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Annex A: Pre-Qualification Questionnaire Core Questions NOTES OF GUIDANCE TO FIRMS TENDERING

1. Introduction 1.1 This information is provided for the assistance of tenderers but does not form a part

of the contract documents. 1.2 References in this Tender Information to the ‘Council’ are references to Hampshire

County Council. 1.3 The Contract comprises of those services detailed in the Specification and

Schedules. 1.4 Persons proposing to submit a tender are advised to read all documentation

carefully to ensure that they are fully familiar with the nature and extent of the obligations to be accepted by them if their tender is successful.

1.5 Tenders must be for the supply of the whole of the Goods and Services upon the terms of the contract. Tenders for any part or parts only of the Services or for different standards or frequencies of service or made subject to alternative or additional terms or conditions will be rejected.

2. Sufficiency of Information 2.1 Information supplied to Tenderers is for the general guidance of Tenderers only.

Tenderers must satisfy themselves by their own investigations with regard to the accuracy of all such information and no responsibility is accepted by the Council for any loss or damage of whatever kind and howsoever caused arising from the use of such information.

2.2 Tenderers must obtain for themselves at their own expense all information necessary for the preparation of their tender.

2.3 Tenderers shall be deemed to have satisfied themselves before submitting their tender as to the correctness and sufficiency of the rates and prices stated in their tender which shall (except in so far as it is otherwise provided in the Contract) cover all their obligations under the Contract and shall be deemed to have obtained for themselves all necessary information as to risks, contingencies and all other circumstances influencing or affecting the tender.

3. Qualification of Offer 3.1 If the Tenderer has doubts as to the meaning of any of the Clauses of the Contract

or any Schedules, they are to set out in a schedule the interpretation on which they rely.

3.2 Any qualification to the Clauses of the Contract or any Schedules made by a Tenderer shall be disregarded by the Council and may lead to disqualification of the tender.

4. Acceptance of Tender 4.1 The Council does not bind itself to accept the lowest or any tender. The Council

reserves the right to award all, part or none of the contract and is not bound by the estimated value or order quantities.


4.2 Tenderers can either submit one tender to manage all assets across their alternative investments portfolio or separate managers for one or more of the asset classes of Hedge Funds, Infrastructure and Private Equity Funds. Accordingly the technical questions (Form E) in this PQQ is split into two parts; 4.2.1 Part 1 to be filled in by all potential suppliers and 4.2.2 Part 2 which is split into 4 lots as follows:

Lot 1 Manager of Hedge Funds

Lot 2 Manager of Infrastructure Investments

Lot 3 Manager of Private Equity and Illiquid Funds

Lot 4 Managers wishing to apply for more than one of the above Lots

5. Period of Contract

5.1 The contract will commence from 1 December 2015 and will be formally reviewed after 5 years.

6. Tender Evaluation 6.1 Your submitted Return Document will be assessed in accordance with the

requirements of The Public Contracts Regulations 2015, and the Council will treat all applications in line with the principles of transparency, equality of treatment and non-discrimination.

6.2 If managers wish to apply for more than one Lot they should fill in the relevant technical questions for the appropriate Lots (1-3) and answer Lot 4. Those managers wishing to only apply for individual Lots should fill in the relevant Lot (1-3). Lots 1-3 will each be scored out of 10.

6.3 Lot 4 will be scored out of 10 and will act as a multiplier for that manager for the score they are given in each lot (1-3) they have applied for. For example a score in Lot 4 of 8 out of 10 would mean the score this manager received in each of lots 1-3 would be multiplied by 1.08. This is to reflect the potential fee saving and customer service efficiencies for the Council of dealing with a smaller number of suppliers. If the manager is ranked in the top eight in more than one lot, after the application of this multiplier the new score will stand. If the manager only ranks in the top eight in one lot post the application of the multiplier, then this will not stand and the original score in that lot will be taken forward.

7. Criteria for Assessing PQQ Responses 7.1 The objective of the pre-qualification process is to assess the responses to the

Questionnaire and select Potential Providers to participate at the tender stage. 7.2 The high level evaluation criterion for the mandate is to award the contract based

on the most advantageous tender, considering both quality and financial factors. 7.3 The information supplied will be checked for completeness and compliance before

responses are evaluated. 7.4 Failure to provide a satisfactory response to any of the questions may result in the

Council not proceeding further with the Potential Provider.


