Section one: Contracting authority
one.1) Name and addresses
North Tyneside Council
Quadrant East, The Silverlink North
North Tyneside
NE27 0BY
Contact
Mrs Joanna Elliott
joanna.elliott@northtyneside.gov.uk
Telephone
+44 1916434351
Country
United Kingdom
NUTS code
UKC - North East (England)
Internet address(es)
Main address
https://procontract.due-north.com
Buyer's address
http://www.northtyneside.gov.uk/
one.3) Communication
The procurement documents are available for unrestricted and full direct access, free of charge, at
https://procontract.due-north.com
Additional information can be obtained from the above-mentioned address
Tenders or requests to participate must be submitted electronically via
https://procontract.due-north.com
one.4) Type of the contracting authority
Regional or local authority
one.5) Main activity
General public services
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
North of Tyne Combined Authority Fund Manager for Venture/Equity Fund
Reference number
DN609918
two.1.2) Main CPV code
- 66000000 - Financial and insurance services
two.1.3) Type of contract
Services
two.1.4) Short description
On behalf of North of Tyne Combined Authority ("NTCA") (see section VI.3 of this notice), North Tyneside Council (the "Procuring Council") is conducting a procurement of a fund manager in respect of a venture fund it is establishing to improve access to finance for high-growth potential organisations based in North East region of England (the "Fund").
The Fund is estimated to have an initial value of c.£30m, composed of £10m of funding from NTCA and £20m being co-investment finance to be raised by the fund manager. The fund manager will be responsible for executing deals and managing the Fund during the 10 year funding cycle. Provided additional funding is secured, the total Fund value could exceed £100m.
While the estimated range of value for the contract is explained in this notice, NTCA is unable to give a definitive contract value as this will depend on the scope of the final services required and total value of the Fund.
Further details are contained in section II.2.3.
two.1.6) Information about lots
This contract is divided into lots: No
two.2) Description
two.2.2) Additional CPV code(s)
- 79000000 - Business services: law, marketing, consulting, recruitment, printing and security
two.2.3) Place of performance
NUTS codes
- UKC - North East (England)
two.2.4) Description of the procurement
The procurement documents are available to view and download at: https://procontract.due-north.com/. Bidders are required to submit their tenders by noon on 21 July 2022.
Full details of NTCA's requirements are set out in the Invitation to Tender ("ITT").
The Fund should support companies at any stage in the business life cycle which are engaged in innovation or developing disruptive business model, with a particular focus on innovative start-ups and early-stage growth businesses linked to key economic growth opportunities in the North East region of England. The focus of the Fund should primarily be on early-stage investment (seed, late seed and series A). This may include initial investments, as well as subsequent follow-on investments into businesses that have received earlier stage investment from the Fund.
The Fund will primarily invest in projects in the NTCA region with expansion into projects outside the region where certain conditions, as set out in the ITT, are met. For example, as a result of ongoing dialogue with Government around a wider devolution deal for the region (and therefore such devolution may establish a successor authority, to which this procurement naturally relates).
The legal structure of the Fund will contain a mechanism to allow any Contracting Authority or any Body Governed by Public Law (as defined in the Public Contracts Regulations 2015), including local authorities and any public sector pension funds, to invest in the Fund and access the fund manager.
It is estimated that the Fund will commence investment once achieving a first close scale of £30m, which will be comprised of:
1) £10 million of funding from NTCA; and
2) a minimum of £20 million co-investment finance, expected to be raised and leveraged by the fund manager (which will be required to unlock the first close of the Fund and commence investment).
The Fund is estimated to have one 10 year funding cycle (although the exact duration of the Fund's operation is to be determined by the preferred bidder), though the draft contract contains options following conclusion of this initial funding cycle. The contract will also allow for early termination of the Fund and/or the exit of NTCA's investment should the Fund not achieve its key mobilisation and co-investment milestones prior to commencing investment.
Revenue for the fund manager's services shall be determined in accordance with principles further detailed in the ITT.
This procurement is intended to cover the initial value and scope of the Fund together with any increases in the scale of the Fund as a result of additional resources being secured. Interested organisations should use this information to aid in their estimation of the revenue likely to be generated.
The services anticipated to be required by NTCA for the fund manager services are summarised below (though see the ITT for further information):
1) financial and investment services;
2) business services; and
3) fund management services.
