AUGUST 2005
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Fujitsu Services Major Bids - Summary
Ongoing bids from previous report & summary of business offering
Customer
1 Walsall Metropolitan
Borough Council
2 Northern Ireland Civil
Service
4 National Offender
Management Service
(NOMS)
5 Post Office
6 _BAE Systems (Defence)
7 Department of
Constitutional Affairs
8 United Utilities
9 IRRELEVANT
Term & Value
£650m over 12 years
£251m over 15 years
£96m over 5 years
£188m over 6.5 years
£100m over 5 years
£2bn over 5 years
£400m over 10 years
£75m over 4 years
£100m over 5 years (£160m
over 10 years)
Newly emerged bids from previous report
Customer
10 HMRC (Previously
HMCE and Inland
Revenue)
11. NHS Connecting for
Health
12 Ditech
Term & Value
£210M over 9 years
£222M over 9 years
£70M over 5 years
Other bids which were reported last time
£62M over 4 years
Offering
Strategic Partnership Business
Process Outsource
Outsourced HR & Payroll BPO
Services and supporting ICT
software & hardware systems
Desktop Managed Service
Infrastructure services
Software Development &
Managed Services
Infrastructure and Applications
Maintenance Outsource
IT Managed Services
Managed IT Services
End to End Pos Managed
Service
Offering
Transition
PACS services for East and East
Midlands and North East
Deal Based Aquisition
Datacentre Services
B. The bids which fell below the Major bids requirement value
Term & Value
A. The bids Fujitsu Services won
13 i
Customer
None
C. The bids Fujitsu Services lost/withdrew
Customer
14. HMCE
15 Inland Revenue
Term & Value
£286M over 10 years
£600M over 4 years
-1-
Offering
Offering
Automated Lorry Road User
Charging System
IT Procurement
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Fujitsu Services Major Bids — Detail
Ongoing Bids from previous report (April 2005)
Bid Summary No:
Customer Name:
Siebel Reference:
Total Contract Value:
Bid Date:
Contract Date:
Offering/Service:
Bid Contact Name:
Bid Summary:
Status:
1
Walsall Metropolitan Borough Council
JNW/WAL/SP
circa £650-700M over 12 years
ISOP. October 2003
ITN submission July 2004
BAFO October 2004
Preferred Bidder December 2004
September 2005 (1% Oct. start date)
Strategic Partnership Business Process Outsource
Alan Fox
Walsall MBC seeking a Strategic Partner to assist them in
delivering citizen centric services to the community. The scope
includes all ICT Infrastructure, Business Process Re-
engineering (BPR) and Change Management, Process
Management and Property Services.
Fujitsu are leading a consortium formed to address all of these
via best of breed suppliers and best practice.
Fujitsu — ICT Infrastructure and Programme Management,
Procurement, Print & Design
CGEY — Procurement Consultancy
Vertex — White Collar BPO services
Accord — Blue Collar BPO, Property FM
April 2005
Contract negotiations were prolonged due to the complex
nature of this deal and the number of service streams requiring
further definition.
We awaited publication of the Councils’ 05/06 Budgets, which
required further Due Diligence (DD). As a result, the anticipated
Contract date slipped to the end of June 2005.
Client relationships continued to be good during a period of
negotiation for both sides and politicians also continued to be
supportive.
Issues:
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July 2005
Contract negotiations continue to take more time than originally
planned due to the complex nature of this deal, the number of
service streams requiring definition and the agreement of the
in-scope service specifications.
The Council's budgets, as identified at ITN and BAFO, have
been reduced due to “errors and/or duplications”. This has
resulted in further delay. Both the Council and Fujitsu are
seeking a different affordability business case. The Council are
seeking to redress budget shortfall, wherever they can and
Fujitsu are endeavouring to reduce cost from either our prime
contractor costs or our major sub contractors. Particular focus
is upon Vertex as their costs (and price) are considered to be
overstated by both the Council and Fujitsu.
We continue to have protracted dialogue with Vertex to redress
their cost base further. Fujitsu are considering stepping into
particular service streams where Vertex are not cost effective
eg HR
An objective of both the Council and Fujitsu, is to reduce the
reliance on risk/reward business cases that existed at BAFO
stage.
