Tender for Delivery of Second Phase of Futurebuilders Fund

Government to tender for delivery of second phase of Futurebuilders Fund The Cabinet Office today announced that it will tender for a partner to deliver the second phase of the Futurebuilders Fund - a ground-breaking programme that provides vital investment for third sector organisations delivering public services.

As the delivery period for the programme's first phase is coming to an end, and in order to simplify existing structural arrangements, the Cabinet Office will tender a new contract to run from 2008 to 2011. In recognition of its success to date, the Chancellor for the Exchequer announced in the Budget (21 March) that the eligibility criteria of the Fund will expand to enable a broader range of third sector organisations to benefit.

The Government also recently welcomed the positive conclusions of the independent Futurebuilders Advisory Panel's first progress report on the Fund and its delivery so far (published 21 March).

Taking these announcements into account, the Office of the Third Sector (OTS) in the Cabinet Office wishes to open discussions on the second delivery phase of the Fund, and will shortly publish a Prior Interest Notice in the Official Journal of the European Union.

Campbell Robb, Director General of the Office of the Third Sector, said: "Futurebuilders has proved to be an innovative and ground-breaking response to the sector's desire for loan-based finance to support their ability to deliver impeccable public services.

"As the initial phase nears its conclusion, the Fund must evolve and build on the lessons of experience to date so it can continue to enhance the third sector's ability to transform people's lives."

One lesson from the first delivery phase has been that the programme would benefit from a simpler structural arrangement between Government and the fund operator. Under EU procurement rules, this requires a new tender process to ensure a new arrangement is in place from the beginning of the new spending period (April 2008).

The tender will look for a partner who, in accordance with the Fund's current aims and objectives, will:

• Manage the remaining funds allocated by Government to the Futurebuilders Fund;

• Be responsible for the assessment of applications for new loans and grants and for their subsequent management;

• Manage all existing loans, grants and loan guarantees (projected to have a value of approximately £150m by March 2008). The Cabinet Office does not expect existing Futurebuilders recipients to be affected by this process.