7.5 Reponses to the following questions will be assessed on “PASS/FAIL” basis. Potential Providers who record a “FAIL” shall be excluded from the adjudication process: 7.5.1 Failure to be able to provide audited and signed accounts; 7.5.2 Applicant is not registered for VAT; 7.5.3 Circumstances as set out in SI 2015, Regulation 57 apply to the

organisation; 7.6 The Potential Providers who comply with the above shall be evaluated on the

qualification criteria listed in the PQQ which takes into account the economic and financial standing and the technical and professional ability of the Potential Provider. A minimum of five (5) and maximum of eight (8) Potential Providers will be drawn up and subsequently invited to tender.

7.7 The following scoring matrix shall be employed to identify suitable Potential Providers:

PQQ Assessment Matrix

Reference Criteria Weighting

Form A Organisation and Contact Details Information only

Forms B & C Grounds for Mandatory or Discretionary Rejection Pass / Fail

Form D Economic and Financial Standing and Insurance Pass / Fail

Technical and Professional Ability (Regulation 42 of SI 2015 No 102)

- Part 1

- Part 2

20%

i) Experience and Contract Examples 15%

Form E

ii) Additional Technical Questions 35%

Forms F & G Business Continuity and Quality Assurance 10%

Form H Conflicts of Interest 10%

Form I Undertaking Pass / Fail

Sub-Contracting Arrangements – please refer to Page 4 for details 10%


Each criterion listed will be scored out of 10 (ten) and the appropriate weighting applied to that score to determine the overall score.

Assessment Score Basis of score

Poor 0-3 points Unsatisfactory or poor response, only some of the requirements are met

Satisfactory 4-5 points A satisfactory response, which meets the basic requirements

Good 6-8 points Good to very good response, which meets all requirements, and gives a high degree of confidence

Excellent 9-10 points Outstanding response which meets all expectations, adds value and gives full confidence

Failure to achieve a minimum score of 4 (four) in any criterion will result in the non-consideration of the application for inclusion on the tender list. (The minimum acceptable score requirement is not applicable to Lot 4.) Failure to submit a response to any question asked (unless otherwise indicated) may result in the non-consideration of the application for inclusion on the tender list.

7.8 Invitations to Tender will be sent to the suitable Potential Providers and their tender returns will be assessed on both a financial basis and quality basis. The details of the criteria for tender evaluation are published in the Invitation to Tender (ITT) document which is available via the website. Please do not complete this unless requested.

8. Verification of Information Provided: 8.1 The higher the risk of the procurement, the higher the level of verification is likely to

be required. Not all questions require supporting documents up front at this stage (for example certificates, statements with this questionnaire.) However, the Authority may ask to see these documents at a later stage, so it is advisable you ensure they can be made available upon request. You may also be asked to clarify your answers or provide more details about certain issues.

9. Sub-Contracting Arrangements 9.1 Where a sub-contracting approach is proposed, all information requested should be

given in respect of the prime contractor. 9.2 Where sub-contractors will play a significant role in the delivery of the services or

products under any ensuing contract, please indicate in a separate annex (by inserting the relevant company/organisation name) the composition of the supply chain, indicating which member of the supply chain will be responsible for the elements of the requirement, noting that ultimate responsibility will always rest with the prime contractor.

9.3 It is recognised that arrangements in relation to sub-contracting may be subject to future change. However, potential providers should be aware that where sub-contractors are to play a significant role, any changes to those sub-contracting arrangements may constitute a material change and therefore may affect the ability of the potential provider to proceed with the procurement process or to provide the goods and/or services.


10. Attachments 10.1 Where the supplier utilises attachments as part of their response, they must be

embedded within the word document and also provided as a separate submission via the InTend portal.

10.2 The project reference number, tenderers name and the question number that the attachment refers to must be contained within the file name to allow for searching and exact matching. For example “EX06837 Alternative Investments Manager Form B Question e(ii)”

10.3 Attachments should be used to provide supplemental information in a previously published or diagrammatic format that is not easily transposed or capable of insertion as text. They may not be used as a mechanism to extend the available word count.

10.4 The Council should be capable of determining “pass / fail” criteria based solely on the answer provided however, where attachments are provided, they should only be to provide any evidence that the response relies upon, and not to demonstrate the tenderers capability.

11. Timetable

STAGE DATE(S)

Deadline for clarification questions Midday 17/06/2015

Deadline for responses to questions Close of business 27/06/2015 Deadline for submissions Midday 29/06/2015


FORM A - Organisation and Contact Details RETURN DOCUMENT 1

CONTRACT FOR ALTERNATIVE INVESTMENT MANDATES FOR THE HAMPSHIRE PENSION FUND

This document should be read and completed in conjunction with the “Notes of Guidance to Firms Tendering” commencing on page 4 of the “Invitation to Tender”

1. ORGANISATION DETAILS

Company Name: Click here to enter text. Address: Click here to enter text. Telephone Number: Click here to enter text. Website Address: Click here to enter text. Contact Name: Click here to enter text. Contact’s Email: Click here to enter text.

