POL00398086
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Post Office
SISD Contract
Handbook
Version 0.20
January 2014
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Disclaimer
This document is for Post Office use only, and should not be redistributed internally or externally without the
written permission of the Post Office IT Procurement Team.
This handbook is intended as a summary of selected material contained within the SISD contract. It is designed
to be used in conjunction with the Post Office ways of working as a reference guide for those involved in
managing the delivery of the Service Integration and Service Desk Services. This document is not intended to
replace, supplement or supersede any part of the contract and in all instances the contract shall have priority
over this document.
Users of the handbook should seek legal assistance at the earliest opportunity should any issues arise regarding
the interpretation of the contract and in relation to any proposal to amend the contract.
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Foreword
This Service Integration and Service Desk Contract Handbook provides
an overview of the key elements of the contract and is designed to be
used in conjunction with Post Office ways of working as a reference
guide for those involved in managing the delivery of the Service
Integration and Service Desk Services.
Whilst a handbook cannot replace the contract, attempting to manage a
complicated portfolio of services directly from the contract often proves
to be impractical and ineffective.
Therefore to manage these services effectively requires that the key
service information within a contract can be made available to users.
This handbook should be read in conjunction with the original
agreement. If in doubt seek assistance from Post Office IT Procurement
Team or for specific guidance on interpretation see Post Office internal
Legal.
The intention of producing this handbook is to provide a reference tool
enabling Post Office to quickly and more fully obtain the operational and
commercial benefits from the newly negotiated contract.
Usage of these handbooks has enabled other organisations to
experience a step change in their ability to deliver high-quality services to
their business users.
Topics
v The Services that the Supplier provides to Post Office.
v¥ The terms under which these services are provided.
v¥ The financial and commercial arrangements under which the services will be provided,
including value for money commitments.
v The service management controls and service level arrangements in operation between the
Supplier and Post Office.
v The change categories and processes.
vy The key governance frameworks (and interactions) between Post Office and the Supplier.
v¥ _ The timescales in which the Supplier will implement and deliver the new capabilities and
process changes.
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Table of Contents
1 Introduction
1.1 Navigating The Handbook 9
Provides a brief overview of the structure of the handbook
1.2. Stakeholder Map
10
Describing the stakeholders who are expected to find the handbook
useful and introduces stakeholder groupings.
1.3. Handbook Sections for Stakeholder
1 Groups
Maps out which sections of the handbook are of interest to the
various stakeholder groups identified
2 Contract Structure
2.1 Contract Structure
17
Sets out the structure of the new contract and its associated
schedules.
2.2 Stakeholders and Contract Structure
18
Sets out the sections of the Contract that different stakeholders
groups Fanbareesunerestehinercial
3.1 Section Contents
23
Sets out the structure of the finance and commercial section.
3.2 Finance and Commercial Summary
24
Summarises the content contained within the finance and
commercial section of the handbook.
3.3 Commercial Framework 25
Covers selected terms and conditions from the agreement that are
important to the operation of the contract.
3.4 Financial Management
31
‘Summarises the key financial management concepts including the
charges, payment mechanisms and invoicing
3.5 Value for Money
35
Summarises the processes that exist within the contract for
supporting the delivery of value for money from the services.
3.6 Operating the Financial Model
36
‘Summarises the contents of the Financial Model, how it should
operate and how it can be amended.
BS How Finance and Commercial Change
Ost 37 Over The Term
® 7
= how the financial and commercial aspects of the
‘agreement change over time.
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4 The Services
4.1 Section Contents
a
Sets out the structure of the services section.
4.2 The Services Summary
42
Summarises the services and the key information
relating to the services outlined in the contract.
4.3 The Structure Of The Services
43
Lists the Tier 2 services under each tier 1 category
4.4 How Services Change Over The Term
5 Rerformance Management
jummarises the mechanisms through which the Services can
9
Sets out the performance management section structure
5.2 Performance Management Summary
50
‘Summarises the content contained within the performance
management section with the key principles, outputs supporting
management information, and processes.
5.3 Service Levels and Credits 51
‘Summarises the services and key information relating to the Service
Levels and credit regime. Introducing component and shared Service
Levels.
5.4 Sl Component Service Levels and
53
KPIs
Summarises the component Service Levels and KPIs for Service
Integration within the contract at execution.
5.5 SD Component Service Levels
54
‘Summarises the component Service Levels for Service Desk
within the contract at execution.
5.6 Shared Service Levels 55
Summarises the shared Service Levels within the contract at
execution
5.7 Service Credit Calculations
56
Provides an overview of how the service credits are calculated and
operate.
5.8 How Performance Management
58
Changes Over The Term
‘Summarises the mechanisms and triggers fpr change it
performance management. ‘or Intetnal
nfidence
Ise Only
6 Change Control
6.1 Section Contents 63
Sets out the structure of the change control section. It highlights that
this section is limited to discussion of the change control of
SISD services ie. it excludes the wider change management
that the SISD services themselves support
6.2 Change Control Summary 64
An overview of the types of change processes, principles and service
documentation that support change.
6.3 Standard Change Procedure 65
Description of the standard change process and key steps to agree
changes to the SISD services.
6.4 Other Change Procedures 66
How other types of change, including ‘Fast-Track’ and ‘Emergency
Change’ are managed
6.5 Project Work Order Process 67
How the project work order process operates.
6.6 How Change Control Changes 68
Over The Term
‘Summarises how the ‘Change Control processes’ change over time.
7 Governance
7.1 Section Contents
71
Sets out the structure of the governance section.
7.2 Governance Summary
72
The guiding principles from which the governance processes
and forums have been derived and the key meetings conducted and
management information and outputs that are produced.
7.3 The Supplier Account Team
74
The key roles that are responsible for managing and delivering the
contract and the Post Office rights over them.
7.4 The Supplier Performance Review
75
Sets out the ongoing performance management activities
such as meetings and reporting used.
7.5 Issue and Dispute Management
76
Overview of the provisions that apply in the event of a Dispute or
issue between parties.
Fest How Governance Changes Over The
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8
8.1 Section Contents
81
Sets out the structure of the section.
8.2 Other Key principles
82
Sets out other key principles underpinning the contract.
8.3 Cooperation and Collaboration.
83
Sets out the requirements around positive working across the supply
chain.
8.4 Business Continuity
84
& Disaster Recovery
The obligations and the details of reporting required on the internal
business continuity and the disaster recovery testing undertaken on
the services.
g5 Boyer and Confidentiality
Sihline Appel naix .Cententsn, the Supplier and Post Ake
fRavidrasRiarind daeiesied iocnferonattpther sections of the
Handbook and a glossary of terms.
A.lmplementation details
B.Supply Chain Model
C.Post Office Approval / Agreement Required & Incident Severity
D.Glossary
E.Handbook Version Control
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Introduction
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This section contains guidance
to users on how to navigate the
different sections of the
handbook.
The individual sections of the
handbook are set out in a
consistent and structured manner
for ease of navigation of the
content.
Understanding the structure that
has been used will enable the user
to more quickly identify the
relevant elements of a section.
Guidance has been provided on
which sections of the handbook
may be of interest described in
terms of stakeholder groups their
interests and potential queries
arising from likely events.
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1.1. Navigating the Handbook
Handbook Overview
The handbook is divided into 9 sections (1 to 9), with this section (1) being an introduction to the content, and section 9 being the appendix.
The detailed content is contained in sections 2 to 8, and this covers key information associated with the management and operation of the services
provided by the Supplier and the associated terms and conditions.
For Version Control of the Handbook see Appendix E. The content in this version of the handbook reflects the contract as at the signing date of
26" September 2013. Changes to the contractual terms that may have been agreed subsequent to this date are not included but can be obtained
from the Post Office IT procurement team.
Section Structure
Each section of the handbook has a contents page that sets out the topics covered within the section and a summary page which describes the
documentation, principles and other key concepts relating to the topics described including, where applicable, outputs and management
information reports.
Following the introduction to the section, there are process pages that set out in more detail the process steps and supporting concepts that relate
to the content being covered. The structure of each of the process pages varies according to the exact detail being described, however a general
format for these pages has been followed as set out below.
Contract Reference
Reference to the contract
clause or schedule and
paragraph to which the page
relates.
Overview
At the start of each section,
this provides an overview of
the topic and the objective of
the processes being covered I
within the section. I “
oy Tat
1.1. Contract Handbook Content —I
Key Points
‘ey points boxes capture the
most important elements of
the topic in a highly
summarised format.
Body Text
The body text on each page
describes the topic being
covered in more detail.
Call Out Topic Boxes
Specific key concepts or
supporting information is
captured within call out boxes.
Tables I)
The tables provide selecte
~~ information and metrics from
the contract which are key to
the operation of the
services.
Diagrams 1
The diagrams provide a
visual representation of key
processes or concepts
° within the contract.
[-
I
I
Obligations Call Out Box
Particularly notable
obligations for Post Office or — I
Supplier described within call
cout boxes.
Implementation
The content within the handbook mostly focuses on the Future Mode of Operation (FMO - see A.1.1 fora description of FMO) and assumes that
no material changes will occur to the agreed services and mechanisms during the delivery of the implementation projects to establish the services.
Changes to scope that may be agreed during implementation or thereafter are not reflected within this document. Where applicable, a brief
‘summary is provided at the end of sections describing how the key capabilities and processes described in the section are expected to change
over the term of the contract. These sections describe the mechanisms through which change may occur.
Interpretation and Terminology
References to Clauses, Schedules and Paragraphs are references to the contractual agreement. Unless expressly stated otherwise references to
sections, appendixes or section numbers, tables and figures without schedule prefixes refer to content within this handbook
Users of the handbook should seek legal assistance at the earliest opportunity should any issues arise regarding the interpretation of the contract
and at the appropriate point in relation to any proposal to amend the contract.
Terminology and defined terms used throughout the handbook are aligned with that in the agreement with the notable exception for readability of
Pejagdbook’s use of “Supplier"to refer to ATOS IT Services UK Limited rather than ‘Contractor’ as used in the agreement
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1.2 Stakeholder Map
Stakeholders interested in the
handbook
The stakeholders interested in the SISD contract and for
whom the handbook has been prepared are depicted
and have been grouped as in Figure 1.2
There may be other stakeholders interested in the SISD
contract (e.g. Tower Suppliers or Potential future SISD
suppliers). These groups could also consider why they f
need this document and use the following pages to i
guide them to the section they require. ‘
The handbook and PO ways of working
This handbook provides an overview of the key elements
of the contract and interactions with the SISD as a
reference guide for those involved in managing the
delivery of the Service Integration and Service Desk f
\, Organisation
Se 4s .
pelvic Managemen: H {POL Contract Management :
2 fo fa)
_ ; ‘ pts
se , op POLHR
es me
fe) Yay Pol}
ra Legal}
. To 3s ;
‘Stakeholders
h < > J Project Managers
services. Many of the mechanisms and interactions : .
described should be used or undertaken by authorised I ‘Oy. a
personnel only, thus itis important to also consult the ‘ “, cto
Post Office ways of working. . hos ‘Oporaanisation
. - . Transition “Gy, 5,
Stakeholders’ interest in the handbook Team Ve sy
The identified stakeholders anticipated interest has been B&F :
described in Table 1.2 along with their allocation to
‘Change Management
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Figure Stakeholder Map for SISD Contract
POL Procurement
oe
cae :
POL Finance ,
stakeholder groups.
Table 1.2 Stakeholder interests
Stakeholder Interest Stakeholder Group
Interested in the entirety of the contract as they have day to day responsibilty for
POL Procurement and ensuring contract compliance, management of risk, relationship management with the Comercial
POL Contract Management Supplier, and alignment of new IT contracts with use of the SISD and Post Office's
target IT supply chain operating model.
Interested in the entirety of the contract as they hold responsibility for ensuring that
POL Legal Post Office is not legally exposed. Commercial
Focus is on the paris of the contract that have HR implications for Post Office
POLHR employees (Schedule 9.1). With a wider interest in Implementation dates and ongoing Commercial
responsibilities and obligation.
Interested in the parts of the contract that describe the scope of the services
, provided, the supporting processes and Performance Management as they will have
Service Management responsibility for ensuring that Post Office is receiving the SISD services to the Operation
agreed quality
Interested in the parts of the contract that describe the scope of the services provided Operation
CTO Organisation and the supporting processes and also parts detailing facilities for delivery of change
as they will have responsibility for facilitating and maintaining technology change. Project Delivery
Change Management Interested in the parts of the contract that describe the Change Control processes. Project Delivery
Project Managers
Interested in the description of Change and the resource augmentation service
provided by the Supplier and information from these processes that could inform their
business cases and budgets.
Project Delivery
POL Finance
Interested in the parts of the contract that describe the services and associated
charges to Post Office, the processes for charging and invoicing, the performance
metrics and financial penalties for failures and the potential financial consequences if
Post Office wished to terminate the contract.
Finance
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1.3 Handbook sections for Stakeholder
Groups
Handbook sections of interest to Stakeholder groups
*:30t- koréhose-dntereste din: Operations
igure 1.3.1 Handbook sections of interest to those in the Operational Stakeholder group
People focused on:
Operations Service Management
Should primarily be interested in:
parts of the handbook that describe the scope of the
services provided, governance and Performance
Management (as highlighted in pink below).
4 tntrouction 4 The services 5 change cont! omer key principles
14_Navgnng The Handbook 9 AA Section Contents a 81 Section Contents "
4.2. Stakeholder Map 10 2 2.2 otner Key principles 2
49. Thestrucure ofmeservices 2 ae ee
Unie Teed vreasinie echo I eee
44 How Sendces change Over The Tom 44 Standard change Procedure
84 Business Continuity By
E Disarter Recovery
64 over change Procedures 6
21 Contact stueture w
Work Order Process o
22. staal and conc shuctue 18 throes pre
6.6 How change Control changes os
2A Section Content
7 Governance
Kis
23. Commer Framevort 2%
24 Financial Management
1.7 MowFinance and Commercial change 37
1.8 How Governance changes OverThe 77
Term
What are the Supplier's obligations regarding Knowledge Transfer throughout the term? 3.3.5
Whatis the process when a service transitions between operational modes? 442
How do the authorised Post Office personnel change the current Service Levels? 5.8.3
What are the consequences of repeated service level failures? 5.7.1
How does an ICT or technical issue that has not been solved get escalated? 75
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1.3.2 Handbook sections for those interested
in Project Delivery
Handbook sections of interest to Stakeholder groups
Those within the Project Delivery stakeholder group are recommended to read the sections highlighted within the following figure:
ns of interest to those in the Project Delivery Stakeholder group
People focused on:
Project Delivery
Should primarily be interested i
parts of the handbook that describe the scope of the
services provided, and how changes are introduced (as
highlighted in pink below).
