Procurement of the delivery of cash entitlements and administration of the National Concessionary Fuel Scheme

Published date: 15 January 2025

Last edited date: 15 January 2025

Contract summary

Industry

Administrative services for business operations - 75112000

Location of contract

Any region

Value of contract

£8,000,000

Procurement reference

tender_478040/1441051

Published date

15 January 2025

Approach to market date

1 April 2025

Contract start date

1 April 2026

Contract end date

31 March 2031

Contract is suitable for SMEs?

Yes

Contract is suitable for VCSEs?

No

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Description

In 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.


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.

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.

Total Value (excluding VAT) and including the optional extension period is £8 million.

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More information

Attachments

Market Engagement Questionnaire 2025.docx

n/a

Links

https://beisgroup.ukp.app.jaggaer.com/go/20494903019464E61D9D

Supplier Questionnaire

Additional text

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.

Pending the Market Engagement questionnaire an online session may be held.

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How to apply

Follow the instructions given in the description or the more information section.

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About the buyer

Contact name

Waseem Rana

Address

Department for Energy Security and Net Zero (DESNZ), 3-8 Whitehall Place
London
SW1A 2EG
England

Email

waseem.rana@energysecurity.gov.uk

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