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CONTENTS
CONTENTS
Capability Statement
Questionnaire Response
Appendices
Appendix 1 - ICL Accounts
Appendix 2 - Fujitsu 1994 Account
Appendix 3 - Anpost/Escher Accounts
Appendix 4 - De La Rue Accounts
Appendix 5 - Girobank Accounts
Appendix 6 - Hambros Accounts
POCL/BA
Statement of Capability COMMERCIAL IN-CONFIDENCE Date: 19/11/94
THE STATEMENT OF CAPABILITY
1.2
13
MANAGEMENT SUMMARY
INTRODUCTION
ICL is delighted to submit, on behalf of its Consortium, this response to the
"Request for a Statement of Capability" issue 1.2 reference POCL/BA/Procurement
Team/0001 dated 19/10/94.
This document sets out what the Consortium believes to be relevant capabilities
to the businesses of both the Post Office Counters Limited and the Department
of Social Security Benefits Agency, and most importantly, how we can provide a
total managed service solution. The partners in this Consortium are: De La Rue,
Hambros, An Post/Escher and Girobank. ICL will be the prime contractor.
Additionally, British Telecom and Microsoft will be principal subcontractors.
Our capabilities and combined experience will facilitate a proven and secure
payments system at much reduced operational cost. The Consortium solution is
based on “open systems" which will give POCL/BA the required flexibility and
POCL the best possible platform for service enhancement and expansion for its
other clients.
Consideration has been given to transition management, the support of POCL
and BA staff and agents during the period of change, and the transfer of risk to
the Private Sector.
FINANCIAL STANDING AND RISK TRANSFER
To ensure that the Consortium both understands and can deliver the funding and
risk transfer required, it includes Hambros Bank Limited, one of the UK's leading
merchant banks with considerable experience of the Private Finance Initiative.
Keith Todd, ICL PLC Director, Finance and Business Strategy is taking a lead
réle to oversee the financial strucruring of this Business.
In line with HMG's Private Finance Initiative we propose that the charging be
based on delivered business benefit, usage and performance.
The Consortium expects to accept significant transfer of risk for timely
development and implementation and ongoing quality of service. We collectively
have the skills, experience and resources to manage this.
BUSINESS UNDERSTANDING
This procurement is an early IT PFI, and the first covering two organisations. It
is essential to the future of POCL as it moves into an era of greater commercial
freedom and competition. It must also support BA's drive to reduce the overall
cost of encashment, including fraud, to a minimum.
With nearly 20,000 Post Offices and 28 million customers per week, this is the
largest retail operation in the UK, specialising currently in "value documents”.
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THE STATEMENT OF CAPABILITY
1.4
15
Once the new benefits payments service is fully operational, it will immediately
become the largest plastic card based payment system in the UK, exceeding any
individual bank and any of the card schemes; Visa, MasterCard and Switch. It
will interface with each of the counters of POCL and will require more positive
authentications than the total predicted for 1995 for all UK Credit and Debit
traffic.
Transition from the current processes to full automation. will require minute
attention to detail, as it involves a large proportion of the UK population as
customers and a sizeable number of agents and staff of POCL and BA.
The Consortium members understand the size and complexity of such a service.
They are continuing to invest in the development of the necessary business
models to underpin the joint aspirations of the Consortium and the POCL/BA
Development Group.
ORGANISATION
Commensurate with the scale of this enterprise, the approach has been to secure
Board level commitment and establish a Business Unit which will spearhead our
response and then deliver the long-term service.
The Business Unit Director, John Bennett, has been appointed and reports to the
Director, Finance and Business Strategy, ICL PLC.
BIAS FOR ACTION
The Consortium has already invested in analysis and research into possible
solution strategies for both systems and service, evaluating against the following
five qualities:-
- Availability
z Usability
- Performance
Security
- Potential for change
In view of the timing, scale and complexity of requirements, the approach
adopted by the Consortium is focused on minimising risk through the re-use of
best of breed, proven components for systems and service from the Consortium
partners.
The Consortium partners have established a joint team at a chosen location to
analyse and define in detail our proposed solution - recognising that the full SSR.
(Statement of Service Requirement) has yet to be issued.
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1.6
17
CAPABILITY
Our approach has been to identify the core attributes necessary for this enterprise
and to ensure that there is adequate and proven coverage by the Consortium.
