Contract award notice
Results of the procurement procedure
Section I: Contracting
entity
I.1) Name and addresses
Department for Work and Pensions
Hartshead House Hartshead Square
Sheffield
S1 2FD
UK
Contact person: David Clark
E-mail: fas.procurement@dwp.gov.uk
NUTS: UK
Internet address(es)
Main address: https://www.gov.uk/government/organisations/department-for-work-pensions
I.2) Joint procurement
The contract is awarded by a central purchasing body
I.4) Type of the contracting authority
Ministry or any other national or federal authority, including their regional or local subdivisions
I.5) Main activity
Health
Section II: Object
II.1) Scope of the procurement
II.1.1) Title
The Functional Assessment Service (FAS) 2024
II.1.2) Main CPV code
85000000
II.1.3) Type of contract
Services
II.1.4) Short description
This contract will be for the use of the Department for Work and Pensions (DWP) (Lots 1 to 4) and the Department for Communities in Northern Ireland (Lot 5). The service provision will be primarily contracted through this procurement to the Authority but may allow other Government Departments and their Agencies, Non-Departmental Public Bodies, and devolved administrations (including but not limited to HM Revenue and Customs, Ministry of Defence, HM Courts and Tribunals Service, National Health and Social Care) to access the services.
To support the determination of an individual’s entitlement to benefit, the Authority requires the delivery of a range of compatible and sympathetic Functional Health Assessments (FAS). The results of these assessments form one part of the evidence utilised by the Authority Decision Maker in making the ultimate decision on benefit entitlement on behalf of the Secretary of State.
FAS Suppliers will be expected to deliver functional health assessments in relation to the following benefits:
• Personal Independence Payment (PIP)- https://www.gov.uk/pip
• Employment Support Allowance (ESA)- https://www.gov.uk/employment-support-allowance
• Universal Credit (UC)- https://www.gov.uk/government/publications/universal-credit-if-you-have-a-disability-or-health-condition-quick-guide/universal-credit-if-you-have-a-disability-or-health-condition
• The delivery of assessments/advice associated with 15 other specialist benefits, for both DWP and other Government Departments, including Veterans UK, HM Courts and Tribunals Service and HM Revenue and Customs
DWP ran a procurement using the Light Touch Regime and a modified process with commercial dialogue in accordance with Regulations 74 to 76 of the Public Contracts Regulations 2015. For Lot 5, DWP conducted aspects of the procurement process on behalf of the Department for Communities (DfC) in Northern Ireland. The procedure is set out clearly in the published Invitation to Tender document.
The service will be divided into five (5) geographical lots:
Lot 1 – Northern England and Scotland
Lot 2 – Midlands and Wales
Lot 3 – South West England
Lot 4 – London, South East & East Anglia
Lot 5 – Northern Ireland
II.1.6) Information about lots
This contract is divided into lots:
Yes
II.1.7) Total value of the procurement
Value excluding VAT:
2 769 913 640.00
GBP
II.2) Description
Lot No: 1
II.2.1) Title
Lot 1: Northern England and Scotland
II.2.2) Additional CPV code(s)
85000000
II.2.3) Place of performance
NUTS code:
UK
II.2.4) Description of the procurement
See II.1.4
II.2.5) Award criteria
Quality criterion: Delivery Model
/ Weighting: 10
Quality criterion: Claimant Experience
/ Weighting: 10
Quality criterion: HR Resource Structure
/ Weighting: 10
Quality criterion: HR Health Professional Recruitment and Retention
/ Weighting: 15
Quality criterion: HR Skills and Development
/ Weighting: 10
Quality criterion: Quality of Service
/ Weighting: 10
Quality criterion: Flexibility of Service
/ Weighting: 5
Quality criterion: Continuous Improvement
/ Weighting: 5
Quality criterion: Performance Management
/ Weighting: 8
Quality criterion: Implementation and Security
/ Weighting: 8
Cost criterion: Price per Quality Point
/ Weighting: 0
II.2.11) Information about options
Options:
No
II.2.13) Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds:
No
II.2.14) Additional information
Social Value - weighting 10.15
Lot No: 2
II.2.1) Title
Lot 2: Midlands and Wales
II.2.2) Additional CPV code(s)
85000000
II.2.3) Place of performance
NUTS code:
UK
II.2.4) Description of the procurement
see II.1.4
II.2.5) Award criteria
Quality criterion: Delivery Model
/ Weighting: 10
Quality criterion: Claimant Experience
/ Weighting: 10
Quality criterion: HR Resource Structure
/ Weighting: 10
Quality criterion: HR Health Professional Recruitment and Retention
/ Weighting: 15
Quality criterion: HR Skills and Development
/ Weighting: 10
Quality criterion: Quality of Service
/ Weighting: 10
Quality criterion: Flexibility of Service
/ Weighting: 5
Quality criterion: Continuous Improvement
