FUJITSU RESTRICTED
COMMERCIAL IN CONFIDENCE
SCHEDULE 12
Application Support and Maintenance
Version History
Version No. Date Comments
13.0 Added as per CCN1642
Schedule I2
POL00027962
POL00027962
POL00027962
POL00027962
FUJITSU RESTRICTED
COMMERCIAL IN CONFIDENCE
SCHEDULE I2
APPLICATION SUPPORT AND MAINTENANCE
Schedule 12.1
Service Description
The parties shall review the contents of CCDs SVM/SDM/SD/0004 and SVM/SDM/SD/0005
(and the relevant provisions relating to the Reference Data Management Service described
within SVM/SDM/SD/0013) and agree a revised Service Description for Application Support
and Maintenance services. The parties shall seek to agree such revised service description
and document the same via a CCN no later than 14 August 2018 (“Revised ASM Service’).
The following provisions shall apply from 1 July 2018 up to the effective date of the Revised ASM
Service.
1. Interim ASM Service Model
In the interim period and until such subsequent CCN is agreed, the parties agree that
Fujitsu Services shall deliver the Applications Support and Maintenance (ASM)
Service in accordance with the Service Descriptions SVM/SDM/SD/0004 and
SVM/SDM/SD/0005 (and the relevant provisions relating to the Reference Data
Management Service described within SVM/SDM/SD/0013) in respect of which the
resources provided as part of ASM undertake this work (the charges for which are
set out in Annex B (Operational Charges Table, under the Reference Data
Management Service row) to Schedule D1 (Charges)) (“Existing CCDs”), but with the
following changes applied as set out within the remaining provisions of this Schedule
12.
1.1 Post Office and Fujitsu Services will create a mandatory Business Impact Forum
(‘BIF”) as a weekly meeting which will have as its agenda and the Terms of Reference
the items set out in Appendix A to this Schedule.
1.2 The parties shall review the contents of Appendix A and shall agree any required
updates together with amended meeting attendees and terms of reference for the BIF.
Until such time as the formal BIF meeting is superseded by a CCN, these provisions
shall continue to apply.
1.3 Fujitsu Services will receive all Incidents with respect to Business Capabilities and
Support Facilities and associated POL Service Types (regardless of Severity Level)
from the Post Office third party service integrator.
1.4 Where a Problem exists as a result of an Incident, all Severity 1 and 2 Problems will
be managed in accordance with the Existing CCDs but with respect to Problems
relating to Severity 3 or 4 Fujitsu Services shall notify the Post Office and gain its
Schedule I2
POL00027962
POL00027962
FUJITSU RESTRICTED
COMMERCIAL IN CONFIDENCE
consent to fix the Problem. Post Office shall provide its consent or rejection to such
fix within [2] business days following a BIF meeting. The Demand Planning Forum will
then prioritise the fix and schedule a suitable timeframe for the fix.
1.5 Notwithstanding paragraph 1.4, where Fujitsu Services reasonably determines that a
Severity level has been wrongly allocated (for example a Severity 3 should have been
a Severity 1 or Severity 2), Fujitsu Services shall be entitled to fix that Problem and
Fujitsu Services shall inform Post Office of this fact at the next BIF.
1.6 Fujitsu Services will seek to identify trends in Incidents calls which have been caused
as a result of a known Problem. In the event that, despite the Post Office having
previously requested that the Problem is not to be fixed, Fujitsu Services has identified
that the Problem has caused one or more further Incidents to be raised, which causes
Fujitsu Services to incur costs or otherwise negates the business case for the previous
decision not to fix the same, Fujitsu Services shall be entitled to escalate the matter to
the Service Director or the Group CIO to gain approval to complete the fix.
1.7 All Incidents shall be managed in accordance with the ASM Service. Where the ASM
Service identifies that the Problem associated with an Incident relates to a Product as
defined in Schedule 13 (Digital Development Services) then the resolution of the
Problem shall be passed to the DDS Standing Platform Team as a resolver group. For
the avoidance of doubt whilst the ASM Service shall be responsible for management
of the Incident and associated Problem the responsibilities for resolution remains
within the DDS Standing Platform Team.