The following attributes are relevant and demonstrable by the Consortium:
Risk Management and Transfer
Business Management
Financial and Commercial Management
Project and Transition Management
Marketing and Business Development
Complex Nationwide Roll-out and Service
Fraud prevention and detection
Card Provisioning (Production, distribution & management)
Proven Multipurpose Counter Automation environment
Payment System and Database
Network provision and operation
Ability to interface to existing IT Departments
Relevant Accounting Expertise
Support and help desk provision
Support for existing systems
Training
EXPERIENCE
In addition to being leaders in the UK in the provision of world class technology
and service the Consortium is able to demonstrate relevant experience in all of
the key areas. Some examples are:
Scale ICL and De La Rue are both involved in the delivery of
the National Lottery system -over 30,000 locations in the
UK
Management Both Girobank and An Post bring directly of Change
relevant change management experience
Financial Hambros are preeminent in the application of Risks PFI
and risk transfer, eg Channel Tunnel Rail Link
Innovation An Post/Escher have introduced unique and high value
counter automation systems
Successful All partners bring successful consortia Consortia working
experience, and share a common Working vision for this
enterprise
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21
2.2
APPROACH
This Consortium seeks to ensure that in partnership with POCL/BA all critical
success factors are met. The aims, therefore, are:
to facilitate the improvement and ongoing development of the business
of Post Office Counters Ltd through the application and development of
this service and a clear committed business plan;
to provide the safe, secure and cost effective delivery of Benefits Payments
and to offer a high quality and value added service to all of BA's clients.
Approach to meet POCL Critical Success Factors
a)
b)
Customer Service
The skills of the Consortium provide for an unrivalled quality of service.
ICL operates the largest computer services organisation in the UK. The
Consortium has leading nationwide services organisations skilled in
satisfying exacting availability and performance standards.
The Consortium has a deep understanding of such service provision and
can provide assured integrity, continuity and security of service.
: :
The service includes financial card provisioning by the leading UK
financial card supplier and distributor, De La Rue.
The purpose is to deliver enhanced quality of service and by doing so in
partnership with POCL we will enhance the reputation for service with
both existing and potential customers.
Profitability
The Consortium has unrivalled capability to ensure that quality services
are delivered at lowest possible cost. It is able and willing to take on a
major part of the transition and service delivery risk, founded on a
proven track record in delivering projects on time and meeting exacting
service level requirements.
Through Hambros Bank Limited, the Consortium has access to the widest
experience of the application of PFI to major projects, experience which
will be deployed to ensure that all aspects of the Consortium's business
proposition make sound financial sense.
The Consortium will improve the value of the POCL business by reducing
the associated costs for both POCL and its client organisations, improving
the quality of customer and client service and extending the range of
service options available for exploitation by POCL and its clients.
POCL/BA
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c) Affordability
The Consortium has early access to. outstanding technology and.research
and development (R & D) through its partners and parent companies.
ICL spends over £200 million per annum and Fujitsu, in addition, spends
$2.4 billion per annum on R & D.
ICL collaborates with major technology providers including Microsoft,
Novell and SUN. Together ICL and Fujitsu*form the second largest IT
company in the world, Its members have proven track records in
collaborating with world class suppliers ensuring reliable and consistent
supply of the latest technology.
The. result is the ability to provide world beating technology in a
commodity driven market place.
The Consortium will ensure the lowest possible unit costs by exploiting
commercially available products. .
d) Adherence to Standards
The. Consortium is committed to Open Systems and the adherence to
standards. The approach is set out in the following policy whereby
standards are selected according to the following order of preference:
- International standards ratified by ISO, IEC and CCITT or
endorsed by X/Open .
- Standards from regional or national standards bodies
- Standards from recognised feeder bodies such as IEEE and ECMA
- + Standards from focused consensus consortia (eg Retail model)
- De facto industry standards
- Proprietary standards
In all cases the policy recommends standards are developed rapidly
enough to influence and intercept product developments.
ICL has, been at the forefront of the Open Systems movement on
standards for more than a decade and was a founder member of X-Open
and UNIX International. Our drive from proprietary to OPEN standards
and their early anticipation, development and rapid implementation has
been at the core of ICL's business strategy and success.
We have agreed with Microsoft to the use of their consultancy and
expertise. This will ensure long-term protection of application software
by the interception and adoption of appropriate standards, avoiding
proprietary interfaces, for relevant software. . '
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THE STATEMENT OF CAPABILITY
e)
8)
Support of Existing IS Strategy
An Post bring particular experience of integration and migration within
the counter environment.