5 Pertormance Management $4 other change Procedures fers erne ee
and Contract Structure 18 Sresatan
5.2. Performance Management Summary 50 Honiton ver es occes opts rata
‘56 How Change Conte! Changes os
‘Over The Term
8 Appendix
8.1 Appendix - Contents ”
2A Section Contents a
7 Govemance
22 Finance and Commercial Summary 28
Esrmrrans be cone ortined wah be ane 54. SiComponentServiceLevels and 53
rman ocr oh hn KPte
23 Commercial Framework s Sere Lemisand MPs or
55 s0 component sevice Lev Es
2 Financial Management ”
5:7 Service credit calelations ‘6
3.7 HowFinance and Commercial change 37 rm
‘Over The Term restr ng ein 1.6 How Govemance changes OverThe 17
Example queries and where appropriate guidance can be foun:
See Sectio
How does the authorised Post Office personnel raise a Project Work Order? 65
How will Post Office be invoiced for a Project? 344
What are the key Supplier roles that authorised Post Office Personnel interact with? 7.3
How do Projects deliver if multiple providers are engaged? 83
What are the consequences of Post Office not meeting an obligation? 8.2
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1.3.3 Handbook sections for those interested
in Commercial matters
Handbook sections of interest to Stakeholder groups
Those within the Commercial stakeholder group are recommended to read the sections highlighted within the following figure:
/ Stakeholder group
People focused on:
Commercial matters
Should primarily be interested in:
parts of the handbook that describe the commercial
framework, performance management and key
mechanisms within the contract (as highlighted in pink
below).
4 Introduction 4 The services 5 change cont! omer key principles
414 Navigating The Handbook .
44 Section Contents a os
Section Contents e
21 Section Contents "
12, Stakeholder tap 0
42° The Services Summary a
2.2 other Key principles 2
62. change contr! Summary “ copesiet ei cseaoaics
44 Handbook Sections for Stakeholder 11.43. ‘ThestructureofTheSevicer 43 dnowctend've spestctae peas owcpesmnd oe teemcemmeratn
SSR as ewswnces cures orerTotom 24 betes Contay *
Eeroume aero & Disaster Recovery
64 over change Procedures 6
2A Contract structure 17 Petfotmance tanogemeat
‘Saute erin tte eecoeeterdR 0S 5.4 geetlon Contents
25 (PR, Dats and Confdentiaity 88
£8 I Project Work order Process §7 Gresvotmse te a in cota)
5.2. Performance Management Summary 50
deoerciouhncly weameaue os
How change Control Changes 85 ypenae
84 Appendix - Contents ”
5.3 Service Levels and credits a
24 Section Contents a
7 Governance
2.2 Finance and Commercial Summary 28
ascent satan vb t rae d 54. SlComponentServiceLovele and 53
‘cermetsa esis me kts
ZA Section Contents n
12. Governance sur
The dea gone tun cb grace ote
< Sitrarspecn toss ot ones ae peace
23 Commercial Framework 2s
55 SD Component Service Levels
tain becom steoton 13. The Supplier Account Team. ™
‘eames aot men rhe be ts
ated Service Levels
TA The Suppller Performance Review 75
“See st me ongnnaptmance mangement tne
5:1 Service Credit caleslations * Scene nay pons
2.8 Operating the Financial Mode 26 Ponce aeterthonte cent ons
menarcial Change 37
5.8 MowPertormance Management 58
‘Changes over
ee fr nage tn
1.8 How Governance changes OverThe 17
Term
Example queries and where appropriate guidance can be foun
See Sectio
Are there services that the SISD has exclusivity for?
3.3.14
How often can Post Office Audit the Supplier’s compliance with its responsibilities?
3.3.3
When and how can Post Office start benchmarking of the services? 3.5
What Governance Boards review and approve changes to the contract? 72
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1.3.4 Handbook sections for those interested
in Financial matters
Handbook sections of interest to Stakeholder groups
Those within the Finance stakeholder group are recommended to read the sections highlighted within the following figure:
4 Handbook sections of interest to those in the
Figure 1
/ Stakeholder group
People focused on:
Financial matters
Should primarily be interested i
parts of the handbook that describe the financial
mechanisms and performance management (as
highlighted in pink below).
4 Introduction 4 The services 5 change cont! omer key principtes
14 Navigating The Handbook 9 44 Section Contents a 6 Section Contents 634 Section Contents "
12, stakeotder sap 1042 Theserces Summary 2 sr eeeeecra 2 oteypncpoe 2
" 6.2 Change Control Summary. 4 3 Coy jon and Collaboration
42° Handbook Sections for Stakeholder 11.4.3. The Structure Of The Services nowniene be yperetcange presses pcos ant Ea coppernlon and Gokaporsion I 3
Groups Liss the Ter 2 seraces under each ber 1 category ‘sence documentation fat support change ‘sino cha. °
STN 4 seweserdcos change Over Te Tem 44 re 4 Business continity “
5 Performance Management 64 Other Change Procedures fawecnees meee
24 Contract Structure w " Hon cher pes of change, relating Fat Track’ arc rseronnn one concen
Rea TIerESETW 54 Secdon Contes * Seed ae sonar 2s wr-owtaandcontsentaity as
Siecee Sarmiento ee rte 64 Wow change Conte changes 8
rirwproet snot ae ey pcs 8 Appendix
2. Fame and Commer [See TR ce $4. Aopen contents »
‘5.3 Service Levels and Credits ” -— mee eee deced matin spt coher sections he
ho tianearomast 23 surmanses sco and ey informatnn relating to te
rete rang corecrer it :
22 Finance and Commercial Summary 28
‘Sewanee cant orate na oe 54. SiComponentServiceLevels and 53
Seorecuetinatte no KPte
23 Commercial Framework Es
‘evecare ert ems 55 socomponeatsevietons st
2A Financial Management Ey
‘ecm pewrereaaenre se rs 58 Shared Service Levels 3s
levee SSS a Beer 14 The Supple Peformance Review
Scinuncessemnan (gS uerkneinus = “yaaa wera tor ret =n
34 Operating theFinanclal Mode) 48_Paees novenathonie ane cee oe ase
Seocemety meee eaea tert omal "CEPR Dipite Management 76
eres Si Vee iseomecslimepenee <u Seman nee et Det
27 How Fiance a Commercial Change 27 ‘changes Over The Term
Over The Term esses 14 Mow Governance Changes Over The 77
Example queries and where appropriate guidance can be foun!
How do the 80/20 charges for Completion Payments work? 3.4.3
Whatis the process for Supplier invoice delivery to Post Office? 3.4.4
How is the Financial Model constructed and how might it be changed? 3.6
What can the authorised Post Office personnel do if there is a variance in invoices? 3.6
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Contract Structure
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This section provides an
overview of the contract
structure and its component
parts. It should be read by all
users who want to gain an
insight into the topics covered in
the new contract.
The SISD agreement was originally
based upon the OGC Model
contract and has been refined
throughout the procurement
process.
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2.1. Contract Structure
Overview
On 26" September 2013 Post Office Limited ("POL" or “Post Office”) and
ATOS IT Services UK Limited (“Supplier”) entered into an agreement for the
‘supply of Service Integration and Service Desk (“SISD") services. An initial
term of 4 years from that date with two potential extensions of one year ie.
4+1+1, was agreed.
This followed the completion of an OJEU Competitive Dialogue Procedure to
appoint the SISD provider during which the SISD contract, originally based
upon the OGC model contract, was developed and refined.
The agreement and establishing an SISD role is a key part of the wider
transformation of Post Office's IT Supply Chain (see Appendix B).
The agreement, depicted in Figure 2.1, is constituted of the Main Terms and
Conditions, and schedules further describing various aspects.
Figure 2.1 Contract Structure’ @
Main Terms and Conditions - 78 x Clauses
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Key Points
= In the event of conflicts the following descending order of
precedence applies:
Main Terms and Conditions (i.e. Clauses) and Definitions;
Schedules 2.1. Services and 2.2 Service Levels;
Any other Schedules and their Annexes (except 4.1);
Schedule 4.1 (Clause 15.8 says itis baseline narrative
only, & assumptions not in Schedule 3 have no effect)
also 4.1 Part B takes precedence over 4.1 Part C; then
Any other document referred to in the Agreement or
attached to the Agreement.
(POL and SCM
(Insurance Requirements) Responsibilities)
Schedule 1 Schedule 2.1 ( seni te Schedule 15
(Definitions) (Service Requirements) S (EU Model Clauses)
Schedule 2.3 ‘Schedule 2.5 Schedule 7.1 ‘co Scheawe 2 sitive
(Standards) (Security Management) (Charges and Invoicing) wom ra
Schedule 2.6 Schedule 3 Schedule 7.2
(Subcontractor
(Payments on Termination)
Schedule 5.1 & 5.2
(Contractor Solution) (Testing Procedure)
Schedule 8.2 Schedule 8.4 Schedule 7.3 Stns 8 IPR ond
(Change Control Procedure) (Records Provision) (Value For Money) (Software & an
Licence Terms)
Schedule 8.6 Schedule 8.3
Schedule 9.3 Schedule 7.4
(Business Continuity and ' : (Dispute Resolution
Disaster Recovery Plan) (Key Personnel) Gnande) Sait) Procedure)
Schedule 12 Schedule 7.5
(Project Work Order Schedule 14 (Common (Financial Model and User schedule 8.5
Process) Assumptions) Sue) (Exit Management)
hedule 11
Schedule 8.1 Josure Agreement)
Schedule 10 (Inventory of Data Room Documents)
Schedule 13 (Control Documents)
Schedule 6.1 (Implement
Schedule 4.1 Schedule 6.2 Schedule 16 (Workforce Schedule 9.1
Assumptions) Staff Transfer)
Service Commercial I Commercial II Transition I * Note: Schedule
Operations Operations Framework 2.4'is not used.
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2.2 Stakeholders and the Contract Structure
2.2.1 Overview
Overview
Contract References
As previously described in Table 1.2, Post Office stakeholder groups
have different areas of interest and many will focus on more than one Throughout the Handbook,
area of the SISD contract, which is shown in Figure 2.2.1 below. references are given to the
contract clause or schedule
and paragraph to which the
page relates.
Main Terms and Conditions - 78 x Clauses
Schedule 2.1 Schedule 2.2 Schedule 15
(Dettions) (Service (Service Levels (EU Model
Requirements) Service Credits) Clauses)
‘Schedule 7.1
Schedule 2.3] I/ ) Schedule 2.5 Schedule 4.2
(Standards)I I= (Security (Charges (Commercially
\/ Management) and invoicing) )Sensitive Information)
wal
Schedule 2.6 ey \ Schedule 3 Schedule 7.2
(InsuranceI I” “.) (POL and SCM (Payments Schedule 4.3
Requirements)I I \/) Responsibilities) on Termination) (Subcontractors)
Schedule 8.2 Schedule 8.4 > Schedule 5.1 85.2
Schedule 7.3
(Change (Records (Vaue For cule 73} I ) — (Software & IPR, and
Control Procedure) Provision) Licence Terms)
OD Schedule 8.6] I) s ¢ Schedule 8.3
Ce Cont andl (ND ‘chedule 9.3 Schedule 7.4 )
I_/ “(Business Cont. and} I_/ \) (Dispute Resolution
[\/) Disaster Recovery)I [\/) (Key Personnel) (Financial Stabilty) =) Procedure)
KC Z
\ Schedule 12 Schedule 14 Schedule 7.5
(/\) (Project Work Order (Common (Financial Model (Ext ne ser cn
e < ) Process) Assumptions) and User Guide) 9
KOC 55
Schedule 8.1 I Schedule 11
(Governance) lr Kon “Aisclosure Agreement)
KZ
Schedule 10 (inventory of Data Room Documents)
Schedule 13 (Control Documents)
Schedule 6.1 (Implementation)
Schedule 4.1 Schedule 6.2 Schedule 15
(ContractorI (Testing (Workforce ( Sant taeste)
Solution) Procedure) Assumptions)
To the left is an outline version of the stakeholder map, shown in Figure
1.2. This has been used above to show the stakeholder groups that are
interested in each area of the contract.
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2.2.2 Contract Structure
Listed in the table below, along with descriptions, is the contract structure including additional annexe’s not shown on Figure 2.1.
Table 2.
Document or Sched
Main Terms and Conditions
Detailed Contract Structure Listing
Description and Notes
Outlines the key Terms and Conditions of the SISD agreement. Sets out the clauses.
1. Definitions
Defines the contractual terms used throughout the agreement.
2.1. Service Definitions
Defines contractual terms used only in Section 2.1.
2.1. Service Requirements
Sets out the key objectives of Post Office's IT Supply Chain Operating Model and the Service
Requirements for the SISD.
2.1. Annex A SCM matrix
Matrix describing the relationship between the Sl and other Supply Chain Members.
2.2. Service Levels
Part A (Service Level Management) — general principles applicable to performance.
Annex to Part A (Service Levels Tables) — descriptions and definitions of the Service Levels.
Part B (Performance Management System) — obligations for managing Services.
Part C (Service Credit Regime) — Service Points that will apply and Service Credits payable.
2.2 Service Level Table Annex A
Descriptions and definitions of the Service Levels e.g. details of categorisation as KP!, commencement,
expected service levels, measurement periods _and calculation methods.
2.3 Standards
The Standards which the Supplier is required to comply with in delivering the Services.
2.5 Security Requirements
The security requirements relating to the suppliers contractual obligations.
2.5 Annex A
Supplier's Security Management Plan. This is now a controlled document.
2.6 Insurance Requirements
‘Outlines the required insurances that the Supplier should have and maintain.
3.0 POL and SCM Responsibilities as “Post Office Responsibilities” i.e. obligations breach of which may trigger a ‘Post Office Cause’ or a
Sets out Post Office and other Supply Chain Members responsibilities that have been expressly allocated
"Supply Chain Member Cause’ and the relieficompensation mechanisms.
4.1. Contractor Solution
Describes the supplier's solution to the requirements.
Part A — Lists specific aspects of the solution that the Supplier cannot change without change control
Part B — Includes clarifications received post ISFT which supersede some of Part A.
Part C — Supplier's solution, included for information. Does not supersede other schedules.
Note: Part B exists as POL chose not to ask for resubmission with the clarification updates.
4.1. Contractor Solution
Schedules containing the suppliers detailed solution. (documents as listed in Table 2.2.3 (a))
4.2 Commercially Sensitive
Information
identifies the Information that is commercially sensitive and the disclosure of which would be contrary to the
public interest.