2. Cost Driving Initiatives
Fujitsu Services and Post Office will work collaboratively together to minimise any
impacts to the delivery of the service. These include assessing the Post Office
Responsibilities set out in Appendix B. Where there is a material impact to the service a
service improvement / initiative will be incepted, and the matter shall be escalated to the
Service Director or the Group ClO. The contents of Appendix B shall be reviewed
annually and updated accordingly.
Definitions
ASM Means Application Support and Maintenance
Capital Projects means any work agreed by the parties which can be undertaken by
spare Development Capacity Resources, in respect to which Post
Office can be capitalised
Development means the Fujitsu Services resources undertaking ASM which the
Capacity Resources I parties have agreed should be assigned to undertake Capital
Projects.
Known Error Log I means a single electronic record maintained by Fujitsu Services
(KEL) which records details of known errors and specifying workarounds
and “Known” errors shall be construed accordingly
Minimum — Evidence I documentation required in order for Fujitsu Services to support the
Set Incident, as agreed from time to time between the parties
Schedule I2
FUJITSU RESTRICTED
COMMERCIAL IN CONFIDENCE
Problem a Problem is an application related issue being the root cause of one
or many Incidents
Incident an unplanned interruption to Business Capabilities and Support
Facilities and associated POL Service Types or failure of a
component of any of the above.
Schedule I2
POL00027962
POL00027962
POL00027962
POL00027962
FUJITSU RESTRICTED
COMMERCIAL IN CONFIDENCE
Appendix A
Business Impact Forum
Objectives
The purpose of the forum is to:
Decide upon the severity/business impact and priority of Problems (and decide whether a fix is
to be made).
Assess the cost to fix Problems being development costs, test costs release and
implementation costs.
Assess the impact of deployment considering how soon does it need to be deployed and
whether it needs to be prioritised.
Assess the overall impact to the release (i.e., timeframes, cost, quality) that will be assigned to
deliver the fix of the Problem as part of the scope of its deliverables.
Assess the risk to the success and business objectives of the release that will deliver the fix to
the live environment.
Assess whether a workaround, if acceptable i.e. not compromising the integrity, availability and
security of Horizon, is a more cost effective solution than the actual fix.
Liaise with the Demand Planning Forum to schedule any approved fixes.
Terms of Reference
The Business Impact Forum (BIF) convenes primarily to agree whether a Problem must be
fixed or a workaround can be a feasible solution.
Problems routed to BIF or Demand Planning Forum needs an action placed on it.
The BIF is a joint Governance forum comprising representatives from Post Office and Fujitsu
Services. The frequency of BIF is weekly.
An agenda including the list of Problems to be discussed will be sent with a calendar invite
before the set meeting date.
Minutes capturing BIF decision and actions will be distributed after the meeting.
Schedule I2
POL00027962
POL00027962
FUJITSU RESTRICTED
COMMERCIAL IN CONFIDENCE
Appendix B
Post Office Responsibilities
The following list are examples of the Post Office Responsibilities which will support Fujitsu
Services in freeing up Development Capacity Resource and help realise the optimisation
and cost savings initiatives. This list shall be reviewed annually to add or remove as
appropriate. Any issues relating to these or any other issues which are affecting ASM will be
raised within the Service Review meeting.
Post Office shall:
1.