Girobank bring detailed understanding of existing systems and usage and
have exploited these to profitable advantage such as with the British Gas
bill payments notification system.
ICL has undertaken strategic planning and development for major
organisations in terms of architecture, integration and migration - for
example at the Inland Revenue and the Department of Social Security.
Universality
‘An Post/Escher bring state-of-the-art counter software. This has proven
scalable across a range of post offices, from the smallest rural sub-post
office with a single counter position, to the largest state post office.
Our approach is to ensure that the application software architecture is
both scalable and modular and thus be able to support all the varying
business requirements of the different types and characteristics of post
offices, with upgrade potential for new applications.
Versatility
Versatility in a system is achieved in a variety of ways. Our approach
offers potential for change by the proven method of separating the
application from the hardware by the use of flexible middleware
components.
Moreover, the modular design and inherent flexibility of the component
products and tools ensure that new application requirements and systems
interfaces can easily be accommodated in the future.
The use of industry standard equipment adds to the flexibility, to meet
the wide range of current and future Post Office client needs and
applications.
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2.3 The approach to meet BA Critical Success Factors
a)
b)
Public Acceptability
The consortium brings components already in widespread public use. For
example, De La Rue provision more than 50% of the UK financial
magnetic stripe cards. An Post/Escher bring direct experience of public
acceptability of counter automation, including social welfare payments,
using new technology. Both ICL and De La Rue are consortium members
of Camelot -responsible for delivering the UK National Lottery for which
success is absolutely dependant on public acceptance.
The approach is to exploit components which have proven public
acceptability.
Reduction and Containment of Fraudulent Encashments
All Consortium members bring relevant knowledge and capability.
De La Rue bring experience to perform a rigorous analysis of card-fraud
scenarios, both Pre- and Post-Status. ("Pre-Status" is where the fraud
scenario precedes the card being reported stolen/missing or stopped,
“Post-Status" is after these events).
Hambros is retained by governments, major companies and lawyers
throughout the world as fraud prevention and security advisers. Hambros
has prepared the fraud and loss control specifications for a number of
major governmental and commercial projects with great success, usually
in environments and systems in which fraud, dishonesty and corruption
had been considered unstoppable.
Girobank has significant experience and expertise in identifying fraud at
Post Office Counters through system development and procedural
controls, ‘
An Post have experience of combating encashment fraud in Ireland.
ICL has widespread experience in the security associated with payments
systems in the retail sector, both in the UK and abroad. ICL has also
undertaken systems and service developments in anti-fraud projects within
the UK Department of Social Security and within UK Local Government
Authorities.
The current approach includes the introduction of positive authentication,
full reconciliation and the provision of a full audit trail - including the
ability to manage the "Starutory Declaration" documents.
The Consortium is, therefore, confident that it will be able to offer a
significant degree of risk transfer to the Private Sector, founded on
rigorous end-to-end security techniques and controls.
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c)
4)
e)
Reduction in Administrative Costs
‘A seamless service infrastructure including the latest technology and risk
management techniques, under unitary control and subject to results-
orientated accountability, will deliver the lowest cost, lowest risk service.
This Consortium has the greatest experience of PFI and the management
and delivery of such services as those being sought. by POCL/BA.
The use of our innovative counter automation software with financial
magnetic stripe card technology will drive down the current costs
associated with Order Books and Girocheques whether operational or
administrative. Changes in claimants circumstances or statutory rates
affecting payments schedules would be electronic with no paper recall or
stop procedures and ensuing reissue necessary.
: ‘
By supporting the Benefits Agency “One Stop" programme and providing
timely payment information and facilities into Local Offices, further
administrative savings will accrue. A greater proportion of customer
enquiries will be closed at minimum cost on the first personal or
telephone contact.
The stimulation of additional business will not only increase the value of
current transactions, but will also drive down the unit transaction costs.
Complete Accounting
An Post and Girobank have in-depth experience of this discipline. An
Post have implemented their innovative counter automation system with
full daily reconciliation and Girobank have undertaken a full
reconciliation approach for social security Girocheques in the UK.
The Consortium approach has "Complete Accounting" as the absolute
cornerstone of its solution. Each payment will be reconciled back to the
issue of the valid payment instruction on a daily basis.