4.3. Subcontractors
Control document that should be kept current with Key and regular sub-contractors.
5.1 Software and IPR.
Details Post Office and suppliers IPR and details how the contract deals with Software.
5.2 Licence terms
The Standard Licence Terms granted to Post Office and each Service Recipient in respect of the suppliers
IPR and Software.
6.1 Implementation
Requirements for Implementation. including: responsibilities on the SISD with respect fo the implementation
programme, Completion Payments payable for delivery of it, governance procedures, and a breakdown of
the individual initiatives, timelines and completion criteria.
6.1 Annex 4
SISD Implementation Plan. Operational detail supporting the implementation programme.
6.1 Annex 5 Implementation
Initiatives
1.0 ATF Tools & Networks, 2.0 Service Management, 3.0 Service Management Centre, 4.0 Governance &
Assurance, 5.0 Business & Project Office, 6.0 Commercial & Financial Management, 7.0 Enterprise
Architecture, and 8.0 Service Desk.
6.1 Annex 6
The programme management scheme for managing and monitoring the performance of the Implementation
Programme.
62 testing Procedure
The Testing procedures to demonstrate that Services have been successfully implemented.
7.4 Charging and Invoicing
The principles and procedures that govern charging for the SISD services.
7.2 Payments on termination
The calculation of payments that may be paid upon termination of the agreement.
7.3 Value for Money
The benchmarking exercises that will be undertaken in order to determine whether the Supplier is providing
market competitive services.
74 Financial Stability
Describes assessment of Supplier financial standing and trigger events with consequences
7.5 Financial model & User Guide
How the Financial Model is constructed and managed throughout the contract term.
8.1 Governance
The Governance structures that will be used.
8.2 Change Control procedure
The configuration and the proposed management of the change control procedure.
8.3 Dispute resolution procedure
The process of dispute resolution.
8.4 Records Provision
Sets out how records of processes and decisions should be managed
8.5 Exit Management
How exit from the contract will be managed and who is responsible for the specific activities.
8.6 Business Continuity and
Disaster Recovery
The requirements in relation to the Supplier's BCDR Plan and how this will be managed through the term
9.1 Staff Transfer
The rights and obligations in relation to the application of the Employment Regulations.
9.3 Key Personnel
List of suppliers key personnel and their responsibilities.
10 Inventory of VDR
Inventory of Data Room Documents.
11 Non-Disclosure Agreement
The standard Non Disclosure Agreement.
12 Project Work Order Process
The Project Work Order Process and the accompanying Work Order Process Form.
13 Control Documents
Lists control documents and defines process to manage such control documents.
14 Common Assumptions
‘Assumptions incorporated after ISFT having been issued so bidders would tender on the same basis.
Clause 2.4 sets out how material inaccuracies may lead to changes.
15 EU Model Clauses
Signed separately to main contract. Related to offshore data access. See Main Clause 48.7.
16 Workforce Assumptions
Part A. The Workforce Assumptions paper that PO published at ISFT.
Part B. The additional People Assumptions that were made by ATOS in their bid.
Clause 2.3 sets out how inaccuracies in these assumptions may lead to changes.
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2.2.3 Contract Structure — Supplier Solution
and Control Documents
removed here for clarity)
SISD_Schedule_4 1_Contractor_Solution_ISFT_Final_V1.0.D0C
SISD_Schedule_4 1_Contractor_Solution_ISFT_Final SOLUTION BLUEPRINT V1.0.doc
‘Schedule 4.1 Annex C Compliance Matrix_V1.0.D0C
Schedule 4.1 Tier 2 Response Template - 5.1 service desk services
People Strategy_V1.0.doc
‘Schedule 4.1_0.4 Tools V1.0.DOCX,
‘Schedule 4.1_0.5 Refresh and Technical Currency V1.0.D0CX,
Schedule 4.1_0.6 Innovation V1.0.DOCX;
‘Schedule 4.1_0.7 Quality Assurance V1.0.D0CX;
‘Schedule 4.1_1.1 Supply Chain Member Management V1.0.DOCX;
Schedule 4.1_1.2 Issue Resolution V1.0.DOCX;
Schedule 4.1_1.3 Contract Compliance Management V1.0.DOCX;
Schedule 4.1_1.4 Performance Analysis V1.0.00CX;
Schedule 4.1_1.5 IT Services Risk and Compliance Management V1.1. DOCK;
‘Schedule 4.1_1.6 Onboarding V1.1.DOCX
Schedule 4.1_1.7 Offooarding V1.1.DOCX,
‘Schedule 4.1_2.2 Financial Management V1.0.D0CX,
Schedule 4.1_2.3 Service Portfolio Management V1.0.DOCX;
‘Schedule 4.1_2.4 Demand Management V1.1.D0CX
‘Schedule 4.1_2.5 Business Relationship Management V1.0.DOCX
‘Schedule 4.1_2.6 Customer Satisfaction and Survey Management V1.0.DOCX,
Schedule 4.1_3.1 Service Catalogue Management V7.0.DOCX;
Schedule 4.1_3.2 Service Level Management V1.0.00CX,
‘Schedule 4.1_3.3 Capacity Management V1.1.DOCX,
‘Schedule 4.1_3.4 Availability Management V1.1.DOCX
Schedule 4.1_3.5 IT Service Continuity Management V1.1.DOCX
‘Schedule 4.1_3.6 Information Security Management V1.1. DOCX
‘Schedule 4.1_4.1 Service Asset and Configuration Management Vi.1.DOCX,
‘Schedule 4.1_4.2 Change Management V1.1,DOCX;
Schedule 4.1_4.3 Transition Planning and Support V1.1.D0CX;
Schedule 4.1_4.4 Transition Services v1.2.DOCX
Schedule 4.1_4.5 Knowledge Management V1.1.DOCX;
‘Schedule 4.1_5.1 Service Desk V1.1.DOCX
Schedule 4.1_5.3 Problem Management V1.1.D0CX
Schedule 4.1_5.4 Facilities Management V1.1.D0CX
Schedule 4.1_5.5 Technical Management V1.1.DOCX;
Schedule 4.1_6.0 Continuous Service Improvement V1.1. DOCX,
Schedule 4.1_7.1 Solution Design Governance V1.1.DOCX;
‘Schedule 4.1_7.2 Programme Office Standards V1.1.D0CX
Schedule 4.1_7.3 Project Execution Services Function V1.1.DOCX
‘Schedule 4.1_7.4 Project implementation Services V1.1.DOCX
Schedule 4.1_7.4 Project implementation Services V1.1.DOCX
Schedule 4.1_7.5 Requirements Development and Design V1.1.DOCX
Schedule 4.1_8.0 Resource Augmentation V1.1.D0CX;
Control Documents
Schedule 13 lists Control Documents and defines process to manage these.
Table 2.2.3 (b) shows those that were listed as at execution of the Contract. See Iyels)[ (b) Control Documents
Schedule 13 for the latest list. Notably the Authority Matrix is to detail who can Control Documents at Execation:
approve changes to Control Documents. Authority Matrix
Post Office Obligations iocument Operational Procedures
is Manual
At the Effective Date, the list of controlled documents is not complete. Post jal Governance Model
Office needs to work with the Supplier to firm up the list by two months after Level Agreements or other agreement between the Contractor
the effective date. and Supply Chain Members
7's Security Management Plan
‘Change control procedures are to be used to add / remove documents after Ss BCDR Plan
that. lementation Plan
Post Office to nominate who can approve changes to which control Ieredemmeni NOt
equest note
documents by completing the Authority Matrix. ier Process template
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Finance and Commercial
This section should be read by
users with an interest in
understanding the key financial
and commercial aspects
underpinning the contract
between the Supplier and Post
Office.
The commercial framework
underpins the delivery and
Operation of all of the services
within the contract. It provides the
mechanisms and interventions
available to both parties through
which to manage the contract.
The key financial aspects covered
include the Charges, invoicing ,
benchmarking and the Financial
Model.
Benchmarking is the main
mechanism used for price control
of the SISD services to ensure the
Supplier is providing market
competitive rates.
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3.1. Section Contents
Section Overview
The Finance and Commercial section covers a broad range of topics spread across numerous schedules as outlined in the contents below.
Finance and Commercial - Contents
Section Description Schedule(s) Page
34 Section Contents Sets out the structure of the Finance and Commercial section. NIA 23
7 . Provides an overview of the content of the Finance and Commercial
Finance and Commercial rn ' 24,
3.2 section, highlighting key principles, outputs and the supporting 24
Summary . " 7
management information.
Covers selected terms and conditions from the agreement that are
important to the operation of the contract including;
+Minimum Commitments and Exclusivity; T&Cs,
+Termination and Cancellation; 3,
3.3. Commercial Framework : : : 25
+General Obligations regarding aspects such as audit, overarching TZ,
obligations and co-operation; 85
Delays and Post Office Responsibilities; and
Exit Planning.
Summarises the key financial management concepts including:
Service Charges Introduction;
3.4 Financial Management “Types of Charges; TA 31
«Payment Types; and
«Invoice Delivery & Management.
3. Value for Money Summarises the Benchmarking process that exists within the contract a as
“° (Benchmarking) for supporting the delivery of value for money from the services. 73
36 Operating the Financial Summarises the contents of the Financial Model, how it should operate 75 36
. Model and how it can be amended.
. ___ Summarises factors that will give rise to changes in the results of the TA,
How Finance and Commercial __ é
3.7 Finance and Commercial aspects of the agreement and others that 7.3, 37
‘Changes Over the Term
may cause recourse to the Change Control Procedures. 75
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3.2 Finance and Commercial Summary
Finance and Commercial Introduction Key Points
This section of the handbook covers a broad range of topics * There are no minimum revenue guarantees in the contract and no
relating to the financial and commercial provisions within the rina comfatinents for volusie based charges but Post Omics nave
SISD contract committed to certain Periodic Service Charges and implementation related
This section will provide, at a manageable level of detail, a charges.
description of commercial levers available to Post Office and
the Supplier to manage the contract as well as the necessary
financial management documentation, processes and
The Supplier is granted exclusivity for a sub set of services subject to.
conditions and exceptions e.g. exclusivity does not apply where Post Office
mechanisms to provide visibly and control of Post Office's considers it uneconomical or no longer in their best interests
spend with the Supplier. * For Completion payments 20% of the charge is not due unti a
id with the Suppl For Completi its 20% of the charge is not due unt all
There is significant detail in the contract that sits behind the ‘Acceptance Certificates have been issued for all FMO Services.
finance and commercial aspects of the SISD contract. This The charges are detailed in the Financial Model that will be maintained by
includes the actual charges for the service Post Office will the Supplier, made visible to Post Office and supplied to Post Office each
receive. Whilst not all stakeholders of the contract require an idine ie Usdated through change conte!
up-to-date knowledge of these charges it will be of benefit to os : : :
understand where these charges are represented and how Delayed completion of implementation or projects can lead to Delay Credits
they change through the term of the contract. ich seduce the amount due from Fost Ofice:
The Charges are made up of various Types of Charges (see Post Office must pay within 30 days of receiving a valid & final invoice.
3.4.2 Types of Charges), including Service Charges) each of After 3rd September 2015 Post Office may initiate Benchmarking Reviews
which may be paid for using one or more of the available of any Tier 2 Services and its Charges.
Payment Mechanisms (see 3.4.1 and 3.4.3).
Post Office can require the Supplier to provide Termination Services and
the associated access to information or personnel for up to 12 months
beyond expiry or termination.
Service Structure and its use in Finance and Commercial Provisions
Prior to understanding how each service might be charged for, leveraged, exited etc. it is important to understand how services are structured in
the contract (and the surrounding terminology).
“There are nine Totals/Tier 1 Service categories (numbered 0 to 8) grouped into:
- 0: Overheads.
- 1-6: SISD Services.
- 7,8: Projects & Resource Augmentation
+The SISD services are structured using a Tier 1, Tier 2 and Tier 3 hierarchy.
+A Charges hierarchy table lists all of these Services and can be found in Schedule 7.1, Appendix 1
- Each Tier 1 service category comprises a number of Tier 2 Services.
Tier 3 is only shown to explicitly detail the requirements within a couple of Tier 2 Services where clarity has been requested.
- Service Charges are not mapped to Tier 1 or 3 Services. They only map to Tier 2 Services.
+The specific services charges are detailed in the Financial Model that will be maintained by the Supplier (see 3.6 Operating the Financial Model
+Schedule 7.1 Appendix A, identifies the charging type and mechanism applicable for each service.
+Additionally during exit there are Termination Services (scope to be specified in the Termination Notice). Additional charges for Termination
Services may be agreed through the Change Control Procedure in circumstances specified in Schedule 8.5.
Supporting Documentation les
The material contained in this section of the handbook is a The capabilities and processes captured in this section have been
summary of:
designed based on a set of principles and objectives. An appreciation
of these principles and objectives will provide an insight into many of
the processes and ways of working which underpin the delivery of the
contract. They are as follows:
*Market pricing (and benchmarking) is the best form of cost control
*Services should be defined as IT Service Outcomes: ie. a unit that
accrues business benefit and not an IT, predecessor input.
+Payment should be based on the volume of used IT services. Where
practical, utility principles should apply ie. the service is entirely priced
+Main Terms and Conditions;
*Schedule 2.1 (Service Requirements);
+Schedule 7.1. (Charges and Invoicing);
+Schedule 7.2 (Payments on Termination);
+Schedule 7.3 (Value for Money);
+Schedule 7.5 (Financial Model);
+Schedule 8.5 (Exit Management); and
+Schedule 6.1 (Implementation).
In addition to the contract Schedules, further detail supporting the Via incremental units of consumption.
finance and commercial topics is available within
+Operations Manual (provided and maintained by the Supplier); ‘Best value is derived through acceptance of industry standard
and services.
+SISD Financial and Commercial Principles Summary (Developed «Ideally, Suppliers own the Service Assets.
\by ost Office during procurement)
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3.3 Commercial Framework
3.3.1 Minimum Commitments & Exclusivity
Overview
There are relatively few obligations on Post Office in terms of minimum
commitments and exclusivity. However, commitments have been made
that should be observed and will need to be considered by Post Office
when making procurement decisions.
Minimum commitments
Post Office has made no commitment to purchase any volume or
minimum order of services from the Supplier but it has committed to:
All Periodic Service Charges up to the end of the Initial Term;
+All Completion Payments (in respect of the Implementation); and
The first three months of Implementation Management, i.e. the project
in which the SISD provider will manage the stand-up of the other Tower
Key Pi
= There are no minimum revenue guarantees in the contract and
no minimum commitments with regards to volume based
charges.
ts
+ Post Office have committed to certain Periodic Service Charges
and implementation related charges.
