South East Alarm Seminar 2005 OJEC Notices and Tendering Julia Reffell – JLT Public Sector Risks

South East Alarm Seminar 2005

OJEC Notices and Tendering

Julia Reffell – JLT Public Sector Risks

Jardine Lloyd Thompson Insurance Broking Division

Introduction

Julia Reffell - Account Executive

Jardine Lloyd Thompson Public Sector Risks


Agenda/Objectives

The intention of Directive 92/5O/EEC OJEC and Insurance Type of Procedure Timetable Review of Cover Options Evaluation Conclusion What we have covered Questions


The intention of Directive 92/50/EEC

Community wide advertising of contracts so that firms in all member states have an opportunity of bidding for them.

The banning of technical specifications liable to discriminate against potential foreign bidders.

Application of objective criteria in tendering and award procedures.


OJEC and Insurance

Insurance is subject to all the provisions of the Directive.

Procedure PIN – Prior Information Notice Contract Notice (3 types of procedure) Contract Award Notice

Common Procurement Vocabulary66 30 00 00 – 3 Insurance and Pension Services,

except compulsory social security services.


OJEC and Insurance

Lots

6630 00 00 – 3 Insurance and Pension Service

6633 40 00 – 0 Insurance services relating to transport

6633 41 00 – 1 Motor Vehicle Insurance Services

6633 70 00 – 1 Liability Insurance Services

6633 71 00 – 2 Motor vehicle liability insurance services


OJEC and Insurance

Value Threshold – 200,000 ECU

750,000 ECU

Method of Calculation of the Contract Valve

Splitting Contracts


Type of Procedure

OJEC changing in 2006 Contract Notice

Open Procedure – 52 days for receipt of tenders.

Restricted Procedure – 37 days for receipt of requests to participate 40 days for receipt

of tenders.

Negotiated procedure – 37 days for the receipt of requests to participate.


Timetable

It takes longer than you think! For 1st April renewals you should have started

October/November 2004 Having a timetable will help to make sure you don’t run

out of time Allow ‘slippage’ time Work backwards Example


Timetable

Renewal 1st April 2005 Absolute deadline for making a decision – 31st March

2005. Ideally you would prefer not to be making decisions this late in the day!

Remember Easter – 25-28 March 2005


Timetable

Do you need Committee Approval? Dates of Committee Meetings If Committee Meeting is 18th March – how long before do

you need to submit report? Say one week – 11th March Whether you are doing evaluation yourself or a broker is

doing this, allow 2 weeks – 25th February Usually allow a minimum of three weeks for Insurers to

quote, but at this busy time of year, allow four if you can – 28th January


Timetable

Contract Notice – if Negotiated Procedure used, 37 days – 23 December

PIN – should allow minimum 52 days before publication of Contract Notice – 2 November

So your timetable will look something like this:-


Timetable

2 November 2004 – Issue PIN 23 December 2004 – Issue Contract Notice 28 January 2005 – Issue Tender 25 February 2005 – Tenders Returned 11 March 2005 – Report to Cabinet 18 March 2005 – Cabinet Meeting


Timetable

These are the ‘key’ dates In addition, you have to consider the following:-

Cover Reviews Gathering of Information required for the Tender Implications of a change of Program/Insurer

These need to be completed before you can issue the tender document


Review of Cover

Ideal time to review insurance cover Look at what is covered and why Look at excess levels Look at aggregate levels Look at claims handling arrangements


Options

Have well considered options. The more options you have the more difficult the tender

evaluation process will be No more than 2 or 3 options for each class of business

….Remember, Insurers will receive a number of tenders and you want yours to be at the top of the pile rather than the bottom


Evaluation

Allow plenty of time for this Although you ask for specific cover, excesses etc each

Insurer will quote for what they want to provide There will inevitably be differences on the major classes Need time for clarification and to seek alternatives where

required


Conclusion

Need not be stressful if well planned and if you have sufficient time

Remember you will be stuck with your decision for at least 3, possibly 5 years so it is important to get it right


What we have covered

Directive 92/50/EEC Timetable Review of Cover/Options Evaluation


Questions

Documents

South East Alarm Seminar 2005 OJEC Notices and Tendering Julia Reffell – JLT Public Sector Risks