Transfer of Risk to Supplier
Within the Consortium, Hambros are preeminent in their understanding
and application of transfer of risk to the private sector.
They would envisage the great majority of the POCL/BA project risk
transferring to the Consortium or other third parties with which the
Consortium had contracted (eg lenders, insurance houses). ‘The classes of
risk to be transferred could include subject to tender requirements:
- Design (against the format of a clear output specification)
- Construction (including cost over-runs and completion delays)
- Completion
- Installation
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8)
- Commissioning
- Maintenance
- Residual Value
- Defined Upgrading Options
- Performance
@ Finance
The Consortium envisages that payments could be related to the volume
of processed business, thereby passing elements of demand risk to the
Private Sector.
The criteria for passing risk would be whether the entities absorbing those
risks could both manage and control transferred risks. Risks would be
defined in both a qualitative and quantitative sense.
Various risk, regulatory, management, operational and control activities
would remain with POCL and BA.
Payment based on usage and performance
One benefit of PFI to the public sector is that it enables charging
mechanisms to be directly associated with usage and business value.
Following an agreed allocation of risks between the Private and Public
Sector, we would envisage that usage payments would possess the
following characteristics:-
- All payments would be contingent based on performance criteria.
: ‘An element of the payment could be based on availability and
reliability parameters. If facilities were not available due to the
performance of the Consortium, this element of the payment
stream would not be due and payable.
- The other element of the payment could be based solely on the
volume of business transmitted through the system. This payment
would be fee based.
Fast and Early Roll-out
The Consortium has an excellent track record in managing complex and
Jarge scale roll-outs to rigorous timescales. For example, the National
Lottery involves the nationwide delivery, installation and implementation
of more than 10,000 secure networked devices within a 4 month period.
De La Rue has proven financial magnetic stripe card capacity and
infrastructure to accommodate the envisaged roll-out. The current
production capacity of 60 million cards per annum is set to double in
mid-1995 with the completion of the expanded facility in Tewkesbury.
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The Consortium recognises the benefit of a fast and early roll-out to all
parties, and will deploy its proven logistics and service capabilities to
facilitate the earliest possible introduction of the service.
The Consortium would seek early agreement of a rigorous definition of
the implementation and roll-out programme to ensure that the necessary
detailed planning was put in place before the award of Contract.
2.4 Approach to the Selection of the IT Infrastructure
In this selection, our methodology is to recognise that there are a number of
different perspectives, objectives and qualities that need to be fulfilled. These
perspectives include those of the Management of the Enterprise; the actual
Users; those responsible for providing and maintaining applications; and finally
those responsible for the delivery of the overall service. The qualities are:-
Availability The system is there when required and meets the agreed
service levels.
Usability Specified users are able to carry out specific tasks
effectively in a particular environment.
Performance The system response time and throughput is as required.
Security The system is able to withstand malicious attacks.
Potential The system is able to evolve and change for change to
respond to new requirements, and is able to adopt and
reuse components.
Transition Support for existing Systems/processes Migration from
ALPS. The re-use of other applications
Standards Compliance to selected architecture
Additionally, other factors are relevant in this selection. They are:-
Support for existing Information Systems Strategy
The re-use of existing IT from ALPS
The re-use of existing applications
Adherence to our policy on the use of and compliance to standards
25 Approach to the Development of the BA benefit payment application
The Consortium has a number of options open to it which are being assessed for
overall suitability, in particular the aspects of scalability and performance,
security, resilience and inter-operability to existing systems.
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2.7
Both Girobank and An Post bring practical experience of payment systems.
This application is a critical component of the solution and the Consortium will
seek early and in-depth discussions with the Benefits Agency to determine the
preferred option. Important aspects for early agreement include whether the
positive authentication system should be held centrally or be distributed.
It is our firm intention to select BT to supply the communications elements of the
solution. The Consortium believes that BT's national coverage and established
services offer the best combination of existing infrastructure and available options
for service delivery.
This ensures low risk through BT's comprehensive existing network and offers the
flexibility to allow a variety of current and future service solutions.
The Consortium recognises that it will be necessary to develop tailored network
packages integrated with the overall business solution to offer a seamless service
to POCL/BA users and BT have agreed to work with us to achieve this.
Approach to the management and development of the pilots
Pilot systems have been used extensively by the Consortium partners and their
customers. In the Consortium's experience a successful pilot does not necessarily
ensure a successful project.