Reconciliation of council’s 05/06 budgets/affordability model
Service Schedules for approximately 25 work streams
Completion of Principal Agreement/Schedules
Completion of Sub Contracts
Bid Summary No:
Customer Name:
Siebel Reference:
Total Contract Value:
Bid Date:
Contract Date:
Offering/Service:
Bid Contact Name:
Bid Summary:
Status:
Issues:
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2
Northern Ireland Civil Service
BH200302
£251m over 15 years
2nd July 2004
21 November 2005
Outsourced HR & Payroll BPO Services and supporting ICT
software & hardware systems
Dave Clements
Following a PQQ stage in December 2003, Fujitsu submitted a
full proposal on 2nd July 2004. NICS short-listed 3 bidders in
September consisting of Accenture, LogicaCMG and Fujitsu.
Fujitsu are the prime for this bid working with Capita for BPO
services and PwC for business transformation expertise.
Fujitsu will configure the supporting Oracle HR & Payroll
applications and provide ongoing support for 15 years.
April 2005
Contract schedules and subcontracts with PwC and Capita
under development. Addressing risks highlighted in the
customer risk register.
July 2005
The main contract agreement and contract schedules have
been agreed with the customer.
Main subcontract principles have been agreed with
subcontractors. BAFO response is due on 12" August 2005
and Group level BAR scheduled for 4 August 2005.
Ability to meet customer affordability and identifying winning
price
Bid Summary No:
Customer Name:
Siebel Reference:
Total Contract Value:
Bid Date:
Contract Date:
Offering/Service:
Bid Contact Name:
Bid Summary:
Status:
Issues:
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TUM PJVO009
£96m over 5 years
Q2 calendar year 2005
Q3/2005
Desktop Managed Service
Robert Lim
Project Stealth. This deal is likely to involve the ‘Total’ end-to-
end Desktop Managed Services in 9 European countries —
approx 80k seats of which 20% is in the UK. The deal involves
desktop lifecycle management, support, help desk, staff
transfer and also possibly LAN/WAN management.
April 2005
Due to various re-organisations within France Telecom Group
and + Main Board and Executive Director Changes,
the RFP process was delayed again. The Programme was
reinvigorated and the Programme Director responsible for the
outsource referred to by prospect as DMS is back on track.
Following ‘internal’ due diligence across all (8 countries)
concerned the RFP was issued mid-May 2005.
July 2005
FS responded to the FT RFP in June and have subsequently
been short-listed from 8 suppliers to 4.
On 20th July, a team from FS including Jack Noble and Roger
Camrass presented to the customer and discussed the merits
of the FS proposition with 20 delegates representing UK,
Poland, NL, Belgium, Spain and FT Procurement. We are
confident that, following further site visits to FS to understand
more about Sense and Respond, FS will be down-selected to
the final 2 short-listed suppliers. Decision for down-select to 2
is expected by the end of July/ early August 2005.
Fujitsu Services currently drafting plan for presence in Poland.
Bid Summary No:
Customer Name:
Siebel Reference:
Total Contract Value:
Bid Date:
Contract Date:
Offering/Service:
Bid Contact Name:
Bid Summary:
Status:
Issues:
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4
National Offender Management Service (NOMS)
(Previously-National Probation Service, NPS)
CGBUSLP180803
£188m over 6.5 years (extendable to 10 years)
Fujitsu’s response to NPS’ Information Memorandum was
submitted on 11th September 2003.
Invitation to Negotiate - was due November 2003 then slipped
to March 2004. It was then put on hold awaiting major business
change decisions due to January 2004 announcement that
Prison & Probation organisations would merge. Re-start of the
procurement has now begun
October 2005
Infrastructure services - ICT services to approximately 18,000
users on 1,000 sites. Service commences January 2006
Stephen Payne
Government procurement for the selection of a supplier to
provide ICT services for a 6.5 years (extendable to 10) period.
Baseline scope is currently defined as provision of helpdesk,
end user support, desktop and server infrastructure, LAN, WAN
and some applications maintenance.
April 2005
The ITN document was received and Divisional and Group
BNBs and BARs subsequently completed. The response was
submitted on 21% April 2005 and it was scheduled that the
client will announce down-select to 2-3 bidders at the end of
May 2005. There were only 4 bidders as EDS withdrew and are
now positioned as sub-contractors to one of the other bidders
(BT).
July 2005
Fujitsu and Steria (incumbent) were shortlisted at the end of
May 2005. Contract negotiations have been underway since
then. BAFO will run from 22" July to 4"" August.
Short timescale to respond.
Limited Due Diligence information.
Challenging contractual terms.
