10 1341 Green Investment Bank PQQ Product Research

Department for Business Innovation & Skills
Pre-Qualification Questionnaire
Contract Financial modelling
Requirement and preparation of
presentations to
facilitate market
engagement in
respect of product
research for the Green
Investment Bank
Deadline for PQQ project
responses to be
received by BIS 20/12/10
1. Introduction and Background

1.1 The purpose of this pre-qualification questionnaire (“PQQ”) is
to allow the Department for Business, Innovation and Skills
(“BIS”) to evaluate the expressions of interest it has received
in response to the advertisement it placed in the Official
Journal of the European Union on 08/12/2010 with reference
[Reference of OJEU].
1.2 Further details of BIS’ requirement are described at Annex A

to this PQQ.
2. Purpose and scope of this PQQ

2.1 As an organisation that has expressed an interest in tendering
for the requirement, this PQQ assesses your:
• technical and/or professional capability;
• financial and economic strengths; and
• eligibility
2.2 In your response to the PQQ you will need to demonstrate

(within the parameters of Regulations 23-26 of the Public
Contracts Regulations 2006) that you have the appropriate
qualities and resources to successfully deliver BIS’
requirement.
3. Consortia and Sub Contractors
Department for Business Innovation & Skills © Crown copyright 2010

Pre Qualification Questionnaire Version 1.02 (11.10)
Page 1 of 42
3.1 If you feel that you do not have the necessary project
experience to carry out all aspects of the project yourself, you
are encouraged to participate in this PQQ as part of a
consortium or to consider the use of sub-contractor(s).
3.2 If you are participating in a consortium then in this PQQ you

must:
• name a lead organisation who (were you to be successful)

will take overall responsibility for delivering the services OR
identify the legal entity that will be used to deliver them. If
you intend to set up a legal entity for the purposes of
bidding for this contract (e.g. a special purpose vehicle) BIS
reserves the right to require joint and several guarantees
from all members of the consortium enforceable in the
event that that legal entity fails to meet any of its
obligations
• state the name of all consortium members;
• give examples of the qualifications of all members of the

consortium.
3.3 If you consider that you will want to sub-contract the provision
of any of the goods or services that BIS has specified a
requirement for then in the appropriate part of this PQQ
(questions 4.14 – 4.17) you must:
• identify who the sub contractor(s) will be;
• estimate the value of the contract (in percentage terms)

you envisage sub-contracting;
• explain what the role and responsibility of the

subcontractor (or each sub-contractor) will be;
• where you envisage sub-contracting more than 20% of

the contract (in terms of value) demonstrate that you have
suitable contractual and managerial processes in place to
manage that/those sub-contractor(s).
3.4 Where your PQQ submission involves a consortium or sub-

contracting you must immediately notify BIS in writing if the
identity of any consortium member or sub-contractor changes.
You must also immediately notify BIS in writing of any change
in the corporate structure of any bid vehicle to be used by the
consortium.

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4. The procurement process and indicative
timetable
4.1 Where the goods or services that BIS requires are of the
requisite type and value this procurement will be conducted
under the restricted procedure in Regulation 16 of the Public
Contracts Regulations 2006. BIS may elect to follow a similar
procedure on a voluntary basis for below threshold or “Part B
services” contracts. This procurement process is subject to
the conditions set out in paragraph 7 of this PQQ.
4.2 The anticipated key dates for the remainder of the

procurement procedure are set out in the table below
(although BIS reserves the right to vary them).
Event Time/Date
Last time and date for receipt of queries 17.00 on

about PQQ 13/12/10
Answers to PQQ queries circulated by BIS by 12.00 on

16/12/10
PQQ return deadline 17.00 on

20/12/10
PQQ Evaluation 21-23/12/10
Unsuccessful applicants notified 23/12/10
Invitation to tender (“ITT”) packs 23/12/10

despatched
Information session for bidders 05/01/11

(a.m.)
Last time and date for receipt of queries 17.00 on

about ITT 07/01/11
Answers to ITT queries circulated by BIS by 17.00 on

12/01/11
Tender return deadline 17.00 on

17/01/11
Tender evaluation 18-21/01/11
Presentations from short-listed bidders 25-26/01/11

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Preferred supplier selected 28/01/11
4.3 On receipt of the responses BIS will perform an evaluation of

responses in accordance with Regulations 23, 24 and 25 of the
Public Contracts Regulations 2006, with a view to selecting a
shortlist of applicants to be invited to submit a tender for the
requirement.
4.4 The table at Annex B details the weighting and scoring

mechanism for each section within the PQQ response.
5. Responding to the PQQ

5.1 You must complete all relevant sections of the attached PQQ
response form in full. Additional information and supporting
documentation should only be supplied where requested.
5.2 Clearly state, together with reasons, if a section is not

applicable to you. Responses should be in English, and should
be concise and relevant.
5.3 You should provide three hard copies of your response

(email responses alone will not be considered) in Microsoft
Word or equivalent format together with three copies of any
enclosures to the following address:
Lai-Sze Lai
Department for Business, Innovation and Skills
1 Victoria Street
London SW1H 0ET
5.4 Your completed response including
• the PQQ Response form (pages 7-22 of this document)
• the copy documents requested and
• a signed Declaration on the form at Section 5
should arrive at the address in paragraph 5.3 no later than

17.00 on 20/12/10. BIS will reject any response which is
received after this deadline unless satisfied that the delay was
caused by reasons outside of the applicant’s control.
5.5 BIS shall have the right to disqualify you from tendering for
the requirement if you fail to complete the relevant parts of
the PQQ (in full or part) as required by this document. BIS
shall also have the right to disqualify your tender at any stage