It is essential thar the purpose of a pilot, the way it will be undertaken, the
criteria for establishing its success and the way it will be evaluated are understood
and agreed to by all parties. Further, it is important that the costs and impact on
project timescales are fully evaluated to ensure that piloting is a cost effective
method of achieving the objectives, and that change contro) methodologies are
in place.
The approach is for an open partnership, based on mutual respect of each others
pressures, costs and risks and agreed objectives. This is the Consortium's way -
based on trust.
Approach to Definition of the Services
Consortium members already provide relevant elements of the nationwide
services. ICL operates the largest computer services organisation in the UK,
employing over 2,500 skilled staff providing hardware and software support and
professional services to over 6,500 organisations. This includes ICL and other
vendors’ customers. The nationwide network enables us to provide service for
over 250,000 systems installed on over 32,000 customer sites.
ICL provides tailored specialist services and is the third largest supplier and
maintainer of retail systems in the world, with an installed base of more than
250,000 electronic point of sale tills, from Marks and Spencer and J Sainsbury
in the UK to JC Penney and Bloomingdales in the United States.
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2.8
2.9
2.9 a)
De La Rue are the leading UK provisioner of magnetic stripe financial cards -
from manufacture and personalisation right through to secure delivery.
Key factors during service specification and definition include:-
- Quantifiable benefits to users
- Potential for resilience, efficiency and cost-effectiveness
- End user ability and training requirements
- Availability of key technical and support skills
> Defined way to embrace future requirements
- Control mechanisms - including failure detection, diagnosis capability and
ability to repair
- Security, including safeguards against fraud
Using this approach, based on standard service models, ICL has been successful
in developing service provision in a number of areas. For example: desktop
services for Shell worldwide and WINS, the Worldwide Integrated Network
Service, which manages the network requirements for ICL worldwide.
Similarly, tailored operational services have been developed by Girobank for its
clients, including BA. An Post also represents 2 relevant business model for
POCL services,
Comments on:
"Applications Architecture for Post Office Counters Ltd."
The Consortium has used one of ICL's Senior Company Architects to comment
on the "Applications Architecture for Post Office Counters Limited" and this is
attached separately. In brief, it comments on how the architecture should be
defined to embrace Open Systems for a flexible and integrated solution and to
avoid "hidden costs",
Approach to Service Provision
The Management of the Roll-out
Introduction
The Consortium has considerable experience of "rolling-out" IT infrastructure to
office locations nationwide. In particular ICL has successfully managed roll-outs
for Government departments such as Inland Revenue and the DSS, retail
organisations such as Sainsburys within the UK, KMart within the USA and
Bundespost within Germany, and for organisations such as the National Lottery.
A key approach to planning the roll-out is that prior to award of contract a
Project Manager will be appointed to iead the production of a roll-out plan that
includes all activities required for successful completion of roll-out whether the
direct responsibility of the Consortium or not.
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This approach ensures that all parties to the roll-out, both at the starr of the plan
and during the roll-out, have a single view of planned activities and work from
a common set of data concerning the status of activities.
The key elements of our approach to planning the roll-out are:
The strategy for the roll-out will be affected by many classes of activity and
factors. It is important that all these are formally reviewed and incorporated into
a single plan identifying key dates, durations and dependencies.
To enable the plan to be as simple as possible it is intended to look at each class
of activity required across the 20,000 locations. This will also reduce variability
to a minimum thus allowing activities and product sets to be replicated rather
than uniquely planned for each installation.
The areas that will need addressing in this way are:
- The IT systems to be installed in Post Offices.
- Installation and acceptance testing.
: Post Office building preparation.
- Network build.
- Training of staff in the Post Offices.
Other supporting areas, not subject to replication, that will also need planning at
this stage are:
- Validation of replicable product sets
- Configuration management
- Establishment of the logistics and supply chain
- Support processes and help desks for support of live systems
- The monitoring, review and change control processes for the Roll-out
project.
Implementation Management
An Implementation Project Manager and project team will be appointed to take
responsibility for implementation of systems in Post Offices. The approach
outlined below offers the quickest and smoothest implementation for end users
and is demonstrably cost effective to all parties.
