Cabinet Office on behalf of HM Government is seeking a private sector partner (the "Connected Partner") interested in subscribing for a majority shareholding (up to 75%) of the equity of SSCL, a new company set up to deliver a range of business services to various Government Departments and other public sector bodies. SSCL will initially be owned 100% by the Cabinet Office on behalf of HM Government. Following the acquisition by the Connect Partner of a majority stake in SSCL (and subject to any employee incentivisation arrangements introduced by the Connected Partner), HM Government intends to retain a substantial minority stake in SSCL.
The successful Connected Partner is expected to bring a combination of:
- funding for investment in SSCL and service provision to existing and future customers;
- experience of working successfully in joint ventures and partnerships with the public or private sector;
- the ability to deliver reliable, high-quality business services at competitive prices;
- well-proven transition and transformation capabilities, and the ability to build a growing, profitable, sustainable business;
- a demonstrable commitment to employee incentivisation (through, for example, profit share schemes, mutualisation or other means); and
- capacity and capability in the development, promotion, sale and delivery of business services, including the development and provision of other value added services to other customers, both in the private and public sectors.
SSCL is being established, pursuant to the Government's Next Generation Shared Services Strategic Plan http://www.gov.uk/government/uploads/system/uploads/attachment_data/file/83717/19284_Next_Generation_3rd_Online.pdf
HM Government proposes to make an initial investment in SSCL through the divestment to it of shared service centres currently operated by the Department for Work and Pensions ("DWP"), Department of Environment and Rural Affairs (Defra) and the Environment Agency ("EA"). With effect from 1 April 2015, certain of the services provided by the shared service centre operated by UK Shared Business Services Ltd (formerly known as Research Councils UK Shared Services Limited) are also expected to be transferred to SSCL. The shared service centres operated by DWP, Defra and EA had a total employee base of approximately 1,100 Full Time Equivalents ("FTE") as at 28.2.2013 and have an associated cost of c GBP 65-70 million on the latest outturn financials for the year to 31.3.2013, after adjustments to reflect the services in scope for transfer and allocation of shared costs.
HM Government acting through the Cabinet Office will award to SSCL a Framework Agreement in accordance with the terms of this Notice. Call Off Contracts will then be entered into between SSCL and the initial customers of SSCL ("Initial Customers") which are expected to comprise the existing customers of the shared service centres operated by DWP, Defra, the Environment Agency, and, with effect from 1.4.2015, UK Shared Business Services Ltd (a list of the Initial Customers is available in the Pre Qualification Questionnaire documentation referred to in this Notice). The composition of participating Departments and Initial Customers could be subject to change during the approval process. Together these Initial Customers represent a current user community of some 140,000 – 150,000 users.
Business services expected to be provided by SSCL under the Framework Agreement and Call off Contracts awarded pursuant to this Notice include HR, Finance and Accounts, Payroll and Procurement transactional services, as well as a range of other value added business services.
The successful candidate for the role of Connected Partner will, through the procedure contemplated by this Notice, acquire and hold equity share capital in SSCL through a Shareholders' Agreement, Articles of Association, Subscription Agreement and related documents. As described, SSCL will have the benefit of the Framework Agreement and Call off Contracts awarded pursuant to this Notice.
In addition to the Initial Customers referred to above, it is intended that the Framework Agreement will allow SSCL to provide the services specified above to other public sector bodies including but not limited to all UK Government Departments and their Arm's Length Bodies and Agencies; Non Departmental Public Bodies (NDPBs); and NHS bodies and Local Authorities (together the 'Participating Bodies'). See Section VI of the Contract Notice for further details of those Participating Bodies that will be able to use the Framework Agreement and enter into Call Off Contracts under it.