2. Please indicate type of organisation? Sole trader Partnership Private limited company Public limited company Local authority Voluntary / charitable organisation / not for profit Education Other

If other, please state Click here to enter text. 3. Registered Official Address if different from above:

Click here to enter text.

4. If a Registered Company or Charity, please state your registration number:


5. Please state if any director, partner, associate or senior manager is, or has a relative who is, a Councillor, or is employed by the Council or has an interest in the affairs of the Council.

Yes No

6. Please give details of any links to the question above:


7. If the Company making the application is a member of a group of companies, please supply the name of the ultimate holding Company and all other subsidiary companies, detailed on a separate sheet if necessary.



8. If your Company is applying behalf of a consortium, please provide list these companies and confirm you are the lead party making the application. Your partners may be requested to complete this document separately.


9. QUESTIONS 9.1 and 9.2 FOR COMPLETION BY NON-UK BUSINESSES ONLY

9.1 Is your business registered with the appropriate trade or professional register(s) in the EU member state where it is established (as set out in Annexes IX A-C of Directive 2004/18/EC) under the conditions laid down by that member state?

YES

NO

9.2 Is it a legal requirement in the State where you are established for you to be licensed or a member of a relevant organisation in order to provide the requirement in this procurement? If yes, please provide details of what is required and confirm that you have complied with this.

YES


NO


FORM B - Grounds for Mandatory Exclusion RETURN DOCUMENT 2

Important Notice: In some circumstances, the Authority is required by law to exclude you from participating further in procurement. If you answer ‘YES’ to one of the following questions in this Form B your tender will be rejected. If you do answer ‘YES’ to any of the questions in this Form B, you should supply further relevant information for the Council to evaluate your response and for the Council to decide, in its sole discretion, whether this section has been passed or failed. Please state ‘Yes’ or ‘No’ to each question. 1. Has your organisation or any member of the administrative, management or

supervisory body of your organisation or any other person who has powers of representation, decision or control been convicted of any of the following offences as defined within Sections 59, 60 or 61 of the Public Contract Regulations 2015:

(a) conspiracy within the meaning of section 1 or 1A of the Criminal Law Act 1977 or article 9 or 9A of the Criminal Attempts and Conspiracy (Northern Ireland) Order 1983 where that conspiracy relates to participation in a criminal organisation as defined in Article 2 of Council Framework Decision 2008/841/JHA on the fight against organised crime;

YES NO

(b) corruption within the meaning of section 1(2) of the Public Bodies Corrupt Practices Act 1889 or section 1 of the Prevention of Corruption Act 1906; where the offence relates to active corruption;

YES NO

(c) the common law offence of bribery; YES NO

(d) bribery within the meaning of section 1,2 or 6 of the Bribery Act 2010, or section 113 of the Representation of the People Act 1983;

YES NO

(e) where the offence relates to fraud affecting the European Communities’ financial interests as defined by Article 1 of the Convention on the protection of the financial interests of the European Communities, within the meaning of:

(i) the common law offence of cheating the Revenue; YES NO

(ii) the common law offence of conspiracy to defraud; YES NO

(iii) fraud or theft within the meaning of the Theft Act 1968, the Theft Act (Northern Ireland) 1969, the Theft Act 1978 or the Theft (Northern Ireland) Order 1978;

YES NO

(iv) fraudulent trading within the meaning of section 458 of the Companies Act 1985, article 451 of the Companies (Northern Ireland) Order 1986 or section 993 of the Companies Act 2006;

YES NO


(v) fraudulent evasion within the meaning of section 170 of the Customs and Excise Management Act 1979 or section 72 of the Value Added Tax Act 1994;

YES NO

(vi) an offence in connection with taxation in the European Union within the meaning of section 71 of the Criminal Justice Act 1993;

YES NO

(vii) destroying, defacing or concealing of documents or procuring the execution of a valuable security within the meaning of section 20 of the Theft Act 1968 or section 19 of the Theft Act (Northern Ireland) 1969;

YES NO

(viii) fraud within the meaning of section 2, 3 or 4 of the Fraud Act 2006; or

YES NO

(ix) the procession of articles for use in frauds within the meaning of section 6 of the Fraud Act 2006, or the making, adapting, supplying or offering to supply articles for use in frauds within the meaning of section 7 of that act;

YES NO

(f) any offence listed;

(i) in section 41 of the Counter Terrorism Act 2008; or

YES NO

(ii) in Schedule 2 to that Act where the court has determined that there is a terrorist connection;