The responsibilities of this team will include:
Supply chain management
This includes pre-ordering and establishment of the stock of components from
which the systems delivered will be built. During the roll-out the availability of
equipment, down to component level if necessary, will be constantly monitored
and any shortages, which could jeopardise the roll-out schedule, will be promptly
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escalated and resolved.
Hangaring
The objective is to produce fully tested and configured systems, tailored for the
specific end user environment. This is achieved by building the systems in a
central "Hangar" where the project disciplines and skills can be properly focused.
Logisti
The equipment is passed to the ICL Product Distribution Centre where it is
consolidated with those items for which hangaring is not a requirement.
Following a full audit, the full system is packed and palletised in accordance with
Roll-out requirements.
; nce Testi
This will be undertaken by engineers specifically trained in the installation of the
hardware and software. During the course of an installation they will be
supported by, and be in constant contact with, the Implementation Project team
who will provide first line support as required.
Acceptance tests will be carried out to pre-agreed scripts, and the system
confirmed as fully useable, and support processes and the help desk activated
prior to the system being offered as ready for service.
To ensure success of the Roll-out the Implementation Team would be constructed
with the appropriate experience and skills and be dedicated to the Roll-out. All
processes and procedures to be used will be fully proven prior to start of Roll-
out, and audited to BS5750. This approach has been fully proven in practice and
has been shown to be flexible and able to cope with the short lead times of
complex projects.
End User Traini
It is essential that. staff using the new systems are fully able to exploit them as
soon as they become available. The Consortium would propose the development
of a training programme jointly with POCL/BA and staff representatives. The
roll-out of this training programme will be embedded in, and form a fundamental
part, of the Roll-out plan.
The Consortium is ideally placed to manage this task with its experience of
training 38,000 retail operatives in multiple languages as part of the National
Lottery roll-out programme. In addition, the intuitive nature of the user interface
to the An Post/Escher application software will reduce the training required.
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2.9 b)
Service management & provision
High standards of service management are réquired to ensure that the BA POCL
Information Systems fully achieve and exceed the service standards which are
required by the business. The critical business dependency on availability and
performance of operational Information Systems combined with the complexities
of large scale.and geographically distributed systems management means that a
structured engineering approach to Service Management and Delivery is essential.
ICL recommends that the principles which are set out in the IT Infrastructure
Library (ITIL) should be adopted for the BA POCL project. Produced by CCTA
in consultation with Government departments and the IT industry, the IT
Infrastructure Library is the most comprehensive and structured approach
available on the management of IT services. ICL actively supports the
development of ITIL through the independent user organisation called IT
Infrastructure Management Forum Ltd. ICL applies the principles of ITIL
through its professional IT Service Management practitioners and also to support
the design and development of IT Systems Management and Service Support
tools.
Benefits
The ITIL approach offers clear advantages to the POCL/BA business, users and
service providers. These are:
- Quantifiably improved services to users
- Potential to build an efficient, resilient and cost effective network
- Less user training and support required
- Optimal placement of technical skills
- A clear path forward for future requirements
- Better control over information systems
- Security is assured
Process
The diagram below shows the key tasks in the process used by service providers
to manage an information system.
Task areas are:
Operational Control
© Operations Controlling and monitoring the managed objects in the
information system. .
- Problem Providing a service to operations management by diagnosing,
fixing and preventing the occurrence of problems.
E Capacity Reviewing operational data to assess the availability and
performance of the system.
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Introduction and deployment
Distribution Providing the mechanisms to deliver the system physically
to users, to install it, activate it and to make it operational. Part of this
activity covers the delivery of software through the network itself.
Change Providing a mechanism for handling changes to the information
system.
Inventory Maintaining up to date records of the total set of applications,
components and infrastructure that comprise the information system.
Generation Providing the means to generate, and subsequently change
the configuration of the system.
Users Information System
u pee ety ES TS
requirements}. 4" = Operations Distribution k= ‘
pcre sa
Billing
Problem
~ Service leve
agreements mae) — se
Planning and reporting
POCL/BA
Statement of Capability
Billing Reporting to users and to the enterprise how the service is
performing; reporting costs by individuals, workgroups and the enterprise
as a whole.
Service level agreements Giving a clear statement of what the
information system has to provide. Providing reports of service level
achievements, to enable the overall effectiveness of the system to be
monitored.
New requirements Responding to requests for modifications to the
infrastructure and for the implementation of new applications.