ensure the Post Office third party service integrator understands the ASM Service
boundary described in Annex 1, to help ensure that only ASM Service Incidents that
Post Office requires Fujitsu Services to resolve are passed to ASM Service;
ensure that its Branch Post Masters conform to their process obligations with respect
to the Track and Trace Despatch Report;
provide Fujitsu Services with the specifications of the Branch infrastructure;
manage the Post Office third party service integrator such that processes agreed within
this ASM Service Service Description are maintained;
ensure the Post Office third party service integrator provides information relating to
each Incident as defined in the Minimum Evidence Set to Fujitsu Services in a timely
manner (relevant to the associated severity of the Incident) when requested and
determined by Fujitsu Services as reasonably necessary, to facilitate the Incident
resolution;
provide sufficiently skilled resources who can attend the BIF and who are empowered
to make decisions as to whether such Incidents or Problems should be resolved;
respond to Fujitsu Services’ requests for additional information on unresolved
Incidents within 2 business days of request, otherwise the Incident will be returned to
the Post Office third party service integrator and any Incident Management SLTs shall
not apply until such time as the information has been provided;
agree to formally document in a Known Error Log (KEL), where Post Office has
decided not to proceed with a fix for any Incident or Problem and to share such
document with the Post Office third party service integrator to ensure that it does not
raise any further Incidents relating to the same issue to Fujitsu Services;
to ensure any third party products in respect of which Post Office owns the licence
(and any related support agreements) and which are used by Fujitsu Services to
deliver the ASM Service, remain in place;
I. ensure that commentary and evidential data relating to Incidents can be automatically
transferred between the Post Office third party service integrator and Fujitsu Services’
ASM Incident management systems via the current Incident Management tool used by
the parties;
Schedule I2
POL00027962
POL00027962
FUJITSU RESTRICTED
COMMERCIAL IN CONFIDENCE
11. ensure that any new or updated KEL, communicated by Fujitsu Services via an email
to the Post Office third party service integrator is updated on the Post Office third party
service integrator systems within a reasonable timescale depending upon the Severity
of the Problem following receipt by the Post Office third party service integrator;
12. ensure that the ownership and management of all Incidents remains with the Post
Office third party service integrator. The Post Office third party service integrator will
own the interface with Users and be responsible for all communication with that User;
13. manage all Post Office third party application providers to which the ASM Service
interfaces, obliging such third parties to respond to Fujitsu Services in a timely manner
(relevant to the associated severity of the Incident) where Fujitsu Services reasonably
considers that an Incident is related to that third party application interface, otherwise
the Incident will be returned to the Post Office third party service integrator and any
Incident Management SLTs shall not apply until such time as the information has been
provided;
14. permit all ASM resources to access both application code, configuration details and
application data sets as strictly necessary to provide the ASM Services by agreeing
which ASM resources will be permitted under the PCI security controls;
15. maintain the Service Management Service, Management Information Service, Security
Management Service and the ongoing provision of the HNG-X Test Infrastructure (until
anew cloud platform is available), as this ASM Service depends on such Services and
Infrastructure being in place; and
16. provision of a representative test system which simulates the live Operational Service
available to the Incident Service (described above) to allow the reproduction of
Incidents (that can be replicated) and the testing of workarounds.
Schedule I2
POL00027962
POL00027962
FUJITSU RESTRICTED
COMMERCIAL IN CONFIDENCE
14
1.2
2.2
2.3
2.4
Schedule 12.2
ASM Charges and Commercial Provisions
CHARGES
The Charges for the Application Support and Maintenance Services (subject to the
Committed Savings set forth within paragraph 2 below) are as set out within Schedule
D1.
The following provisions apply to the current ASM Charges:
1.2.1 the impact of the Invest to Save Credit and the Trinity Credit will be managed
as part of the overall monthly invoicing for the Operational Charges and is
excluded from the above values;
1.2.2 the Restructuring Charges and Committed Savings (each as defined below)
shall be applied in addition to the Charges;
1.2.3. the Charges are subject to the indexation provisions set out in Schedule D1;
and
1.2.4 will be invoiced in accordance with Schedule D2 paragraph 6.
COMMITTED SAVINGS
In consideration for Post Office agreeing to pay the Restructuring Charges (as
defined below) in addition to the Charges referred to in paragraph 1.1, above, Fujitsu
Services shall restructure the Application Support and Maintenance Service,
including through:
2.1.1 design and implementation of organisational structural changes;
2.1.2 ways of working process changes,
in order to transition to and deliver a set of revised Application Support and
Maintenance service over a 2 year period.
The Committed Savings shall apply to the Charges with effect from 1 April 2018.