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in the process if it becomes aware of any omission or
misrepresentation in your response to any question.
6. Queries relating to this PQQ

6.1 You may submit, by no later than 17.00 on 13/12/10 any
queries that you have relating to this PQQ. Please submit
such queries by email to Lai-Sze Lai at
greeninvestmentbank@bis.gsi.gov.uk.
6.2 Any queries should clearly reference the appropriate

paragraph in the documentation and, to the extent possible,
should be aggregated rather than sent individually. As far as
is reasonably possible, BIS will respond to all reasonable
requests for clarification of any aspect of this PQQ and
supporting documents in accordance with clause 7.4 below, if
made before the above deadline. No queries received after
the above deadline will be answered. Answers will be
circulated by BIS by email on or before 17.00 on 16/12/10.
7. Conditions
7.1 In submitting a response to this PQQ it will be implied that you
accept all the provisions of this PQQ including these
conditions.
7.2 Your PQQ is submitted on the basis that you consent to:
• BIS carrying out all necessary actions to verify the information

that you have provided;
• BIS obtaining a report about you from a recognised supplier of

business and credit information;
• the analysis of your response (in full or part) being undertaken

by a third party commissioned by BIS for such purposes; and
• BIS requesting further information from you as part of this

verification process or to clarify any elements of your
response that are not clear.
7.3 Reference site visits or demonstrations and/or presentations

are unlikely to be requested at this stage of the procurement
process but BIS reserves the right to request the same as a
part of the PQQ evaluation.
7.4 BIS will normally issue the response to any query raised by
you to all those responding to this PQQ unless you expressly
require it to be kept confidential at the time the query is

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raised. If BIS considers the contents of the query not to be
confidential, it will inform you and you will have the
opportunity to withdraw the query.
7.5 The information contained in this PQQ and the supporting

documents and in any related written or oral communication
is believed to be correct at the time of issue but BIS will not
accept any liability for its accuracy, adequacy or completeness
and no warranty is given as such. This exclusion does not
extend to any fraudulent misrepresentation made by or on
behalf of BIS.
7.6 By issuing this PQQ, BIS is not bound in any way to enter into
any contractual or other arrangement with you or any other
party.
7.7 It is intended that the remainder of this procurement will take

place in accordance with the provisions of this PQQ but BIS
reserves the right to terminate, amend or vary the
procurement process by notice to all tendering organisations
in writing. BIS will accept no liability for any losses (including
but not limited to your costs in submitting this PQQ) caused to
you as a result of this.
7.8 You will not be entitled to claim from BIS any cost or expenses
that you may incur in preparing your PQQ Response.
7.9 All information supplied to you by BIS, either in writing or

orally, must be treated in confidence and not disclosed to any
third party (save to your professional advisers) unless the
information is already in the public domain.
7.10 The Freedom of Information Act 2000 (“FOIA”) and the

Environmental Information Regulations 2004 (“EIR”) apply to
BIS. You should be aware of BIS’ obligations and
responsibilities under FOIA or EIR to disclose, on written
request, recorded information held by BIS. Information
provided by you in connection with this procurement exercise,
or with any contract that may be awarded as a result of this
exercise, may therefore have to be disclosed by BIS in
response to such a request, unless BIS decides that one of the
statutory exemptions under the FOIA or exceptions under the
EIR applies. If, for example, you wish to designate information
supplied as part of this response as confidential or if you
believe that its disclosure would be prejudicial to any person’s
commercial interests, you must provide clear and specific
detail as to the precise information involved. Such
designation alone may not prevent disclosure if in BIS’
reasonable opinion publication is required by applicable

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legislation or Government policy or where disclosure is
required by the Information Commissioner or the First-tier
Tribunal (Information Rights).
7.11 Additionally, the Government’s transparency agenda requires

that tender documents, including PQQs such as this, are
published on a designated, publicly searchable web site. The
same applies to other tender documents issued by BIS,
including the invitation to tender, and any contract entered
into by BIS with its preferred supplier once the procurement is
complete. By submitting a response to this PQQ you agree
that your participation may be made public. The answers you
give in this response will not be published on the web site (but
may fall to be disclosed under FOIA or EIR (see above)).
Where tender documents issued by BIS or contracts with its
suppliers fall to be disclosed BIS will redact them as it thinks
necessary, having regard (inter alia) to the
exemptions/exceptions in the FOIA or EIR.
7.12 Any attempt by you or your appointed advisers to

inappropriately influence the contract award process in any
way will result in your response being disqualified. Any direct
or indirect canvassing by you or your appointed advisers in
relation to this procurement or any attempt to obtain
information from any of the employees or agents of BIS
concerning another tendering organisation may result in
disqualification at the discretion of BIS.
7.13 Where applicable it is your responsibility to ensure that any

consortium member, sub-contractor or adviser abides by
these conditions.
7.14 All intellectual property rights in this PQQ and all material
provided by BIS to applicants in connection with this PQQ are
and shall remain the property of BIS and are protected by
Crown copyright.