To help to ensure that sufficient interest in the contract will be generated, the services being procured will not be divided into separate lots.
two.2.5) Award criteria
Price is not the only award criterion and all criteria are stated only in the procurement documents
two.2.7) Duration of the contract, framework agreement or dynamic purchasing system
Duration in months
240
This contract is subject to renewal
Yes
Description of renewals
17.9. The estimated term of the Fund is 10 years (although the exact duration of the Fund's operation is to be determined by the preferred Bidder). The 10-year term is expected to be composed of one funding cycle with an investment period followed by a realisation period of roughly equal durations. Subject to performance, the following options will be available:
17.9.1. increase in value over the initial 10-year term, though any further funding from NTCA would be subject to further approvals by NTCA Cabinet;
17.9.2. be extended in whole (extension of both investment and realisation phases) or in part (extension of either investment or realisation window) for a further period of up to 10 years following expiry of the initial term subject to the mutual agreement of the Limited Partners, with or without further funding from NTCA
two.2.10) Information about variants
Variants will be accepted: No
two.2.11) Information about options
Options: No
two.2.13) Information about European Union Funds
The procurement is related to a project and/or programme financed by European Union funds: No
Section three. Legal, economic, financial and technical information
three.1) Conditions for participation
three.1.1) Suitability to pursue the professional activity, including requirements relating to enrolment on professional or trade registers
List and brief description of conditions
Information and formalities necessary for evaluating if requirements are met in accordance with Regulations 57-58 of the Public Contracts Regulations 2015 is set out in the Selection Questionnaire which is available at: https://procontract.due-north.com/.
three.1.2) Economic and financial standing
Selection criteria as stated in the procurement documents
three.1.3) Technical and professional ability
Selection criteria as stated in the procurement documents
three.2) Conditions related to the contract
three.2.1) Information about a particular profession
Execution of the service is reserved to a particular profession
Reference to the relevant law, regulation or administrative provision
Information and formalities necessary for evaluating if requirements are met in accordance with Regulations 57-58 of the Public Contracts Regulations 2015 is set out in the Selection Questionnaire which is available at: https://procontract.due-north.com/.
three.2.2) Contract performance conditions
Information relating to contract performance conditions will be set out in the ITT.
Section four. Procedure
four.1) Description
four.1.1) Type of procedure
Open procedure
four.1.8) Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: Yes
four.2) Administrative information
four.2.2) Time limit for receipt of tenders or requests to participate
Date
21 July 2022
Local time
12:00pm
four.2.4) Languages in which tenders or requests to participate may be submitted
English
four.2.6) Minimum time frame during which the tenderer must maintain the tender
Duration in months: 6 (from the date stated for receipt of tender)
four.2.7) Conditions for opening of tenders
Date
21 July 2022
Local time
12:00pm
Section six. Complementary information
six.1) Information about recurrence
This is a recurrent procurement: No
six.2) Information about electronic workflows
Electronic ordering will be used
Electronic invoicing will be accepted
Electronic payment will be used
six.3) Additional information
At this stage, the list of services and the CPV codes set out in sections II.1.2 and II.2.1 are indicative only and contain the broad categorisation of services rather than particulars. Bidders should assume that the services actually required will broadly be within the scope of services listed in this contract notice but will also include extensions to related or ancillary services within each categorisation. The actual scope of services required may be narrower than set out in this contract notice. The services shall also include any services required by the Fund, which the fund manager will subsequently procure.
NTCA receives procurement support from North Tyneside Council and legal support from Newcastle City Council (and external providers). North Tyneside Council is supporting NTCA in the delivery of the procurement and so is listed as the procuring organisation although legal documents will be entered into by NTCA.
While the estimated range of value for the contract is explained in this notice, NTCA is unable to give a definitive contract value and the final value will depend on the scope of the final services required and value of the Fund. Bidders should presume that this value will cover the services listed and those ancillary to the principal services required on a project of a comparable scale as the Fund (including any extensions of scope set out in this notice).
Informal meetings have been held with a number of local and national funds and fund managers, and a formal market engagement exercise was undertaken through the NEPO portal in the form of a standard questionnaire. Details of this process are included in the ITT. If you have any issues or require further guidance on any of the processes within the procurement portal, please visit the Help Centre at https://supplierhelp.due-north.com/.
For questions on how to use the web site please visit the Help Centre at https://supplierhelp.due-north.com/.
six.4) Procedures for review
six.4.1) Review body
Royal Courts of Justice
Strand
London
WC2A 2LL
Telephone
+44 2079476000
Country
United Kingdom