The “Restructuring Charges” shall be as follows:
Date of I 30 September 2018 I 30 June 2019
Payment
Charge £2,000,000 £1,000,000
The “Committed Savings” shall be as follows:
Schedule I2
3.2
3.3
3.4
3.5
3.6
3.7
POL00027962
POL00027962
FUJITSU RESTRICTED
COMMERCIAL IN CONFIDENCE
Year 2018/19 2019/20 2020/21 2021/22 2022/23
Saving -£1,500,000 I -£1,500,000 I -£1,000,000 I -£1,000,000 I -£1,000,000
OPTIMISING DEVELOPMENT CAPACITY RESOURCE
Fujitsu Services will make available up to £3,000,000 per annum (as amended
through the allocation of the Invest to Save Credit) of Application Support (Fourth
Line) resource capacity which can be utilised to deliver capital value projects (each a
“Capital Project’).
The parties shall cooperate to optimise the use of the Development Capacity
Resource capacity and such use shall be through
3.2.1. Fujitsu Services identifying, managing and delivering a Capital Project which
requires no additional resources other than the Development Capacity
Resource and the Capability Wrap and the available resource capacity has
the requisite skills and experience available for the specific requirements of
the Capital Project at the time of request; or
3.2.2 The process described in paragraphs 3.7 and 3.8 below
Spare Development Capacity Resource capacity will not be carried over from a
previous month.
Fujitsu Service shall provide a “Capability Wrap” service to manage and optimise the
Capital Project utilisation of the Development Capacity Resource. This Capability
Wrap shall include the following functions:
3.4.1. senior project management;
3.4.2 architectural management and support; and
3.4.3 functional testing.
The number of FTEs required to provide the Capability Wrap and the associated
Charges shall be agreed and ordered by Post Office and Fujitsu Services annually in
advance.
The maximum Charges for any given year for the Capability Wrap shall be equal to
the agreed number of FTEs for such year multiplied by the Rate Card, discounted by
a minimum of 10% unless the FTEs drops to below 4 per annum, in which case the
parties shall agree the updated discount levels.
In the event that the project manager within the Capability Wrap identifies that either
or both of the testers has spare capacity, the project manager will inform the Post
Office Service Director and the Post Office shall have the right to re-allocate up to
Schedule I2
POL00027962
POL00027962
FUJITSU RESTRICTED
COMMERCIAL IN CONFIDENCE
3.8
3.9
3.10
£10,000 of tester capacity per month within the Capability Wrap to work on another
project, provided that this has been scoped and agreed in advance of the month in
which the spare capacity is required. Any spare tester capacity within the Capability
Wrap which the parties have agreed to roll-over in this manner must be consumed
within the next month and cannot be further accumulated into the following month.
Post Office expressly agrees that regardless of the agreement to provide a certain
amount of resources that can be reallocated for Capital Projects, the management of
Incidents affecting live service (and associated Problems) will always take priority
over performance of Commercial Terms and as such, any resources may be removed
from such Capital Projects if required to resolve an Incident or Problem without prior
notice to Post Office and Fujitsu Services will be relieved from any failure to meet its
obligations associated with delivering the Capital Project that arise specifically as a
result of such resources being removed from the Capital Project.
Upon receipt of a request for a Capital Project, Fujitsu Services shall, triage the
requirement in accordance with the CT process currently in place in order to
determine the required resource profile and availability of appropriately skilled
resources to be allocated to the project, taking into account current Service Incidents
and Problems and resource requirements for existing Capital Projects.
The Commercial Terms for the requested Capital Project will include the estimated
number of days which are intended to be delivered by the Development Capacity
Resource, and which additional resources will need to be funded (if any). For CTs
where no additional resources outside of the Development Capacity Resource are
required, the value of the CT will be shown as Zero. For CTs where some additional
resource is needed, the CT will provide an approximate, estimated split (expressed
as a resource break down) between the resources to be provided from the
Development Capacity Resource and other resources for the purposes of calculating
an estimate.
A monthly report will be provided detailing the number of days of Development
Capacity Resource capacity per grade that has been consumed by agreed fixes,
Commercial Terms or otherwise by Capital Projects to date but this will not be detailed
at an individual level or set out in timesheets. The parties shall agree appropriate
metrics to monitor, forecast and manage the utilisation of the Development Capacity
Resource and it shall be reviewed in an appropriate forum.
Schedule I2