Innovate UK's monitoring services procurement - engagement event slides

1. Monitoring Services
Dynamic Purchasing System
Engagement Event

2. What we will cover
1. Introductions and Scene Setting
‒ Housekeeping
‒ Introduce the panel
‒ Overview of Innovate UK
‒ Project Background
2. Monitoring Services Overview
‒ What are we procuring?
‒ Lot Structure
‒ Service Requirements
‒ Service Levels
3. Procurement Overview
‒ Dynamic Purchasing Systems
‒ Process (How to join the DPS)
‒ Procurement Timeline
‒ Help Using the DPS
4. Overview of the new operating model
‒ How it works on a day to day basis
‒ What’s different
‒ Performance outputs
5. Q&A

3. OVERVIEW OF INNOVATE UK

5. Innovate UK
• We drive the science and technology innovations that will grow the UK economy
• Expects significant increase to our Grants
• It is important that the Award funding drives innovation
• Monitor projects regularly

6. Monitoring Services – Project Background
Why does Innovate UK monitor projects?
• Full auditability
• Control
• Assuring value for money
• Maintenance
• Public money
• Exploitation
• Assess performance

7. Three Strands of Monitoring
Technical assurance Financial assurance Project management assurance
Criterion: Scope Criterion 2: Cost criteria Criterion 3: Time
Criterion 4: Exploitation
Criterion 5: Risk Management
Criterion 6: Project Management

8. Monitoring Services – Project Background
Why are we changing the way we procure monitoring services?
• To evolve our Monitoring Services
• Diverse and resilient pool
• Sector-relevant expertise and experience
• Engaging with more stakeholders
• Compliance

9. MONITORING SERVICES OVERVIEW

10. What Are We Procuring?
Two elements:
• The Procurement of the End to End Digital Platform
‒ A leading DPS Platform Provider
‒ Hosted in the UK
‒ User friendly
• The Procurement of the Monitoring Service Providers
‒ Establishing a pool of pre-qualified suppliers
‒ Open access to applicants for the duration of the DPS
‒ Join lots at any stage

11. Lot Structure

12. Monitoring
Service
Requirements

13. Financial Validation Checklist
Lead Project Manager self certifies that all
project costs are eligible and fully auditable if
validation is required
Monitoring Service Providers will check a sample
of
• Timesheets
• Subcontract Invoices
• Material Invoices

14. Service Levels
Frequency Duration Complexity Value Engagement
Gold
Monthly
Monitoring
Typically 3
years Project
life
Complexity - no. of
Participants
= 10 or more
Participants
Value £10m or
more total
Award value
Min. physical
attendance at
day-long MRM
Indicative no. of
days work over
typical Project
duration = 57
Silver
Quarterly
Monitoring
Typically 3
years Project
life
Complexity - no. of
Participants
= 7 or more
Participants
Value £5m or
more total
Award value
Min. physical
attendance at
day-long QRM
Indicative no. of
days work over
typical Project
duration = 22
Bronze
Mid & Final
term
Monitoring
Typically not >
9 months
Complexity - not
more than 4
Participants
Value up to
£50k Award
value
No physical
attendance
required at
meetings
Indicative no. of
days work over
typical Project
duration = 2

15. Service Levels Questions table
Question Requirement
Answer Score
3
Answer Score
2
Answer Score 1 Project Classification
A
How frequently do you
require the MO to
monitor progress of the
grant?
Monthly
Monitoring
Quarterly
Monitoring
Mid & Final
term
Monitoring
If the highest answer to any question scores 3 then the
project is Gold
B
What is the duration of
required monitoring of
the grant?
Typically 3 years
Project life
Greater than 9
months but
less than 3
years Project
life
Typically less
than 9 months
project life
If the highest answer to any question scores 2 then the
project is Silver
C
How complex is the
project in terms of
number of participants
to the grant?
Complexity - no.
of Participants =
10 or more
Participants
Complexity -
no. of
Participants = 5
to 9
participants
Complexity -
not more than
4 Participants
If the highest answer to any question scores 1 then the
project is Bronze
D
What is the value of the
grant that is being
monitored?
Total award
value above
£10m
Total award
value above
£50k but less
than £10m
Total award
value less than
£50k
At least 3 out of 4 questions must be determined

16. PROCUREMENT OVERVIEW
DYNAMIC PURCHASING SYSTEMS (DPS)

17. The procurement process
• UK SBS are supporting Innovate UK with a procurement process that allows them to
procure the services of suppliers that have the skills and experience to deliver high
quality monitoring services for a variety of different industry sectors.
• The process must be able to handle a high volume of procurements to support
Innovate UK’s needs of appointing Monitoring Services contracts in an efficient and
effective manner.
• The process must be compliant with the Public Contract Regulations 2015 and with
the principles of “treating economic operators equally and without discrimination
and shall act in a transparent and proportionate manner” (Regulation 18).
• Innovate UK have selected the Dynamic Purchasing System as the most suitable
procurement route to meet their needs.

