Provision of Armed Forces Compulsory Drug Testing UK4

Turnover The Authority will review each Potential Provider Entity’s turnover for the three full financial years prior to the date of the ITT. If the estimated annual contract value for this procurement exceeds fifty per cent. (50%) of a Potential Provider's annual turnover, the Potential Provider will not meet this qualification standard. Where the Potential Provider Entity intends to provide all or some of of the required services via a joint-venture company, Consortium Member, or other special purpose vehicle, the Authority will apply the assessment equally to the Potential Provider Entity. Accordingly, where the annual contract value turnover exceeds 50% of the value of a Potential Provider Entity turnover (assessed as the cumulation of all parties turnover in either the joint venture, Consortia or special purpose vehicle), the Potential Provider Entity will not meet this qualification standard. Liquidity ratios A Potential Provider Entity’s current assets are divided by current liabilities to establish if there are sufficient assets to cover all of the Potential Provider Entity’s liabilities as they fall due over the course of one year. The Authority requires a Potential Provider Entity to have: a minimum current ratio of 1.0; and a minimum acid test ratio of 0.8. If these ratios are not met, the Potential Provider Entity will not meet this qualification standard. Company Watch Company Watch "H-Score" (an overall measure of a business' financial health – for more information, see www.companywatch.net/analytics-insight/h-score). If a Potential Provider Entity does not have a score of 20 or above, the Potential Provider Entity will not meet this qualification standard. Where Company Watch “H-Score” is unavailable or for international companies, Net Debt/EBITDA (below) will be used as an alternative. Net Debt/EBITDA An entity’s EBITDA is a proxy for the cash flow it generates from its ongoing operations. The Net Debt to EBITDA Ratio measures an entity’s ability to service its debt. The Authority requires a Potential Provider Entity to have: a maximum of 2.5x If this ratio is not met, the Potential Provider Entity will not meet this qualification standard.

Tenderers must be UKAS accredited or demonstrate ability to gain UKAS accredication to the satisfaction of the Authority by the contract start date.