YES NO

(g) any offence under sections 44 to 46 of the Serious Crime Act 2007(b) which relates to an offence covered by subparagraph (f);

YES NO

(h) money laundering within the meaning of sections 340(11) and 415 of the Proceeds of Crime Act 2002;

YES NO

(i) an offence in connection with the proceeds of criminal conduct within the meaning of section 93A, 93B or 93C of the Criminal Justice Act 1988 or article 45, 46 or 47 of the Proceeds of Crime (Northern Ireland) Order 1996;

YES NO

(j) an offence under section 4 of the Asylum and Immigration (Treatment of Claimants, etc.) Act 2004;

YES NO

(k) an offence under section 59A of the Sexual Offences Act 2003; YES NO

(l) an offence under section 71 of the Coroners and Justice Act 2009; YES NO


(m) an offence in connection with the proceeds of drug trafficking within the meaning of section 49, 50 or 51 of the Drug Trafficking Act 1994; or

YES NO

(n) any other offence within the meaning of Article 57(1) of Public Contracts Directive either as defined by the law of any jurisdiction outside England and Wales and Northern Ireland; or created, after the day on which these Regulations were made, in the Law of England and wales and Northern Ireland?

YES NO

The Council reserves the right to exclude any economic operator where:

(a) the contracting authority is aware that the Potential Provider is in breach of its obligations relating to the payment of taxes or social security contributions; and

(b) the breach has been established by a judicial or administrative decision having final and binding effect in accordance with the legal provisions of the country in which it is established or with those of any of the jurisdictions of the United Kingdom.


FORM C - Grounds for Discretionary Exclusion RETURN DOCUMENT 3

Important Notice The Authority is entitled to exclude tenderers from consideration if they answer ‘NO’ to any of the questions in Form C below. If you answer ‘NO’ to any of the questions in this Form B, tenderers can supply further relevant information for the Council to consider and decide, in its sole discretion, whether this section has been passed or failed. Please state ‘Yes’ or ‘No’ to the following questions. In the case of applying as part of a group, pleased respond as for the Economic Operator of such grouping.

(a) Are you complying with applicable obligations in the fields of environmental, social and labour law established by EU law, national law, collective agreements or by the international environmental, social and labour law listed in Annex X to the Public Contracts Directive;

YES NO

(b) Are you bankrupt or is the subject of insolvency or winding-up proceedings, where its assets are being administered by a liquidator or by the court, where it is in an arrangement with creditors, where its business activities are suspended or it is in any analogous situation arising from a similar procedure under the laws and regulations of any State;

YES NO

(c) Has you or your organisation committed an act of grave misconduct in the course of your business or profession;

YES NO

(d) Have you or your organisation entered into agreements with other economic operators aimed at distorting competition;

YES NO

(e) Have you or any member of your organisation, directly or indirectly, a financial, economic or other personal interest in the award of this contract;

YES NO

(f) Have you or your organisation been involved in the preparation of this procurement procedure;

YES NO

(g) have you;

(i) been guilty of serious misrepresentation in supplying the information required for the verification of the absence of grounds for exclusion or the fulfilment of the selection criteria; or

YES NO


(ii) withheld such information; or

YES NO

(h) undertaken to;

(i) unduly influence the decision-making process of the contracting authority, or

YES NO

(ii) obtain confidential information that may confer upon it undue advantages in the procurement procedure; or

YES NO

(iii) negligently provided misleading information that may have a material influence on decisions concerning exclusion, selection or award?

YES NO


FORM D - Economic and Financial Standing RETURN DOCUMENT 4

1. To support this assessment, the Council will obtain a financial appraisal report from N2Check (www.n2check.com). The report provides the Council with an overall Risk Score which will be used to assess the applicant’s financial standing as shown below

Risk Score Evaluation outcome

Score of between 0 and 25 FAIL

Score of between 26 and 49 PASS - Subject to provision of a suitable parent company guarantee or commitment to provide a performance bond if/when deemed appropriate. If you are unable to provide either one of these, this will result in a “FAIL.” Please note: a financial appraisal (using the same financial appraisal and evaluation process) will be carried out on the Parent Company to assess their suitability to act as Guarantor.

Score of 50 and over PASS

2. Where a risk score from N2Check is not available, an alternative method of assessing financial standing will be used based on the information provided in response to Question 2.1 below.

2.1 Which of the following your company would be able to provide if requested (please tick a minimum of one).

A copy of its audited accounts for your last two financial years. If it qualifies for the small business exemption, a copy of its statutory

accounts for the most recent two years. A statement of turnover, profit & loss account, balance sheet and a

Director's/Managing Partners report (if available) for the most recent two years of trading.

Management Accounts including a profit & loss account and balance sheet for the period of trading.