/ Weighting: 5
Quality criterion: Performance Management
/ Weighting: 8
Quality criterion: Implementation and Security
/ Weighting: 8
Cost criterion: Price per Quality Point
/ Weighting: 0
II.2.11) Information about options
Options:
No
II.2.13) Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds:
No
II.2.14) Additional information
Social Value - weighting 10.15
Lot No: 3
II.2.1) Title
Lot 3: South West, England
II.2.2) Additional CPV code(s)
85000000
II.2.3) Place of performance
NUTS code:
UK
II.2.4) Description of the procurement
see II.1.4
II.2.5) Award criteria
Quality criterion: Delivery Model
/ Weighting: 10
Quality criterion: Claimant Experience
/ Weighting: 10
Quality criterion: HR Resource Structure
/ Weighting: 10
Quality criterion: HR Health Professional Recruitment and Retention
/ Weighting: 15
Quality criterion: HR Skills and Development
/ Weighting: 10
Quality criterion: Quality of Service
/ Weighting: 10
Quality criterion: Flexibility of Service
/ Weighting: 5
Quality criterion: Continuous Improvement
/ Weighting: 5
Quality criterion: Performance Management
/ Weighting: 8
Quality criterion: Implementation and Security
/ Weighting: 8
Cost criterion: Price per Quality Point
/ Weighting: 0
II.2.11) Information about options
Options:
No
II.2.13) Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds:
No
II.2.14) Additional information
Social Value - weighting 10.15
Lot No: 4
II.2.1) Title
Lot 4: London, South East & East Anglia
II.2.2) Additional CPV code(s)
85000000
II.2.3) Place of performance
NUTS code:
UK
II.2.4) Description of the procurement
see II.1.4
II.2.5) Award criteria
Quality criterion: Delivery Model
/ Weighting: 10
Quality criterion: Claimant Experience
/ Weighting: 10
Quality criterion: HR Resource Structure
/ Weighting: 10
Quality criterion: HR Health Professional Recruitment and Retention
/ Weighting: 15
Quality criterion: HR Skills and Development
/ Weighting: 10
Quality criterion: Quality of Service
/ Weighting: 10
Quality criterion: Flexibility of Service
/ Weighting: 5
Quality criterion: Continuous Improvement
/ Weighting: 5
Quality criterion: Performance Management
/ Weighting: 8
Quality criterion: Implementation and Security
/ Weighting: 8
Cost criterion: Price per Quality Point
/ Weighting: 0
II.2.11) Information about options
Options:
No
II.2.13) Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds:
No
II.2.14) Additional information
Social Value - weighting 10.15
Lot No: 5
II.2.1) Title
Lot 5: Northern Ireland
II.2.2) Additional CPV code(s)
85000000
II.2.3) Place of performance
NUTS code:
UK
II.2.4) Description of the procurement
see II.1.4
II.2.5) Award criteria
Quality criterion: Delivery Model
/ Weighting: 10
Quality criterion: Claimant Experience
/ Weighting: 10
Quality criterion: HR Resource Structure
/ Weighting: 10
Quality criterion: HR Health Professional Recruitment and Retention
/ Weighting: 15
Quality criterion: HR Skills and Development
/ Weighting: 10
Quality criterion: Quality of Service
/ Weighting: 10
Quality criterion: Flexibility of Service
/ Weighting: 5
Quality criterion: Continuous Improvement
/ Weighting: 5
Quality criterion: Performance Management
/ Weighting: 8
Quality criterion: Implementation and Security
/ Weighting: 8
Cost criterion: Price per Quality Point
/ Weighting: 0
II.2.11) Information about options
Options:
No
II.2.13) Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds:
No
II.2.14) Additional information
Social Value - weighting 10.15
Section IV: Procedure
IV.1) Description
IV.1.1) Type of procedure
Competitive dialogue
IV.1.8) Information about Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement:
Yes
IV.2) Administrative information
IV.2.1) Previous publication concerning this procedure
Notice number in the OJ S:
2021/S 000-028407
IV.2.9) Information about termination of call for competition in the form of a prior information notice
The contracting authority will not award any further contracts based on the above prior information notice
Section V: Award of contract
Lot No: 1
Contract No: ecm_11063
Title: The Functional Assessment Service Lot 1 (Northern England and Scotland)
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
19/09/2023
V.2.2) Information about tenders
Number of tenders received: 1
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
MAXIMUS UK SERVICES LIMITED
18c Meridian East Meridian Business Park
Leicester
LE19 1WZ
UK
NUTS: UK
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot:
: 918 148 703.00
GBP
V.2.5) Information about subcontracting
The contract is likely to be subcontracted
Value or proportion likely to be subcontracted to third parties
Value excluding VAT: 115 500 256.00 GBP
Section V: Award of contract
Lot No: 2
Contract No: ecm_11065
Title: The Functional Assessment Service Lot 2 (Midlands and Wales)
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
19/09/2023
V.2.2) Information about tenders