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PQQ Response Form
Contract Requirement Financial modelling

and preparation of
presentations to
facilitate market
engagement in
respect of product
research for the
Green Investment
Deadline for PQQ Bank project
responses to be
received by BIS 15/12/10
Supplier name (please

insert) ________________________
Section 1 - Details Of Your Organisation

1.1 You should complete the details in this section and in sections
2-4 below for the organisation that it is proposed would enter
into any contract with BIS.
1.2 If a consortium arrangement is proposed then all members of

the consortium must also submit separate PQQ Responses
answering the questions in sections 1-4. Please ensure that
you list the names of all the consortium members in section
1.4 and indicate which organisation is in the lead. If you will
be forming a separate legal entity (e.g. a special purpose
vehicle) for the purpose of bidding for this contract identify
the constituent members and submit responses for each (as
well as for the new entity if it already exists).
1.3 Where you intend to use a sub-contractor(s) then it/they must

be identified and the following information also provided
about it/them (see also questions 4.14 – 4.17).
1.4. The information to be provided is
(a) name of the organisation that BIS would be contracting

with
(b) contact name for enquiries about this PQQ Response

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(c) contact position (job title)
(d) contact Address
(e) contact telephone number
(f) contact fax number
(g) contact e-mail address
(h) applicant’s website address:
(i) date applicant commenced trading
(j) applicant’s company registration number (if applicable)

and date of registration
(k) charity or Housing Association or other registration

number (if applicable) and date of registration. Please
also specify registering body:
(l) applicant’s registered office address (if different from

contact address above)
(m) applicant’s VAT registration number (if applicable)

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(n) is your organisation (please select one)
a public limited company?

a limited company?
a limited liability partnership?
a partnership?
a sole trader?
other? (please specify below)
(o) name, address and registration number of applicant’s

parent company (if applicable)
(p) how many people does your organisation employ?

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Section 2 - Criteria For Rejection Of Economic
Operators
2.1 The questions in paragraph 2.5 are designed to establish
whether any grounds exist for BIS to treat you as ineligible to
participate in this procurement as permitted by regulation 23
of the Public Contracts Regulations 2006.
2.2 If you answer “yes” to any of questions (a) – (l) below you will
be excluded from further participation in the selection
process.
2.3 If you answer “yes” to any of questions (m) – (p) below BIS will
have the discretion to exclude you from further participation
in the selection process. In deciding whether or not to exclude
you BIS will have regard to your answer to question 2.6 and
will consider whether there are overriding requirements in the
general interest which justify it disregarding the “yes” answer
you gave.
2.4 You are reminded that you will also be excluded if you make a
serious misrepresentation when providing information
required of you in any part of this PQQ response.
2.5 Please answer the questions below in respect of each of the

entities whose details you completed for the purpose of
Section 1 of this PQQ Response.
Please indicate with a Yes/No answer whether that entity or

any of its directors, partners or any other person having the
power to represent, make decisions concerning or exercise
control over that entity have:
• been convicted of any of the offences in paragraphs (a)

– (l)
• been or subject to any of the procedures described in

paragraphs (m) – (o) or
• engaged in the conduct described in paragraph (p)
(a) conspiracy within the meaning of section 1 of the Yes /

Criminal Law Act 1977 where that conspiracy No
relates to participation in a criminal organisation
as defined in Article 2(1) of Council Joint Action
98/733/JHA
(b) corruption within the meaning of section 1 of the Yes /

Public Bodies Corrupt Practices Act 1889 or No

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section 1 of the Prevention of Corruption Act 1906
(c) the offence of bribery Yes /

No
(d) the offence of cheating the Revenue Yes /

No
(e) the offence of conspiracy to defraud Yes /

No
(f) fraud or theft within the meaning of the Theft Act Yes /
1968, the Theft Act 1978 or the Fraud Act 2006 No
(g) fraudulent trading within the meaning of section Yes /

458 of the Companies Act 1985 or section 993 of No
the Companies Act 2006
(h) defrauding the Customs within the meaning of the Yes /

Customs and Excise Management Act 1979 and No
the Value Added Tax Act 1994
(i) an offence in connection with taxation in the Yes /

European Community within the meaning of No
section 71 of the Criminal Justice Act 1993
(j) destroying, defacing or concealing of documents Yes /

or procuring the extension of a valuable security No
within the meaning of section 20 of the Theft Act
1968
(k) money laundering within the meaning of the Yes /

Money Laundering Regulations 2007 No
(l) any other offence within the meaning of Article Yes /

45(1) of the Public Sector Directive as defined by No
the national law of any relevant State
(m if you are an individual have you:

)
been bankrupt; Yes /
No
had a receiving order or administration order or
bankruptcy restrictions order made against you; Yes /
No
made any composition or arrangement with or for
the benefit of your creditors; or
Yes /
made any conveyance or assignment for the No

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benefit of your creditors or appeared unable to
pay, or to have no reasonable prospect of being
able to pay, a debt within the meaning of section Yes /
268 of the Insolvency Act 1986, or article 242 of No
the Insolvency (Northern Ireland) Order 1989, or in
Scotland have granted a trust deed for creditors or
become otherwise apparently insolvent, or the
subject of a petition presented for sequestration of
your estate, or the subject of any similar
procedure under the law of any other state.
(n) if you are a partner in a partnership constituted Yes /

under Scots law has your partnership granted a No
trust deed or become otherwise apparently
insolvent or the subject of a petition presented for
sequestration of its estate?
(o) if you are completing this PQQ on behalf of a

company has that company:
passed a resolution or been the subject of an Yes /

order by the court for its winding up (otherwise No
than for the purpose of bona fide reconstruction or
amalgamation);
had a receiver, manager or administrator on Yes /

behalf of a creditor appointed in respect of its No
business or any part thereof; or
been the subject of the above procedures or

similar procedures under the law of any other Yes /
state? No
(p) have you:
been convicted of a criminal offence relating to Yes /

the conduct of your business or profession? No
committed an act of grave misconduct in the Yes /

course of your business or profession? No
not fulfilled obligations relating to the payment of Yes /

social security contributions under the law of any No
part of the United Kingdom or of the relevant
State in which you or your company or business is
established?
not fulfilled obligations relating to the payment of Yes /

taxes under the law of any part of the United No

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Kingdom or of the relevant State in which the
economic operator is established?
2.6 If the answer to any of questions (m) – (p) is “Yes” please give
details of the circumstances below

