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COMMERCIAL-—IN-CONFIDENCE
MEETING WITH: BA/ POCL
VENUE: Bird & Bird, Fetter Lane, EC4A DATE: 10/08/95
PRESENT: POCL/BA
Pat Kelsey Lead Negotiator - BA
Robert Albright Lead Negotiator ~ POCL
Derek Selwood Stage 3 Manager
Mary Reade Risk Register Manager
David Miller Deputy Director BA/POCL Programme
Tony Johnson Deputy Programme Director
Card & Implementation Group
Trevor Nash Service Provider - Liaison Manager
Nigel O’Donoghue Secretary
Hamish Sandison Solicitor - Bird & Bird
PATHWAY:
John Bennett Tony Oppenheim
Martyn Bennett John Jones
Liam Foley
POH- 7450
DISTRIBUTION LIST:
ICL Distribution Management Team + L.Foley
Joan Barratt (File Copy)
PURPOSE Of MEETING:
Initial Meeting with BA/POCL to set the scene.
INTRODUCTION:
PK explained that this was not intended to be a negotiation
session, but an explanation of the process of stage 3 and the
outline timetable.
When asked about the overall timetable, PK stated that it was
still the intention to end this phase by end November. An ITT
would then be issued to qualified service providers (ie those with
no significant risks outstanding). A decision on supplier would
then be made Jan/Feb.
PK offered to take away the issue of the possible gap between
Choice of Supplier and award of contract. When asked about
debrief of our proposal, PK was happy to do that if Pathway wanted
it, but they really saw the risk register as the main
communication vehicle from the proposal.
Description of Negotiated Procédure
It was confirmed that BA/POCL would maintain a reasonable flexible
and pragmatic approach to contract negotiation. There will be (at
present) 61 schedules, 35 to be drawn up by BA/POCL, 26 by the
service supplier. The intention is to issue contractual documents
for review and comment, and given the large number of schedules,
it is hoped to clear some. as soon as possible.
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The core negotiation team (CNT) will be:
Pat Kelsey
Robert Albright
Dave Miller
Tony Johnson
Hamish Sandison
Supplier Area
BA/POCL confirmed that each supplier would have access to a
lockable room (with table + 4 chairs) in Terminal House. The aim
ef this facility was to allow ad hoc meetings or preparation or
time between meetings but it should not be seen as a pied 4 terre.
BA/POCL did confirm that there was no need to set up demo
facilities in Terminal House, ie they would be prepared to travel
to Feltham.
Risk Register Process
The Risk Register will hold not only identified risks, but also
any questions/queries that need to be answered. The categories/
levels explanation is attached.
Risks will all be QA’d before issue to supplier. There will be
weekly risk review meetings which will tie into the Demonstrator
meeting on Friday mornings.
Contracts
The contract with the Service Provider is currently seen as one
contract. However, situations may arise where discussions take
place. with BA or POCL without the other but the overall aim will
still be to end up with ONE’ contract.
Contract Schedule Production
There will be a lot of commonality between schedule production and
the demonstrations.
Demonstrations
There will be a lot of paper produced relating to demonstrations.
The main aim is to facilitate dialogue. There are "harsh"
statements relating to time scale in the demonstration documents
issued to-day - do not treat these dates as gospel.
Desigh Assurances needs to be handled UP FRONT!
Twinning and Secondments
BA/POCL are making two offers:
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1. Twinning: Pathway will be twinned with a BA office in
Stratford (E.London), Newham district. This will provide
Pathway with direct access to a BA office to fully understand
the current system and process and staff will be available
for interview.
POCL have nominated the Swindon area as our twinned area. We
will have access to the Senior Retail Manager and the. Network
Manager and through them to other post office staff including
sub-postmasters.
2. Secondments: BA are offering two junior staff to Pathway to
facilitate contact with offices and to help in any way that
Pathway desires. These two staff will relocate to Feltham
until end November (at least), will not have any contact with
the procurement team and will not rejoin the procurement team
when this assignment is over.
Charterhouse Bank
The role of Charterhouse Bank will be fourfold:
1. To assess the market position of consortium members.
2. To confirm the equity stakes of the shareholder.
3. To confirm parent company guarantees;
4. fo identify financial resources available to the consortium.
Supplier Concerns
BA/POCL have appointed Supplier Liaison Managers (SLIM) to each
consortium. Trevor Nash is ‘our’ man, but in his absence either
Will Russell (the IBM man) or Peter Askins (Cardlink) will handle
any urgent queries we may have. The aim of the SLIM appointment
is not to stifle contact with other BA/POCL people but to always
have a single focal point that we can use.
Next Meetings
“If it’s Thursday, it must be Pathway!" - Pat Kelsey.
BA/POCL have set aside 1.00 - 4.00am on Thursdays for Pathway
negotiation meetings. She (PK) did stress that if there was
nothing to discuss, then there would be no meeting, but the diary
entry is in place.
