Planning

Procurement of the delivery of cash entitlements and administration of the National Concessionary Fuel Scheme

DESNZ

This public procurement record has 4 releases in its history.

Planning

15 Jan 2025 at 10:21

Planned Procurement Notice
Planning

15 Jan 2025 at 10:10

Planned Procurement Notice
Planning

15 Jan 2025 at 09:51

Planned Procurement Notice
Planning

15 Jan 2025 at 09:47

Planned Procurement Notice
Summary of the contracting process

The Department for Energy Security and Net Zero (DESNZ) based in London, is in the planning stage for a tender titled "Procurement of the delivery of cash entitlements and administration of the National Concessionary Fuel Scheme." This tender falls under the industry category of "Administrative services for business operations" (CPV 75112000) and targets coalfield communities in the UK, particularly in South Wales and Northern England. The procurement process will move to the open procurement stage with an Invitation to Tender expected in April 2025, closing in May 2025, followed by the contract award in August 2025. The contract transition and mobilisation are anticipated to occur from September 2025 to March 2026. The contract period is set to commence on 1 April 2026 and span 60 months, with an optional 36-month extension, totalling a value of £8 million (excluding VAT).

This tender represents a significant opportunity for businesses specialising in administrative services, particularly those experienced in managing legacy entitlements and complex benefit schemes. Smaller and medium-sized enterprises (SMEs) are encouraged to participate, offering potential growth through the management of quarterly cash benefits, annual certification processes, and robust administration practices. Vendors with expertise in data protection, cyber security, fraud management, and a flexible service approach to address the dynamic and declining nature of this contract will be highly suitable candidates. The supplier questionnaire is available through the Jaggaer Procurement Portal and must be submitted by 17 February 2025. Pending responses, an online session may be organised to engage with the market further.

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Notice Information

Notice Title

Procurement of the delivery of cash entitlements and administration of the National Concessionary Fuel Scheme

Notice Description

In March 1995, following privatisation of the coal industry, HM Government inherited a legal obligation to certain former employees of the coal industry to fulfil a contractual legacy entitlement to an amount of solid fuel or cash-in-lieu of that fuel. The rules governing the entitlements are contained in fuel agreements originally put in place in the 1980s between British Coal Corporation and the Mining Unions and amended from time to time until privatisation. The vast majority of qualifying individuals now choose the cash-in-lieu option (c22,000) with around 2,700 (October 2024) still receiving solid fuel. This number is declining in line with mortality rates. The supplier shall manage all aspects of the National Concessionary Fuel Scheme. It is a demand led contract based on decreasing numbers with a number of variables and uncertainties. A flexible service which allows for a decrease of the business and unpredicted changes in requirements is required. The full requirements will be set out in the specification but will include: - Payment of cash benefits - quarterly totalling cPS28,000,000 (declining year on year) - Management of entitlements through annual certificates - General administration of services to Beneficiaries including correspondence relevant to the services - Effective liaison with the solid fuel contractor - providing instructions to increase, reduce or stop solid fuel deliveries. - Participation in the National Fraud Initiative; management and pursuit of fraud and error and overpayments/irrecoverable losses - Management of data protection; cyber security and equalities compliance Concessionaires are based in coalfield communities in the UK with high concentrations of individuals in South Wales and Northern England. Expected timelines for this procurement via an open procurement: Invitation to Tender - April 2025 Tender Closes - May 2025 Contract Award - August 2025 Contract Transition/Mobilisation - September 2025 - March 2026 Please note these timelines are indicative and may be subject to change. This contract will be a 5 year contract, with an optional 3 year extension built into the contract. Duration in months: 60 months plus an optional extension of 36 months. Total Value (excluding VAT) and including the optional extension period is PS8 million. Additional information: Supplier questionnaire available through the Jaggaer link provided. Please complete all the below questions and submit via the Jagger Procurement Portal by 17/02/25. Pending the Market Engagement questionnaire an online session may be held.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-b5fd17-26b22c2f-3b23-43f1-a872-a6b131510c13
Publication Source
Contracts Finder
Latest Notice
https://www.contractsfinder.service.gov.uk/Notice/0fec0225-9243-4f2a-8a83-85687d50ace8
Current Stage
Planning
All Stages
Planning

Procurement Classification

Notice Type
Planned Procurement Notice
Procurement Type
Standard
Procurement Category
Not specified
Procurement Method
Not Specified
Procurement Method Details
Tender Suitability
SME
Awardee Scale
Not specified

Common Procurement Vocabulary (CPV)

CPV Divisions

75 - Administration, defence and social security services

CPV Codes

75112000 - Administrative services for business operations

Notice Value(s)

Tender Value
£8,000,000 £1M-£10M
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
15 Jan 20251 years ago
Submission Deadline
Not specified
Future Notice Date
1 Apr 2025Expired
Award Date
Not specified
Contract Period
31 Mar 2026 - 31 Mar 2031 Over 5 years
Recurrence
Not specified

Notice Status

Tender Status
Planned
Lots Status
Not Specified
Awards Status
Not Specified
Contracts Status
Not Specified

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
DESNZ
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
SW1A 2EG
Post Town
South West London
Country
England
Major Region (ITL 1)
TLI London
Basic Region (ITL 2)
TLI3 Inner London - West
Small Region (ITL 3)
TLI35 Westminster and City of London
Delivery Location
Not specified
Local Authority
Westminster
Electoral Ward
St James's
Westminster Constituency
Cities of London and Westminster

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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