Tender

UKCS Licensee Financial Analysis Support

DEPARTMENT OF ENERGY AND CLIMATE CHANGE

This public procurement record has 1 release in its history.

Tender

18 Nov 2016 at 20:17

Tender Notice
Summary of the contracting process

The Department of Business, Energy and Industrial Strategy (BEIS) is seeking support for a tender titled "UKCS Licensee Financial Analysis Support," aimed at addressing financial challenges faced by UK Continental Shelf license holders due to lower oil and gas prices. The tender is currently in the planning stage, with a total contract value of £30,000. The deadline for submission of tenders is 9th September 2016. The work will take place in London, with the contract set to commence on 19th September 2016 and conclude by 10th October 2016. This procurement is categorised under administrative services and involves an open procurement method, allowing any qualified supplier to participate.

This tender presents significant opportunities for businesses specialising in financial analysis, consultancy, and research within the energy sector. Companies with a proven track record in analysing financial data, particularly in the oil and gas industry, would be well-suited to compete. The successful contractor will play a crucial role in developing a comprehensive key issues report to assist BEIS in identifying financially distressed licensees, ultimately supporting decision-making processes within the department. Small and medium-sized enterprises are encouraged to apply, as they can bring innovative approaches and expertise to the project.

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Notice Information

Notice Title

UKCS Licensee Financial Analysis Support

Notice Description

The Department of Business, Energy and Industrial Strategy (BEIS) have a team which consists of subject experts embedded from the OGA, policy and programme expertise from BEIS and external insolvency and financial advisors. This team has been working with others in Government to understand the financial challenges faced by UK Continental Shelf (UKCS) licence holders in light of the enduring lower oil and gas prices and what impact that may have on their activities and decommissioning obligations. BEIS have recently implemented measures to assess and identify potential Licensees who may already be, or may be likely to be in the near future, in financial distress. To inform this review of the sector BEIS have requested detailed financial data sets from a number of UKCS License holders. This procurement will help BEIS to analyse seven of these company financial data sets to understand whether there are any Licensees and assets at risk, understand any potential impact, and ultimately devise a plan to mitigate any government liability. The role of the appointed analyst will be to support the work programme by providing concise analysis based on data received from the Licensees and a key issues report and analysis to assist BEIS in identifying which companies are potentially in financial distress over the short to medium term and that may require further investigation. Description: The Requirement BEIS have recently implemented measures to assess and identify potential Licensees who may already be, or may be likely to be in the near future, in financial distress. To inform this review of the sector BEIS have requested detailed financial data sets from a number of UKCS License holders. The information requested is summarised below: 1. UK subsidiary information a) Financial information and arrangements i. Management and audited accounts; ii. Group structure/organogram; iii. Asset performance reports; iv. Details of any financial arrangements and joint venture partnerships. b) Decommissioning Security i. Details of Decommissioning Security Agreements (DSAs); ii. Clauses or agreements in the joint operating agreement (JOA) or other commercial agreements which cover decommissioning liabilities or provisions. 2. Parent company information i. Confirmation of support to the UK subsidiary/subsidiaries. Note: the quality and completeness of response from Licensees is varied. This procurement will help BEIS to analyse seven of these company financial data sets to understand whether there are any Licensees and assets at risk, understand any potential impact, and ultimately devise a plan to mitigate any government liability. See further comments regarding the description of this requirement below. Additional information: Description of this requirement, continued: Outputs The supplier will deliver a collation and analysis of data provided by Licensees to develop a key issues report and analysis, identifying any Licensees that are potentially in financial distress over the short to medium term and the degree to which the company is supported by its parent organisation. The report should be summarised in a simple, easy to understand format that can be shared with other departments to inform decision making. The output of this will inform BEIS of those companies that may require further financial assessment. Approach In producing the outputs the contractor should, based upon their extensive experience of working with oil and gas companies, advise on the best practice approach to the analysis of company financials. This approach should include: Data * a review of the available data outlining missing data or gaps in the request; * key metrics and values that are individually, or jointly, used to create the key-issues report; * the use of publically available data as and where appropriate. Analysis * the conclusions supporting the assessment that the Licensee may be financially distressed or likely to be so in the short to medium term; * a consideration of the capacity of the parent company guarantee to cover liabilities of the UK subsidiary; * to the extent a Licensee is identified, the proposed course of action for further assessment. Working Arrangements The appointment offer will be confirmed in the w/c 12th August and the work will commence by the w/c 19th September. The successful contractor will be expected to identify one named point of contract through whom all enquiries can be filtered. A BEIS project manager will be assigned to the project and will be the central point of contact. We envisage the CONTRACTOR working closely with the BEIS team through regular progress meetings and updates. It is proposed that the work be structured as follows: * Kick-off meeting to agree and finalise approach to the study - w/c 19 September; * Progress report and review of initial outputs - 28th September * Draft red-flag report - 5th October; * Final red-flag report and summary presentation - 10th October. We envisage the need for close interaction between the BEIS Project Manager and contractor throughout the process, to ensure that emerging issues are dealt with promptly and that the BEIS fully understand the assumptions and approach taken. In addition to answering the analytical questions, BEIS will need timely access to all the key assumptions used in the analysis and the data and methodologies used to carry out the work.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-b5fd17-1247dab6-adca-11e6-9901-0019b9f3037b
Publication Source
Contracts Finder
Latest Notice
https://www.contractsfinder.service.gov.uk/Notice/bfba1baa-15f4-41a4-8202-df02bbe01db7
Current Stage
Tender
All Stages
Tender

Procurement Classification

Notice Type
Tender Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Open
Procurement Method Details
Open procedure
Tender Suitability
SME
Awardee Scale
Not specified

Common Procurement Vocabulary (CPV)

CPV Divisions

73 - Research and development services and related consultancy services

75 - Administration, defence and social security services

CPV Codes

73000000 - Research and development services and related consultancy services

75100000 - Administration services

Notice Value(s)

Tender Value
£30,000 Under £100K
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
18 Nov 20169 years ago
Submission Deadline
9 Sep 2016Expired
Future Notice Date
Not specified
Award Date
Not specified
Contract Period
18 Sep 2016 - 10 Oct 2016 30 days
Recurrence
Not specified

Notice Status

Tender Status
Active
Lots Status
Not Specified
Awards Status
Not Specified
Contracts Status
Not Specified

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
DEPARTMENT OF ENERGY AND CLIMATE CHANGE
Contact Name
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

Buyer Location

Locality
LONDON
Postcode
WC1B 3HF
Post Town
Central London
Country
England
Major Region (ITL 1)
TLI London
Basic Region (ITL 2)
TLI3 Inner London - West
Small Region (ITL 3)
TLI36 Camden
Delivery Location
TLI London
Local Authority
Camden
Electoral Ward
Bloomsbury
Westminster Constituency
Holborn and St Pancras

Further Information

Open Contracting Data Standard (OCDS)

View full OCDS Record for this contracting process

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The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts. 

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