Award

Financial Risk Modelling Services

HOMES ENGLAND (THE NAME ADOPTED BY THE HOMES AND COMMUNITIES AGENCY)

This public procurement record has 3 releases in its history.

Award

29 Jan 2024 at 16:33

Award Notice
Tender

14 Sep 2023 at 11:16

Tender Notice
Tender

12 Sep 2023 at 15:51

Tender Notice
Summary of the contracting process

The Homes England organisation has awarded a contract for Financial Risk Modelling Services, with a value of GBP 1.3 million. The procurement process was completed on 16th January 2024, with a contract period starting on 29th January 2024 and ending on 28th January 2028. The services fall under the Financial and Insurance Services category and are related to financial risk parameter estimation and modelling. The contract is open for SMEs to participate and is located in Coventry, England.

This tender for Financial Risk Modelling Services by Homes England presents an opportunity for businesses in the financial consultancy and insurance services industry to provide support in estimating financial risk parameters and developing risk models. Businesses with expertise in Expected Credit Loss models, stress testing, and quantitative risk assessment would be well-suited for this tender. The open procurement method allows for a fair competition among potential suppliers, enabling SMEs to also compete for this contract and contribute towards Homes England's risk management efforts.

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Notice Information

Notice Title

Financial Risk Modelling Services

Notice Description

Homes England produces a range of macroeconomic forecasts on a quarterly basis. These macroeconomic forecasts need to be translated into the impact on the portfolio, and used to quantify, understand, and manage the financial risk to the Agency. Homes England manages a multi-billion-pound Recoverable Investment portfolio consisting of c. 300 loans. The portfolio has been running since 2016 and is highly concentrated in the UK housing market with a skew towards small / medium housebuilders with limited financial and credit history, as well as special purpose vehicles (SPVs) set up to specifically to develop a site. Security for the loans is typically provided by the land associated with the development. Internal data for quantitatively estimating the impact of different macroeconomic scenarios on the various model parameters is limited. A range of models including Expected Credit Loss models and Stress Testing models are used to quantify the financial risk of different macroeconomic scenarios on the Recoverable Investment portfolio. The inputs into these models are generally Probability of Default estimates (both through the cycle and point in time), exposure at default estimates, and Loss Given Default estimates. The regularly updated macroeconomic forecasts therefore need to be translated into these parameters for use in the various models. The Quantitative Risk and Stress Testing team (QRS) at Homes England manages this process. All loans are internally credit rated on origination and on a regular basis throughout the term of the loan. The current process for producing the parameter estimates involves both quantitative analysis and qualitative assessment, converting the internal ratings into the required parameter estimates. Homes England also subscribes to an external ratings agency service to assist with benchmarking the estimates. Homes England is seeking assistance on producing these estimates on an ongoing basis. This requirement forms Lot 1: Financial Risk Parameter Estimation Services (PS500k estimated value) of the Service. See Appendix A: Lot 1 Service Scope. It is envisaged that a single supplier will be appointed to lot 1. Homes England is also seeking support in designing, building, and implementing additional financial and financial risk models to improve its understanding of the current portfolio, and to model new products and programmes. This requirement forms Lot 2: Financial Risk Modelling Advisory Services (PS500k estimated value). See Appendix B: Lot 2 Service Scope. It is envisaged that there will be 4 suppliers appointed for lot 2. Homes England designs, builds, and maintains a wide range of financial and financial risk models. These models and methodologies are applied to a wide range of financial and risk management problems, including credit risk modelling, scenario analysis and forecasting, stress testing, and IFRS 9. Homes England is also seeking external support to provide model validation and assurance services on

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-b5fd17-5b6ea31f-89d4-4686-be94-e723d2bff4c7
Publication Source
Contracts Finder
Latest Notice
https://www.contractsfinder.service.gov.uk/Notice/9360c819-613a-4a7f-8a1a-0f001b84405a
Current Stage
Award
All Stages
Tender, Award

Procurement Classification

Notice Type
Award Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Open
Procurement Method Details
Open procedure
Tender Suitability
SME
Awardee Scale
Large, SME

Common Procurement Vocabulary (CPV)

CPV Divisions

66 - Financial and insurance services

CPV Codes

66000000 - Financial and insurance services

66170000 - Financial consultancy, financial transaction processing and clearing-house services

66171000 - Financial consultancy services

Notice Value(s)

Tender Value
£1,300,000 £1M-£10M
Lots Value
Not specified
Awards Value
£1,300,000 £1M-£10M
Contracts Value
Not specified

Notice Dates

Publication Date
29 Jan 20242 years ago
Submission Deadline
13 Oct 2023Expired
Future Notice Date
Not specified
Award Date
16 Jan 20242 years ago
Contract Period
29 Jan 2024 - 28 Jan 2028 4-5 years
Recurrence
Not specified

Notice Status

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

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
HOMES ENGLAND (THE NAME ADOPTED BY THE HOMES AND COMMUNITIES AGENCY)
Contact Name
Vicky Mordey
Contact Email
vicky.mordey@homesengland.gov.uk
Contact Phone
+44 1158526998

Buyer Location

Locality
COVENTRY
Postcode
CV1 2GN
Post Town
Coventry
Country
England
Major Region (ITL 1)
TLG West Midlands (England)
Basic Region (ITL 2)
TLG3 West Midlands
Small Region (ITL 3)
TLG33 Coventry
Delivery Location
TLC North East (England), TLD North West (England), TLF East Midlands (England), TLG West Midlands (England), TLH East (England), TLJ South East (England), TLK South West (England)
Local Authority
Coventry
Electoral Ward
St Michael's
Westminster Constituency
Coventry South

Supplier Information

Number of Suppliers
4
Supplier Names

20:20

GOVERNMENT ACTUARY'S DEPARTMENT

GRANT THORNTON

MAZARS

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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