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Section 3 - Economic And Financial Standing
3.1 You are required to provide the information specified below in
respect of each of the entities whose details you completed in
Section 1.
3.2 Please provide a statement of your turnover or income for

each of your last three financial years. If applicable please
convert your currency into UK sterling using the rate published
by the European Central Bank on the date you submit this
PQQ.
Year 1 Year 2 Year 3

Financial From From From
Year To To To
start/end
dates
(please
insert)
Turnover for £ £ £
that period
Please add any comments you wish to make about the

turnover figures
3.3 Please provide a copy of your most recent audited accounts

that cover the last two years of trading (or for the period that
is available if you have been trading for less than two years.)
3.4 Have you met the terms of your banking facilities and Yes /
loan agreements (if any) during the past financial year? No
3.5 If the answer to 3.4 is “No” what were the reasons?
3.6 Has your organisation met all its obligations to pay its Yes /
employees and creditors during the past financial year? No
3.7 If the answer to 3.6 is “No” please explain why not:

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3.8 Please provide following details of your bank so that we can
ask them for a reference if we decide this is necessary
Bank Name
Branch Address
Contact details
Insurance
3.9 If you organisation has employees do you have Yes /

Employer’s Liability Insurance cover of at least £5M or N
equivalent? o
What is the value of the cover you have?

£
3.10 Do you have Public Liability Insurance cover? Yes /

No
If so to what value?
£
Please note that BIS’ standard conditions of contract
require minimum cover of £2 million per claim. Were
you to be selected to tender BIS will require you to
demonstrate that you have that level of cover in place
and a failure to do so (or to satisfy BIS that satisfactory
alternative arrangements are in place) will lead to you
being excluded at the award stage.
3.11 Do you have Professional Indemnity Insurance cover? Yes /

No
If so to what value?
£
Please note that BIS’ standard conditions of contract
require minimum cover of £2 million for claims arising
from a single event or series of related events in a

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single calendar year. Were you to be selected to tender
BIS will require you to demonstrate that you have that
level of cover in place and a failure to do so (or to
satisfy BIS that satisfactory alternative arrangements
are in place) will lead to you being excluded at the
award stage.

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Section 4 – Technical and/or Professional Ability
4.1 So that BIS can assess your skills, efficiency, experience and
reliability please provide the following information.
Quality Assurance
4.2 Please state if your organisation has, or is seeking, Yes /

certification under any international, European, British No
or other quality standards (e.g. BS5750, BS EN ISO 9000
etc).
If “yes” please state the relevant quality standards, the

date of the award and the renewal period, together with
the Certifying Body and enclose any appropriate
documentary evidence.
If “no” please explain what quality assurance

procedures you use and if you have a written policy
please provide a copy.
4.3 How are your quality assurance procedures

communicated to your staff and applied in practice?
Environmental Management
4.4 Please state if your organisation has or is working Yes /

towards an independent environmental No
management accreditation such as ISO 14001,
EMAS or equivalent.
If “yes” please state the relevant quality standards, the

date of the award and the renewal period, together with

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the Certifying Body and enclose any appropriate
If “no” please explain what environmental management

policy your organisation has and provide a copy. This
should include ways in which you eliminate or reduce
any negative environmental impacts in your operations.
Where BIS’ requirement has no direct environmental
impact (e.g. the provision of consultancy services) BIS
will have regard to matters such as the use by the
contractor or recycled material and its office’s energy
management systems.
4.5 How is your environmental management policy

communicated to your staff and applied in practice?
Educational and Professional Qualifications
4.6 Where BIS’ requirement requires the person or organisation

chosen to do the work to have specified educational or
professional qualifications (and this will be clear from Annex A
of this PQQ) please confirm that your relevant personnel are in
possession of those qualifications and enclose any appropriate
Health and safety

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4.7 Does your organisation have a written health and safety Yes /
at work policy or an alternative system to manage N
health at safety and work? o
If “yes” please enclose appropriate documentary

evidence.
4.8 How is this policy communicated to your staff and what

health and safety training do they receive?
4.9 Please detail any enforcement action taken against your

organisation in the past three years by the Health and
Safety Executive or other enforcement body with
responsibility for health and safety matters.
Equal opportunities
4.10 Does your organisation have an equal opportunities Yes /

policy? N
o
If “yes” please enclose appropriate documentary
evidence.
4.11 How is this policy communicated to your staff and what

equal opportunities/diversity training do they receive?
4.12 In the last three years has a court or tribunal found a

case of unlawful discrimination on grounds of race, sex
or disability against you? If “yes” please provide details.

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4.13 In the last three years has your organisation been the
subject of a formal investigation by the Commission for
Racial Equality, the Disability Rights Commission or the
Equal Opportunities Commission on grounds of alleged
unlawful discrimination? If “yes” please provide details.
Sub Contracting
4.14 If you are completing this PQQ as a prime contractor Yes /

please indicate if any subcontracting is envisaged as No
part of this contract. If “Yes” then you are reminded
that the sub-contactor(s) needs to be identified and a
separate PQQ Response completed for it/them.
4.15 If the answer to question 4.14 is “Yes” what percentage

of the contract (in terms of its estimated value) do you %
think will be sub-contracted?
4.16 What will the role and responsibility of the sub-

contractor(s) be?
4.17 If the answer to question 4.14 is “Yes” and the answer

to question 4.15 is 20% or greater please provide a
statement of your policy on the use of sub-contractors,
and of the means of ensuring quality when sub-
contractors are used.
Previous Experience/Track Record

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4.18 On the next three pages please provide details of up to three
contracts you have performed in the past three years which
are relevant to BIS’ current requirement.