Bid Summary No:
Customer Name:
Siebel Reference:
Total Contract Value:
Bid Date:
Contract Date:
Offering/Service:
Bid Contact Name:
Bid Summary:
Status:
Issues:
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Post Office Ltd
POAKSP001
£100m over 5 years (incremental) — extension of current
contract from 2010 to 2015
March 2005
June 2005
Software Development & Managed Services
Kevin Spence
Migration of existing Horizon application suite to centralised
(datacentre) orientated solution. This will release substantial
operational cost savings for Post Office, reduce the complexity
of the solution and hasten time to market for the introduction of
new functionality (Post Office products) in the future.
Opportunity is being jointly progressed between Fujitsu and
Post Office without competition.
April 2005
Revised estimates submitted to Post Office mid April. These
were to form the basis of a negotiation which would lead to
contract.
Post Office have elected to introduce a “Due Diligence” process
prior to agreeing contract. This was intended to confirm their
“operational readiness” and provide them with independent
assurance that they have approached the procurement
correctly.
Target for contract signature was the end of Jun 2005 but the
Due Diligence activity introduced the risk of slippage.
July 2005
Recently appointed Operations Director for Post Office (Ric
Francis) has changed the requirements associated with the
project and Post Office’s basis for decision. However the
prospect of a “deal” remains good.
This change has demanded a re-think of Fujitsu’s bid strategy
and target solution. Work is now in hand to submit a new offer
to Post Office by end of August 2005. This would provide the
basis for a new contract for implementation by end of March
2006.
Ric Francis is proving to be a challenging character to work
with, introducing a much more demanding, risk-taking, retail
centric view of the project.
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Bid Summary No:
Customer Name:
Siebel Reference:
Total Contract Value:
Bid Date:
Contract Date:
Offering/Service:
Bid Contact Name:
Bid Summary:
Status:
Issues:
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BAe Systems
UKM&T-GMO-00001
£2bn over 5 years
October 2005
March/April 2006
Infrastructure and Applications Maintenance Outsource
Gary Moggridge
BAe Systems are assessing the possibility of moving from their
current Outsource contract with CSC.
April 2005
FS had been invited to submit a response to an RFI, as did
Accenture, EDS, IBM, and Capgemini.
This was to allow the BAE Main Board to assess options
available should they decide to open this opportunity to the
market. It was understood that our response was required to be
returned by mid-May 2005. The contracting agent was TPI.
July 2005
FS has now been invited to attend the first debrief of our RFI
submitted in May. We expect to be told where, in their view, we
would be best placed in their service towers, and if we are
prepared to bid should they come to market in October.
CSC have been given the RFP and a response is anticipated in
mid-August. BAe will then decide if the response meets their
objectives for the future.
Scope may raise issues related to our ability to manage a
global infrastructure, particularly the USA.
Bid Summary No:
Customer Name:
Siebel Reference:
Total Contract Value:
Bid Date:
Contract Date:
Offering/Service:
Bid Contact Name:
Bid Summary:
Status:
Issues:
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Department for Constitutional Affairs
CGBU-HMCS-CHP-0023
£400m over 10 years
December 2005
April 2006
IT Managed Services
Neil Bagshaw
DCA are procuring a single infrastructure contract to replace
the current infrastructure services provided by Fujitsu (Libra),
Liberata/Unisys (ARAMIS) and EDS (LOCCS). The new
contract will be know as DISC (Development, Innovation and
Support Contracts).
Further contracts will be let to replace the current applications
and BPO services. These will also be let under the DISC
banner.
April 2005
The OJEU notice was issued on the 22"4 April 2005 and we
expected the DCA to issue the PQQ to us on the 25" April
2005. The submission date for the PQQ was expected to be
around the middle of June 2005.
July 2005
The PQQ was submitted to the client on the 24"" June.
Submissions are now being evaluated and a short list of 3
bidders will be announced on the 25"" July assuming target
timetable dates are achieved.
None at present
-10-
Bid Summary No:
Customer Name:
Siebel Reference:
Total Contract Value:
Bid Date:
Contract Date:
Offering/Service:
Bid Contact Name:
Bid Summary:
Status:
Issues:
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United Utilities - Project Magellan
UUSROO01
£75m over 4 years
27% June 2005
1st April 2006 — Service Start
Shared IT infrastructure management services
Steve Reay
Scope includes data centres, network, desktop, applications
management for 7,000 users in both the regulated and non-
regulated businesses of United Utilities.
April 2005
The PQQ was issued in February 2005. Fujitsu had been long
listed. The presentation of approach to Strategy Board took
place 11" April 2005.