A statement of cash flow forecast for the current year and a bank letter outlining the current cash and credit position.

Alternative means of demonstrating financial status if trading for less than one year (e.g. a copy of it’s business plan, cash flow forecast, details of start up capital/loans or management accounts).

If you company qualifies as an SME and produces and submits abbreviated statutory accounts, please provide copies of the detailed Profit & Loss Account for the last two financial years. Please attach these with the Tender submission. For more information on SME status, go to: http://www.companieshouse.gov.uk/infoAndGuide/faq/auditThresholds.shtml.

http://www.n2check.com).

http://www.companieshouse.gov.uk/infoAndGuide/faq/auditThresholds.shtml.


2.2 Where a risk score from N2Check is not available, the table below details the alternative evaluation process that will apply to the information provided:

Criteria Weighting Pre Tax Profit/Surplus – latest trading year (accounts) 7.5

Percentage of change in Pre-Tax Profit/Surplus between the latest 2 years evaluated

7.5

Percentage of change in Tangible Net Worth* based on the most recent 2 years of statutory accounts submitted

20

Tangible Net Worth based on latest set of statutory accounts (please see below for how this is calculated)

35

Current Ratio 15

Gearing 15

Total 100

*Tangible Net Worth (TNW) is calculated on the following basis: Total Assets less Intangible Assets less Total Liabilities = Tangible Net Worth (Intangible Assets: this may include assets such as Goodwill, Capitalised R&D, Franchise Costs etc.) The following scoring mechanism will be used to assess all elements of this financial evaluation:

Excellent 100% Good 75% Satisfactory 50% Unsatisfactory 0% The following is an Example:

Criteria Evaluation Outcome

Score

Pre Tax Profit – latest trading year (accounts) Satisfactory (50%)

50% of 7.5 = 3.75

Percentage of change in Pre-Tax Profit between 2 years evaluated

Satisfactory (50%)

50% of 7.5 = 3.75

Percentage of change in Tangible Net Worth* between the latest 2 years evaluated

Satisfactory (50%)

50% of 20 = 10

Tangible Net Worth figure based on the latest set of accounts

Satisfactory (50%)

50% of 35 = 17.5

Current Ratio Excellent: (100%)

100% of 15 = 15

Gearing Good 75% of 15 = 11.25

The organisation in this example achieved an overall ‘PASS” Total 61.25


3. Performance Bond - Will your company be able to obtain either a Performance Bond or Parent Company guarantee prior to Contract award if the Council deems it to be necessary: Yes No

4. Insurance

4.1 Does your company hold the following minimum levels of Insurance cover?

4.1.1 Employers' Liability Insurance – The required level of cover for this contract is £10 million

Yes No

4.1.2 Public Liability Insurance – The required level of cover for this contract is £10 million

Yes No

4.1.3 Professional Indemnity Insurance – The required level of cover for this contract is £5 million

Yes No

Copies of valid certificates must be provided with the Return Document.

4.2 If your company does not currently hold the levels of cover for this contract stated in Question 4 above, please indicate its willingness or otherwise to increase to the required levels should it be awarded the contract.

Yes

No

Not applicable - already have correct levels of insurance


FORM E - Technical and Professional Ability RETURN DOCUMENT 5

Responses to Form E will be used to undertake an assessment of your organisation’s technical and professional ability to provide the goods/services. Where the Potential provider is a Special Purpose Vehicle and not intending to be the main provider of the goods or services, the information requested should be provided in respect of the principal intended provider of the goods or services.) PART 1 – to be completed by all potential suppliers:

Criteria Score / Weighting

(a) Contract Terminations 2.0%

In the last 3 years, have you had a prior public contract, a prior contract with a contracting entity, or a prior concession contract:

1) That have incurred contract penalties, default notices or payment of liquidated damages;

YES NO

2) Terminated by the client earlier than originally intended due to poor performance;

YES NO

3) Where you have withdrawn from the contract either before or after the award of contract;

YES NO

4) If “Yes” to any of the above, please give details and explain, in no more than 300 words, what has been rectified in order to avoid this situation arising in the future:


(b) Assets under Management (AuM) - 4%

1) Provide your firms total AuM (£m) as at 31 December for each of the last 10 years.

Year: Click here to enter text.

AuM: Click here to enter text.















Comment [OL1]: Can we provide a spreadsheet for this?






2) Provide your Total AuM (£m) as at 31 December for each of the last 10 years within Hedge Funds, Private Equity Funds and Infrastructure Funds combined.





