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Contract 1
(a) Customer Organisation
(b) Date contract awarded to you
(c) Brief description of work involved (500 words maximum)
(d) Contract value £
(e) Date contract was completed or is due to be completed
(f) Customer contact name, telephone number and email address
(g) Confirmation that BIS may ask the Customer contact

for a reference relating to the work you did ( a “no”
response will lead to your bid being disqualified unless
you can give compelling reasons for that answer).
Yes / No

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Contract 2

for a reference relating to the work you did (a “no”
Yes / No

Page 24 of 42
Contract 3

for a reference relating to the work you did (a “no”
Yes / No

Page 25 of 42
4.19 Have you been involved in any contracts (not limited Yes /
to those mentioned in your answer to question 4.18) No
where there has been a failure to complete the
project by the scheduled completion date or where
there have been complaints and/or formal court
claims in relation to the project.
4.20 If the answer to question 4.19 is “yes” please give

details below:
4.21 Based on your previous experience please identify the

most important factors that have made projects similar to
those involved in BIS’ requirement a success and describe any
pitfalls encountered and how you addressed these (your
answer should be limited to no more than 500 words)
4.22 Please describe your previous experience of working with

central government departments such as BIS or if you have no
central government experience then how you have worked with
other large organisations (your answer should be limited to 500
words).
4.23 Please set describe your knowledge of the low-carbon sub-

sectors set out in the ‘Objectives’ and ‘Deliverables’ sections of
Annex A.

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4.24 Please describe your experience of building financial models
as applicable to the requirements of the ‘Deliverables’ section of
Annex A.

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Section 5 - Declaration and signature
1. I am authorised on behalf of the organisation identified in

Section 1 of this PQQ (and all relevant associated companies
and organisations/sub-contractors) to supply the information
given in this PQQ response.
2. I declare that, at the date of signing this declaration, the

information given is complete and accurate to the best of my
knowledge having made reasonable enquiries.
3. BIS has our permission to:
• carry out all necessary actions to verify the information

provided; and
• to pass any information provided to a third party

commissioned by BIS for the purposes of evaluating our
responses.
4. I acknowledge that:
• it is a offence to give or offer any gift or consideration to

employee of a public body as a reward or inducement in
relation to the awarding of a public contract and that such
action will give the Customer Organisation the right to exclude
a Tendering Organisation from the procurement process; and
• any price fixing or collusion with other potential suppliers in

relation to the project shall give BIS the right to exclude an
applicant from the procurement process and may constitute
an offence.
……………………………………………………………….
(Signed)
……………………………………………………………….
Name
……………………………………………………………….
Position
……………………………………………………………….
Organisation

Page 28 of 42
……………………………………………………………….
Date

Page 29 of 42
Annex A - Description of BIS’
Requirement
On 20th October 2010, as part of the Spending Review, the

Government confirmed its commitment to set up a Green
Investment Bank (“GIB”). The Spending Review1 announced:
“The Government will initially capitalise a new institution with £1

billion of DEL2 funding together with additional significant proceeds
from the sale of Government owned assets, subject to a final design
which meets the tests of effectiveness, affordability and
transparency.”
It further stated that:
“The Government aims to complete design and testing work by

Spring 2011.”
Prior to this announcement, a cross-departmental team of officials

worked on the market need for a GIB, potential financial
interventions and alternative structural models. The team has been
led by the Department of Business, Innovation and Skills (BIS), but
with significant contributions from other government departments:
HMT, IUK, DECC, Defra, Dft and CLG. This first phase of work made
high-level proposals for the scope and objectives of the GIB, the
range of potential financial interventions, alternative working
models and potential funding sources. This resulted in the summary
conclusion announced in the SR concerning the remit of the
Institution:
“The new institution will make a radical new contribution to

financing green infrastructure through having an explicit mandate to
tackle risk that the market currently cannot adequately finance. It
will catalyse further private sector investment, aiming to facilitate
the entrance of new types of investor into green infrastructure so
that the impact on the finance gap for low carbon investment is
many times the scale of the public contribution. It will make its
investment decisions independent from political control and will
employ private sector skills and expertise.”
Following the Spending Review announcement, BIS has been tasked

to lead the next phase of detailed planning for a GIB, aiming to
complete design and testing work by the Spring 2011. The
1
http://cdn.hm-treasury.gov.uk/sr2010_completereport.pdf - see esp. paras 1.41, 1.42
2
DEL = Departmental Expenditure Limit. Refers to maximum funding available to government
departments for annual expenditure as agreed with HM Treasury as part of the annual budgeting
process.

