, high quality & innovative retail debt management services at scale in the UK; or an equivalent proven scale retail debt services delivery capability elsewhere, together with comprehensive & credible evidence of sufficient practical understanding of the UK debt market and experience of successfully adapting retail debt operations to demonstrate the ability to succeed in the UK;
2. A proven ability to manage a supply chain in the debt services arena;
3. A proven ability to adapt services to comply with relevant local legislative, regulatory requirements & good practice;
4. Experience of working successfully in joint ventures or partnerships with the public or private sector;
5. Initial funding; and
6. The ability to grow a sustainable and profitable business.
The debt management services to be provided by the DMI are a comprehensive and integrated suite of debt management services including, but not limited to:
- Analytics (for example but not limited to Predictive Modelling, Collection Optimisation, Purchase and use of Business/Market Intelligence, Decision Analytics, Case Management);
- Collection (for example but not limited to Debt Collection, Case Management, Payments Accounting, Debtor Correspondence, Data Management, Management of third party suppliers of these services);
- Enforcement and Litigation (Debt Collection, Case Management, Payments and Accounting, Debtor Correspondence, Data Management);
- Fraud & error services;
- Debt Sales; and
- Strategic & tactical advice on improving debt yields.
The Departments that are collaborating with the Cabinet Office as 'Initial Customers' of the DMI are Her Majesty's Revenue and Customs (HMRC), the Department for Works and Pensions (DWP), the Student Loans Company (SLC), ) and the Home Office (HO), however, the Cabinet Office envisages the DMI will offer cost effective debt management services to all its customers including other UK Contracting Authorities. As set out in the Contract Notice, the number of Initial Customers was subject to change. The Legal Aid Agency and the Driver and Vehicle Licensing Agency did not become Initial Customers. It is intended instead that they will enter into call off contracts with the DMI company during the term of the Framework Agreement.

More information

Attachments

Additional text

HMG will retain a significant minority equity stake in the DMI with corresponding Board representation including an influence in its future strategy and growth. HMG will retain responsibility for UK debt-related policy and legislation.
The DMI will be a non-public corporate entity with a Board and Management team appointed by its owners. Its growth and profitability will be directly linked to its ability to improve debt management and increase net yield for HMG and other customers.
The successful bidder for the role of PSP will acquire and hold equity share capital in the DMI through a Shareholders' Agreement, Articles of Association, Subscription Agreement and other relevant documents.
The Cabinet Office recognises that, in order to provide the services required and achieve the stated objectives, the PSP may use sub-contractors to provide some of the services. It is expected that the DMI will provide the sole route to market for debt management for the Initial Customers.
The DMI services should be flexible, allowing customers of the DMI a choice to procure either a single service or any number of services across the whole range of offerings in order to satisfy individual circumstances, timetables and specific requirements. The Cabinet Office will award to the PSP a Framework Agreement in accordance with the terms of this Notice. Call Off Contracts will then be entered into between the DMI and the Initial Customers. In addition to the Initial Customers referred to above, it is intended that the Framework Agreement will allow the DMI to provide the services specified above to other public sector bodies including but not limited to all UK Government Departments and their Arm's Length Bodies and Agencies; Non Departmental Public Bodies (NDPBs); NHS bodies, Local Authorities and devolved administrations of Scotland and Northern Ireland (together the 'Participating Bodies').

Award information

Awarded date

4 December 2014

Contract start date

17 March 2015

Contract end date

16 March 2020

Total value of contract

£500,000,000

This contract was awarded to 1 supplier.

Integrated Debt Services Limited

Address

8 Fletchers Gate
Nottingham
NG1 2FS

Reference

None

Supplier is SME?

No

Supplier is VCSE?

No

About the buyer

Address

Cabinet Office, 4th Floor
1 Horse Guards Road
London
SW1A 2HQ
England

Email

ralph.oliver@hmrc.gsi.gov.uk