3) (i) For Hedge Funds, provide your flagship fund of funds AuM (£m) as at 31 December for each of the last 10 years (if different from above). If you do not have a “flagship” fund, please provide the AuM for the largest relevant fund/account that you manage. (ii) For Infrastructure, provide aggregate fund size (at launch) of all funds launched in that year for each of the last 10 years. (iii) For Private Equity, provide aggregate fund size (at launch) of all funds launched in that year for each of the last 10 years. Please provide your answers in the excel spreadsheet attached: XX

4) Provide your Segregated Accounts’ AuM (£m) as at 31 December for each of the last 10 years.





















(c) Client Service - 3%


1) Describe the process you have in place to ensure a high level of customer service is delivered to your clients, including reporting deliverables and complaint handling.


3%

2) From which location(s) does the investment team and the client service team (that would be fulfilling the client service role for this mandate) operate?


0%

(d) Organisational Structure 6%

1) Describe the corporate history for the Investment Management Company (“IMC”). Provide a structure diagram for the IMC showing the ultimate parent. Please detail the ownership structure of the parent and any other relevant entities if the IMC is not wholly owned, including any employee shareholdings (both directly and through options etc).


1%

2) Are there any planned changes to this structure foreseen within the next 2 years?


0.5%

3) Provide details of your management structure, including an organisational chart.


1%

4) Outline how the responsibilities of the business management and fund management are divided.


0.5%

5) Provide brief CV’s for the key investment decision makers. Click here to enter text.

1%

6) List all changes to the senior management of the IMC within the last 5 years, and provide any background where you believe that is appropriate.


0.5%

7) Provide a breakdown of employee turnover within IMC for each of the last 5 years, split between investment and non- investment personnel.


1%

8) Provide an overview of your current business plans as they relate to Alternative Investments.


0.5%


(e) Incentives 2.0%

1) What structures, if any, do you have in place to incentivise the investment team? Provide details of the additional remuneration available to senior staff including over what timescale performance is measured and incentives paid out.


2%

(f) Administration 3%

1) Have you ever had to restate the NAV or valuation of a fund or segregated account? If yes, please explain the reasons for this.


1.5%

2) Provide details of your auditor, administrator, custodian and external legal council? Have you changed either supplier in the last five years or do you plan to change either supplier? (If yes, please provide the reasons for the change and details of the previous supplier).


1.5%



PART 2 The following section is split into 4 Lots as follows:

Lot 1 Manager of Hedge Funds.

Lot 2 Manager of Infrastructure Investments.

Lot 3 Manager of Private Equity and Illiquid Funds.

Lot 4 Managers wishing to apply for more that one of the above Lots.

If managers wish to apply for more than one lot they should fill in the relevant technical questions for the appropriate Lots (1-3) and answer Lot 4. Those managers wishing to only apply for one Lot should fill in the relevant Lot (1-3). HCC have set minimum requirements for each Lot as follows: Lot 1 Hedge Funds: In order to apply for Lot 1, potential providers are required to have a minimum of £1bn of hedge fund assets under discretionary management as at 31 December 2014 and to charge a management fee of under 60 basis points (0.6%) of AuM on this mandate. Lot 2 Infrastructure Investments: In order to apply for Lot 2, potential providers are required to have a minimum of £1bn of infrastructure assets under discretionary management as at 31 December 2014 and to charge a management fee of under 75 basis points (0.75%) of AuM (deployed by the manager) on this mandate. Lot 3 Private Equity and Illiquid Funds: In order to apply for Lot 2, potential providers are required to have a minimum of £1bn of infrastructure assets under discretionary management as at 31 December 2014 and to charge a management fee of under 75 basis points (0.75%) of AuM (deployed by the manager) on this mandate.

Pass Fail

Pass Fail

Pass Fail



Lot 1 MANAGER OF HEDGE FUNDS

EXPERIENCE AND CONTRACT EXAMPLES (15%)

Provide full details of up to three contracts from either or both, the public or private sector, that are relevant to this Lot and the Authority’s requirements as stated in the Outline Requirement on Page 1. Contracts for the supply of goods or services should have been performed during the past three years. (References may be taken up at the ITT stage and the customer contact should be prepared to speak to the purchasing organisation to confirm the accuracy of the information provided below if we wish to contact them at this stage).

Contract 1 Contract 2 Contract 3

(a) Customer organisation (name):




Customer contact name:




Phone number: Click here to enter text.



(b)

Email: Click here to enter text.



Contract start date: Click here to enter text.



Contract completion date:




(c)

Contract value: (AuM)




(d) Brief description of contract including evidence as to your technical capability in this market: (max 150 words)




(e) Have you ever had any adverse regulatory finding by the Financial Conduct Authority or similar national regulator?