Page 30 of 42
Structural Reform plan for BIS 3
states that this phase must be
complete by end May 2011.
The next phase (Phase II) of the project has the following key aims:
• Complete the economic case and value for money assessment
for the GIB
• Complete detailed design and market testing of the types of
financial intervention (product) which the GIB might carry out
• Finalise the business model of the GIB
• Complete planning for the establishment phase of the GIB
Following this Phase II, it is intended that a further Phase III would
commence which involves the establishment of the institution. As
noted in the Structural Reform Plan, this should be completed by
December 2011. Thereafter, the institution would begin operations
and be able to make its first investments, subject to funding.
Significant components of this work will be conducted by the BIS

team, whilst certain work streams will involve consultant support.
The project will be overseen by a Project Board comprising key
senior civil servants from several government departments. The
project leader will report to the Director of Advanced Manufacturing
Services and ultimately to the Permanent Secretary of BIS.
Project Leader
(B)
(A) Communications
Programme & project and engagement
management
Detailed design planning
(C) (D) (E) (F) (G)

Value for Product Business Legal/ Bank
Money/ Research design, model regulatory structural
Economic and & build including models:
Case planning state aids:
The objectives and deliverables of work stream D are set out below
in more detail. Other work streams will either be carried out by the
BIS core team alone, or will be supported by other specialist
3
http://www.number10.gov.uk/wp-content/uploads/BIS_FINAL3.pdf - see esp p.7
Page 31 of 42
professional support which is the subject of separate selection
processes. Bidders will need to be aware of the interfaces among
the work streams and they need to be prepared to interact with
officials and advisors supporting those work streams. Bidders may
bid for the advisory roles on one or more of the other work streams;
however, the selection criteria for have been set and will be
assessed independently for each work stream and BIS has no
preference for or aversion to an organisation undertaking more than
one advisory role.
Objectives
• Review the initial core GIB team hypotheses of areas of
market failure resulting in under-investment in green
infrastructure, potential required GIB product interventions
and conduct a rapid market testing of this work via
comparison to latest available published reports and
market interviews amongst key players (a 2-3 week
exercise is anticipated in this area).
• Identify and describe both qualitatively and quantitatively
the nature of a range of detailed financial product
interventions which the GIB should be prepared to
implement in the market place following its launch across a
range of target sectors
• Detailed financial product interventions will initially be
identified across each of 3 initial target sectors on which
the GIB may initially focus to mobilise additional private
sector finance, as follows:
o Low carbon power generation capacity (focus on
offshore wind farm investment, new nuclear
investment and grid investment)
o Low carbon industrial plant (focus on an example
energy efficiency project and a renewable heat
project)
o Waste management (focus on a commercial &
industrial waste project and a waste to energy
project)
• For each target sector, the BIS team will have already
prepared a qualitative description of a range of potential
GIB financial interventions (including at both the
construction phase and post-construction refinancing)
before the start of the engagement (before end December
2010). The objective for the financial modelling team is to
help review these interventions and provide any input or
ideas on additional products, agree a final list of
interventions to be modelled and then model these
interventions. Note that in the consultant briefing
presentation we will give examples of some of the products
that we envisage testing in the offshore wind sector.

Page 32 of 42
• For each sector, the range of potential financial
interventions need to be quantitatively modelled to enable
detailed market testing of the attractiveness of such
interventions, the potential of the interventions to mobilise
additional private sector capital, and their investment
characteristics for the GIB. It is envisaged that this will
require a two-fold approach to modelling by sub-sector:
o Modelling a typical project or asset, e.g. offshore
wind farm, new nuclear plant, major industrial energy
efficiency investment, etc. This would include cash
flows, profit and loss statement, and balance sheet to
permit the modelling of one or more GIB financing
interventions in the project.
o Modelling of the returns to GIB of each of the types of
financing intervention, e.g. co-investment equity, or
of different classes of debt assuming a project
finance structure, etc.
• Following modelling of a range of interventions, the
consultant will prepare summary presentations of the
characteristics of each proposed intervention for use in
discussions with market participants (e.g. utilities,
industrial players, waste management companies, private
equity investors, institutional investors, project developers,
project finance and commercial bank teams) to determine
the level of interest in potential GIB financial products. This
presentation, together with financial models, should be
iterated following feedback from such meetings.
• The financial modelling should be capable of including
reports on certain characteristics of product interventions
to support either the value-for-money case of an
investment (e.g. total additional private sector capital
mobilised by GIB), a State Aid application (e.g. the
economic value of any implicit subsidy in a financial
product) or to help plan the business model and KPIs of the
new institution (e.g. the carbon savings per unit investment
achievable by a certain investment – although we do not
expect this to involve a complex or detailed modelling of
e.g. carbon savings – rather an indicative read-out of
various ‘green’ criteria)
• Following the confirmation of market failures in the
provision of financing for low carbon infrastructure and
identification of the most likely GIB financial products to
help unlock additional finance, a summary model of
financial gaps across the target sectors covered, together
with the quantum of intervention by type of product
required of the GIB to meet this gap is required, in order to
inform the business design and model team’s work. This
should identify the phasing of finance gaps and
interventions over the next decade to 2020.

Page 33 of 42
Deliverables
• Financial models for each sub-sector target investment
(total of 6 models currently envisaged for offshore wind
farm, new nuclear plant, industrial energy efficiency
investment, industrial renewable heat plant, commercial
and industrial waste plant and waste-to- energy plant),
including modelling of each financial intervention
• Presentations of the proposed GIB products by sub-sector,
for use in one-to-one discussions with industry and
potential co-financiers with the GIB
• Summary of the proposed GIB products, including likely
risk/ reward profile and other key attributes (e.g. levels of
mobilised capital), reflecting the results of market testing
• Summary model and presentation of the financing gap
across target sectors for investment and the size of GIB
product interventions to meet this gap, phased over the
decade to 2020.
Process, timing and responsibilities

• The core BIS team will generate a list of potential GIB
financial interventions by sector area by end December
(i.e. before this research exercise commences)
• The contractors should take instructions from the core BIS
team on the characteristics of the potential financial
interventions and then lead on modelling both the target
asset and the interventions
• The contractors should prepare market presentations
describing the proposed range of GIB products, tailored to
specific market participants.
• The core BIS team will lead in arranging market testing
interviews – likely to involve 15-25 interviews by target
sector (i.e. low carbon power, low carbon industrial plant,
waste management plant). A member of the BIS team with
banking experience will lead discussions with market
participants in each area. A representative of the
contractors should attend each interview to support any
detailed financial discussions and to then iterate financial
models and presentations in the light of findings from the
testing interviews
• This work stream should commence as soon as possible in
February 2011 and aim to finish by end April 2011. The
emerging outputs will be used to finalise design of the
overall business model of the GIB and identify build phase
planning requirements – this work is expected to start in
mid-end February.

