DEFENCE DISCOUNT SCHEME

Tender description

MOD’s current provision of Defence Discount Scheme (DDS) for Service Personnel, Veterans and Civilians is provided by Bluelight Card Company and expires on 31st May 2022. The purpose of this PIN is to establish whether there are any alternative suppliers capable of and willing to, supply this service after this date. The Authority’s intention is to re-let a further four year contract lasting until May 2026 and if there is potential for competition, to conduct that competition and if there is not, to award the new contract to Bluelight Card Company. Continued provision of this service will be on the basis that there is a NIL cost to MoD for the DDS Service. Currently DDS returns a % of profits to MoD in the form of a gainshare payment which is passed on to the four Service Welfare Central Funds. Any alternative provider would have to ensure that they could provide retail and online discounts to: Serving armed forces (regular and reservist) HM armed forces Veterans MOD Civilians (except contractors) Spouse/Partner of Serving Personnel Cadet Forces Bereaved Family Member War/service widow(er) NATO Personnel Lot 1: Bluelight Card Company own the current membership details, the contracts with high street retail providers and the ‘Defence Discount Service’ name. Other providers could build and operate a similar discount card service, but the Authority would require this to be built up rapidly so as to ensure that there would be no immediate drop in the service provided to the Defence community from an MOD contracted provider as a result of reduced range of discounts available. The Authority would also not be willing to experience in drop in the gainshare which is linked to the size of membership and retail and service companies offering discounts. Current membership of the Scheme is 568,828 with active members (clicked an offer in last 6 months) standing at 225,094. The Total active retail offers (online and High Street retailers) is 9,819. Any alternative supplier would have to be able to reach theses membership figures very quickly and be prepared to offer MoD a gainshare minimum of 15% of the DDS contract profits each year..   Any alternative Supplier will have to hold Cyber security and comply with the Authority’s IR35 Assessment and any Authority’s decision on Limiting the Supplier’s Liabilities. It is unlikely that any current contractor staff would be willing to transfer to any alternative supplier under TUPE.