YES NO


If you cannot provide at least one example or have answered Yes to part (e), please briefly explain why (max 100 words): Click here to enter text.

SPECIFIC ADDITIONAL TECHNICAL QUESTIONS – Lot 1 Hedge Fund Managers (30%)

(a) Fund Strategy - 7%

1) Provide a breakdown and rationale for your flagship fund’s current strategy. This is the fund stated in Part 1 (b) 2 ii.


3%

2) With reference to 1 above, please describe the rationale behind any significant changes in strategy allocation during the last 5 years.


2%

3) Have any of your funds/accounts held any underlying fund(s) that have incurred a loss of 80% or more of their value? If yes, please provide details and state what issues this raised.


1%

4) Have you ever suspended redemptions or imposed gates on any fund/account? If yes, please provide details including how quickly capital was returned to investors.


1%

(b) Investment Philosophy 8%

1) Please detail up to 3 attributes which you believe differentiate you from your peers and why. (max 400 words).


5%

2) Please describe how you measured success in managing the mandate mentioned above; include stating what benchmark you would use to measure investment performance and why.


3%

(c) Performance - 20%

1) Provide the flagship fund’s monthly net returns for the last 10 years (Excel spreadsheet preferred).


20%



Lot 2 MANAGER OF INFRASTRUCTURE INVESTMENTS

EXPERIENCE AND CONTRACT EXAMPLES (15%)

Provide full details of up to three contracts from either or both, the public or private sector, that are relevant to this Lot and the Authority’s requirements as stated in the Outline Requirement on Page 1. Contracts for the supply of goods or services should have been performed during the past three years. (References may be taken up at the ITT stage and the customer contact should be prepared to speak to the purchasing organisation to confirm the accuracy of the information provided below if we wish to contact them at this stage).






Customer contact name:







(b)







Contract completion date:




(c)

Contract value: (AuM) Click here to enter text.







If you cannot provide at least one example, please briefly explain why (max 100 words): Click here to enter text.

(e) Has you had any adverse finding by the Financial Conduct Authority or similar national regulator in the last 3 years

YES NO


SPECIFIC ADDITIONAL TECHNICAL QUESTIONS – Lot 2 Infrastructure Fund Managers (30%)


1) For the last three funds launched prior to December 31, 2012, please provide a breakdown and rationale for the funds strategy.


2%



1%

3) Have any of your funds invested in any fund(s) or asset(s) that have subsequently lost 10% or more of their value? If yes, please provide details and state what issues this raised.


1%

4) Please describe what mechanisms you have in place to manage investment and disinvestment of client monies into an illiquid asset class. Have you ever had to override or alter these?


1%

5) Please describe your approach to gearing at the underlying fund/asset level and how this is monitored.


1%

6) HCC is potentially interested in investing in infrastructure via funds, Limited Partnerships or through co-investment (please note that HCC wishes to limit its proportional ownership of each direct investment to a maximum of 10%). Please describe how you access these different opportunities.


1%

(b) Investment Philosophy 8%

1) Please detail up to 3 attributes which you believe differentiate you from your peers and why. (max 400 words)


5%



3%


1) How many funds / assets has the IMC invested in during the last 3 years? (Provide the number, size £m and brief description).


2%


2) Please complete the attached performance spreadsheet (including net IRR over 3, 5, 7 and 10 for your consolidated portfolio of funds, including details of any income distributed).


18%



Lot 3 MANAGER OF PRIVATE EQUITY AND OTHER ILLIQUID FUNDS

EXPERIENCE AND CONTRACT EXAMPLES

Provide full details of up to three contracts from either or both, the public or private sector, that are relevant this Lot and to the Authority’s requirements as stated in the Outline Requirement on Page 1. Contracts for the supply of goods or services should have been performed during the past three years. (References may be taken up at the ITT stage and the customer contact should be prepared to speak to the purchasing organisation to confirm the accuracy of the information provided below if we wish to contact them at this stage).






Customer contact name: Click here to enter text.






(b)







Contract completion date: Click here to enter text.



(c)









(e) Has you had any adverse finding by the Financial Conduct Authority or similar national regulator in the last 3 years?

YES NO


SPECIFIC ADDITIONAL TECHNICAL QUESTIONS – Lot 3 Private Equity and Other Illiquid Fund Managers


1) For the last three funds launched prior to December 31 2012, please provide a breakdown and rationale for the funds strategy.


2%



2%

3) Have any of your funds invested in any fund(s) that have subsequently lost 20% or more of their value? If yes, please provide details and state what issues this raised.


1%

4) Please describe what mechanisms you have in place to manage investment and disinvestment of client monies into an illiquid asset class.


1%

5) Please describe your approach to gearing at the underlying fund/asset level and how this is monitored.