4 to be short listed for ITT — unofficially we had been told that
we were short listed and ITT was expected to be issued on 16"
May 2005.
July 2005
Fujitsu and Vertex were down selected to final 2 to receive the
ITT. The ITT response submitted 11*" July and presented to
Project Team 14" July. Positive feedback has been received
from UU on the Fujitsu approach.
Clarifications will commence on the 31* July and there will be a
board presentation on 17" August. BAFO is expected in mid
September and contract award at the end of October, with a
view to service live date on 1% April 2006.
Incumbent provider is Vertex who are 100% owned by United
Utilities. Vertex in some disarray with key people leaving,
creating new partnerships for bid (e.g. SUN, SCC) and they
may have lost the UU BPO bid with consequent impact on
revenues.
UU is looking to test Fujitsu delivery capability post proposal
submission.
-11-
Bid Summary No:
Customer Name:
Siebel Reference:
Total Contract Value:
Bid Date:
Contract Date:
Offering/Service:
Bid Contact Name:
Bid Summary:
Status:
Issues:
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9
IRRELEVANT I
jl100305
£100m over 5 years (£160m over 10 years).
End June
October 1% 2005
End to End POS Managed Service
Jerry Lee
FJ currently provides a series of service contracts and product
components (old — 7yrs +) in the Stores environment. To
replace them with an end to end managed service contract and
refresh the stores infrastructure with a utility based pricing
model and a term that optimises the financial model.
April 2005
The campaign had just started. We were intending to deliver a
20 page executive summary that included indicative pricing by
mid-May. It is expected that this will be followed by a fully
costed proposition by end of June.
July 2005
RFI response and Fast Tracking SIPS document were
submitted and were very well received.
i ‘formally responded that we have been shortlisted to
proceed to the next phase.
Awaiting the sign off by FUS of the Globalstore GR for Europe
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Fujitsu Services Major Bids - Detail
Newly Emerged Bids from previous report (April 2005)
Bid Summary No:
Siebel Reference:
Total Contract Value:
Bid Date:
Contract Date:
Offering/Service:
Bid Contact Name:
Bid Summary:
Status:
Issues:
10
CENGOVNBCG003A
£210m TCV over 9 years
19 August 2005
1 December 2005
Multi-offering solution
Ken Milbourn
This involves the termination of the existing HMCE ISA contract
in exchange for an expansion of Fujitsu work share in Aspire.
July 2004
We have been working with HMRC and CapGemini to
understand and agree the requirements for the new merged
service and are currently working with CapGemini to put
together an initial proposal for submission on 19 August 2005.
To meet the customers Go Live date of 1 Jan 06 we are
seeking advance order cover for enabling works.
-13-
Bid Summary No:
Customer Name:
Siebel Reference:
Total Contract Value:
Bid Date:
Contract Date:
Offering/Service:
Bid Contact Name:
Bid Summary:
Status:
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NHS — Connecting for Health (formerly National Programme for IT)
NHS-JFI-02477
£222M over 9 years
20 July 2005
30" September 2005
NHS: Picture Archiving and Communication System (PACS)
David Whitfield and Jonathan Fisher
Fujitsu Services is presently contracted to provide the Southern
Cluster (region of England) of the NHS with Picture Archiving
and Communication System functionality as part of the Local
Service Provider contract with the NHS.
The system provides for the capture and digital storage of high
quality medical images such as X-rays. Fujitsu has achieved
successful deployments of a Cluster Data Store — (a data
centre facility which stores such images for the whole Southern
region) in March 2005, a PACS system in a group of hospitals
in West Dorset in April 2005, and a further PACS system with a
Radiology Information System (RIS) in Salisbury in July 2005.
Fujitsu buys PACS systems from GE and RIS from HSS.
Fujitsu’s role is data centre host, systems integrator, first line
helpdesk and programme manager.
Following these successful deployments, and in response to
contractual delays in the North East Cluster and the East and
East Midlands Cluster, Fujitsu was asked on 12" July 2005 to
submit a bid to provide a similar solution in these additional
Clusters. The bid was submitted on 20" July 2005.
July 2005
The bid was submitted, and the customer has provided limited
informal feedback of a preliminary nature.
The customer expressed appreciation that the bid was
submitted on time, despite very short notice and also
expressed thanks for the extensive and detailed financial
information which had been provided in support of the bid.