Number of tenders received: 3
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
CAPITA BUSINESS SERVICES LIMITED
65 Gresham St
London
EC2V 7NQ
UK
NUTS: UK
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot:
: 645 465 979.00
GBP
V.2.5) Information about subcontracting
The contract is likely to be subcontracted
Value or proportion likely to be subcontracted to third parties
Value excluding VAT: 159 041 952.00 GBP
Section V: Award of contract
Lot No: 3
Contract No: ecm_11072
Title: The Functional Assessment Service Lot 3 (South West England)
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
19/09/2023
V.2.2) Information about tenders
Number of tenders received: 3
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
SERCO LIMITED
16 Bartley Wood Business Park, Bartley Way
Hook
RG27 9UY
UK
NUTS: UK
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot:
: 506 745 902.00
GBP
V.2.5) Information about subcontracting
The contract is likely to be subcontracted
Value or proportion likely to be subcontracted to third parties
Value excluding VAT: 68 356 014.00 GBP
Section V: Award of contract
Lot No: 4
Contract No: ecm_11074
Title: The Functional Assessment Service Lot 4 (London, South East & East Anglia)
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
19/09/2023
V.2.2) Information about tenders
Number of tenders received: 5
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
INGEUS UK LTD
2nd Floor, 66-68 East Smithfield, Royal Pharmaceutical Building
London
E1W 1AW
UK
NUTS: UK
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot:
: 542 473 048.00
GBP
V.2.5) Information about subcontracting
The contract is likely to be subcontracted
Value or proportion likely to be subcontracted to third parties
Value excluding VAT: 95 878 251.00 GBP
Section V: Award of contract
Lot No: 5
Title: The Functional Assessment Service Lot 5 (Northern Ireland)
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
19/09/2023
V.2.2) Information about tenders
Number of tenders received: 3
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
CAPITA BUSINESS SERVICES LIMITED
65 Gresham St
London
EC2V 7NQ
UK
NUTS: UK
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot:
: 157 080 007.00
GBP
V.2.5) Information about subcontracting
Section VI: Complementary information
VI.3) Additional information
Award criteria additional information
The procurement used the Price per Quality Point (PQP) methodology to determine the final ranked position of each bid in each Lot.
PQP divides a bid’s price by its assessed quality score to produce an output Price per Quality Point. This is used to rank each bid in each Lot from highest rank, 1, which has the lowest PQP to lowest rank which has the highest PQP.
Final Lot Values
The individual lot values shown in the FAS Contract Notice (2021/S 000-028407) provided an estimated value per lot for a 5 year contract.
The final lot values shown in Section V of this notice are the values including the initial 5 year contract term plus possible 2 year extension.
The contracting authority in section I.1 is part of the Department for Work and Pensions and is acting on behalf of the Secretary of State for Work and Pensions
VI.4) Procedures for review
VI.4.1) Review body
Department for Work and Pensions
Sheffield
UK
E-mail: fas.procurement@dwp.gov.uk
VI.4.3) Review procedure
Precise information on deadline(s) for review procedures:
This authority incorporated the required standstill period at the point information on the award of contract was communicated to tenderers. The Public Contracts Regulations 2015 (SI 2015 No 87) provide for aggrieved parties who have been harmed or are at risk of harm by a breach of the rules to take action in the High Court (England, Wales and Northern Ireland). Any such action must be brought within 30 days of the date of knowledge (the date on which the economic operator first knew or ought to have known that grounds for starting the proceedings had arisen) unless the court considers that there is good reason for extending that period (up to a maximum of 3 months from the date of knowledge). If the contract has been entered into the court may award damages and in the case of specified breaches of the rules may also order the termination or shortening of the contract and the levying of fines. The purpose of the standstill period referred to above was to allow parties to apply to the Courts to set aside the award decision before the contract was entered into.
You may also care to note the information provided via the following web- links:
The DWP Commercial Complaints Process
The Cabinet Office Mystery Shopper Service
VI.4.4) Service from which information about the review procedure may be obtained
Department for Work and Pensions
Hartshead House, Hartshead Square
Sheffield
S1 2FD
UK
E-mail: fas.procurement@dwp.gov.uk
VI.5) Date of dispatch of this notice
16/10/2023