= The Supplier is granted exclusivity for a sub set of services.
‘subject to conditions and exceptions e.g. exclusivity does not
‘Suppliers and the exit of selected Incumbents. apply where Post Office considers it uneconomical or no longer
Exclusivity in their best interests.
The contract with the SISD provider is primarily based on the premise of
non-exclusivity, offering greater flexibility to Post Office. However,
exclusivity is provided for the services listed in Table 3.3.1 for the
duration of the initial term, with this exclusivity commencing from exit
from the relevant Incumbent Supplier or the date of receipt of the
Acceptance Certificate for that FMO Service, whichever is later.
To limit its exposure, Post Office included a number of carve outs from $.1 Request Fulfilment Services
the exclusivity provisions: 5.1_Access Management Services
+ Exclusivity will not apply to services or similar services provided by a third party entered into between Post Office and/or Royal Mail Group
Limited for the benefit of the Royal Mail Group, and such third party prior to the effective date.
+ Exclusivity ceases upon the service of a notice of termination of the SISD Agreement by either party for any reason whatsoever, or during exit
management. Exclusivity ceases if Post Office has a right to terminate (but has not exercised that right).
+ The key carve out relates to circumstances where Post office considers (in its absolute discretion) that provision of the proposed exclusive
services by the SISD would be uneconomical or otherwise not in the best interests of Post Office. This broad carve out was designed to
mitigate the impact of exclusivity
Exclusivity applies strictly in Supplier's capacity acting as a Service Integrator under the Supply Chain Matrix.
The Supply Chain Matrix is a spreadsheet that indicates where a relationship exists between the SISD and a particular third party supplier (see
Figure 3.3.1 & Appendix B.3.). The rows list individual services, whilst the columns list each individual third party supplier. The matrix
indicates via a tick where there is a relationship between the SISD and the relevant supplier in respect of that service.
Therefore to ascertain whether the exclusive services are in scope for any individual supplier, we have to refer to the matrix to see whether there
is a relationship between that supplier in respect of the services listed in Table 3.3.1 (e.g. Change Management). If there is a tick against the
service, the SISD will be the exclusive service integrator fort that service in respect of that supplier.
Table 3.3.1 Services Subject to Exclusivity
Service
4.2 Change Management Services
5.1_ Incident Management Services
Payment Mechanism
‘Volume-based
Volume-based
Volume-based
Volume-based
An excerpt is shown here of the
‘Supply Chain Matrix from Annex A of
Schedule 2.1 as at execution. !
I {reer
Dasa
i
Nae) EF
! Ht u i
SI Services — ‘rows Setup tnd Rete 8 Sovernand © cs cs =a
The rows of the matrix list the ven — Ree
: =
Tier 2 Services that the SI See
will provide as per the — “ a 5
Schedule 2.1. requirements hpoabe zaRIEE z
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3.3.2
Overview
be used under different scenarios, each have specific pre-conditions and
implications in terms of process, notice and cost. The different types of
termination are summarised in Table 3.3.2. and outlined in detail within the
agreement including in the Main Terms and Conditions, Schedule 7.2 * Schedule 7.2 outlines the payments due to either party
(Termination Payments) and Schedule 8.5 (Exit Management). upon the termination of the contract, dependant on the
Table 3.3.2 Termination Types
Type
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Termination & Cancellation
‘Schedule a Schedule Jae
Tacs
Paragraph I) Paragraph All Clause 62
Key Points
The contract provides mechanisms by which to terminate services. These may _I Schedule 8.5 paragraph 6 provides a set of termination
services and obligations that the Supplier should comply
with if any type of termination is invoked.
circumstances in which it was terminated.
Notice
ie Cost Implications
Description
Example situations where Termination for Cause can apply
include the Supplier:
commits an itremediable material breach of the agreement or Post Office wil not be lable to pay any coste
fails to remedy a material default. New terminating for cause.
+fails to achieve a Service Adjustment to which termination for specified, : : :
for Cause cause applies (as identified in Schedule 6.1) or fails to comply but written _P°St Office will be entitled to reclaim any
: : ee? completion payments (including any TMO
wih @ Corection Rian (see 28.4): notice is Completion payments) which fall within a 12
+fails to achieve a project milestone to which termination for eauied—onth window preceding the termination for
cause applies (as identified in the Project Work Order). cause date.
*performance results in a Critical Service Failure (see 5.7.2).
See Main Terms and Conditions Clause 62 for details.
None ‘Amount of notice affects the payments due.
specified, Payments cover:
for Post Office can terminate the whole agreement or any partof but notice ‘Termination payment;
Convenience the agreement at any time and at their discretion. given - Unrecovered costs;
affects the - Breakage costs; and
Payments. «Compensation payment (see call out below)
Post Office may terminate the agreement by written notice
for Change of _ without penalty if there is a change of control within the Supplier By writen No penalty if there is sufficient evidence of the
Control which Post Office reasonably considers may have a materially notice. _ effect on the service.
adverse effect on the Services.
Partial sonfces where the Supplier cannot or wilnatremedy 9 defaut, OTE Month As for Termination for Cause
Termination The Supplier will not be entitled to an increase in other charges PY" written Agreement and change control for changes to
if partial termination arises notice other charges.
Termination by
‘Supplier
The amount of notice given affects the
payments due. Payments cover:
The Supplier can terminate the contract where undisputed *Termination payment;
charges in excess of £200,000 have become due and have 45 days
remained unpaid by Post Office for more than ninety days = (nrecovered costs:
- Breakage costs; and
«Compensation payment (see call out below).
Force Majeure
Event
30-60 days
Post Office may terminate the agreement if a Force Majeure depending
Event affects part of the services it receives. on service ©Aeh Patty bears the costs they incur.
affected.
Office.
Compensation Payment ( For Convenience )
Compensation Payment is calculated as being equal to the Supplier's I_I Compensation Payment is calculated as equal to the Supplier's
Forecast Profits that would have been earned for the ‘shortfall period’. II Forecast Profits that would have been earned for the ‘shortfall period’.
(See Forecast Profits definition in Schedule 1.1) (See Forecast Profits definition in Schedule 1.1)
In this case, the ‘shortfall period’ is the difference between 6 months I I in this case, the ‘shortfall period’ is between the date on which the
and the actual number of months notice of termination given by Post I I Supplier's right to terminate is exercisable and the date on which
Compensation Payment ( By Supplier )
termination takes effect (up to a maximum of 6 months).
Supplier’s Financial Stal
Schedule 7.4. outlines the responsibilities the Supplier has to itself and its contractors regarding their financial standing. It also outlines the
trigger events relating to changes in financial standing, such as credit rating dropping below a specified level. If these trigger events occur the
sdidie specifies consequences including the potential need to construct and follow a Financial Stability Service Continuity Plan.
ity
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3.3.3 General Obligations Nam ee
Paragraph All Paragraph 3,30,31°
overview
Whilst all aspects of the agreement are important, this section describes I « Up to twice per contract year, Post Office may conduct audits for
selected terms surrounding key topics that have significant relevance to
specific purposes such as reviewing performance of obligations,
the business as usual operation of the services.
accuracy of information and compliance with standards.
The Supplier’s Overarching Obligations Compliance of the Supplier and any key sub-contractors with audit
; obligations should be free of charge.
The Supplier is obliged to provide the defined services to Post Office
not only in accordance with the Service Levels, service descriptions and ERCP UPR Ce yi ue aces coo ico Ben
broader contract terms but also in line with applicable legislation and reasonable assistance to third parties providing services to Post
Good Industry Practice. Office where there is an interaction in the services delivered.
The Supplier also needs to use all reasonable endeavours to comply Schedule 3, sets out responsibilities that have been expressly
with Post Office's IT policies and business principles. In practice the allocated as “Post Office Responsibilities” i. obligations breach
Supplier may comply with its own internal policies where Post Office ee Fa ean oi
agrees that this provides protection which is above their own internal ot which may ager a Rest Office Cause’ ora Supply Chain
policies. Member Cause’ and relieficompensation mechanisms. Many of
In turn Post Office has general obligations described throughout the Hose arr summarised waitin this banduook but tam ladty win te
agreement and specific responsibilities in Schedule 3 breach of which full Ist of hese obligstions in Scnedule 9 i imiportant or tiose
may trigger a 'Post Office Cause’ or a ‘Supply Chain Member Cause’ managing and working with the Supplier.
and the relieficompensation mechanisms. See Section 3.3.4.
Outside schedule 3 Post Office does have other responsibilities
and obligations that are binding which the SISD will be able to
enforce in the usual way. However breach of those other
The Supplier is obliged to be open, co-operative and provide reasonable obligations will not trigger the relief/compensation mechanisms.
assistance to any third party providing services to Post Office where
there is an interaction or overlap in the services delivered. As part of
this, where the interaction or overlap presents a material relationship
between the services, the Supplier has primary responsibility for liaising
with the necessary supply chain members. Any disputes or
disagreements with other supply chain members must be notified to
Post Office, but the Supplier should use reasonable endeavours to
resolve these.
Co-operation Requirements
+ Akey subcontractor is described as follows:
— Any sub-contractor which performs a business critical role in
the provision of the services; or
— Any sub-contractor with a sub-contract that has a contract
value in excess of 10% of the aggregate charges.
+ The Supplier needs approval from Post Office prior to appointing
a material subcontractor;
Requests for approval should be supported by basic due
Audit diligence information describing the sub-contractor;
Notified key sub-contractors (and regular sub-contractors) must
be maintained in Schedule 4.3; and
It should be noted that a percentage mark-up applies to materials
In the event that co-operation requires the use of additional resource,
the Supplier is entitled to make incremental charges. It would need to
demonstrate that additional resource was required as a result of co-
operation and agree these through change control.
As part of the audit clause, the Supplier and each key subcontractor has
a set of responsibilities with respect to providing access to the
information, sites, systems and personnel, that fall within the scope of
the audit. Post Office (not more than twice a contract year — unless a or services provided by subcontractors Incorporated Into a
regulatory body imposes otherwise ) may conduct an audit for purposes Change or Project. The maximum percentage mark-up that the
such as to review: ‘Supplier can charge Post Office can be found in Schedule 7 Part
«the accuracy of the service charges and Management Information; F paragraph 14.3.3.
+the integrity, confidentiality and security of Post Office data; and
sthe Supplier's compliance with obligations including performing them in accordance with standards and practices listed in clause 15.3;
Or to Fulfil any legally enforceable request by any governmental authority or regulatory body
The Supplier is also required to maintain and provide upon request Records of processes and decisions taken relating to the performance and
management of the Agreement as described in schedule 8.4.
Post Office will endeavour to provide at least 15 working days’ notice of an audit. Post Office are to use reasonable endeavours to ensure that the
conduct of each audit does not unreasonably disrupt the Supplier or delay the provision of the Services. Actions following audits vary by outcome
see Table 3.3.3
Table 3.3.3 Resulting Action Upon Audit Outcomes
Outcome of Audit
Supplier has failed to perform its obligations
under the agreement in a material manner
Post Office has overpaid any charges The Supplier will pay to Post Office the amount overpaid within 25 working days.
Post Office will pay the amount of the under-payment less the cost of the audit if this was due to
a default by the Supplier, in relation to invoicing within 25 working days.
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Both parties will agree and implement a remedial plan.
Post Office has underpaid any charges
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3.3.4 Delays and Post Office Responsibilities
Overview
Clauses 6 to 12 address issues or Delays that may arise in the
course of the Supplier providing Implementation Services, Service
Adjustments or Project Services.
They explain how the Supplier should notify Post Office of Delays,
submit a Correction Plan and work with other to make a
determination of Fault Allocation.
If the Supplier wishes to make a claim for reimbursement of any
costs and expenses), the Supplier must detail the costs and
expenses in the Correction Plan and notify Post Office of additional
costs and expenses.
Delay
+ Delays are the period of time by which the achievement of Service
Adjustments are delayed with reference to the SISD
Implementation Plan; or in relation to a Project, the period of time
by which the Project Services are delayed arising from a failure to
Achieve a Project Milestone.
Regardless of the responsibility or cause for the delay It is the
responsibility of the Supplier to, as soon as reasonably practicable,
notify Post Office in writing of the fact of the delay and also within
five working days to give full detail in writing to Post Office of the
reasons for the Delay , its consequences and the steps the
‘Supplier is taking to minimise the Delay.
If it becomes apparent that there will be a delay then the Supplier
should endeavour to eliminate or mitigate the consequences of the
delay including working with Post Office, the Supply Chain
Members or any third party directed by Post Office, and agreeing
with each sub-contractor to take steps to eliminate or mitigate any
losses and expenses.
Correction Plan
+ Where a Service Adjustment or Project Milestone is likely to be
delayed the Supplier is to submit a correction plan with contents as
described in Clause 6.9. within 10 days of the initial notification
that there would be a delay
The draft plan needs to be signed off by Post Office as it will
contain information such as steps that the Supplier recommends
that all parties, including Post Office, take to mitigate the delay.
Where Post Office does not approve the draft Correction Plan it
must inform the Supplier promptly.
Each party will comply with its obligations under the Correction
Plan following its approval by Post Office. Note that approval of
Correction Plan does not constitute approval of any claim within
the plan for reimbursements.
Where the Supplier has failed to include relevant cost and
expense information in the Correction Plan or hasn't notified Post
Office of additional costs and expenses within five days the
‘Supplier will not be entitled to claim reimbursement of any costs
incurred in complying with the Correction Plan
Other Relief Due To Post Office or SCM Cause
If a Post Office Cause or Supply Chain Member Cause means:
«a failure to meet Expected Service level, clause 17 may apply.
«Supplier incurs additional costs, clause 18 may apply.
Schedule 3 J seneauie I Tacs
Paragraph [lt 612,17,18
Key Points ®
= Schedule 3, sets out responsibilities that have been expressly
allocated as “Post Office Responsibilities” i.e. obligations breach of
which may trigger a ‘Post Office Cause’ or a ‘Supply Chain Member
Cause’.
= Fault Allocation may only determine that a Delay occurred (in whole
or in part) due to a Post Office Cause or a Supply Chain Member
Cause where a specific Post Office Responsibility or Supply Chain
Member Responsibility that has not been met.
= Delays caused by Post Office or another Supply Chain Member may
lead to increased cost.
Fault Allocation
* In the event of Delay the overriding objective of the Supplier is to work
with Supply Chain Members to remedy or resove, the Delay.
