Clarifications

"The 'MI returns' are a simple administrative exercise whereby the Supplier (yourself) will need to submit any activity (business) originating from the CCS RM6120 agreement. Where there is no activity, an input reflecting this will still be required. This is standard practice across all CCS agreements. The admin fees relate to CCS' operational costs involved with chasing suppliers for overdue MI. This will only be sought from the Supplier where a failure occurs with two seperate MI returns within a three month period. Where MI has been submitted incorrectly, there is a five day grace period to remediate. This is standard CCS term, there is no redress for additional costs. "

There is a list of excluded Core Terms in each of the following schedules - DPS Order Schedule 24 (Hire Purchase Terms), DPS OS 25 (Finance Lease Terms), DPS OS 26 (Operating Lease Terms) and DPS OS 28 (Loan Agreement). Clause 3.2 from the core terms is listed as an exclusion within these schedules so would not apply when one of these schedules is used by a Buyer.

CCS has recently amended the requirement for Cyber Essentials. Either Cyber Essentials certification or an equivalence will now be accepted. For a full list of all acceptable equivalence certifications, please see DPS Schedule 9 - Cyber Essentials Scheme v2.0 which can be located within Attachment 7 on the Bid Pack.

DPS Order Schedule 24 to 28 relate to the specific types of asset finance available through the DPS. DPS Order Schedule 29 to 40 are the Return Conditions which are required for an Operating Lease. The rest of the schedules in the bid pack are not specific to asset finance, they are standard schedules that form the PSC (Public Sector Contract),CCS' DPS Standard Terms and Conditions which is , the agreement used for all CCS framework and DPS agreements.

Please refer to DPS Schedule 6 (Order Form Template and Order Schedules). This Order Form is to be completed by the buyer before sending to the supplier. This schedule forms the call-off contract and is aligned to the contract terms set out in the DPS agreement. There are some sections of this contract that can be adapted depending on the buyers organisation and requirements.

Supplier documentation could be administered through the portal used by the customer or could be administered offline. It will not be administered through the DPS. It will be for the buyer to decide the method they use. CCS provides detailed customer guidance, and recommends using the portal provided by CCS (Bravo/Jagger) however this is for the buyer to decide. Many public sector organisations have their own portals which they prefer to use.

The length of time a bid will remain open for acceptance is detailed in DPS Schedule 7 (Order Procedure). All tenders submitted by the Supplier in relation to an Order Procedure shall remain open for acceptance by the Buyer for ninety (90) Working Days (or such other period specified in the invitation to tender issued by the Buyer in accordance with the Order Procedure). CCS provides a detailed customer guidance document, in this document it is explained that if the customer requests for a bid to be held open for a longer period of time it will impact the cost.

It will be for the buyer to decide the method they use for communication and exchange of information. CCS provides detailed customer guidance, and recommends using the portal provided by CCS (Bravo/Jagger) however this is for the buyer to decide. Many public sector organisations have their own portals which they prefer to use. The CCS customer guidance recommends that pre-market engagement is held on any complex engagements and exchange of information could be one of the topics discussed. How the customer chooses to run their competition is very much dependant on the customers objectives and desired outcomes.

The following link provides a video guide to the supplier journey that may be helpful - https://www.youtube.com/watch?v=1gMaIEIqEyY&authuser=0 There is a link to download the Bid Pack next to the link to the Clarification Log on our website. The Bid Pack contains the 'Read First - DPS Needs' Document, this explains the information a supplier is required to provide. The Bid Pack also contains the pdf copy of the supplier questionnaire (Attachment 6), this is the questionnaire a supplier is required to complete when signing up for the DPS.

The Management Levy will be a one off payment on origination of the lease. It will not be spread over the term of the facility. The levy will be 15 basis points of the overall value of the engagement.

We will be answering these questions seperatly.