1%

(b) Investment Philosophy - 8%

1) Please detail up to 3 attributes which you believe differentiate you from your peers and why. (max 400 words)


5%



3%


1) Please complete the attached performance spreadsheet (including net IRR over 3, 5, 7 and 10 for your consolidated portfolio of funds).


20%



Lot 4 Managers wishing to submit a proposal to manage more than one of the Lots set out above

EXPERIENCE AND CONTRACT EXAMPLES (bonus up to 3.33%)

Provide full details of up to three contracts from either or both, the public or private sector, where you are managing a multi asset class portfolio within Alternative Investments and that are relevant to the Authority’s requirements as stated in the Outline Requirement on Page 1. Contracts for the supply of goods or services should have been performed during the past three years. (References may be taken up at the ITT stage and the customer contact should be prepared to speak to the purchasing organisation to confirm the accuracy of the information provided below if we wish to contact them at this stage).






Customer contact name: Click here to enter text.






(b)







Contract completion date: Click here to enter text.



(c)










SPECIFIC ADDITIONAL TECHNICAL QUESTIONS (bonus up to 6.67%)

(a) Client Services Please describe how you would consolidate the client reporting across multi assets classes within the alternative investment field. Provide examples of your reporting.


3.33%

(b) Fee Levels If you were to be awarded a contract for more than one of the above Lots, please describe how your charging structure would pass on the economy of scale on to the client.


See below

(c) Multi Asset Management Do you believe that you can add value through asset allocation between the different Lots? If so, please describe how you would manage asset allocation across alternative investment asset classes. Please comment on how you compare opportunities across the individual asset classes.


3.33%


FORM F – Business Continuity – Weighting 7% RETURN DOCUMENT 6

(a) Does your organisation have a Business Continuity / Disaster Recovery / Business Risk Management plan that ensures that services described within the Outline requirement are delivered in the event of a disruption affecting your business, ensuring continuity of supply from your critical suppliers?

YES NO

If “Yes”, please include a copy within your return

If “No”, briefly describe what key actions your organisation will take to ensure continued provision of services to customers should there be a major event which results in the loss of staff or loss of your buildings: (Max 300 words) Click here to enter text.

(b) Have there been any occasions when your business operation has been disrupted within the last 3 years? Who would be the person responsible for managing your organisation’s response (name/job title)?

YES NO

If “Yes”, what were the circumstances, what was the effect on your customers and how did you overcome it? (Max 300 words) Click here to enter text.

(d) Briefly describe how your main employment policies promote compliance with the requirements of the Bribery Act 2010 and ensure that your organisation remains compliant and up to date. (Max 300 words) Click here to enter text.


FORM G – Quality Assurance – Weighting 3% RETURN DOCUMENT 7

(a) Does the relevant section of your organisation hold a recognised national or international quality assurance accreditation, for example ISO, Charter Mark or Investors in People? Is your organisation a member of any relevant professional / trade associations?

YES NO

If “Yes”, please enclose a copy of the certificate/state association.

If “No”, please describe any actions you take to ensure quality is consistently monitored and maintained throughout your organisation: (Max 300 words) Click here to enter text.


FORM H- Conflicts of Interest with the Council RETURN DOCUMENT 11

Under regulation 24 of The Public Contracts Regulations 2015, HCC wishes to prevent, identify and remedy any potential conflicts of interest. In accordance with this regulation:

Does any relevant members of your company have, directly or indirectly, a financial, economic or other personal interest with HCC which might be perceived to compromise their impartiality and independence.

YES NO

If you have answered “Yes” to any of these questions, please provide details below: Click here to enter text.

Relevant members of your company should include all senior management and any personnel directly involved in the delivery of this service including consultants.

Financial, economic or personal interest should include, but is not restricted to, the following:

Any relevant member of your company being, or being related or otherwise connected to, an employee or ex-employee of the Authority?

Any relevant member of your company being, or being related or otherwise connected to, an elected member of the Authority or someone who has been an elected member in the last 4 years?

Any relevant member of your company involved directly or indirectly in providing services to the Authority or involved in any other organisation/company that may be interested in bidding for the Authority’s services under this tender process?


FORM I – Undertaking – Scored RETURN DOCUMENT 12

Please note: Organisations that have not completed this section will be given the opportunity to confirm this was their intention before finalising any marking.

Criteria Scoring Result

(a) Undertaking has been completed with no significant conflicts of interest stated Pass

(b) Undertaking has not been completed Or Stated conflicts of interest of significant risk to the contract or the Authority

Fail

annex a: pre-qualification questionnaire core questions ...€¦ · 7.3 the information supplied...

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