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2.9 c)
2.9 d)
POCL/BA
Quality and customer satisfaction
To ensure the provision of quality service and customer satisfaction it is necessary
for quality to be a consideration during all activities that impinge on the service.
The approach of the Consortium will be to achieve quality by:
: Full life cycle management of the systems that will deliver the service.
This will be from the provision of the SSR, through development,
integration and piloting to live usage of the system. The system will be
fully defined and baselined, be subject to formal change control and
managed via a configuration management system.
a The roll-out programme will be managed using formal project tools and
methodologies (such as PRINCE)
- Support processes and help desk mechanisms will be fully proven prior
to use.
- All services will be formally defined in a Service Level Agreement (SLA).
This will also define the service metrics to be achieved, the responsibilities
of all parties that impinge on the service, and the review and escalation
processes.
- A formal sequence of reviews will be established jointly with POCL/BA
to cover measures such as:
calls logged, closed and outstanding
software quality
systems reliability
delivered quality of products delivered
both during, and subsequent, to the roll-out programme
call and incident responsiveness
erase
*
- Specific activities will be undertaken to ensure customer views of the
service is understood and issues reacted to. These activities will include:
* Telephone surveys of users
* Customer liaison panels
# Management care visits
In addition all processes and procedures will be subject to evaluation against
BS5750 and the service delivery function will operate to the principles of the
EFQM quality model that embodies the use of benchmarking.
Identification with POCL of opportunities to develop new services:
The partners within the Consortium bring a broad range of commercial
experience in developing and delivering new business streams. The Consortium
will use its experience to produce with POCL a business development plan
against the achievement of which the Consortium would expect to be measured.
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The Girobank, for example, have direct experience of improving services through
POCL for the Benefits Agency. In this example, the Girobank reconciles
encashed girocheques received from POCL back to the Benefits Agency. 100M
benefit payments are processed per annum to a value of £10 billion. They also
provide an enquiry service to the Benefits Offices handling some 500,000
enquires per annum.
Girobank have demonstrated their ability to establish new services with the
implementation of "Electronic Notification of Bill Payments" for British Gas. This
service was developed within six weeks of the original request from British Gas
and demonstrates their responsiveness to their customer and the success of the
joint venture with POCL.
2.10 Charging Structure
Following an agreed allocation of risks between the Private and Public Sector, we
would envisage that usage payments would possess the following characteristics:-
© All payments would be contingent based on performance criteria.
- An element of the payment could be based on availability and reliability
parameter. If facilities were not available due to the performance of the
Consortium, this element of the payment stream would not be due and
payable.
- The other element of the payment could be based solely on the volume
of business transmitted through the system. This payment would be fee
based.
2.11 Approach "No Solution Identified"
The above responses give the management overview of the Consortium's
approach.
3 CAPABILITY
We will be pleased to show how our partners extend this capability when
requested.
3.1 Human Resource
Services
Over 50% of ICL’s total world-wide revenues which exceeds £2.6 billion is
derived from software and services, The manner in which ICL maintains its
internal accounting and personnel statistics gives a slightly different profile to the
categories requested, but nonetheless demonstrates our overall capability. This is
shown in the 2 tables below.
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The coverage of the services identified in the tables below is the UK mainland
and Northern Ireland.
TABLE 1
Annual Staff Sphere of Operation
Revenue Numbers
I £M
Customer Service 267 2,500 H/W & S/W Maint'ce
including 3rd party,
managed services
CFM 80 1,100 Outsourcing, FM
Peritas 23 315 Training
WorkPlace 35 231 Intelligent Building Wiring
Technology + assoc. services
Other ICL 245 1,454 Project Mgt, Systems
Integration _I
TABLE 2
ee
Staff No.
Finance 710 5.1%
Personnel 300 2.1%
Marketing 440 3.1%
R&D 2,850 20.3%
Manufacturing 1,750 12.5%
Logistics 350 2.5%
Sales/Sales Support 1,850 13.1%
Professional Service 4,800 34.3%
Internal Services 750 5.4%
Business Management 210 1.6%
TOTAL __ a 14,010
In addition, ICL has in the UK c. 900 associate employees which are not included
in the table above.
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3.2
3.3
POCLIBA
IRRELEVANT
Consortium services sought
The Consortium will subcontract additional specialist resources as necessary.
Discussions are in hand with potential suppliers for the provision of the BA
payments application.