Unless agreed otherwise, on the earlier of the date that the Correction
Plan is agreed or 30 days after the Delay occurred the Supplier and
relevant Supply Chain Members will work together to determine
whether the delay occurred due to a
— due to a Contractor Default
— due to a Post Office Cause or a Supply Chain Member Cause;
— in part due to a Contractor Default and in part due to a Post
Office Cause/Supply Chain Member Cause; or
— due to a Force Majeure Event
The Supplier may not cause or allow Fault Allocation to adversely
affect the resolution of the Delay as soon as reasonably possible.
Fault Allocation may only determine that a Delay occurred (in whole or
in part) due to a Post Office Cause or a Supply Chain Member Cause
where a specific Post Office Responsibility or Supply Chain Member
Responsibility that has not been met.
Post Office will consider the fault allocation and accept or reject it.
Ifthe parties are not able to agree the responsibility for the Delay or
Post Office does not accept the determination; any party may refer
the matter to Governance and, failing resolution within ten working
days, such party may refer the matter for resolution in accordance
with the Dispute Resolution Procedure.
Fault Allocation Determines Applicable Clause
+ Ifa Delay occurred due to a Contractor Default, the provisions of
clause 8 (Delays due to Contractor Default) apply;
Ifa Delay occurred due to a Post Office Cause or a Supply Chain
Member Cause, and that is accepted by Post Office, the provisions
of clause 9 (Delays to Service Adjustments or Project Milestones due
to Post Office Cause or Supply Chain Member Cause) will apply;
Ifa Delay occurred for which the Supplier was only partly
responsible, and Post Office has accepted that, the provisions of
clause 12 (Delays Not Due to One Party) will apply; or
Ifthe Delay occurred due, in whole or in part, to a Force Majeure
Event, and Post Office has accepted that, the provisions of clause
57 (Force Majeure) will apply. (See Table 3.3.4)
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Table 3.
Clause
clause 8
(Delays due to Contractor
Default)
Summary Of Cross Relief And Compensation Clauses
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Summary
If Deliverable, Service Adjustment or Project Milestone does not satisfy the Test Success Criteria; and/or the Fault
Allocation Procedure determines that a Delay is due to the Supplier's Default, then Post Office will issue a Non-
conformance Report to the Supplier. Post Office may choose to:
Issue an Achievement Certificate and/or Project Milestone Achievement Certificate conditional on the remediation of
the Test Issues, or the non-conformities of the Deliverable, in accordance with an agreed Correction Plan (and
optionally revise the falled Adjustment Point and/or Project Milestone Date and any subsequent Adjustment Points
and/or Project Milestone Dates; and/or
*Refuse to issue a conditional Achievement Certificate and/or Project Milestone Achievement Certificate and notify
the Supplier of a further date on which the Supplier must remediate the Issue, then apply a further round of
correction and Testing; and escalate the matter in accordance with schedule 8.1 (Governance); and failing resolution
within 5 Working Days, refer the dispute for resolution in accordance with the Dispute Resolution Procedure. If then
the matter cannot be resolved exercise any right it may have under clause 62.1 (Termination Rights); and/or
Require the application of Delay Credits where schedule 7.1 (Charging and Invoicing) identifies that Delay Credits
are applicable in respect of the relevant TMO Service Adjustment and/or Project Milestone. See 3.4.1.
clause 9
(Delays to Service
Adjustments or Project
Milestones due to Post
Office Cause or Supply
Chain Member Cause)
For Delays to Service Adjustments or Project Milestones due to Post Office Cause or Supply Chain Member Cause
where the Supplier followed its obligations to notify the Post Office of a Delay and the Supplier could not reasonably
have taken steps in accordance with Good Industry Practice and also the delay has not arisen or been contributed to
by Supplier's negligence, fraud, or wilful default then the Supplier may seek rights and reliefs as follows:
* right to apply for an extension of time to Achieve the relevant Service Adjustment or Project Milestone
srelief from the application of Delay Credits in respect of the relevant TMO Service Adjustment and the relevant
Project Milestone that is Delayed
claim for reimbursement of additional costs and expenses reasonably and necessarily incurred by the Supplier in
complying with its obligations under the agreed Correction Plan
Costs incurred must be reasonable, demonstrable, necessarily and reasonably incurred and the Supplier must use
all reasonable endeavours to minimise such costs; The Suppler shall provide any additional information Post Office
may reasonably require in order to assess the validity of the Supplier's claim
If Post Office accepts the Supplier's submission the agreed costs will be shown as an addition to the Completion
Payment (or the applicable Project Milestone Payment).
clause 10
(Pricing adjustment
impacted by post office
cause or supply chain
member cause)
Irrespective of all Delays, Pricing Adjustments (see 3.4.1) take effect on the associated Adjustment Point date. Thus
if the Supplier has lowered its price while having been delayed or prevented from implementing a material cost saving
that would have otherwise been implemented as a direct result of a Post Office Cause or Supply Chain Member
Cause then the Supplier may be entitled to seek reimbursement of additional costs and expenses.
Clause 11
(Service level adjustment
impacted by post office
cause or supply chain
member cause)
Irrespective of all Delays, Service Level Adjustments (see 4.4.1) take effect on the associated Adjustment Point date.
Thus if the Supplier has been materially affected as a result of being unable to meet the adjusted Service Level
having been delayed or prevented from meeting the Service Level as a direct result of a Post Office Cause or Supply
Chain Member Cause then the Supplier may be entitled to seek reimbursement of additional costs and expenses.
clause 12 (Delays Not
Due to One Party
The provisions of clause 8 (Delays Due to Contractor Default) will apply in relation to the part of the Delay for which
the Supplier was responsible; and
The provisions of clause 9 (Delays to Service Adjustments or Project Milestones due to Post Office Cause or Supply
Chain Member Cause), will apply to the part for which the Delay was due to a Post Office Cause or a Supply Chain
Member Cause.
If there is any Dispute as to the extent to which Post Office, Supply Chain Member or the Supplier respectively has
contributed to the Delay, the parties may escalate the matter for resolution in accordance with schedule 8.1
(Governance) and, failing resolution in accordance with that schedule within ten Working Days, the Supplier may
refer the matter for resolution in accordance with the Dispute Resolution Procedure.
Clause 17 (Effect on
service levels of post
office cause or supply
chain member cause)
If the Supplier would have provided the Services in accordance with the Expected Service Level but has failed to do
so as a direct result of a Post Office Cause, or a Supply Chain Member Cause, the Supplier will continue to provide
the Services in accordance with the Service Levels but may apply for relief as set out in clause 17.2.
Clause 18 (Costs
incurred due to post
office cause or supply
chain member cause)
If the Supplier reasonably believes that Supplier has incurred significant additional costs and expenses as a direct
result of steps taken by the Supplier in carrying out any additional work or services to remedy or mitigate an issue
caused by a Post Office Cause or Supply Chain Member Cause, then the Supplier may be entitled to claim for
reimbursement of those additional costs and expenses in accordance with the claim process set out in clause 18.2
clause 57 (Force
Majeure)
Either party may claim relief from liability for non-performance of its obligations to the extent this is due to a Force
Majeure Event.
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3.3.5 Exit Planning
Overview
Exit and service transfer is governed by an agreed exit plan between the
parties. This plan is developed and maintained by the Supplier for use
upon expiry or termination of the agreement.
Exit Management Planning
Within six months after the Effective Date the Supplier is required to
provide an exit plan setting out a Supplier's proposed methodology for
achieving an orderly transition of services on the expiry or termination of
the agreement. Following submission of the exit plan, the contents
should be agreed within 30 calendar days.
The exit plan should contain as a minimum:
+Separate mechanisms for ordinary exit and emergency exit;
+The management structure;
A list of current key personnel and a high level summary of the
additional resource employed in delivering the services by activity; and
*A detailed description of both the transfer and cessation processes.
Within 30 calendar days after service of notice of termination or no less
than six months prior to the expiry of the agreement, the Supplier is
required to submit an exit plan in its final form.
Exit Responsibilities
The Supplier is obliged to provide all assistance reasonably necessary
to Post Office and/or the replacement service provider during the exit
period to support the transfer of services. Minimum obligations include:
+Compliance with the obligations defined in the exit plan;
+Provide to Post Office an up to date Business Process Manual;
“Any information required by Post Office to assist on re-tendering of
services;
+The Supplier will take all steps, which are necessary and consistent
with its continuing obligations, to mitigate any losses, costs, liabilities,
and expenses;
+Advise Post Office of the Net Book Value of any equipment that Post
Office elects to have transferred;
+Erase any software containing the specially written software and all
Post Office data; and
+Erasing all confidential information of the other party and certifying that
it does not retain the other party's confidential information
Other Supplier Obligations
In addition to exit responsibilities, Supplier will throughout the term:
+Maintain an asset register, showing ownership and status of all assets
as well as their Net Book Value. The asset register will also include
details of all sub-contracts and other relevant agreements
+Maintain a configuration management database detailing the technical
infrastructure through which the Supplier provides the services.
+The Supplier will also appoint an exit manager within three months of
the effective date who will ensure that the Suppliers employees, agents
and sub contractors comply with the relevant exit activities,
The full list of Supplier obligations for assisting on the re-tendering of
services is in paragraph 3 of Schedule 8.5.
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Key Points
" Draft Exit plan to be submitted by Supplier and is then to be
agreed upon within thirty days.
= Knowledge transfer should be on-going through the contract
term, with specific obligations to transfer knowledge to Post
Office and others during exit.
* ‘Termination Assistance Period’ is the period during which the
‘Supplier provides Termination Services (the scope of which is
detailed in Schedule 8.5, paragraph 6.14).
= Post Office can require the Supplier to provide Termination
Services and the associated access to information or personnel
for up to 12 months beyond expiry or termination.
Knowledge Transfer
The Supplier is responsible for transferring knowledge to both
Post Office and other supply chain members throughout the life
of the contract and during Termination Assistance Period.
The Supplier should also manage the on-going and effective
knowledge transfer between all Supply Chain Members and
manage and execute an on-going knowledge transfer process
across the Supply Chain by conducting analysis to identify
knowledge gaps
During exit the Supplier must:
Transfer all training material and provide training to the relevant
Post Office and replacement suppliers’ staff;
+Provide all knowledge reasonably required for the provision of the
services; and
*Provide access to relevant members of the Supplier's or its sub-
contractors’ personnel.
Noti
Post Office can request termination services by notifying the
‘Supplier in writing ("Termination Assistance Notice") at least
three months prior to the date of termination or expiry or as soon
as possible following a notice to terminate.
A Termination Assistance Notice should include the:
Date from which termination services are required (which cannot
be earlier than 12 months prior to expiry of the contract;
“The nature of the termination services required; and
+The period during which itis anticipated that Termination
Services will be required which shall continue no longer than 12
months after the date that the Supplier ceases to provide the
Services.
Post Office shall have an option to extend the period of
assistance beyond the period specified in the Termination
Assistance Notice. The specific length of time Post Office can
extend assistance depends on the relevant Service
ation of Teri
ation Services
Post Office Diary Reminde:
Written notice 6 or more months before expiry (or end of
extension) is needed to extend the term into each of the
extensions of one year.
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3.4. Financial Management
3.4.1 Charges Introduction
Overview 7A
The charges that Post Office will pay the Supplier are comprised of the Paragraph I
following:
+ Service Charges; Key Points
+ Implementation Management Charges; * The specific charges per service are set out in the Financial
+ Implementation (Completion Payments); Model. This model is described in Schedule 7.5 and Section 3.6.
+ Pass Through Charges; and = Each Tier 2 Service maps to a payment mechanism’
+ Project Fees and charges resulting from changes.
Each type of charge may be paid for using one or more of the available
Payment Mechanisms. Table 3.4.1 matches the charge types with the
payment types.
= All charges should be in Great British Pounds (GBP).
= Charges are stated exclusive of VAT, which will be added at the
prevailing rate as applicable and paid by Post Office following
delivery of a valid VAT invoice
Payment mechanisms are the categories that a payment to the Supplier
could fall under. These will be dictated by the type of work that has been _I* Sefvice Credits and Delay Credits are the clearest mechanisms
performed. They include: that Post Office have to be reimbursed for non-performance by
+ Periodic Charges; the Supplier in relation to the services it provides.
+ Volume Charges;
+ Time & Materials Charges;
+ Project Milestone Payments;
+ Completion.
The following pages discuss the different types of charges and payments in more detail.
Table 3.4.1 - Types of Charge and the associated Payment Mechanism
Charge Context (see 3.4.2) Applicable Payment Mechanisms (See 3.4.3)
Periodic Charges.
Volume Charges.
Service chames Time & Materials Charges.
Project Milestone Payments.
Implementation Management Charges + Project Milestone Payments.
Implementation (Completion Payments) + Completion Payments.
+ Project Milestone Payments.
Project Fees and charges resulting from changes > Time & Materials Charges.
Other factors that affect the invoiced amounts
Invoices are for: Service Credits
* _ Service Charges net of Service Credits relating to the previous Service failures lead to the accrual of Service Points, which convert
Service Period and net of the impact of any price changes or pricing _I into a deduction from charges known as Service Credits. Service
adjustments; Credits are set off against the next period's Service Charges thereby
+ Completion payments (if any) net of any delay credits; and/or reducing that invoice.
+ Any other charges (if any) payable. See 5.7.1, for details on their calculation and limits.
Price Changes Delay Credits
Price Changes or Pricing Changes are an increase in the price Delay credits are:
triggered by a Service Adjustment (i.e. they only take effect when the
Completion Criteria have been achieved) +The amounts to be credited against a Completion Payment arising
from a Delay to TMO Service Adjustment and specified in Schedule
7.1 (Charges and Invoicing); or
Pricing Adjustments +In relation to a Project, the amounts to be credited against a Project
Pricing Adjustments are a reduction in the pricing of a Service Milestone Payment as specified in the relevant Project Work Order.
triggered by an Adjustment Point (i.e. they take effect when the date
for the adjustment in the implementation plan is reached).
* Note: With the exception of ‘Information Security Management’ split into four Tier 2 services three of which have a volume based payment
}fBGanism and one of which has a periodic charge.
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3.4.2 Types of Charges
‘Schedule Tien
Paragraph Al
Overview Key Points
The charges are comprised of the following: = Schedule 7.1 Appendix A, identifies the charging type and
+ Service Charges; payment mechanism applicable for each service.
+ Implementation Charges (Completion Payments);
+ Implementation Management Charges;
+ Pass Through Charges; and
+ Project fees and charges resulting from Changes. * Overhead Services are not chargeable in their own right and
are instead allocated across the services they enable.
+ Implementation management charges will be classed as
Project Milestone Charges.
