Awarded contract

Third Party Insurance

  • H M Revenue & Customs

F03: Contract award notice

Notice reference: 2022/S 000-007027

Published 15 March 2022, 3:48pm



Section one: Contracting authority

one.1) Name and addresses

H M Revenue & Customs

5W Ralli Quays, 3 Stanley Street

Salford

M60 9LA

Contact

ian anderson

Email

ian.anderson1@hmrc.gov.uk

Country

United Kingdom

NUTS code

UK - United Kingdom

Internet address(es)

Main address

https://www.gov.uk/government/organisations/hm-revenue-customs

one.4) Type of the contracting authority

Other type

Tax Authority

one.5) Main activity

Other activity

Tax Authority


Section two: Object

two.1) Scope of the procurement

two.1.1) Title

Third Party Insurance

Reference number

SR768557723

two.1.2) Main CPV code

  • 66510000 - Insurance services

two.1.3) Type of contract

Services

two.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

two.1.6) Information about lots

This contract is divided into lots: No

two.1.7) Total value of the procurement (excluding VAT)

Value excluding VAT: £182,000

two.2) Description

two.2.3) Place of performance

NUTS codes
  • UK - United Kingdom

two.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

two.2.5) Award criteria

Quality criterion - Name: Technical Merit / Weighting: 47.5

Quality criterion - Name: Social Value / Weighting: 10

Quality criterion - Name: Management Activity / Weighting: 10

Quality criterion - Name: Security Management / Weighting: 2.5

Price - Weighting: 30

two.2.11) Information about options

Options: No


Section four. Procedure

four.1) Description

four.1.1) Type of procedure

Award of a contract without prior publication of a call for competition in the cases listed below

  • The procurement falls outside the scope of application of the regulations

Explanation:

Call - Off RM 6020 Insurance and Related Services Framework Agreement

four.1.8) Information about the Government Procurement Agreement (GPA)

The procurement is covered by the Government Procurement Agreement: Yes


Section five. Award of contract

Contract No

CW38173

Lot No

Lot 1

Title

RM6020 Insurance and Related Service

A contract/lot is awarded: Yes

five.2) Award of contract

five.2.1) Date of conclusion of the contract

15 February 2022

five.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

five.2.3) Name and address of the contractor

Willis Limited

3 Temple Quay, Temple Back East

Bristol

BS1 6DZ

Country

United Kingdom

NUTS code
  • UK - United Kingdom
The contractor is an SME

No

five.2.4) Information on value of contract/lot (excluding VAT)

Total value of the contract/lot: £188,000

five.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

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 six. Complementary information

six.4) Procedures for review

six.4.1) Review body

HM Revenue & Customs

5w Ralli Quays, 3 Stanley Street

Salford

M60 9LA

Country

United Kingdom