South East Alarm Seminar 2005

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South East Alarm Seminar 2005

• OJEC Notices and Tendering
• Julia Reffell JLT Public Sector Risks

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Introduction

• Julia Reffell - Account Executive
• Jardine Lloyd Thompson Public Sector Risks

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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

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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.

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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 Vocabulary
• 66 30 00 00 3 Insurance and Pension
  Services, except compulsory social
  security services.

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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

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OJEC and Insurance

• Value Threshold 200,000 ECU
• 750,000 ECU
• Method of Calculation of the Contract Valve
• Splitting Contracts

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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.

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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
  dont run out of time
• Allow slippage time
• Work backwards
• Example

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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

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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

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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-

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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

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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

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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

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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

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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

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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

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What we have covered

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

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Questions