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Ss
PWKPAD
Bringing Technology te Post Offices and Benefit Payments
VALUE ASSESSMENT MODEL
Author Michael Purchase Version: Issue 14
Authority Derek Seiwood Februar
Refere PWKPS.
Contents Page
THE VALLE FACTORS
HE VALUE ASSESSMENT PROCES:
4. THE DEMONSTRATOR VIEW
5. THE CONTRACT VIEW wa 4
6. THE PROGRAMME VIEW... Stee ves . . 4
ANNEX A+ VALL
“TOR WEIGHTING . . . se . 6
R SCORING GUIDELINES. ue ae %
ANNEX 0 - DEMONSTRATOR TOPICS ooo tocestreceneesseneeestte a ¥
ANNEX E. TOPECS
1 PURPOSE
il Mas paper sety out the lower levely of the value a
Programme will arrive at an overall assessment
2 i man-thre:
ews. The Pro
e assessment
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2. THE VALUE FACTORS
24
the Value Fas
viders were informed of ¢
Factors are
22 The paper ‘ far to Se¢leotioy
proce for the evaluation and
Mem vation) and Stage 4 (Fy
An extract from PWKP4-5 js
nificance of 1
“
ne Value Factors.
THE VALUE ASSESSMENT PROCESS
3a nents of service provid
t below
Programme View
— Ss
I Demonstrator V
ARG
~ POCL Infrastructure Strand
LL POCL Applications Strand
i Implementation Strand
b End to End Strand
lw Seourity Review Strand
Figure 1 « Consolidating a Programme View
4 comunon theme ub
shout is the need to identify the kes differentia:
Supporting evidence that should brought to the arent
These differentiator will then be co:
evaluation in reaching a selection
ron of the Evaluation
end result oft
SSessmment pro mould be a set of Valk
@ Programme
me of the performance ¢
reflecting the ¢
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ae
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srovider Specific scores from the Demonstrator and Contract
extreme (better or worse) than the overali a view
hgh in the final repc the Evaluation Board. T
te flag the existence of fentiators whic
evidence, In excepdonal circumstances a Value Factor may have two se
for F example. a prepe fe
fi
cht he more
ent characteristi &
be
d the interpretation of su
rovided at Annes ©. This cover
icating an ordinary prog
4. THE DEMONSTRATOR VIEW
ai. The Demonstrator is
f the propose
* Infrastructure
. POCL Applications
* Implementation
. End to End
* Security
42 Tn order to ensreks the value assessment and
Dersonstrator view, each strand t Conitieg i “topics”
bange of its vemit. These topics broadly break inte MAIN areas ©
i und are deseribed in Annex D,
4.5 ‘The Demonstrator team has identifie
and the Value Factors Gnatrix pr
Value Factors are covered appropriately by the Dens
is not exch chat any strand
alue
SAr On The perf
Ly Conn:
4d,
ed rationale, Based on the Value Pactor / + .
ights previously agreed by the Demonsnator team, these s:
¢ at: initial Demonstre ator view for each Value F
The Demaonstrater kam then
he scores and agree the overall
sment for each Value Factor for each service provider. The im
kev pol & from the de > thal
g agrees the
ed work of each strand,
5 ean be more fully documer
after the raugenny
oun
ag In producing the Vai
uc Factor ‘ toples matrix, the tear y
Method of Payment” Value Factor cons
poted f that the
ers only the potent
7 Febr rary 1996 Page 3 of 17
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3
benefit payments, a
wansactions. To ac
POCL
-Free
Strands
Paud-free
fon pave 7)
will assess whether each provider scor
3A, If they do. then an overall assessment s
he variations for BA and POCT. bre
differentiy fo
re lor factor 3 wy
ght out in sensitivis
&
PHE CONTRACT VIEW
mains
AS ouch there
The ost metnbe
the service pro
i set of detailed topi
the Demonstrato or.