18. Dynamic Purchasing Systems
• A DPS is run completely electronically and suppliers can apply to join the DPS at any
time.
• Two stage procedure with a pre-qualification stage followed by an Invitation to Tender
(ITT) stage.
• The number of participants is not restricted.
Public Contracts Regulations 2015 - Regulation 34 (2)
“The dynamic purchasing system shall be operated as a completely electronic process,
and shall be open throughout the period of validity of the purchasing system to any
economic operator that satisfies the selection criteria.”

19. How to apply to the DPS
Application / Selection stage:
• After the OJEU Notice has been published suppliers will be required to register an
expression of interest to gain access to the DPS.
• The Pre-qualification will utilise government standard selection questionnaire (SSQ)
with additional project specific selection questions per lot.
• Applicants can apply to multiple lots. We will endeavour to simplify the process as
much as possible to reduce the need for bidders to duplicate responses.
• All the candidates satisfying the selection criteria shall be admitted to the system, and
the number of candidates to be admitted to the system shall not be limited.

20. How we will award the Monitoring Services Contracts
ITT / Award Stage:
• When a new grant funded project needs monitoring, Innovate UK shall invite all
admitted participants of the specific Lot to submit a tender for each specific
procurement under the Dynamic Purchasing System, this is the ITT stage
• Those suppliers that are interested and available should complete and submit a tender
response by the deadline specified
• The tender responses will be evaluated against the criteria contained in the invitation
document
• Innovate UK shall award contracts to the tenderers that submit the best tenders on the
basis of the award criteria set out in the Invitation to Tender
• That process will be repeated for every new contract requirement that comes in

21. The DPS Process for Monitoring Services Contracts
Prior Information Notice
(PIN) issued via OJEU to
warm up and inform the
market.
Applicant responds to the
Selection Questionnaire
(SQ)?
FAQs and general
information published on
Innovate UK site.
Pre-market engagement
road show. To inform the
market of process,
changes and timescales.
Interested parties request
attendance to pre-market
engagement
DPS access granted to the
applicant
Interested parties submit
an Expression of Interest
(EoI) via the DPS to
request participation.
Contract Notice published
on OJEU and Contracts
Finder (aka call for
competition). Opportunity
remains open for life of
DPS
Qualified Suppliers await
Invitations to Tender (ITT)
to be advertised via the
DPS
Qualified Supplier’s details
entered into lot(s)
Interested party’s
circumstances change?
ITTs
advertised to
specific lot on
DPS for
Monitoring
Service
contract
Applicant successfully
qualifies and is accepted
to the specified lots?
Y
Y
N
N
(Re-apply)
Yes
Qualified supplier
assess the
opportunity and
responds within
timescales.
ITT responses
evaluated.
Supplier successful?
No
Contract Awarded
to the successful
bidder
Yes
Monitoring services
delivered and
Innovate UK manages
the outputs and the
Supplier’s
performance.

22. Procurement Timeline
Select DPS Software
Provider
July 2017
Configure & Test DPS
Platform
Aug-Sept 2017
Issue OJEU Contract
Notice for Applications to
the DPS
Late Sept / Early Oct 2017
Successful Applicants
allocated to Lots
From November 2017
Commence Evaluation of
Initial DPS Applicants
November 2017
First Invitations to Tender
published via the DPS
January 2018
Evaluation of ITT responses Contracts awarded
Bidders submit ITT
responses
(Minimum 10 days from
date of publish)

23. Support for Bidders using the DPS
• The DPS system should be intuitive and easy to navigate and relatively easy for
interested suppliers to participate.
• Access to the system will be available via most commonly used internet browsers.
• We anticipate that this may be a new experience for many providers of Monitoring
Services so an essential element in the selection of the DPS provider was choosing
an organisation that can provide help desk support.
• A user guide will be available and email and help desk telephone support will be
available during working hours of 9am-5pm.

24. OVERVIEW OF THE NEW OPERATING MODEL

25. How it works on a day to day basis
1. Funders Panel Signed
2. Mini Competitions/ Invitations to Tender
3. Information provided
‒ Participant Details
‒ Project Duration
‒ Grant
‒ Monitoring Service Level
‒ Public Summary
4. Minimum 10 working days to respond
5. Evaluate
6. Contract awarded

26. What’s different?
• Suppliers bid for the Contract
• Cost is inclusive of T&S
• Pre-agreed rates and mechanisms for extension periods
• Day rate for exceptional meetings
• The supplier takes responsibility
• The relationship is as a service provider
• Three Monitoring Strands (Financial, Project & Technical assurance)

27. Performance Outputs
Key elements are:
• Timely provision of high quality project assurance
• Quality of Project Change Requests
• Interaction and feedback
• Project forecasting
• Referrals given to projects for follow on funding

28. Q&A
monitoringservicesprocurement@innovateuk.gov.uk

29. Thank You for Attending