Section one: Contracting authority
one.1) Name and addresses
Ministry of Defence
65 BROWN STREET
GLASGOW
G2 8EX
Country
United Kingdom
NUTS code
UK - United Kingdom
Internet address(es)
Main address
one.3) Communication
Additional information can be obtained from the above-mentioned address
one.4) Type of the contracting authority
Ministry or any other national or federal authority
one.5) Main activity
Defence
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
DEFENCE DISCOUNT SCHEME
two.1.2) Main CPV code
- 75000000 - Administration, defence and social security services
two.1.3) Type of contract
Services
two.1.4) Short description
MOD’s current provision of Defence Discount Scheme (DDS) for Service Personnel, Veterans and Civilians is provided by Bluelight Card Company and expires on 31st May 2022.
The purpose of this PIN is to establish whether there are any alternative suppliers capable of and willing to, supply this service after this date.
The Authority’s intention is to re-let a further four year contract lasting until May 2026 and if there is potential for competition, to conduct that competition and if there is not, to award the new contract to Bluelight Card Company.
Continued provision of this service will be on the basis that there is a NIL cost to MoD for the DDS Service. Currently DDS returns a % of profits to MoD in the form of a gainshare payment which is passed on to the four Service Welfare Central Funds.
Any alternative provider would have to ensure that they could provide retail and online discounts to:
Serving armed forces (regular and reservist)
HM armed forces Veterans
MOD Civilians (except contractors)
Spouse/Partner of Serving Personnel
Cadet Forces
Bereaved Family Member
War/service widow(er)
NATO Personnel
two.1.6) Information about lots
This contract is divided into lots: No
two.2) Description
two.2.2) Additional CPV code(s)
- 75000000 - Administration, defence and social security services
two.2.3) Place of performance
NUTS codes
- UK - United Kingdom
two.2.4) Description of the procurement
Bluelight Card Company own the current membership details, the contracts with high street retail providers and the ‘Defence Discount Service’ name. Other providers could build and operate a similar discount card service, but the Authority would require this to be built up rapidly so as to ensure that there would be no immediate drop in the service provided to the Defence community from an MOD contracted provider as a result of reduced range of discounts available. The Authority would also not be willing to experience in drop in the gainshare which is linked to the size of membership and retail and service companies offering discounts.
Current membership of the Scheme is 568,828 with active members (clicked an offer in last 6 months) standing at 225,094. The Total active retail offers (online and High Street retailers) is 9,819. Any alternative supplier would have to be able to reach theses membership figures very quickly and be prepared to offer MoD a gainshare minimum of 15% of the DDS contract profits each year..
Any alternative Supplier will have to hold Cyber security and comply with the Authority’s IR35 Assessment and any Authority’s decision on Limiting the Supplier’s Liabilities. It is unlikely that any current contractor staff would be willing to transfer to any alternative supplier under TUPE.
two.3) Estimated date of publication of contract notice
31 May 2022
Section four. Procedure
four.1) Description
four.1.8) Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: Yes
Section six. Complementary information
six.3) Additional information
Any Supplier wishing to express interest in this requirement for the period 1st June 2022 to 31st May 2026 should express interest through the Defence Sourcing Portal by 23rd May 2022. They should include a short summary of how they would be able to reach the current membership totals and retailer number very quickly and what kind of gainshare % could be offered to the Authority.