I
benefits Benefits Agency and
Post Office Counters Ltd
Third Floor
Terminal House
52 Grosvenor Gardens
London SW1W 0AB
switchboard)
(direct line)
29 February 1996 telephone
facsimile
Jim Morley Esq
Programme Director
Pathway Group Limited
Forest Road
Feltham
Middlesex
TW13 7EJ
Dear Sir
INFORMATION TECHNOLOGY SERVICES AGREEMENT FOR BRINGING
TECHNOLOGY TO POST OFFICES AND BENEFITS PAYMENTS -
INVITATION TO TENDER
1. INTRODUCTION
1. Please find attached the following:
(a) Annex I, consisting of the Workload Brief;
(b) the draft Related Agreements consisting of one paper copy of:
(0) draft clauses of the AUTHORITIES’ Agreement, the DSS
Agreement and the POCL Agreement (Version 2.0); and
(ii) Schedules 2, 3, Al to A9, All, BI to BS, B7, B8 and C5 of the
AUTHORITIES’ Agreement, Schedules 2, Al to A7, A9 to All,
A13, D5, D6, E5 and E6 of the DSS Agreement and Schedules 2,
Al to A7, A9 to All, Al3, B7, D5, D6, E5, E6, F5, F6, G7 and
G8 of the POCL Agreement.
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Post Office Counters Ltd Registered in England
No 2154540 Registered Office Drury House
the Lewartivent of Social Seeneity 1:16 Blackfriars Road London SET 9UA
Wa Faventive Agene
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1.3
2.1
2.2
You are invited on behalf of the Secretary of State for Social Security (“DSS”)
and Post Office Counters Ltd (“POCL”) (POCL and DSS being referred to
collectively as “the AUTHORITIES”) to submit your tender for the supply of
information technology services as set out in the enclosed draft Related
Agreements (“the Tender”).
An explanatory memorandum explaining the final changes which have been made
in the draft Clauses as a result of comments received from potential tenderers and
of internal review will be issued tomorrow, together with a marked-up version of
the Clauses showing the changes ‘from the previous version.
INSTRUCTIONS TO TENDERERS
You should confirm that, if selected by the AUTHORITIES, and subject to
paragraph 4.4 below, you (the "Tenderer") agree to supply the information
technology services described in the Related Agreements upon the terms and
conditions set forth therein.
You should state the names of the persons duly authorised to execute the Related
Agreements on behalf of the Tenderer, and the names of the persons duly
authorised to execute the guarantees set out in Schedule All of the draft
AUTHORITIES’ Agreement and Schedule A13 of the draft DSS Agreement and
the draft POCL Agreement on behalf of the guarantor previously approved by the
AUTHORITIES (‘the Guarantor”).
Twenty paper copies of your Tender and two electronic copies on disc in
Microsoft Word 6.0 for Windows are required, which should be sent to the
following address:
Patrick Sedgwick
Post Office Training & Development Centre,
Turneys Drive,
Wolverton Mill,
Milton Keynes,
MK12 SNS
The copies should be sent in a sealed envelope or package with the reference
number (94/S 165-58937/EN) clearly indicated on the back.
In accordance with the timetable which has been agreed with all potential
tenderers, all copies of the Tender should be delivered not later than 10.00 a.m.
on 21 March 1996. Tenders received after this deadline may not be considered.
Facsimile or telex Tenders are not acceptable.
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2.4
2.5
2.6
2.7
All paper copies of the Tender must:
(a) be printed on white A4 paper, single-sided;
(b) be loose bound in 4-ring A4 binders.
Each main section of the Tender should start on a new page, and the Tender
should be constructed in such a way that any section can be separated from the
main body of the Tender.
Tenders should be in English.
You should submit:
(a) your proposed Common Charging Mechanism for Basic DSS Services,
Basic POCL Services, Optional DSS Services and Optional POCL
Services, including:
(i) the complete scorecard grid;
(ii) definitions of each Transaction row in the scorecard, including
how the Transactions within the row are to be counted;
(iii) definitions of each Service component column in the scorecard:
and
iv) the discount bands and prices per servicepoint applicable to each
year of the Related Agreements;
(in relation to OBCS, an Optioaal Service which may be expected to have
a wider impact on the cost of, and Charges for, the Services, you should
provide versions of (i) and (iv) above for Services including and
excluding the OBCS option);
(b) your proposed Charges on a time and materials basis for Additional DSS
Services and Additional POCL Services;
(c) your proposed discount to be applied to list prices for Optional Products;
and
(d) your proposed Charges for DSS Consumables and POCL Consumables
in accordance with the provisions of Schedule A6 of the enclosed drafi
AUTHORITIES’ Agreement. A copy of the Workload Brief providing guidance
to Tenderers in relation to charging proposals is attached at Annex I. The
Workload Brief is intended only as guidance and has no contractual significance.