It is not possible to share the redline versions but we have provided a summary of key changes made below. This list is not exhaustive and the final documents should be reviewed fully. Assignment: Clause 23.1 has been added to the list of excluded Core Terms in clause 3 of the Lease and Loan Schedules, therefore, Clause 23.1 of the Core Terms does not apply to any Order Contract (but clause 23.1 would remain in effect in relation to the wider DPS Contract). Clause 23 has been added to the Lease and Loan Schedules which includes new assignment language. Wording has been added to clause 22 in relation to any other assignment or transfer not being permitted without the prior written consent of the Buyer. Return of Equipment: DPS Order Schedule 26 (Operating Lease Terms) - provisions have been included for the supplier to gain access for inspection prior to return of equipment in clause 20.1. Return Conditions: Revisions listed by schedule - OS29 (Return Conditions for Manufacturing and Production Equipment) - revision to 1.2 to include 'attachments' to equipment and added 1.2 (i) OS 30 (Return Conditions for Construction Equipment) - a number of provisions added, full review required OS 31 (Return Conditions for Energy Equipment, HVAC and Lighting) - revision to 1.2 to include 'attachments' to equipment and added 1.2 (i) OS 32 (Return Conditions for Plant and Heavy Machinery) - a number of provisions added, full review required OS 33 (Return Conditions for Transportation Equipment) - a number of provisions added, full review required OS 34 (Return Conditions for Refuse Trucks and Equipment) - revision to 1.2 to include 'attachments' to equipment. Added point '(m)' under '1.2 General'. Bullet point one also added to '1.2 Specific (a)' which references British Vehicle Rental and Leasing Association (BVRLA). OS 35 (Return Conditions for Communications Equipment) - revision to 1.2 to include 'attachments' to equipment and added 1.2 (f) OS 36 (Return Conditions for Audio Visual Equipment) - revision to 1.2 to include 'attachments' to equipment and added 1.2 (f) OS 37 (Return Conditions for ICT and Technology) - revision to 1.2 to include 'attachments' to equipment and added 1.2 (f) OS 38 (Return Conditions for Office Furniture and Equipment) - revision to 1.2 to include 'attachments' to equipment and added 1.2 (f) OS 39 (Return Conditions for Medical Equipment) - a number of revisions/additions, full review required. OS 40 (Return Conditions for Fitness Equipment) - revision to 1.2 to include 'attachments' to equipment and added 1.2 (e)

CCS has developed these terms in consultation with the market. Suppliers are expected to confirm that they accept the terms as set out in the DPS Agreement unreservedly and without amendment.

The Management Levy for the Leasing and Loans Finance DPS is set at 15 basis points or 0.15% of the funds borrowed by customers utilising the agreement. The Management levy is only payable by suppliers that have been successful in obtaining business via the DPS. The Management levy rate can be found on the DPS Appointment Form.

There has been a formatting issue for some of the documents in the bid pack when they have been uploaded. This has affected the numbering of the documents. This has now been rectified and the correct documents have been uploaded to replace the affected documents. The documents affected by this issue are all DPS Order Schedules from DPS Order Schedule 24 through to DPS Order Schedule 40. The correct documents were uploaded on 23/09/2021.

Lease Rentals are to be set out in Annex A of the Order Contract and should be fixed and binding. Where there is a long period between signing the Order Contract and delivery, a Special Term in Annex A of the Order Contract may be permitted stating that the rentals specified in Annex A are based on an assumption relating to, e.g. the financier's (Supplier's) cost of funds at the delivery date and, where such assumption proves to be incorrect, the financier (Supplier) will provide replacement rental schedule following delivery. This is expected to be done on an a exception basis only.

Where there is a holdback amount to be applied to the purchase price of any equipment, the financier (Supplier) will be required to pay the equipment supplier (Seller) the amount due on delivery and the remaining amount upon commissioning / clinical acceptance. This arrangement will be reflected in the terms of supply and the invoicing from the equipment supplier (Seller) to the financier (Supplier) and will be dealt with as a Special Term in Annex A of the Order Contract. The Special Term will also permit the public authority lessee (Buyer) to reject and return the equipment to the financier (Supplier) if the equipment does not achieve commissioning / clinical acceptance within a certain period of time following delivery. The terms of supply and the invoicing from the equipment supplier (Seller) to the financier (Supplier) will likewise permit the financier (Supplier) to return the equipment to the equipment supplier (Seller) who will be required to refund any sums already paid out.

The contractual default rate is 1%. This rate is in addition to the in-built interest rate / margin included in the rental payments and payable by the Buyer (public authority lessee) to the Supplier (lessor). It is therefore interest on interest. The market standard rate for this type of default interest for investment grade credits is 1% - 2%. Default rates payable by public authorities should be at the lower end of that range. The government's directive with respect to late commercial payments relates to the provision of goods and services (not to the provision of finance / lease finance). In any event, the Government's directive provides that creditors may only claim "statutory interest" where no contractual rate of interest has been agreed. In these documents, we set out a contractual rate of interest so the directive does not apply.