Consortium make-up
ICL has agreed to team with the following organisations to form a consortium
in order to bid and subsequently to be in a position to deliver the systems and
services required.
ICL will provide: Overall Project Management, Systems Integration
including "Open" technology provision and
Nationwide services
De La Rue Group Magnetic stripe and Smart card manufacture and
distribution, Standalone POS equipment for the
small Post Offices, secure printing and identity
card systems.
Hambros Bank Ltd. PFI commercial structure and advice, Risk
assessment and Overall Business Plan, Financial
System Security.
An Post & Escher Post Office Counter automation and business
consultancy
Girobank PLC Business and Marketing development and existing
business consultancy
ICL will be the Prime Contractor.
Principal Subcontractors are:
Microsoft Software design, development, best-practice
methods consultancy
British Telecom Network carrier and consultancy
EXPERIENCE
Examples
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Management of Change
As a successful IT Services organisation, the implementation of new systems and
services inevitably requires change within the target organisation. Not only has
ICL undergone radical and dramatic change within itself, it has used this
capability in external organisations:-
For Camelot, more than 30,000 retailers have been trained in the Lottery
systems, as well as the changes in associated business practices, particularly on
cash management and accounting.
For CHOTS, ICL has had to manage the complex and competitive procurement
process involving users on the large pilots at multiple MOD sites. This has led
to overall responsibilty to manage the introduction of cultural changes to
accommodate the new secure desk-top IT services provision and usage.
IRRELEVANT
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od
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THE STATEMENT OF CAPABILITY
Successful Consortia Working
ICL believes strongly that the ability for organisations to work in consortia is a
prerequisite for successful modern business. It requires partners; to hold a shared
vision for the particular project; to commit to a long term relationship; to
recognise that the partners may well be competitors in other areas; and above
all that the focus must remain on assisting the customer to achieve its business
objectives.
For the CHOTS project, the TOPIX consortium was formed by ICL in 1987 and
is still in existence and delivering services and other products into the MOD. Its
formation is unchanged from the original parties, and additionally involves the
management of many other different sub-contractors. (The scope of the project
has already been covered above.) CHOTS is essentially a prime-sub business
relationship.
Camelot was formed over a year ago to address and win the UK National
Lottery. It has been structured as a Special Purpose Vehicle with equity being
held by the 5 original consortium members, and with each member still
competing for business from the Camelot company.
Many other examples of successful consortia working are available.
4.2
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‘IRRELEVANT
5 PROCUREMENT and FINANCE
5.1 Risks & Process ;
The Consortium will adopt the following procedures to meet the risk distribution I
requirements of the Invitation to Tender and subsequently the requirements of
Treasury under the Private Finance Initiative. i
* The POCL/BA Project will be assessed in terms of all the risks relating to
the Project. These risks will be defined and held in a risk register.
The risks will be qualitatively assessed.
The risks will be allocated to the various parties to the Project.
The risks will be quantified thereby allowing the gradient of risk and
price between Standard and Variant Bids to be established.
The intention of the Consortium is to submit the above information and analysis
in any Tender response.
Our belief is that this approach will assist in the process of gaining sanction for
the POCL/BA Project by both POCL and BA.
Once risks of the Project are defined and allocated to the various parties, the
result will be that POCL, BA and the Consortium will be clear which risks are
being considered in the tender negotiation. By defining risks first rather than last
- as in the case of many projects - the negotiation pracess will be assisted.
A clear understanding of the distribution of risks will determine the preferred
nature and extent of the contracts to be entered into by the various parties. We
would envisage contracts being drawn up in a form that permitted POCL and BA
to see that consortium risks were being managed over time.
The contract structure would, in turn, determine the range of financial options
to be deployed for raising project funds. We would envisage that one upturn for
funding could be by way of limited recourse advances with appropriate
consortium support. These and other structures would be overlaid with tax-based
structures as permitted under the Invitation to Tender.
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5.2 Summary
From this document it can be seen that this Consortium has a deep understanding
of and commitment to the business objectives of both POCL and BA. Our team
make-up is strong with many uniques, and we understand the importance of this
project to both the nation and the users.
We have demonstrated at every opportunity our commitment to the use of PFI
and the risk sharing approach. Board level commitment is also equally visible.
The Consortium's previous experience in long term partnerships with both
customers and consortia is manifest.
The Consortium looks forward in confidence to a long term partnership with
POCL and BA in this exciting opportunity.
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