-14-
Bid Summary No:
Customer Name:
Siebel Reference:
Total Contract Value:
Bid Date:
Contract Date:
Offering/Service:
Bid Contact Name:
Bid Summary:
Status
Issues:
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12
DITECH (CONAD Group)
MT001
£70m over three years
Sept 05
January 2006
Deal Based Acquisition
Maurizio Tomasso
Outsourcing of the IT company of CONAD group (one of the
major Italian Food Retailers).
The IT company is producing 50 % of revenue from the mother
company (CONAD) and 50% from the open market.
CONAD is looking for to sell or outsource Ditech to an IT
Vendor specialized in Retail solutions, willing to exploit the
potential of existing customer base and staff knowledge.
Ditech is based in Bologna with 100 direct employees.
July 2005
We are progressing with the negotiations. We are collecting
detailed information about contracts value, end dates, type of
services, offerings, etc
An internal workshop will be held on the 21* of July in order to
update the bid team and to start to define our value proposition.
Additional meetings regarding the prospect are scheduled in
late July and early August.
No issues so far
-15-
A) Won Bids
Bid Summary No:
Customer Name:
Siebel Reference:
Total Contract Value:
Bid Date:
Contract Date:
Offering/Service:
Bid Contact Name:
Bid Summary:
Status:
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Fujitsu Services Major Bids — Detail
Other Bids from previous report (April 2005)
13
IRRELEVANT
£66.1m over 4 years
March 2004
June 2005
Datacentre Services
Debra Taylor
Outsourcing opportunity wit! “ito provide datacentre,
networks and services throughout the UK. Major migration and
consolidation programme to relocate their data centres to
SDCO01.
April 2005
A price of £62.3m price to was submitted to i==
negotiations and contract preparations were ongoing.
Target contract date: 13'" May 2005
July 2005
Contract awarded and signed 24'* June 2005.
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B) Bids that fell below the Major Bids Requirement Value
None
C) Bids Lost/Withdrawn
Bid Summary No:
Customer Name:
Siebel Reference:
Total Contract Value:
Bid Date:
Contract Date:
Offering/Service:
Bid Contact Name:
Bid Summary:
Status:
14
HM Customs & Excise (HMCE)
DJHO04001, DJHO4002 and DJHO04003
£285m over 10 years
PQQ 2™ July 2004, pre-ITN submitted 10" November 2004,
final-ITN due mid May 2005 with submission end August
February 2006
Automated Lorry Road User Charging system
David Hunt
UK Government wish to implement a taxation system for all
lorries over 3.5 tonnes that travel on UK roads. Charges will be
in proportion to the distance travelled and time of travel.
April 2005
Competition had changed in that BT had withdrawn from the
procurement, for Lot 1 and had been replaced by T-Systems.
No replacement had been found for Lot 2.
We had been involved in consultation workshops with HMCE
and the Final ITN was to be issued in mid-May with a response
due at the end of August. BAFO was to follow with Contract
Award anticipated by February 2006.
The Proof of Solution went very well and we passed 100% of
the tests so far.
July 2005
On Tuesday 5" July, the UK government suddenly announced
that the LRUC procurement was to be cancelled immediately.
The requirement for an LRUC mechanism would be
incorporated in the plans for a wider road-charging regime as
announced in the new Labour party manifesto. Full
implementation is unlikely to occur before 2015.
Via our Prime Contractor, IBM, we are pursuing the UK
government for compensation of Proof of Solution costs and
general bid costs.
-17-
Bid Summary No:
Customer Name:
Siebel Reference:
Total Contract Value:
Bid Date:
Contract Date:
Offering/Service:
Bid Contact Name:
Bid Summary
Status:
Issues:
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15
Inland Revenue
CENGOVNBCG002AA
£600m over 4 years
Anticipated May 2005.
September 2005
Supply chain offering to include product, software, service and
consultancy
Neil Bagshaw
Supply Chain Service to encompass total lifecycle of
procurement through to disposal of IT, Telephony and audio
visual capability.
April 2005
The ITT was issued on the 21* March with a submission date
for response of the 4'" May. In the interim, the Computacenter
contract had been extended to the end of October 2005. Due to
tight timescales for response and implementation of the new
live service, Fujitsu had formally asked for extensions to these
key dates (end of May for bid submission, March 2006 for new
live service). A decision from the client was awaited.
July 2005
Decision from the client was that any extension to timescale
was unacceptable. Fujitsu then took the decision to no bid as
we did not have a competitive solution to offer against
Computacenter or SCC.
The timescales from the client did not give sufficient time to
submit a professional bid and would not give sufficient time to
build, test and implement live service.
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