Date of dispatch of this notice: 26/10/2018
External Reference: 2018-299901
TED Reference: 2018/S 209-478180
Contract award notice
Information
Published
Contract award notice
Contract award notice
Results of the procurement procedure
Directive 2014/24/EU
Section I: Contracting authority
I.1)
Name and addresses
Department of Finance
N/A
Government Buildings
Dublin
Merrion Street
IE
Contact person:
Paul Caball
Telephone:
+353 16045008
E-mail:
paul.caball@finance.gov.ie
Internet address(es):
Main address:
www.finance.gov.ie
Address of the buyer profile:
https://irl.eu-supply.com/ctm/Company/CompanyInformation/Index/310
I.4)
Type of the contracting authority
Ministry or any other national or federal authority, including their regional or local subdivisions
I.5)
Main activity
Economic and financial affairs
Section II: Object
II.1)
Scope of the procurement
II.1.1)
Title
Request for Tender for a Review of Government Bank Remuneration Policy
Reference number:
10/2018
II.1.2)
Main CPV code
66171000
-
Financial consultancy services
II.1.3)
Type of contract
Services
II.1.4)
Short description
The provision of advice and assistance to the Department of Finance in conducting a review of the Government’s current restrictions in relation to remuneration in AIB, BOI and Ptsb. During the financial crisis the State provided €64bn in financial support in various forms to the banking system. In return, banks supported by the State agreed to a range of measures including restrictions in relation to remuneration.
II.1.6)
Information about lots
This contract is divided into lots:
no
II.1.7)
Total value of the procurement
Value excluding VAT:
144001.00
EUR
II.2)
Description
II.2.2)
Additional CPV code(s)
79412000
-
Financial management consultancy services
II.2.4)
Description of the procurement
The provision of advice and assistance to the Department of Finance in conducting a review of the Government’s current restrictions in relation to remuneration in AIB, BOI and Ptsb. During the financial crisis the State provided €64bn in financial support in various forms to the banking system. In return, banks supported by the State agreed to a range of measures including restrictions in relation to remuneration.
As well as the much publicised €500,000 total compensation limit (excl. pension) and the prohibition on all bonuses (cash and shares), there are also a range of other restrictions in the Letter that limit the banks’ freedom of action without the Minister’s formal consent.
These restrictions not only apply to staff, executives and directors but they also cover “service providers” to the banks where they derive their custom predominantly or exclusively from the banks. The restrictions also apply to all staff of the banks regardless of the country in which they work and as such the bank cannot use variable pay as a retention mechanism in the UK, US and Europe even in business lines where this would be the norm in those markets.
Since then a new banking regulatory framework has been put in place across the EU, the economy has returned to near full employment, the relevant banks are profitable again. The State remains the largest shareholder in AIB, BOI & Ptsb but following the successful IPO of AIB in June 2017 all three banks are also now have listings on the main market of the Dublin and London stock exchanges.
In light of the above and the more intense competition for talent evident in the economy as a whole, the Department of Finance considers it appropriate to conduct a further review of the existing remuneration policy to determine if the current restrictions are still fit for purpose.
As well as the much publicised €500,000 total compensation limit (excl. pension) and the prohibition on all bonuses (cash and shares), there are also a range of other restrictions in the Letter that limit the banks’ freedom of action without the Minister’s formal consent.
These restrictions not only apply to staff, executives and directors but they also cover “service providers” to the banks where they derive their custom predominantly or exclusively from the banks. The restrictions also apply to all staff of the banks regardless of the country in which they work and as such the bank cannot use variable pay as a retention mechanism in the UK, US and Europe even in business lines where this would be the norm in those markets.
Since then a new banking regulatory framework has been put in place across the EU, the economy has returned to near full employment, the relevant banks are profitable again. The State remains the largest shareholder in AIB, BOI & Ptsb but following the successful IPO of AIB in June 2017 all three banks are also now have listings on the main market of the Dublin and London stock exchanges.
In light of the above and the more intense competition for talent evident in the economy as a whole, the Department of Finance considers it appropriate to conduct a further review of the existing remuneration policy to determine if the current restrictions are still fit for purpose.
II.2.5)
Award criteria
Criteria below
Quality criterion
-
Name:
Quality of Offering
/
Weighting:
50%
Quality criterion
-
Name:
Quality of Team
/
Weighting:
30%
Price
-
Weighting:
20%
II.2.11)
Information about options
Options:
no
II.2.13)
Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds:
no
Section IV: Procedure
IV.1)
Description
IV.1.1)
Type of procedure
Open procedure
IV.1.8)
Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement
: yes
IV.2)
Administrative information
IV.2.1)
Previous publication concerning this procedure
Notice number in the OJ S: 2018/S 143-327225
Section V: Award of contract
Contract No: 1
Title: Request for Tender for a Review of Government Bank Remuneration Policy
V.2)
Award of contract
V.2.1)
Date of conclusion of the contract
03/10/2018
V.2.2)
Information about tenders
Number of tenders received:
2
Number of tenders received from tenderers from other EU Member States:
1
Number of tenders received from tenderers from non-EU Member States:
1
Number of tenders received by electronic means:
2
The contract has been awarded to a group of economic operators
:
noV.2.3)
Name and address of the contractor
Korn Ferry
VAT Registration No. GB 539135439.
22-24 Lower Mount Street
Dublin 2
IE
E-mail:
dom.crotty@kornferry.com
The contractor is an SME : no
V.2.4)
Information on value of the contract/lot (excluding VAT)
Initial estimated total value of the contract/lot:
144001.00
EUR
Total value of the contract/lot:
144001.00
EUR
Section VI: Complementary information
VI.4)
Procedures for review
VI.4.1)
Review body
Department of Finance
Department of Finance Government Buildings, Upper Merrion Street
Dublin
D02R583
IE
Telephone:
+353 16045008
E-mail:
paul.caball@finance.gov.ie
Internet address:
www.finance.gov.ie