The descriptions below provide more detail on each type of charge. Additional . :
pertinent charging considerations are described in Table 3.4.2. " A Service Catalogue will contain Resource Units chargeable
using Volume or Time and Materials.
Service Charges
The majority of the charges in the contract will be through the service charges. Service charges are split into TMO Service Charges and FMO
Service Charges. The charges linked to both categories are set out in Schedule 7, Appendix D and E respectively.
In each category there are three types of payment mechanism. Schedule 7.1 Appendix A gives a breakdown of the payment mechanism that
applies to each Tier 2 service.
Implementation Charges (Completion Payments)
Charges which relate to the Implementation of the SISD Tower. These are charged as Completion Payments (described further in 3.4.3).
Implementation Management Charges
These are the charges incurred with respect to the programme management of the Implementation Programme governing and assuring the other
Tower Implementations.
Post Office may be invoiced for the applicable Implementation Management Charges monthly in arrears at the end of the month to which the
relevant Implementation Management Charges relate.
The charges for implementation management are described in Schedule 6.1 (Implementation) and unless agreed by both parties, the
Implementation Management Charges will be charged as Project Milestone Charges.
Project fees and charges resulting from Changes
Charges for projects and other changes should be proposed under the Change Control Procedure (for changes) and/or the Work Order
Process (for project work) as follows:
+On a fixed price basis chargeable as milestone are accepted;
+On a fixed price chargeable on acceptance of deliverables; or
+On a Time and Materials basis, with a cap if required.
When evidencing any charge relating to a potential project or a change, the Supplier should use the Financial Model to demonstrate that any
proposed revisions or Project Fees are appropriate and have incurred the correct level of due diligence.
The costs proposed by the Supplier will be presented to the same level of detail as for the Services specified in Schedule 2.1. Furthermore, If the
change or project is agreed by Post Office the Supplier will update the Financial Model
Table 3.4.2 - Other Charging Considerations
Other consideration Description
Pass through charges will be charged to Post Office at the direct cost of supply to the Supplier without mark up. pass
through charges include:
"Expenses - Where the Supplier provides Services on a Time and Materials Basis, travel and subsistence can be
Ress Tirevalt expensed within Post Office's expenses policy.
Charges
Exceptional Staff Transfer Costs (this charge is non-recurring) - Following the transfer of Post Office employees and
Fujitsu employees to the Supplier, employment related costs are incurred and later invoiced by the Supplier (subject to
the Supplier complying with obligations set out in paragraph 17.3 of Schedule 7.1).
Where a service is categorised as an ‘overhead’, this denotes that the tier 2 service is not chargeable in its own right.
Instead the costs are allocated to the other services that they enable.
Overhead service charges are proportionately allocated to the services that the overhead service enables.
‘There should be no cross subsidisation. This ensures that a benchmarking review will be able to accurately assess the
market competitiveness of individual tier 2 services.
Overhead Service
Charges
The catalogue will be agreed during Implementation. Once agreed Service Catalogue Resource Units will be charged via
Volume Charges or Time and Materials Charges or other appropriate Payment Mechanisms as agreed
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3.4.3 Payment Mechanisms
Paragraph Al
Overview Key Points
Payment mechanisms are the categories that a payment to the = Services will typically be charged on either a:
Supplier could fall under. These will be dictated by the type of work
that has been performed. They include:
+ Periodic Charges; = Volume; or
+ Volume Charges;
+ Time & Materials Charges;
- Periodic;
- Time and material basis.
+ Project Milestone Payments; and = Completion payments can be categorised as TMO or FMO. 20% of
+ Completion Payments. the charge for these services is not due until Acceptance Certificates
The descriptions below provide more detail on each type of payment have been issued for all services at FMO.
and when it can be applied
Payment Mechanisms
Description
This is a fixed charge for the applicable services to be paid at the end of the relevant service period. Subject to Post
Office's acceptance of the service it receives, the Supplier may issue a monthly invoice, in arrears at the end of the
Periodic month to which the applicable periodic charges relate.
Itis fixed for the initial term of the agreement and any termination assistance period but the charges are subject to
indexation should Post Office extend the contract.
Volume charges apply to each resource unit consumed by Post Office during the relevant service period. Schedule
7.1 Appendix B details a list of initial resource units
Subject to Post Office's acceptance of the service it receives, the Supplier may issue a monthly invoice, in arrears at
the end of the month in which the Resource Units were consumed.
Services on a T&M basis are calculated through multiplying the total number of man days with the relevant rate card
Time and Materials __rate (or for catalogue items through multiplying resource units with the catalogue item price). The Supplier shall
maintain and provide a breakdown of any time and materials charges as and when required by Post Office.
Volume
A Project Milestone is an event or task described in a Project Work Order which, if applicable, will be completed by
the relevant Project Milestone Date
‘Schedule 6.2 (Testing Procedures) sets out the circumstances in which a Project Milestone will be considered to
have achieved the required milestone.
If any Project Milestone is not Achieved by its associated Project Milestone Date then the Delay Credits ( see section
3.7) if specified during the Change Control Procedure and/or the Project Work Order Process may be applied
Project Milestone
Completion Payments are due should a service be set-up or change modes of operation and pass the relevant testing
requirements i.e. achieve a Service Adjustment (planned to occur at the Adjustment Points).
Charges can be categorised into the TMO Services Completion Payments and FMO Services Completion Payments.
Delays to these adjustments may incur Delay Credits ( see section 3.7) which are offset against Completion
Payments.
TMO Services Completion Payments
80% of the corresponding Completion Payment is payable at the relevant TMO Service Adjustment upon receipt of a
Completion validly completed Test Certificate.
FMO Services Completion Payments
80% of the corresponding Completion Payment is payable when that service has received its corresponding
Acceptance Certificate.
The remaining 20% of all TMO and FMO Completion Payments may be invoiced as a lump sum when FMO
Acceptance Certificates have been issued for all FMO services.
i.e. once Supplier is in receipt of an Acceptance Certificate for each and every Service in all SISD Implementation
Initiatives, the Supplier can invoice for this final 20%.
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3.4.4 Invoice Delivery & Management
Overview
The Supplier is responsible for the administration of the
billing processes with a set of guidelines and exceptions
covering the delivery, format and contents of invoices to Post
Office.
Within 5 working days of the start of a Service Period, the
‘Supplier will provide a pro forma invoice for:
+Service Charges net of Service Credits * relating to the
previous Service Period and net of the impact of any price
changes or pricing adjustments;
+ Completion payments (if any) net of any delay credits;
and/or
+ Any other charges (if any) payable
While charges are exclusive of VAT, it should be added at
the prevailing rate as applicable and will be paid by Post
Office following delivery of a valid VAT invoice
The figure below illustrates the Invoicing process and the
relevant responsibilities:
Invoice Del
Process
Post Review pro-forma
Office invoice
Prepare and provide to
‘Supplier Post Office for approval
a pro-forma invoice
within 5 working days of
the start of a Service
Period
Accept pro forma invoice
[must be within 15 working days of receipt]
Make adjustments as
reasonably required by
Post Office.
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7A
Paragraph a)
Key Points
* Each invoice should include, as a minimum, the details set out in Schedule
7A, paragraph 18.5 together with such other information as Post Office may
reasonably require.
= Each invoice should be accompanied by supporting documentation to
substantiate the invoice.
= Both pro forma and final invoices should be sent to Accounts Payable by the
Supplier.
= Post Office must pay the Supplier within 30 days of receipt of a valid and
final invoice.
Scope Of This Page ited To SISD Invoices
This page outlines how the Supplier should invoice Post Office for SISD
services. It does not discuss the activities regarding invoices for other Supply
Chain Members, as these are set out within the Operations Manual
Pay invoice within 30 day
of receipt
Reject pro-forma
heel (if invoice is valid)
“Invoice
{must inform Supplier
within 10 working days}
Raise Final Invoice to
Accounts Payable
Service Period
Table 3.4.4 Key Definitions for Invoice Delivery and Management
This is defined in the contract as one calendar month.
Payment Terms
Subject to the Supplier's compliance with the invoicing process (summarised above and detailed in Schedule 7.1,
paragraph 18) Post Office pay the Supplier within 30 days of receipt of a valid and final invoice.
PratezSee Section 5.7.1 for calculation of Service Credits
Qfticese
Post Office Obligations
* Inform Supplier of rejections and acceptances promptly.
= Post Office must pay the Supplier within 30 days of receipt of a valid and
final invoice. (Interest is payable on late payments of any undisputed
charges).
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3.5 Value for Money (Benchmarking)
Overview
Benchmarking will be the main mechanism used for price control of
the SISD services to ensure the Supplier is providing market competitive
services. Cost and charges transparency also applies, through
prescription of the Financial Model as a reference for changes, although
Post Office has not prescribed typical Open Book arrangements.
There are key principles which will govern benchmarking activity and
these are summarised below.
Benchmarking Principles
+Post Office can initiate a benchmarking review at any point after 3rd
September 2015 (i.e. 12 months after the Service Commencement date
which was agreed as 3rd September 2014).
“Any Tier 2 service can be benchmarked, however they can not be
benchmarked more than once within a 12 month period.
“Tier 2 service charges can be benchmarked individually.
“A third party benchmarker will be chosen by Post Office, it will consult
with the Supplier during the selection process.
“The benchmarked service charge will include the allocated costs of
standard transition activities which have been apportioned across the
relevant service charges. Post Office Specific Implementation Charges
will not be included '.
-Market Competitive is defined as the Service Charges falling within the
upper quartile of those in selected Reference Group.
«If any services are found to be not market competitive, the Supplier will
be obliged to reduce the associated charges, commencing in the month
following the benchmark report.
+All communications, data and information provided by the Post Office,
‘Supplier or benchmarker will be sent to all parties.
Benchmarking Costs
Benchmark expenditure will be borne by Post Office, subject to the
following:
+lf the benchmark finds that all services are NOT market competitive
then Post Office can recover the total cost from the Supplier.
«if the benchmark finds that some but not all services are not market
competitive then Post Office will be entitled to recover a proportion of the
cost from the Supplier. The proportion will be calculated to reflect the
number of benchmarked services found not to be market competitive of
the total number of services benchmarked
Cost & Charges Transparency
Schedule 7.1 sets out transparency measures where Supplier will
+Provide full and complete accurate accounting and financial information relating to the services provided;
+Allow Post Office to audit the Supplier's records;
+Provide charging proposals, including any rates and mark-ups, for any potential change or project to Post Office in line with the principles in
the Financial Model and Schedule 7.1; and
+Use the Financial Model to demonstrate that proposed charges for changes are reasonable and appropriate.
Schedule 73 ‘Schedule 7
Paragraph AIL Paragraph INew)
Key Points
= Benchmarking exercises are to be used to determine if the
‘Supplier is providing Market Competitive services.
— Market Competitive being defined as the Service
Charges falling within the upper quartile of those in the
selected Reference Group.
* Post Office can initiate a benchmarking review at any point
after 3% September 2016.
= Schedule 7.1 contains requirements for transparency and
annual % reductions for some FMO services from 2016/17.
* Schedule 7.3 Value for Money (Benchmarking) provides a
detailed view of the benchmarking process and the
underpinning calculations.
Benchmarking set-up
Benchmarking set-up is the time required by the benchmarker to
be in a position to conduct a benchmarking review.
It allows the benchmarker to familiarise themselves with the
requirements of Schedule 7.3 (Value for Money) and recommend
any changes to the Schedule if they believe any are required
Diary Reminder
Preparation will be required if Post Office wish to conduct the first
benchmark one year after the Service Commencement Date.
The activities that should be considered are as follows:
+Determining which services to benchmark;
+Appointment of an agreed benchmarker; and
«Benchmarking set-up.
Supplier Ob!
The Supplier is required to’
+Appoint a benchmark team for each benchmark review;
*Carry out the activities detailed within the benchmark plan within
the agreed timescales;
*Cooperate fully with the benchmarker including providing
information as may reasonably be requested and granting access
to information and personnel pertinent to the benchmark; and
+Reduce service charges if they are found not to be market
competitive.
1 Note: As acknowledged in the schedule 1 definition of ‘Post Office Specific Implementation Charges’ there are no Post Office Specific
\Stentation Charges in scope pursuant to implementation activities described in schedule 6.1.
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3.6 Operating the Financial Model
Overview
The Financial Model is the key document that records the charges that
will be payable by Post Office
It should enable Post Office to identify how the charges are calculated.
Furthermore it is the basis for evaluating any changes to the charges.
proposed by the Supplier through change control or a project work
order.
This section gives an overview of the construct of the model, who
maintains and updates it, and how upon updates it is to be supplied to
Post Office
Evidencing __Itis the supplier's responsibility to promptly evidence
the contents _ and verify any queries that Post Office have
of the regarding the model or the charges it uses.
Financial — : :
Model This includes promptly supplying reasonably skilled
and experienced personnel to explain and propose
modifications to any assumptions made in the model.
Custody of The Supplier will be responsible for the custody of
the Financial _ the Financial Model
Model
Post Office have the right to meet with the Supplier
within 5 working days of the end of a service period
(end of the month) to discuss and review the
Financial Model, including any variances seen in the
invoicing
If the parties don't meet at the end of the Service
Period and the charges invoiced under the
Agreement in the previous Service Period exceed the
Charges specified in the current Financial Model for
that Service Period by 5% or more, the Supplier
should inform Post Office
Updates to _The Supplier is responsible for maintaining the
the Financial Financial Model making a limited set of operational
Model updates to provide the required detail. Any updates to
the underlying principles, methodologies, formulae,
calculations and any other items in the Financial
Model shall be subject to the Change Control
Procedure
Where a Change or Project is agreed through the
Work Order Process or the Change Control
Procedure , the Supplier updates the Financial Model
Where updates are made through change control
procedures to the Financial Model, the Supplier will
deliver:
+ — Two soft copies of the updated Financial Model
to Post Office
+ Two hard copies of the following Financial Model
worksheets:
~ the summary of Charges worksheet; and
~ the worksheet “04 Charges!”,
Each Financial Model shall be certified as
accurate and unambiguous by a director of the
Supplier,
36
Key Points
= Data in the form of anticipated business volumes set out in the
Financial Model is indicative only.
= The Supplier will have custody of the Financial Model and is
responsible for making any updates required.
= The construct of the model must remain consistent and logical.
This is the Supplier's responsibility.
= Post Office can meet with the Supplier within 5 working days
of the end of a service period (end of the month) to discuss and
review the Financial Model, including any variances seen in the
invoicing.