T a3 a group will assess “each a
Sin the definitions (Annex A, as amplified in Annex Byas
ANS
apr ompt t
ers of the
vient forms to record
ONT wil use standard ags.
nae Prot te f meeun,
Wes OF me b supporting r
cet te agree their ssment for ¢
fany advans
ner
As the quality of the
lence to personal px
nt of thelr assessment for e
by indicating where dh
st the Demensirator view
as the
disey
fue Factor
ee CNT
Prooranim,
have a strong view or othervave to set
THE PROGRAMME VIEW
Programme view will be reached throz
represeniatives and key Programme staff, Z x
the CNT and Demonstrai MENS an ce acombined assessment,
When consolidating assessments y up into Derconst
4 Programme view, the principle is that scores wi
issue. dd advanta S each solution anc
mathematical process of weighted averages
sible to identify i
ator and CNT view
i be agreed om the b.
© supporting evidence. A.
1 not necessai
Where a mix of good oe
isshes have the i
¢ the appre)
5
an
ance 28 2 mathematical a
in the sad His the x
» have most significance. The
ine issues are, and when combined using the ZOks agreed by
irement Board provide an overall picture of the relative positioning o
7 February 1996 - Page 4 of 17
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ANNEX A> VALUE FACTORS
Faetor {
Desert ripti ion
the s
wen enswe cs
sing t0 be paid ai
er’s services need 1 be Po:
: forexample by being ea
pportive of their job functions.
The measures py
posed 1 make the ser
maintain that freud free Jevel.
I rovider’s des <
a sation need to ensun
I dolive ered to time and quality,
¢ BA and POCL require:
det s desion, development. acceptance & and Hy
implememation services need to be credibl
anagement interfaces and capabi
: “and delfveri ng the start-up of the services
thods, resources
rvices will be
Ox Im
© be pro-acie
ni do” artinde
change-orient
: demonsiste & genuine
I He should generate cre: aad understar d how to apply
technology profitably building upon ig Iniual services, complementing
I rather than competing with POCL‘s core competencies.
I He should d seek © do
services need the abllity to n want to
Te range of existing and poter
: thereby maximising value for money and faster delivery
_ and services,
PEM provider management needs to be competent, custorner
Capab focused, accoumable, with evidence of
intemal con:
7 extemal focus. Suitable quality proc
sources MUSt have skills
lems, w
iEback Proce ei eustor:
in the event of system failure. He should regard his first psiorine
waintaining continuity of 9 ¢ rather than referring te the
the evento funforeseen problems.
The prime service provider and Ws associaied cous
and/or main subcontractors need to have a stabi
Ate) provide oe services, The ne member organi tions should £
' hh those needed to de!
The pre Service pro et should show
_fead such « group of organisations to deliver sin ilar
aiticipate and prevent prod
am members
wonship fron
alance cach
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ANNEN B - VALUE FACTOR WEIGHTING
The following text is repraduc
vigdting
aumbers removed)
While the relath ed 4
purchascr and provider, the sponsors have nrutual aims expressed }
objectives
i a fraud-free method of paying benefits at post o
lower end-to-end costs than the current paper-based process.
ducing overad administration costs year on vear.
i extending automation te POCL’s other chent ear
IIE g
ort processes to improve competitiveness, inc
bie greater commercial opportunities for POCL:
i Full and speedy reconeifiation of benefies payments. with accounting
ngements consistent with recog
for the value factors reco;
underlying contexts for each spon
need to contain and reduce costs and remove
need (6 maintain and develop its business. That the ove spe
i fe surprise. However, the
v that there are mutual interests for each of the value fick
Samuaris view of th providers wi
os and weights hject to the understanding that the evaluation will bring
P the Evaluation Board specific matters not appa
fupported by ser
va smgle set of valu
at the
mand app
The following
show ch
rele
relevance to the sponsors,
Characteristics Value Factors
In setting the weigh mracteristics, the fallovd
1a) Customer Acceptability is important to POCL in maintai
its Susiness. This is also important to BA ty ure that
groups SING ( Neccive benefit payments av post offices find
Systems and services acceptable. and in particular that transaction
ROPE tO he minimum.
