P25-0019 Manufacturing Property Challenge Programme - Property Advice

Tender description

Scottish Enterprise has appointed a supplier to support the assessment and due diligence requirements for Stage 2 applications for grant funding support via the Manufacturing Property Challenge Programme (MPCP). The contract commenced on 2 September 2024 with a completion date of 31 January 2025. Lot 1: This is a CONTRACT AWARD NOTICE, details as follows: The key outputs of the service are detailed below: - Review of the Stage 2 application form to ensure that all necessary technical information is requested with recommendations for potential improvement to the form in order to ensure that the application provides Scottish Enterprise with comprehensive information for assessment and funding award. - Preparation of a standard form of development appraisal for use in Stage 2 applications. The MPCP is being delivered under the Scottish Enterprise Regional And SME Investment Subsidy Scheme 2022 – 2025 – SC10674 which requires that any requested subsidy should not exceed the difference between the eligible costs and the operating profit of the investment – ‘operating profit’ means the difference between the discounted revenues and the discounted costs over the economic lifetime of the investment, where this difference is positive. Discounting revenues and eligible costs using an appropriate discount rate allows a reasonable profit to be made. This should be in the form of an excel based cashflow that provides for input of the relevant project financial information (costs and income) over the economic lifetime of the project. The spreadsheet should provide a comparison of ‘with’ and ‘without’ the requested grant using the Green Book discount rate of 3.5%. - Independent review of Stage 2 bid submissions, making recommendations to the SE assessment panel on the following aspects: - Technical assessment of the buildings proposed in the bids, with a recommendation on suitability of the proposed facility for manufacturing occupiers. - Review of the project development appraisal with commentary on the key financial assumptions e.g. rent, yield, void periods, incentives, gross development value and viability gaps. Where appropriate, undertake limited sensitivity analysis of key variables based on the project assumptions in the application. - Review of the applicant’s marketing proposals for the project.. Economic operators may be excluded from this competition if they are in any of the situations referred to in Regulation 58 of the Public Contracts (Scotland) Regulations 2015.