Content of the Financial Model
itis the responsibility of the Supplier to ensure that Post Office
have sufficient access to the right level of detail with regards to:
+ Labour FTE Charges (man day rates and SFIA Level);
+Pass Through Charges for Exceptional Staff Transfer Costs;
sImplementation Charges;
+ Periodic Charges;
+ Volume Charges at Anticipated Business Volume (ABV);
+ Volume Charges as actual;
+ Cost of Changes or Project Work Orders;
+ Expenses;
+ Time and Materials Charges;
+ Project Services;
+ Pass Through Charges;
+ Costs of Sub-contractors (including details of any supplier
mark-ups on such costs);
+ Service Charges;
+ Completion Payments; and
+ Project Milestone Payments.
Construct of the ancial Model
+ All monetary values should be quoted in Great British Pounds
(GBP)
+ All Charges should be exclusive of any VAT.
+ Allprices (including man day rates and resource unit prices)
used to calculate the charges should be quoted
+ Any indexation calculations should be described.
+ The model should be constructed in MS Excel
+ No parts of the model should be hidden, protected or locked.
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3.7 How Finance and Commercial Changes
Over The Terma ts
Overview
Paragraph AIL
[se fa
= -
While the commercial framework itself is expected to remain stable there are several factors that will give rise to changes in the results of the
Finance and Commercial aspects of the agreement and some that may cause recourse to the Change Control Procedures. The below table
summarises these factors and potential changes.
Adjustment Points and
Service Adjustments
Adjustment Points - are dates in the Implementation Plan at which benefits for Post Office such as the
transition between modes of operation of a service are delivered.
Service Adjustments — are the delivery of transitions between modes of operation of a service. (e.g. from
Current Mode of Operation to a Transformation Mode of Operation; or when it moves between
Transformation Modes of Operation; or when moving to Future Mode of Operation)
The successful implementation of these Service Adjustments attracts Completion Payments. Missing the
Adjustment Point may attract Delay Credits.
Delay Credits for Service Adjustments
For TMO Service Adjustments but not FMO Service Adjustments, if a Service Adjustment has not been
achieved by the relevant Service Adjustment Date and a Completion Payment is associated with that Service
Adjustment, the Supplier shall pay to Post Office Delay Credits for each calendar day of Delay from and
including the relevant Service Adjustment Date until and including the date when the Service Adjustment is
Achieved, at the daily accrual rate in schedule 7.1 appendix F (Delay Credits).
Delay Credits that apply to
on-going projects and
changes
Unless otherwise agreed Delay Credits shall apply to all Projects and Changes.
The parties shall agree the amount of Delay Credits to be payable to Post Office by the Supplier for any Delay
associated with any Change and/or Project in accordance with the Change Control Procedure and/or the
Project Work Order Process.
If a Project Milestone has not been achieved by the applicable Project Milestone Date and a Project Milestone
Charge is associated with that Project Milestone the Supplier shall pay to Post Office Delay Credits. Ifno
further Project Milestone Charges fall due after Delay Credits accrue, the Supplier shall issue a credit note to
Post Office and a sum equal to any such Delay Credits then outstanding shall be repayable by the Supplier to
Post Office as a debt.
Post Office responsibility
regarding the provision of a
‘Quarterly Business
Forecast’
Post Office will provide to the Supplier a forecast of Post Office's future business requirements and forecast
Business Volumes (together, the “Quarterly Business Forecast’) including the potential effect of those
forecasts on numbers of Users, application usage and sites together with any other information as may be
reasonably requested by the Supplier or other Supply Chain Members in line with the frequency defined in the
Operations Manual
These forecasts will be used to predict the potential charges Post Office will incur (actual charges being
based on the actual volumes)
Annual Efficiencies for FMO
Services
‘Some FMO Service Charges are subject to annual reductions in the unit prices. The services and their
percentage efficiency reductions are detailed in schedule 7.1, appendices E (FMO Service Charges:
Volume Charges)
The efficiency reductions shall apply to the relevant unit price at the start of each Financial Year from 2016/17
to the end of the term. The percentage shall be applied cumulatively to the previous Financial Year unit price,
as set out in the Financial Model
Benchmarking
Benchmarking may result in the need to change the charges, these changes are expected to go through the
Change Control Process as either a standard or fast-track change. (See also 3.5)
The Financial Model
The Supplier is required by paragraph 2.2 of schedule 7.5 to maintain the Financial Model ‘to provide
sufficient detail for Post Office to have visibility ‘ of a list of aspects. Given the changing services that Post
Office will require there is likely to be need for updates. See Section 3.6. for the update process.
Indexation
Indexation — of Rate Card: The Rate Card rates (used by the Supplier when costing Time and Material
jobs) shall be subject to indexation from 1 April 2015. indexation for the Rate Card will then apply each
subsequent financial year of the contract.
Indexation - of FMO Services during extension: Changes for the FMO services may have indexation
applied at the start of each extension period.
Index - ‘Index’ for UK rates means: UK Consumer Price Index (CPI) published by the Office of National
Statistics or its replacement. ‘Index’ for non-UK rates means: the CPI as published by the Economist
Intelligence Unit where applicable, and a pre-agreed index for any countries outside that scope’.
{Lit is believed that it was agreed that the indexation for the offshore rate card would be at the UK rate.
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4. The Services
This section should be read by
users with an interest in
understanding the services
which are delivered by the
Supplier to Post Office under
this contract.
The services are divided into
several categories based on the
capabilities delivered, to provide a
structure to the way that they are
articulated.
This structure and the associated
definitions supports the operation
of the services and is key to many
of the terms and conditions of the
contract.
All users who are involved with the
delivery of Service Integration and
Service Desk services by the
Supplier should have a basic
understanding of the service
structure and definitions.
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4.1 Section Contents
Section Overview
The Services Section provides a summary of the services and a description of the Tier 2 Services as outlined in the contents below.
The Services — Contents
Section Description Schedule(s)
41 Section Contents Sets out the structure of the services section. NIA 44
42 The Services Summary Summarises the services and the supporting documentation relating to O14 be
the services.
The Structure Of The : s Z
43 ec re Lists the Tier 2 services under each tier 1 category. 24 43
44 How Services Change over Summarises the mechanisms through which the Services can change 61 44
. the Term over time.
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i © 41 In Confidence
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4.2 The Services Summary
Services Introduction
The Service Integrator Service Desk (SISD) Supplier plays a
pivotal role in the operation of Post Office's IT Supply Chain
and the co-ordination of the members of that supply chain.
They are to deliver and perform a range of Services and do this
in a manner that facilitates achievement of Post Office's key
objectives for the supply chain, delivers measurable benefit to
Post Office and enables other parties to provide IT services.
Post Office's key objectives for the supply chain are set out in
Appendix B.
The services are specified in Schedule 2.1. Requirements
being grouped up into sets known as “Tier 2 Services" under 9
Tier 1 categories. See Tables 4.2 & 4.3. Detail of the
Supplier's solutions to provide the services are in Schedule
4.1. The implementation of the Tier 2 Services is through eight
initiatives, as described in the implementation initiatives in
Schedule 6.1 Annex 5.
Supporting Docume
The material contained in the handbook is a summary of
detailed information contained in several documents. To
obtain a full appreciation of this topic, readers should also
consult the following:
+ Schedule 2.1 (Definitions);
+ Schedule 2.1 (Service Requirements);
+ Schedule 2.2 (Service Levels);
+ Schedule 4.1 (Contractor Solution);
+ Schedule 7.1 (Charges and Invoicing); and
+ Schedule 8.2 (Change Control Procedure).
In addition to the contract schedules, further detail on the
services are provided in supporting documents produced and
maintained by the Supplier including the:
+ Operations Manual;
+ Services Portfolio, Service Catalogue and OLAs;
+ Supply Chain Governance library material;
+ Quality Assurance Programme material;
+ Deliverables and Obligations Tracker;
+ Service Levels Tracker;
+ Continuous Service Improvement Plans;
+ Capacity Plan;
+ IT Service Continuity Plan; and
+ Configuration Management Asset life-cycle plan.
This handbook defines the SISD services provided to achieve
an effective supply chain. It does not cover the IT services,
provided by other suppliers that SISD facilitates.
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I Annex 4 &
Principles Of The Services
The services have been designed based on a set of principles. An
appreciation of these principles will provide an insight into many of the
processes and ways of working which underpin delivery of the contract.
"Services are defined as IT Service Outcomes.
Best value is derived through acceptance of industry standard services,
unique requirements are clearly defined
=Payment for the services is based on the volume of consumed IT services
i.e. pay for what you use.
“The service provider delivers and performs Design, Build Plan, Implement
and Maintain for all services.
*The services enable an IT organisation that is business focused, reliable
and efficient.
Table 4.2. The Tier 1 Service Categories
1 Category Summary Description
A set of services that are not distinct but rather enable
or relate to one or more of the other services. For
example, ‘Quality Assurance’ applies across all
Overheads
services.
The management and coordination of Supply Chain
mabey Chain Members to ensure that Post Office requirements are
Management delivered inline with agreed Service Levels and
quality
The responsibilities of supporting Post Office in
Service Strategy °Stblishing and maintaining a Service Strategy
based on Post Office business strategic and tactical
planning and IT Strategy.
The responsibilities for designing the service,
governing practices, processes and policies that are
Tequired in order to realise the service provider
strategy and introduce the services into supported,
secure environments.
‘The responsibilities for ensuring that new and
updated IT Services are transitioned into the business
successfully.
Delivery and management of services at agreed levels
to business users and customers through the
coordination and completion of day to day activities
and processes.
Management of improvements to service performance
Service Design
Service
Transition
Service Operation
Saude by continually measuring/reporting and making
improvement improvements to processes and Services to increase
P efficiency and effectiveness.
The responsibilities for provision of a variety of
disciplines including requirement development,
Systems
integration solution design, solution governance and project
activities to link multiple IT Services to meet a defined
business need.
The facility for Post Office to procure resources with
Resource: the appropriate skills and knowledge to deliver Post
Office activities. This service is provided on an ‘on
request’ basis to deliver services beyond those
described in the other categories.
Project requests
Where Post Office requires a discrete unit of work or services outside the
scope of the Services, that will be treated as a Project request and dealt
with according to the processes in Schedule 12 (Project Work Order
Process)
42
Augmentation
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4.3 The Structure of the Services
Services Structure
Services are structured by the requirements detailed in Schedule 2.1 (Service Requirements) as shown below.
Table 4.3 The list of Tier 2 services by
Overheads
r 1 category
Process Setup And Refresh & Governance Support
Operational Governance Support
Information Sharing
Tools
Refresh And Technical Currency
Innovation
Quality Assurance
‘Supply Chain Member Management 14 ‘Supply Chain Member Management
1.2 Issue Resolution
13 Contract Compliance Management
14 Performance Analysis
1.5 IT Services Risk & Compliance Management
1.6 Onboarding
17 Offooarding
‘Service Strategy 24 Strategy Management
22 Financial Management
23 Service Portfolio Management
24 Demand Management
25 Business Relationship Management
2.6 Customer Satisfaction And Survey Management
Service Design 34 Service Catalogue Management
3.2 Service Level Management
33 Capacity Management
34 ‘Availability Management
3.5, IT Service Continuity Management
3.6 Information Security Management
3.6.1 Information Security Health Checks (ISHe)
3.6.2 Information Security Health Check — New Supply Chain Services or Systems
‘Service Transition a4 Service Asset and Configuration Management
42 ‘Change Management
a3 ‘Transition Planning and Support
44 Transition Services
44.7 Release and Deployment Management
442 Validation and Testing
443 Change Evaluation
Service Operation 5.1 Service Desk Services
51 ‘Objectives and Requirements
5.1 Communications
5.1 Tooling
54 Language
5.1 Locations
5.1 Personnel
5.1 Service Desk Function
54 Incident and Service Request Management
5.1 Role in Problem Management
5.1 Role in Access Management
54 Role in VIP Support
5.1 Self Service
54 End-User Training
54 Reporting
5. ‘Access Management
5.1 Request Fulfilment
5.1 Incident Management
5.2 Event Management
5.3 Problem Management
5.4 Facilities Management
5.5 Technical Management
Continuous Service Improvement 6.0 Continuous Service Improvement
Systems Integration TA Solution Design Governance
74 Solution Design Services
72 Programme Office & Standards
73 Project Execution Services
74 Project Implementation
7.6 Requirement Development & Design
Resource Augmentation 8 Resource Augmentation
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4.4 How Services Change Over The Term
4.4.1 Overview
Overview
Paragraph All Paragraph All Paragraph All
The key mechanisms through which the Services Change over the period are listed below:
change control process
On-going Change outside the The services are defined with reference to Control Documents (see 2.2.3) and the need to describe and
agree many elements of the services. This provides flexibility to change some aspects of the SISD solution
and how the SISD delivers the service outside of the formal change control procedures.
Implementation
(see 3.3.1)
SISD Implementation establishing the Tier 2 Services is staggered as shown in Appendix A Figure A.1 each
moving through modes of operation. Each move is a Service Adjustment point. See 4.4.2.
Implementation of the supply chain model involves implementation programmes to establish towers and
manage the exit of the incumbents. See 4.4.2. These changes will effect the relationships between the SISD
and third party suppliers with respect to the SISD Services, this is to be recorded in the Supply Chain Matrix
The Change Control Process
SISD Services are subject to the change control procedures as described in Section 6 of this handbook
On-going Change outside the change control process
Post Office have a number of obligations placed on them by the contract that relate to agreement and approval of processes and documentation
which amount to operational changes outside the change control process.
Operations Manual
The Operations Manual describes processes and procedures
across the supply chain to deliver many of the services. It is
produced by the Supplier who must obtain written approval of it
from Post Office.
There are many requirements that define the Operations
Manual and its contents:
Some of these requirements govern the creation of the
operation manual and/or explicitly specify Operations Manual
content (See Table C.2 in handbook Appendix C).
A number of other requirements (See Table C.3) refer to the
existence of information within the operations manual thereby
listing content “expressed to be set out in the Operations
Manual” which is then required to be included in the
Operations Manual by Requirement 0.1.10.5c.
Post Office Obligations
Post Office has obligations in the on-going change of Services and needs to
review, approve and input as appropriate to many items and activities:
+ Schedule 2.1 contains requirements for items for which the Supplier must
get approval from Post Office. Table C.1 in the Appendix lists these.
+ Schedule 2.1 also puts requirements on the Supplier to collaborate with or
to undertake activities in ways agreed with Post Office. Table C.1 also
lists these.
The Operations Manual is a notable item to review and approve as Schedule 3
obliges Post Office to adhere to processes and policies contained within it e.g
those for Demand Management and Incident Management.
SISD Implementation
The SISD services are specified in Schedule 2.1, through sets
of requirements for “Tier 2 Services”.