Page 34 of 42
• Note that additional sectors may be added to, or replace, a
work stream either before or after work commences, and
therefore a typical cost per sector (or sub-sector) should
given in the tender. This may occur following further
evidence of financing market failures arising from
economic analysis in the Value for Money work stream or
from the interviews taking place in this work. Further, it is
possible that some additional support will be required to
identify evidence of market failures or to model additional
elements of financial interventions. The contractors should
remain flexible to carry out additional work related to this
core invitation to tender.

Page 35 of 42
Annex B - Scoring
The table below details the scoring and weighting for each section within the PQQ. Some questions are PASS/FAIL,
with failure on any one of them meaning that the organisation will be excluded form further participation in the
procurement.
Where a question is scored the response given will be rated using a 0 to 5 scale where:
0 = Unacceptable
1 = Weak
2 = Unsatisfactory
3 = Acceptable
4 = Good
5 = Excellent
Weightings are given to the questions that are scored. An organisation’s total score will be determined by the
aggregate of the scores for each question once multiplied by the applicable weighting.
Question Scoring Mechanism Weighti

ng
Section 1 Details of your Organisation
Question 1.4 This question will not be evaluated per se but the information provided may be relevant N/A
Applicant to other questions. BIS reserves the right to exclude an applicant from the procurement
details process where it fails to provide all of the required information.
Section 2 Criteria For Rejection of Economic Operators
Question 2.5 This is a PASS/FAIL question. N/A

Rejection

Page 36 of 42
criteria A “Yes” answer to any question (a) – (l) will lead to the applicant being excluded from
the procurement process
A “Yes” answer to any question (m) – (p) will lead to the applicant being excluded from
the procurement process unless in BIS’ reasonable opinion the answer to question 2.6
makes this unnecessary.
Section 3 Economic and Financial Standing
Questions 3.2 These are both PASS/FAIL questions. N/A

and 3.3
turnover and Turnover figures and accounts will be subjected to a risk analysis. BIS will want to
audited ensure that the applicant’s turnover is consistent with the value of the proposed
accounts contract and if it is not the applicant may be excluded.
BIS will subject the accounts to a risk assessment to satisfy itself that the applicant
appears to be in a sufficiently strong financial position to perform the contract were it to
be awarded it.
Without prejudice to that general assertion where the most recent accounts contain a
qualified opinion from the applicant’s auditors BIS may regard that as a FAIL response to
this question.
In analysing accounts BIS will have regard to the principles and guidance contained in
the Office of Government Commerce document “Supplier Financial Appraisal Guidance”
a copy of which is available at
http://www.ogc.gov.uk/documents/commodities_database/Financial_Appraisal_Guidance.
pdf.pdf
BIS may also/alternatively requisition and have regard to information provided by a third
party supplier of business and credit information.
Page 37 of 42
Banking
facilities and A “No” answer to this question may lead to the supplier being excluded from the
loan procurement process unless in BIS’ reasonable opinion the information given in
agreements answering question 3.5 makes this unnecessary.

Payment of
employees and A “No” answer to this question may lead to the supplier being excluded from the
creditors procurement process unless in BIS’ reasonable opinion the information given in
answering question 3.7 makes this unnecessary.

Bank reference
Where BIS decides to take up bank references it will subject them to a risk assessment.
Where an organisation declines to provide contact details for the obtaining of a
reference or the bank provides a reference casting doubt on the organisation’s financial
standing BIS may regard that as a FAIL response to this question.
Question 3.9 As the need for this insurance is a statutory requirement this is a PASS/FAIL question N/A
Employer’s (with failure to have it causing a fail
Liability Cover
Where an organisation has at least one employee it is required by law to have
Employer’s Liability cover of at least £ 5million and failure to do so will lead to its
exclusion.
Provided the applicant does not fail on that basis BIS will conduct a risk assessment to
consider whether the amount of cover that the applicant has is commensurate with the
type of risks and potential liability that might arise in the course of performing the
contract.

Page 38 of 42
Question 3.10 This is not a pass/fail question, but it will identify issues over the applicant’s public N/A
Public Liability liability insurance cover. If the applicant were to be selected to tender and cannot
insurance cover demonstrate that the necessary cover will be in place at the contract start date then it
will be excluded at the selection stage.
Question 3.11 This is not a pass/fail question, but it will identify issues over the applicant’s professional N/A
Professional indemnity insurance cover. If the applicant were to be selected to tender and cannot
indemnity demonstrate that the necessary cover will be in place at the contract start date then it
insurance cover will be excluded at the selection stage.
Section 4 Technical and/or Professional Ability
Questions 4.2 - This is a PASS/FAIL question. N/A

4.3
Quality BIS requires the applicant to have in place robust quality assurance arrangements to
Assurance ensure it can perform the contract to the required standard.
Questions 4.4 – This is a PASS/FAIL question. N/A

4.5
Environmental BIS requires the applicant to have due regard to environmental considerations when
standards carrying on its business, in particular minimising effects on the environment and
meeting the requirements of any applicable environmental protection legislation.