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PWKP A. 12
ib) Staff / Agent Acceptability
the systems must support thems effectiv
hieved
ves arg to
y HP the progran
objec
POCL as it determines the ability of the serci
ider to provide appropriate JT nets tO Support POCL's future business
ight BA may have less int in Innovation, lucreases in
T inthastrucrure provided by the service provider
isaction costs to BA. In addition ie
meet BA's fraud-free requ
provider will need to continue evolve
ould spread and
inital solution wi
servic
position
a
oy
(a) Flexibility is important «© BA and POCL as the service comract veil
for a nurnber vears and the service provider (and his solunion) mus: react to
expected and unexpected changes tw ensure the delivered service
meet the sponsors’ requiremey
operate
tems are m:
Viability Value Factors
In sett
the weights for i
considerations were taken into account:
factors under Viabiliry. the following
(a) Frand-Free Method of Payment is important to BA, both to contain cost:
avoiding aud) and t show that the new card method of payment
fraud vesistant than the current use of order books This value facia
ty important to POCL: the nes i vetit will transfer some risks
CL. and a fraud-five process imse POCL*s liability:
ystems will enhar with
(hb) Credibiliey of Delivery is important as thi
factor encompasses many
t .
cal viabillt 8 Of the core services
{c) Start-up: the successfif rolleour and Mart-up of the services is impor
3s the period of maximum change and risk
id} Management € pabillty is
fly through capable manag
brought into real
¢ the furure is
S StL out in the contract
‘portant beca
ement that the ain
Wain an
Stability / Coherence: the ability of the service provi:
te work as team is important yw the success of the services.
7 February 1906
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ANNEX C- VAL
FACTOR SCORING GUIDELINES
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I Unacceptable
i
i
:
be
Servi ce
ROaNE Cork
ders proposal is viable bu
probably has some
lt
sestion the likeli of the
der meeting all the
I outstanding issues. but these are 1
and/or crnenageabie
8 I Very Good
ically sound solution and ¢
Hferendators.
“Ountanding
elatively manor
The
The
Purpose ¢
s that
suppli
SO
tthe final decision, as well as 4
ial scoring of performa ane;
different
cae the overall
st the above guidelines
between,
iMors between
Suppliers,
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CONTRACTS
anne,
espective Di
ollates summaries for the main topic area:
onstrator Strand leaders for:
. Benefit Pavers Service (BPS)
* POCL Infrasucture
« POCL Applications
. Implementation and Management
. End to End
* Security
BENEFIT PAYMENT SERVICE (BPS) STRAND
Tepic _. I _ Deseription.
Card Characteristics De Card design
Card per:
* Validation of ID
to Smart card
Migration
» Card prod:
Card issue
f+ Card got available when ben
= Vs Alf encashment wpes
due
* Availability of information
+ Rate of benefix in doubt
« Urgent payments and tem
Recei
iregu
iY SHOASE unent ‘patierns
Card suspension / Mon oring
Audit tails and management information
¢ Yellow pages
Failure of the service
Sensitive records i
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TRICTED CONTRACTS
POE INFRASTRUCTURE STRA AD
din post offices, the nwt
central
technical servx
System manage:
Description
i cal hardware pry “
Including counter terminal eripherals, 8,
I network equipment. servers and back office
machines.
ng middleware
I software is run in po both
I operating sy: seers, seen
The central Tamer Ma ate agen
‘a “he switch
Structure
i bility “that the:
I whole.
em Managen Agere
uration: management, sortware
vt nloadine and the integration of management of
fi the different aspects of the Infr:
Seppedt Services
ed to support the InBastmucture,
ding help desk for POCL users, &
PPC
' counter stat with varying abil Bites in undertaking
I business flmetions, taking account
ad software. This is based on 4 specific sturdy of
i HCI aspects for the Programme
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POCL APPLICATIONS STRAND
The POCL
Jt includes:
Appilcations strand covers the application layer runt
. EPOS front-end funeti
. back-end ¢
* Automated
For the De front-end EPOS and ba
Hence to)
nonstrator the
collectively as EPO
below
pes
cé EPOS and A a farther
Elecwonic Point of Sale (EPOS)
Topic
WSACLON YI
yang
>bust applicat
4. Imroduction of
could be introduced, or exi
be re-engineered.
ald
ing products co
, The degree to which transaction processing
I provides the advantages of flexibility and
I fature-proofing by the POCL five
I generic functions.