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2.8
2.9
The AUTHORITIES make no representation or warranty as to the accuracy or
otherwise of its contents. Tenderers should also provide a computer spreadsheet
(in Excel 5.0 or Lotus 1-2-3 Release 5 format, with guidance notes on its use, if
necessary) implementing the Common Charging Mechanism, which can be used
to calculate the amounts payable a different transaction volume levels).
You should insert in Schedule B7 of the draft POCL Agreement details of the
standard measured terms book referred to there and your proposed reduction or
increase to the measured terms.
You should submit in Schedule A9 of tne AUTHORITIES’ Agreement a
statement setting out your formula for the calculation of the compensation
payment (“Termination Charge”) which is payable to the CONTRACTOR in the
event that the AUTHORITIES exercise their option to terminate the
AUTHORITIES’ Agreement pursuant to Clause 902.6 of the draft
AUTHORITIES’ Agreement. The Termination Charge is intended to compensate
the CONTRACTOR in respect of loss of anticipated profit, unavoidable loss, and,
in the event of non exercise of the options set out in Clause 903.1 of the
AUTHORITIES’ Agreement, recovery of the non-amortised cost of elements of
the Service Infrastructure. You should submit in Schedule A7 of the draft DSS
Agreement and the draft POCL Agreement a statement setting out your formula
for the calculation of the Termination Charge which is payable to the
CONTRACTOR in the event that DSS or POCL exercises its option to terminate
the DSS Agreement or the POCL Agreement (as appropriate) pursuant to Clause
902.6 of the draft DSS Agreement or the draft POCL Agreement respectively.
You should submit in Schedules D6 and E6 of the draft DSS Agreement and
Schedules D6, E6, F6 and G8 of the draft POCL Agreement a statement setting
out your formula for the calculation of the Termination Charge which is payable
to the CONTRACTOR in the event that DSS or POCL exercises its option to
terminate a DSS Service or a POCL Service (as appropriate) pursuant to Clause
903.5 of the draft DSS Agreement or the draft POCL Agreement respectively.
You should submit in Schedule A9 of the AUTHORITIES’ Agreement a
statement setting out your formula for the calculation of the payment (“Transfer
Payment”) which is payable to the CONTRACTOR in the event that the
AUTHORITIES exercise their option in Clause 903.1 of the draft
AUTHORITIES’ Agreement to acquire software licences and have assigned to
them subcontracts and other agreements. You should submit in Schedule A7 of
the drafi DSS Agreement and the draft POCL Agreement a statement setting out
your formula for the calculation of the Transfer Payment which is payable to the
CONTRACTOR in the event that DSS or POCL exercises its option in Clause
904.1 of the draft DSS Agreement or the draft POCL Agreement respectively to
acquire hardware, software licences and other agreements. You should submit
in Schedules D6 and E6 of the draft DSS Agreement and Schedules D6, E6, F6
and G8 of the draft POCL Agreement a statement setting out your formula for
the calculation of the Transfer Payment which is payable to the CONTRACTOR
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2.11
2.12
in the event that DSS or POCL exercises its option in Clause 905.1 of the draft
DSS Agreement or the draft POCL Agreement respectively to acquire hardware,
software licences and other agreements.
Your formulae for Termination Charges should take account of the effect of the
AUTHORITIES making any Transfer Payments.
Schedules A6, Al0 and Al2 of the AUTHORITIES’ Agreement and of
Schedules A8 and A14 of the DSS and POCL Agreements as completed by you
will be incorporated into the draft Related Agreements in the form which has
been accepted by the AUTHORITIES. Copies of these Schedules (inter alia) are
provided on disc for your convenience.
You should provide the following information about the Tenderer:
(a) a statement of the position titles of the persons:
(i) duly authorised to amend the Related Agreements under Clauses
101.3 and 101.4 thereof;
(ii) in the event of a dispute, duly authorised to meet the
AUTHORITIES to discuss disputes referred by the contracts
steering group pursuant to Clause 807.2 of the draft
AUTHORITIES’ Agreement;
(iii) _ in the event of a dispute, duly authorised to meet DSS to discuss
disputes referred by the contract administration group pursuant to
Clause 807.2 of the draft DSS Agreement:
(iv) in the event of a dispute, duly authorised to meet POCL to
discuss disputes referred by the contract administration group
pursuant to Clause 807.2 of the drafi POCL Agreement;
(v) to whom and the address at which notices should be sent, as set
out in Clause 603.3.3 of the draft AUTHORITIES’ Agreement
and Clause 603.3.2 of the draft DSS Agreement and the draft
POCL Agreement;
(b) details of any criminal convictions since your response to the
AUTHORITIES’ letter dated 13 April 1995 enclosing the Statement of
Service Requirements ("your Response") in respect of the Tenderer or any
of its directors still in office, including convictions under the Companies
Act 1985 or any other enactment, order, regulation or similar instrument;
(c) any audited accounts of the Tenderer which have been produced since the
submission of your Response.
a
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2.14
215
3.1
3.2
3.4
4
You should ensure that the AUTHORITIES are authorised to obtain an updated
financial reference from the Tenderer's and the Guarantor’s bankers for the period
following the submission of your Response.