Educational or
professional Where BIS’ requirement specifies that only those with particular educational or
qualifications professional qualifications can perform certain tasks the applicant must demonstrate
compliance. Failure to do so will lead to the applicant being excluded from this
procurement.

Page 39 of 42
Questions 4.7 – Employers that employ five or more staff are legally required to have a written health N/A
4.9 and safety policy, and failure to do so will constitute a FAIL.
Health and
safety BIS requires the applicant to understand its legal obligations and has adequate
measures in place to provide for the health and safety of its employees.
Questions 4.10 This is a PASS/FAIL question. N/A

– 4.13
Equal BIS requires the applicant to understand its legal obligations and to have adequate
Opportunities measures in place to ensure that it treats its employees in a non-discriminatory way and
fully complies with all relevant equality legislation.
Questions 4.14 These are PASS/FAIL questions. N/A

- 4.17
Sub-contracting If the answer to question 4.14 is “Yes” and the reply to question 4.15 is 20% or greater
BIS will conduct a risk assessment based on the answer given to question 4.16 and 4.17.
BIS will require to be satisfied that the applicant has an appropriate policy in place to
ensure that its significant sub-contractors are supervised in a way that minimises the
possibility of their prejudicing the performance of the contract.
Question 4.18 The responses to this question will be scored using the 0-5 grading system referred to 15%
Previous above.
experience
/Track record BIS will assess the quality of the service that the applicant has provided to its past
customers and based on this the likelihood of it being able to meet BIS’ requirements.
References will be taken up at BIS’ discretion. Where references would be taken but the
applicant has objected to this in question (g) the response will be disqualified unless
there is good reason not to.
Questions 4.19 This is a PASS/FAIL question. N/A

– 4.20

Page 40 of 42
Previous A “Yes” answer to question 4.19 renders the supplier liable to be excluded from the
contracts procurement process unless in BIS’ reasonable opinion the information provided in the
terminated for answer to question 4.20 makes this unnecessary.
bad
performance
Question 4.21 The answer to this question will be scored using the 0-5 grading system referred to 15%
Factors that will above.
drive success /
possible pitfalls The answer given to question 4.21 will allow BIS to understand how the applicant has
approached previous contracts which are similar to this particular requirement.
Experience of above.
working with
central The answer given to this question will allow BIS to gauge the applicant’s experience of
government working with central government departments/other large organisations.
departments
Relevant sub- above.
sector
knowledge The answer given to this question will allow BIS to gauge the applicant’s knowledge of
the low-carbon sub-sectors identified in Annex A.
Relevant above.
financial
modelling The answer given to this question will allow BIS to gauge the applicant’s capability of
experience carrying out the financial modelling identified in Annex A.
100%

Page 41 of 42
Page 42 of 42

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Department for Business Innovation & Skills

1. Introduction and Background

1.2 Further details of BIS’ requirement are described at Annex A

2. Purpose and scope of this PQQ

• technical and/or professional capability;

• financial and economic strengths; and

2.2 In your response to the PQQ you will need to demonstrate

3. Consortia and Sub Contractors

Department for Business Innovation & Skills © Crown copyright 2010

3.2 If you are participating in a consortium then in this PQQ you

• name a lead organisation who (were you to be successful)

• state the name of all consortium members;

• give examples of the qualifications of all members of the

• identify who the sub contractor(s) will be;

• estimate the value of the contract (in percentage terms)

• explain what the role and responsibility of the

• where you envisage sub-contracting more than 20% of

3.4 Where your PQQ submission involves a consortium or sub-

Department for Business Innovation & Skills © Crown copyright 2010

4.2 The anticipated key dates for the remainder of the

Last time and date for receipt of queries 17.00 on

Answers to PQQ queries circulated by BIS by 12.00 on

PQQ return deadline 17.00 on

PQQ Evaluation 21-23/12/10

Unsuccessful applicants notified 23/12/10

Invitation to tender (“ITT”) packs 23/12/10

Information session for bidders 05/01/11

Last time and date for receipt of queries 17.00 on

Answers to ITT queries circulated by BIS by 17.00 on

Tender return deadline 17.00 on

Tender evaluation 18-21/01/11

Presentations from short-listed bidders 25-26/01/11

Department for Business Innovation & Skills © Crown copyright 2010

4.3 On receipt of the responses BIS will perform an evaluation of

4.4 The table at Annex B details the weighting and scoring

5. Responding to the PQQ

5.2 Clearly state, together with reasons, if a section is not

5.3 You should provide three hard copies of your response

5.4 Your completed response including

• the PQQ Response form (pages 7-22 of this document)

• the copy documents requested and

• a signed Declaration on the form at Section 5

should arrive at the address in paragraph 5.3 no later than

Department for Business Innovation & Skills © Crown copyright 2010

6. Queries relating to this PQQ

6.2 Any queries should clearly reference the appropriate

• BIS carrying out all necessary actions to verify the information

• BIS obtaining a report about you from a recognised supplier of

• the analysis of your response (in full or part) being undertaken

• BIS requesting further information from you as part of this

7.3 Reference site visits or demonstrations and/or presentations

Department for Business Innovation & Skills © Crown copyright 2010

7.5 The information contained in this PQQ and the supporting

7.7 It is intended that the remainder of this procurement will take

7.9 All information supplied to you by BIS, either in writing or

7.10 The Freedom of Information Act 2000 (“FOIA”) and the

Department for Business Innovation & Skills © Crown copyright 2010

7.11 Additionally, the Government’s transparency agenda requires

7.12 Any attempt by you or your appointed advisers to

7.13 Where applicable it is your responsibility to ensure that any

Department for Business Innovation & Skills © Crown copyright 2010

Contract Requirement Financial modelling