The Provision of a Diverse and Sustainable Catering Service

Please refer to Part 4 B Economic and Financial Standing of the ESPD The College will use the following ratios to evaluate a bidders financial status. Bidders must confirm within their response to the relevant question within the 'Qualification Envelope' that as a minimum, 2 out of the 3 ratios can be met and what the value of each ratio is. The three ratios to be evaluated are: Profitability - this is taken as profit after tax but before dividends and minority interests. If a company makes a profit then it is a pass for this ratio. Liquidity - this is calculated as current assets less stock and work in progress, divided by current liabilities. If the answer is greater than or equal to 'one' then it is a pass for this ratio. Gearing - this is calculated as the total external secured borrowing (short term and long term) divided by shareholder funds expressed as a percentage. If the answer is less than or equal to 100% it is considered a pass for this ratio. Where 2 out of 3 ratios cannot be met, the College may take the undernoted into consideration when assessing financial viability and the risk to the College, providing the bidder can supply evidence to substantiate any of the mitigating criteria. This list is not exhaustive and other criteria may be considered where proposed by a bidder as mitigating factors. Would the bidder have passed the checks if prior year accounts had been used? Were any of the poor appraisal outcomes 'marginal'? Does the bidder operate in a market which, traditionally, requires lower liquidity or higher debt finance? Does the bidder have sufficient reserves to sustain losses for a number of years? Does the bidder have a healthy cash flow? Is the bidder profitable enough to finance the interest on it's debt? Is most of the bidders debt due to be repaid over a number of years and affordable? Have the bidders results been adversely affected by 'one-off costs' and/or 'one-off' accounting treatments? Do the bidders auditors (where applicable) consider it to be a 'going concern'? Do keynote (where applicable) consider the bidder to be a 'going concern'? Will the bidder provide a Parent Company Gurantee? Is the bidder the single supplier/source of the Goods/Works/Services in the marketplace? The College will obtain an Equifax Report or similar financial verification system to validate the information provided. Bidders must confirm they can provide the following supporting evidence prior to award: Employers (Compulsory) Liability Insurance = 10,000,000 GBP Product and Public Liability Insurance = 10,000,000 GBP

Bidders will be required to confirm that they and/or the service provider have the following relevant educational and professional qualifications: PVG Membership Bidders will be required to confirm whether they intend to subcontract and if so, for what proportion of the contract.