Official UK procurement notice
Procurement of the delivery of cash entitlements and administration of the National Concessionary Fuel Scheme
Authority: DESNZ Commercial
What is being bought
Published requirement descriptionIn March 1995, following privatisation of the coal industry, HM Government inherited a legal obligation to certain former employees of the coal industry to fulfil a contractual legacy entitlement to an amount of solid fuel or cash-in-lieu of that fuel.
The rules governing the entitlements are contained in fuel agreements originally put in place in the 1980s between British Coal Corporation and the Mining Unions and amended from time to time until privatisation.
The vast majority of qualifying individuals now choose the cash-in-lieu option (c22,000) with around 2,700 (October 2024) still receiving solid fuel. This number is declining in line with mortality rates.
The supplier shall manage all aspects of the National Concessionary Fuel Scheme.
It is a demand led contract based on decreasing numbers with a number of variables and uncertainties. A flexible service which allows for a decrease of the business and unpredicted changes in requirements is required.
The full requirements will be set out in the specification but will include:
- Payment of cash benefits – quarterly totalling c£28,000,000 (declining year on year)
- Management of entitlements through annual certificates
- General administration of services to Beneficiaries including correspondence relevant to the services
- Effective liaison with the solid fuel contractor – providing instructions to increase, reduce or stop solid fuel deliveries.
- Participation in the National Fraud Initiative; management and pursuit of fraud and error and overpayments/irrecoverable losses
- Management of data protection; cyber security and equalities compliance
Concessionaires are based in coalfield communities in the UK with high concentrations of individuals in South Wales and Northern England.
CPV: Administrative services for business operations
The lotProcurement structure
single lot · no lot value publishedLot #1Expected timelines for this procurement via an open procurement:Planned
Expected timelines for this procurement via an open procurement:
- Invitation to Tender - April 2025
- Tender Closes – May 2025
- Contract Award – August 2025
- Contract Transition/Mobilisation – September 2025 – March 2026
Please note these timelines are indicative and may be subject to change.
Price is not the only award criterion, and all criteria are stated only in the procurement documents. This will be confirmed in the procurement documents during tender competition.
Total Value (excluding VAT) including optional extension period estimated at £8 million.
This contract will be a 5 year contract, with an optional 3 year extension built into the contract. Duration in months: 60 months, plus an optional extension of 36 months. Additional information: Supplier questionnaire available through the Jaggaer link provided. Please complete all the below questions and submit via the Jagger Procurement Portal by 17/02/25. 13:00 hrs.
Procedure terms & legal framework
From the official record- Legal basis
- CELEX · 32014L0024 Public Contracts Regulations 2015 (Directive 2014/24/EU)
- Procurement category
- Services
- Notice status
- Past planning notice
- Procurement threshold
- Unspecified in notice
- Regulatory regime
- Standard
- Commercial structure
- Stand-alone contract (no framework)
- Competition type
- Competitive procedure
- GPA / WTO covered
- Yes (GPA)
- Recurring procurement
- Unspecified in notice
- First published
- 15 Jan 2025, 11:49 GMT
- Last source update
- 15 Jan 2025, 11:49 GMT
- FTS notice number
2025/S 000-001329- Classification (CPV)
- Delivery area
- Official registry OCID
ocds-h6vhtk-04d02cFind a Tender
How it was run
Official notice- Submission deadline
- —
Timeline
15 Jan 2025 → 4 Aug 2025 · 2 dates- Notice published15 Jan 2025, 11:49 GMT
- Tender notice expected4 Aug 2025, 00:00 BST
Commercial outcome & contract awards
Pipeline notice- Awards (0)
- No award published
- Contracts (0)
- No contract published
- Bid statistics
- No aggregate bid statistics published
Contracting authority & participating public bodies
Official documents & specifications
Official links; attachments are not copiedNo document links were published on the notice.