There will also be demonstration/risk meetings on Fridays. The
first meeting will take place at Terminal House on Friday 18th
August at 9.30am.
Presentation
BA/POCL do want repeats of the College of Arts presentations to
BA, POCL and to a technical group. The BA presentation would be
most likely to take place in Leeds. The presentation need not
necessarily be exactly the same. They will not want these
presentations before September.
Liam Foley
15/08/95
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LIST OF DOCUMENTS RECEIVED FROM BA/POCL
at meeting of 10th August 1995.
Stage 3 of the BA/POCL programme - slides 26/7/95.
Service Provider Demonstration Requirements - memo 4/8/95
Demonstration Requirement - Card and Customer Interest Group
- paper 7/8/95.
Supplier / District "Twinning" (undated)
Demonstrator Requirements for ECCO+/EPOS - paper Issue 1,
31/7/95.
Appendix 3 - Reference data (Ecco+) - paper 21/07/95.
Appendix 4 - Business Level ECCO+ - paper 04/07/95.
Demonstrator Requirements for Automated Payments - paper
Issue 1, 31/07/95.
Design Assurance Demonstrator Requirements - paper version 1,
04/8/95.
Demonstrator. requirements for other non-BA transactions -
paper Issue 1, 02/08/95.
BA/POCL SPRR - Subject Categories (risk register) - 07/08/95.
BA/POCL PWAY risk register, listing dated 10/08/95.
Contract Negotiation Process - paper dated 08/08/95.
Jim Morley
11/08/95
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INITIAL SUPPLIER MEETING
AGENDA
Introductions
Description of Negotiated Procedure
The Stage 3. process
The Service Provider Risk Register
Contract Stnicture
Contract Schédule Production
Demonstrations
Twinning and secondments
The role of Charterhouse Bank ‘
Avenue for recording supplier concerns
Programme Team / Supplier Project Board
Supplier accommodation in Terminal.House
Next actions: meetings
repeats of College of Art presentation
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BA/POCL SPRR - Subject Categories
07-Aug-95
Stibject Category Subject Description
cis Counter Interface Service
CMS Card Management Service
COM Commercial:
DEL Delivery,
FP Fraud Prevention
MGT. Contract Management
: Oss. Operational Support Service
PAS: Payment Authorisation Service
PILOT Pilot Programme
ROLL Roll-out
SA Service Architecture
SPF Service Performance Criteria
TMS Transaction Management Service
TRAN Transfer
Zz Waiting to be categorised
RP - Subject Categories Pagelof!
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BA/POCL SPRR - Severity Codes
07-Aug-95
Severity Code Classification Severity Description
A Critical A risk which is critical to'the Programme and
which must be cleared before the’service provider
can be invited to submit a financial proposal.
BI Significant A significant risk which may not be cleared prior to
the service provider submitting a financial
proposal. These risks will attract attributable costs
which will be incorporated into the evaluation
model for financial proposals. These risks are the
most severe within the'B category and so will
attract the highest attributable costs (over £5
million a year, each).
B2 Significant A significant risk which may not be cleared prior to
the service provider submitting a financial
proposal. Codes in the the B category will attract
attributable costs which will be incorporated into
the evaluation model for, financial proposals. B2
: risks are likely to attract an attributable cost of
between £1 to 5 million a year, each so may havea
significant effect on the outcome.
' B3 Significant A significant risk which may not be cleared prior to
: the service provider submitting a financial
proposal. Severity code B risks will attract
attributable costs which will be incorporated into
the evaluation model-for.financial proposals. B3
risks will attract an attributable cost of less than £1
million per year, each.
c Minor A minor risk. these risks will not incur attributable
costs but may be used to differentiate between
service providers if there is need for a tie break,
The conditions for tie break will be determined
during the development of the evaluation model.
Q Question A question which may develop into a risk when
answers are received,
U Unclassified Risk awaiting classification.
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BA/POCL SPRR - Probability Codes
07-Aug-95
Probability Code Probability Description
0 Unclassified
1 Very unlikely to ‘occur
2 Unlikely to occur
Ej 50/50 chance of occurring
4 Likely to occur
5. A certainty
RP _ Probability 1
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BA/POCL.SPRR - Status Codes
i 07-Aug-95
Status Status Description
oO Outstanding:
1
: ON Otitstanding but no further actions will be undertaken to clear the risk,
x Cleared
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BA/POCL - Type of Attributable Cost
07-Aug-95
Type Attrb.Cos Description Attrb Cost
Example
D . * A direct attributable cost.
{ An indirect attributable cost.
RP - Attb Cost
‘A delay to the implementation of the
POCL Infrastructure may incur direct costs
to BA/POCL e.g. the post-office
implementation:team may have to be kept
on the project for longer thus directly
costing POCL more.
In the case above indirect costs may be
incurred if other business opportunities are
missed by POCL because the Infrastructure
is late.
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