You should indicate in a separate submission any assets of the AUTHORITIES
or of the Department of Health and Social Services for Northern Ireland which
you would wish to acquire for purposes of performing the required services.
VARIANT AND ALTERNATIVE BIDS
As explained in the AUTHORITIES’ letter to you dated 20 February 1996, and
subject to paragraph 4.4 below, Tenderers are expected to submit a Tender which
is fully compliant with the Invitation to ‘lender Documentation enclosed herewith
(“the baseline bid”).
Tenderers may also offer “risk” variants on the baseline bid. These should
conform with the principles of the Common Charging Mechanism, but may show
the cffect on the price per servicepoint of variations on the allocation of risk
under the Related Agreements. For example, a risk variant could show the effect
on the price per servicepoint of higher levels of volume guarantee or reduced
limits of liability or different boundaries of fraud liability. Each risk variant
should identify clearly the effect of each separate variant on the price per
servicepoint. Risk variants must still meet the requirements set out in the
Requirements Catalogue and the Double Key Requirements Schedule (Schedules
BI and B4 of the draft AUTHORITIES’ Agreement respectively) and all other
obligations on the CONTRACTOR under the Related Agreements.
Tenderers may also offer a maximum of two alternative tariff structures. Given
that it will not be appropriate to discuss these after submission of your Tender,
it would assist us if such alternatives are those (if any) discussed with us prior to
Tender, or if they are thoroughly and clearly explained. It is highly desirable that
Tenderers submit modelling framework(s) as part of their Tender to facilitate
evaluation of alternative bids.
All compliant baseline bids will be evaluated. Variant bids and alternative bids
as described in paragraphs 3.2 and 3.3 may be evaluated at the sole discretion of
the AUTHORITIES, who expressly reserve the right not to evaluate such bids.
CONDITIONS OF TENDER
The award of the Related Agreements (if any) will be made to the most
economically advantageous Tender on the basis of the evaluation criteria issued
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4.2
43
44
45
4.6
47
4.8
4.9
4.10
to you on 6 November 1995,
The AUTHORITIES do not bind themselves to accepting the lowest or any
Tender.
This letter and all communications relating thereto from or on behalf of the
AUTHORITIES are to be held in strictest confidence by the Tenderer.
‘Tenderers are expected to submit their Tenders on the basis of the terms and
conditions of the draft Related Agreements referenced above. Other than as
described in paragraph 3 above, any Tender that is subject to additional or
alternative conditions or reservations may be rejected in the sole discretion of the
AUTHORITIES on the grounds of such variation.
You are advised that nothing herein or in any other communication made between
either or both of the AUTHORITIES and any other party, or any part thereof,
shall be taken as constituting a contract, agreement or representation between
either or both AUTHORITIES and any other party (save as a formal award of
contract made by the AUTHORITIES) nor shall they be taken as constituting a
contract, agreement or representation that a contract shall be offered in
accordance herewith or at all
A Tender may be rejected if the Tenderer does not furnish all the information
required in this letter.
You are also reminded that except as otherwise expressly provided, no notice or
other communication to the Tenderer from or on behalf of cither or both of the
AUTHORITIES shall be valid unless made in writing by or on behalf both of the
AUTHORITIES.
No amendments to any of the terms of this letter or to the draft Related
Agreements shall be valid unless they have been agreed in writing by or on behalf
of the AUTHORITIES and by the Tenderer.
The Related Agreements are draft agreements. They are subject to contract and
without prejudice to the AUTHORITIES. The AUTHORITIES reserve the right
to re-issue the Related Agreements before the deadline for receipt of Tenders
under paragraph 2.3 above in order to correct any errors or omissions in the
documentation.
The AUTHORITIES do not accept any responsibility for any pre-contract
representations made by them or on their behalf or for any estimates by the
Tenderer of resources to be employed in mecting the AUTHORITIES’
requirements or for any other assumption the Tenderer may have drawn or will
draw from any pre-contract discussions. In the spirit of the Private Finance
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Initiative, Tenderers are expected to draw their own assumptions, and are not
invited to add to Schedule 3 (Assumptions) of the AUTHORITIES’ Agreement
at this stage of the procurement process.
4.11 Your Tender shall be valid for one hundred and twenty (120) days from the date
thereof.
4.12 Except as set out below, from the date of this letter no approach relating to this
letter should be made by any representative of the Tenderer to any employee or
agent of the AUTHORITIES.
Any questions relating to this letter shall be addressed to:
Patrick Sedgwick
BA/POCL Response Unit,
Third Floor, Terminal House,
52 Grosvenor Gardens,
London
SW1W 0AB
4.13 Tenderers should identify a single contact point for procurement issues and
queries about the Tender.
4.14 Please acknowledge receipt of this letter in writing to the undersigned and, if the
Tenderer intends to submit a Tender, confirm that you will be able to do so by the
date stated in paragraph 2.3 above.
Yours faithful
Patricia Kelsey
Head of Procurement
BA/POCL Programme
Encs
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