Jeneric approac
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RICH
p
R
CHS service should provide
provide an i
whine readabt:
ws and an clecs
eric inepayment wansacti
ch service provider's soluti
The degree ofr
‘The ease and eff
achieved
ase and the sp huch nese che
I can be in oduced to the service
i
nes products. I The ease and speed v
pill could be introduced to the
/ Operational service
quirements and including
Description
appropriaté and z
i aud}
HEVant
ence to achiey
enable POCL’s
standards in kes
This
opment ‘and delivery of te aining ak
Y state. The targ e will include u
I managers, trainers. auditors and I cenain RoU-User grow
© g. retail network managers i
account teams in business centres
uring roll
al helpl
sion of comp:
be completing bus
88 Wansactions,
* compieting transaction support sers
* covering emergency procedures (e.g
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Xecution of sie survey, site preparation, Gels
( installation acoeptance of otk fee platform 1
the POCL network during initial roll-out and thereater H
taking POCL s evolving network sir:
without degradation to Post Office and retail
perations. T out timescales,
geographical / office selection and Card roll-out
j
anagement I Provision of
I» Operational Services, @.g. honrs of cover. availabil
resilience;
'+ Support Services, e.g logging
gnosis and resolution, and mainienance of
equipment;
I Development and implementatio
E ducation _ education plan w build understand!
I comminnent of all benefit recipients t
b and timely implementation and
rocesses and systems needed to auzomate the benefit
I payments in post offices
[Operational Trial The pl
i undertake the Ope rational es
(Note: the precise scope and requirements of the
I Operational F Triad are snl b
END TOEND SERVICE STRAND
‘Topic ; Deseription
gn Assurance - _ An assessment of the service provider” sproach ar
}
i
Technical and Business I ability to design an overall solution wh
I fimctionally and technically cons
_ requirements, covering:
Ov verall Desi
eat wih busine
2 (overall approach te design
gn n objectives, design assumptio
rity and
i ling e evidence 10 su upport assumptions’,
2. Technical Architecture
24
Scalability
i 22. Resilience/availabi
' 2.3. Fall back and recovery
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Financtal
Reconciliauen &
Setdement
ne
j
I 2. Implications for sumy
Integration of service components (1
ability to separate components ¢ 2.
ncilation noe how settlement with
ported. Covering
Transaction reconciliation / tani ng
Financial reconciliation / timd
21
ty to provide common data to BA and
POCL
2. Providing support for data for I
BA clients
te
3
he
3. Providing data for supp
non-BA clients
2.4, Reconciliation exception handlin
An assessment of each Serv
' develop counter transactions which mil;
Himes, Includi
m exercise being
estimates
luding CAPS)
al Interfaces
I ananonal OBCS. covering they
vice provider
d external interfaces,
ectronic Interfaces. Cover
yah and
Dilizy to dev hop the
specifically foc
anc TIP? (Note requirements for T!
end January)
Do Be y Dave the © abby ww he fle:
3 to the data
imertace ?
3. Constraints ¢
the physical asy
. Can they deal with the volume of data to be
transmitted in the
ifitas a trmasitio onal avy
$ responsible tor assessinent}
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_ ; _Description I
An assessment of each service provider's al
PPOR management Information requir
rol out and daring
phe Lity of approach
i 2, Proposals on storage
separately transaction data from event
stem information).
SECURITY SPRAND
the BPS Security Rey
nS, processes and proc
seounting data. The review is form:
p-level) top
are as follows:
* Contingency
. Interfaces
. Service Development
* Service Transfer
. Fraud and Risk Management dmplementation;
Risk Manavement (Steady §
@
©
S,
ey
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ANNEX E - TOPICS VS. VALUE FACTORS MATRIX
re appro ODE
tor strands. Each strand may contribute to a v
essments Yor each Value Factor,
the Demonsts
stands”
tufts Seas
i
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tion & settlem't
Yrs
ransaction fi
OBCS
acteristics
ard Producnon & personalsation