The implementation of the Tier 2 Services is through eight
initiatives, as described in the implementation initiatives in
Schedule 6.1 Annex 5.
Implementation will move most services directly from current
mode of operation (CMO) to a future mode of operation (FMO).
A minority (See Appendix A) also go through a transformation
mode of operation (TMO).
Each of these transitions between modes of operation is a
Service Adjustment. The SISD Implementation plan has dates
for when these Service Adjustments should occur , the label for
these dates is ‘Adjustment Point’.
implementation testing (see 4.4.2) is required to assure that the
Service Adjustment had been successfully achieved
Post
Qbfice,
A type of “Principal Benefit’ delivered by implementation, in
rete this case to do with a service's transition between modes of
i! operation. e.g. CMO>FMO and TMO>FMO
A type of “Principal Benefit” delivered by implementation, in
Service Level _ this case to do with a service's transition between required
Adjustment service levels. e.g. no Service Level to a new TMO Service
Level; and a TMO Service Level to the FMO Service Level.
Adjustment The dates from the SISD Implementation Plan at which
Points Principal Benefits are to be delivered.
The Pricing Adjustments' and/or Service Level Adjustments
Principal and/or Service Adjustments to be delivered as detailed in the
Benefit SISD Implementation Initiatives in annex 5 (Implementation
Initiatives) of schedule 6.1
‘ Note: Pricing Adjustments are described in handbook section 3.4.1.
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4.4.2 Implementation
I seneauie I 62 Schedule Cs) J schedule I 24
Implementation Testing
Each point at which a service transitions between modes of operation is known as a Service Adjustment. The Supplier activities and interactions
around Service Adjustment testing are depicted in Figure 4.4.2 and Post Office have obligations listed in Table 4.4.2.
sting Activities To Be Completed By The Supplier Through Implementation
Effective < £ Completion Payment
Date . 4 Z \ =o
@ 0;
‘Acceptance ’Acceptance
“Test Report
Completion Criteria ‘ Test Service Report Certificate
Triage process agreed for test issues Certificate Adjustment
<40 - >10 >10
ceeptance Report
S ‘Test report provided for approval provided for approval
jevelop and submit Test
‘Strategy for review =. poe
Wo <0 Prowce additional eddence it requested by Biovide ational
Post Office evidence if requested
<0).
Provide final Test Strategy
>30 <10
Submit Test Plan Issue test certificate
before first test OR indicate partial completion a, Agree plan to resolve
‘OR Require extension for review: S>{Maximum extension period]
a OR Reject GS Meet to aiscuss
Y, > 5 Agree plan to resolve
PO to feedback >, Supplies to resolve and provide
{ §<10 one a ised Test Report
yo these happen\ I eestor I [Maximum
Provide final valle Service eo SiO extension
Test Plan adjustment Issue Acceptance certifi ee
pep eel ial
OR Relect: Jago fomedial action
= 8 Itnone of
NZ.
Post Ofice o inform Supplier i Figures in Daye these happen\/
witness testing is required ‘Automatic Service Acceptance
Agree triage process for categorisation of test issues. <40 days after Effective Date.
Provide feedback on Test Strategy. <10 days after Supplier has submitted their Test Strategy (<20
days after Effective Date).
Provide feedback on Test Plan. <10 days after Supplier has submitted their Test Strategy (<20
days after Effective Date).
Inform Supplier if witness testing is required on a particular test. >B5 days before the particular test takes place.
Request additional evidence (if required). Once Test Report or Acceptance Report has been submitted to
Post Office.
Issue test certificate OR indicate partial completion of the Service or Request <10 days after the Test Report is submitted by the Supplier.
an extension (max 10 days) to review the Test Report or Reject it.
Meet to discuss rejected Test Reports. <5 days after Post Office have notified the Supplier that the Test
Report has been Rejected.
Agree a plan to resolve Partially Completed or Rejected Test Reports. <20 days after Post Office have notified the Supplier that the
Test Report has been Partially Completed or Rejected.
Issue Acceptance Certificate or Request extension (max 5 days) to review the <10 days after the Acceptance Report is submitted by the
Acceptance Report or Reject the Acceptance Report. Supplier.
Implementation Management Period
Between the 1st Tower Contract Award and the end of the implementation of the last Tower Contractor the Supplier (see A1.2) shall put in place
and management and monitoring of the performance of the Implementation Programme, as described in Annex 6 of schedule 6.1. The scope of
the Supplier Implementation Management Responsibilities under Implementation Management is:
+To onboard Tower suppliers after establishing SISD FMO Services as per the Onboarding service described in schedule 2.1;
+To manage the delivery of the Tower Supplier implementation Programmes (getting the Tower to an FMO state); and
FPopehage the exit of Post Office's Incumbent Suppliers (“Incumbent Exit Management’)
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5. Performance Management
This section should be read by
users with an interest in
understanding the service level
regime which is the key
mechanisms to support
performance management. The
section describes aspects of the
regime including the Service
Levels and credits mechanisms
associated with operating the
SISD Services and the aspects of
the regime that can be changed.
The Service Level Agreements for
the Services are tailored to meet
the key objectives of Post Office.
Post Office can allocate Service
Points according to the impact on
the business that would arise from
failure.
The Service Points, allocated to a
service level, accrue upon failure
to meet a service level. Service
Points convert into service credits
which are amounts by which
subsequent invoices are reduced.
Users involved in the operation
and delivery of changes to the
SISD services should use the
content in this section to gain an
understanding of the Service
Levels, the responsibilities of both
parties within the process and the
key management information that
is critical to the operation of the
services.
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5.1
Section Contents
Section Overview
‘The Performance Management section provides a summary of the Service Levels and performance management activities as outlined in the
contents below.
Performance Management — Contents
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Section Description Schedule(s) Page
6.1 Section Contents Sets out the structure of the service management section. NIA 49
Provides an overview of the content of the Performance Management
Performance Management
52 Sonn section, highlighting key principles, outputs and the supporting 2 50
vy management information.
‘Summarises the services and key information relating to the Service
6.3 Service Levels and Credits Levels and credit regime. Introducing component and shared Service 2 51
Levels.
54 Si Component Service ‘Summarises the component Service Levels and KPIs for Service > 53
° Levels and KPIs Integration in operation under the contract.
5 S2Component Service _Summarises the component Service Levels for Service Desk : a
© Levels in operation under the contract.
66 — Shared Service Levels ‘Summarises the shared Service Levels in operation under the contract. 2 55
5.7 Service Credit Calculations _ Provides an overview of how the service credits operate. 2 56
How Performance 7 i i
‘Summarises the mechanisms and triggers for change within performance
5.8 Management Changes 99 9 m 2 87
management.
Over The Term
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5.2 Performance Management Summary
Performance Management Introduction
The service level regime is the key mechanisms to support
performance management and the delivery of high quality
services by the Supplier. The intention is that the Supplier
will manage the Services and Service Levels to meet the
key objectives of the Service Level Regime.
There are Service Levels covering the operation of the
SISD services (Component Service Levels) and also the
operation of wider services (Shared Service Levels). These
should reflect performance metrics that are aligned to the
successful delivery of key business services.
Performance targets for Service Levels have been set so
that failures of the Service Levels will typically reflect a
significant impact on business operations.
To support the Service Levels, and to motivate the Supplier
in delivering the Service Levels, a service credit
mechanism is in place that puts a proportion of the service
charges ‘at risk’ against delivery of the Service Levels.
Where the Supplier fails to meet the Service Levels, the
Supplier shall return a proportion of the service charges to
Post Office as service credits to reflect this poor
performance.
Additional metrics known as Key Performance Indicators
will be monitored and may through a change process
described in 5.8 become Service Levels and vice versa
Service Levels and KPis are mostly measured and
reported on a monthly basis then discussed at
Performance Reviews (see 7.4). Information is provided in
a Performance Management System (see 5.8.2).
Supporting Documentation
The material contained in this section of the handbook is,
a summary of:
+ Main Terms and Conditions;
+ Schedule 2.1 (Service Requirements);
+ Schedule 2.2 (Service Levels);
+ Schedule 2.2 Service Level Table Annex A; and
+ Schedule 8.2 Change Control procedure.
In addition to the contract schedules, further detail
supporting this topic is provided and maintained by the
Supplier including in the Key Reports and Performance
Management System.
Key objectives of the Service Level Regime
Performance Management Principles ®
= Align the interests and behaviour of Post Office and the Supplier through a
clear process that is fair to both parties.
Establish objective measures of quality service components delivered by the
Supplier and Supply Chain Members.
Encourage collaboration in multi supplier (external and internal) environments.
Provide Post Office with the ability to modify Service Level priorities based on
evolving technology and business needs without renegotiation.
The Supplier will meet the TMO Service Levels and FMO Service Levels from
the relevant TMO and FMO Start Dates (Adjustment Points) described in the
Service Level tables set out within the Annex to Part A.
That the Suppler will manage the Services and Service Levels to meet the key
objectives of the Service Level Regime.
Key objectives of the Service Level Regime include:
+Business Impact — support business requirements through capture in regime
of business impact of failures, thereby enabling informed decisions
- Service Level performance measures and targets focus on what matter
most to Post Office's customers, clients and employees.
- Supplier will have a strong understanding of Post Office's priorities and
be accountable for the performance of Services Levels.
+Flexibility - To support short and long term changes to business priorities
through ability to flex Service Levels and Key Performance Indicators
-Collaboration - Honest and open discourse to ensure service delivery issues
are quickly and efficiently resolved. Support to collaboration across the supply
chain in order to ensure ‘end to end’ services are delivered,
+End User Experience - to deliver key business services and recognise the
importance of the user experience and perception:
- End-to-end Service Levels to ensure effective integration of components
from across supply chain, that deliver key business services.
- Supplier to ensure appropriate communications and feedback loops exist.
- Service Levels are customer centric where possible. Openly challenged
and changed to support Post Office's changing business needs.
+Enhanced monitoring — Better analysis and input to the Supplier's proposals
for service improvements through monitoring of performance not covered by
formal Service Levels using Key Performance Indicators.
+Remediation of Services — regime is to encourage collaborative working and
service improvement. This includes:
- Flexible management of Service Points where the Supplier can
implement long term improvements; and
- _In-some circumstances, Post Office can reinvest Service Points.
Key Products
+ Performance Management System (5.8.2).
+ Performance Management Reports (Table 5.2),
+ Performance Reviews (7.4)
(Note If reports not provided Supplier will be taken to have
performed below the Expected Service Level (but
above the Service Threshold Level) in respect of each
unreported Service Level.
Qfticese
Table 5.2 Key Reports for Performance Management (0)
Report Title
Performance
Management
Report
Summary Description
A set of reports provided within 8 Working days of
the end of each Measurement Period to verify
performance and compliance with Service Levels.
Frequency
Monthly
Quarterly
Summary
‘A quarterly written summary of the monthly
Performance Management Reports. Quarterly
Maintenance
Schedule
A Schedule of maintenance to be agreed with Post
Office and updated through the governance. Gantinuous
Consolidated report from across the Supply Chain Periodic
on satisfaction to inform the delivery of the customer TBD in
Sched. 6.1
Satisfaction
Surveys
experience throughout the term
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5.3. Service Levels and Credits
5.3.1 Overview
Overview
The Supplier is to implement and manage the end-to-end
Service Level management and reporting processes and is
required to operate collaboratively with other Supply Chain
Members and other third parties in the delivery of seamless,
cohesive services to Post Office.
The Supplier is to perform the Services so that the Service Level
Performance will, in each reporting period, meet, or exceed, the
Service Levels and KPI's. Service Levels and KPIs have been
described in the Annex to Part A of schedule 2.2. Each having
an Expected Service Level describing what the required
performance is and also a Service Threshold Level describing a
level with an adverse effect on Post Office (Figure 5.3.1).
There are mechanisms for reflecting the impact of repeat
failures and also for reflecting the impact of low volumes on the
measurements. (See 5.7).
Service Points convert into Service Credits (See 5.8).
The Service Level regime can be changed see section 5.8.
Commencement of Service Levels
Measuring and Reporting for each SL / KPI Commences at:
+ The relevant TMO Service Level Adjustment Point for the
TMO services; and
+ The relevant FMO Start Date for the FMO services.
Shared Service Levels become effective for the Supplier, on
FMO Start Date relating to Shared Service Level.
See 4.4.1 and Implementation Timeline in Appendix A.1.1
Types of Service Level
There are two types of Service Level:
«Component Service Levels — these are unique to each
supplier and each supplier is responsible for their own.
+Shared Service Levels — there is shared accountability, failure
to meet Expected Service Level (regardless of which supplier
this was due to) will result in the accrual of Service Points by
Supplier (& other relevant suppliers).
Service Level Reporting
Performance is measured over the Measurement Period
which is 1 month unless specified otherwise.
Performance reported according to Performance Management
System (see 5.8.3) and discussed at the Performance
Review (see 7.4).
Failure and Service Points
Service Points accrue to the Supplier when the performance
against an applicable Service Level for the Measurement
Period is below the Expected Service Level (unless the low
volume events algorithm applies) see 5.7 for more detail.
=m =
y Points
= There are two types of Service Level:
~ Component Service Levels — unique to each supplier.
~ Shared Service Levels — where there is shared accountability.
= KPls are treated and reported in much the same way as Service Levels.
Except KPI failure does not accrue Service Points.
= KPIs can be made into Service Levels and vice versa. See 5.8.
= Two Performance Target types : Expected Service Level (ESL) & Service
Threshold Level (STL) See Figure 5.3.1.
= Service Points can accrue for failure to meet Service Level ESLs.
= Service Points are used to calculate Service Credits which are amounts by
which a subsequent invoice is to be reduced See 5.8.
Key objectives of Service Levels, Service Points and
Service Credits:
Key objectives of Service Levels, Service Points and Service Credits
include:
+ Services are of a consistently high quality and meet requirements;
+ Provision of a mechanism whereby Post Office can attain; recognition of
inconvenience or loss resulting from Supplier's failure to deliver;
+ Incentivises meeting Service Levels and expeditious remedy of failure;
+ Supporting management of Supply Chain Members and other third parties
(as agreed to by Supplier) to meet applicable Service Levels;
+ That Supplier proactively and collaboratively meets Shared Service Levels
and cooperates and collaborates with third parties.
Categorising Performance Metrics - SLs & KPIs
Service Levels (SL) Key Performance Indicators (KP!)
+ Essential to welfare of business. + Meaningful to the business.
+ Missing targets will result in + Missing targets will result in
significant financial or business minor financial or business
impact. impact.
Financial Service Level Credits
NOT DUE for failure to attain.
May be candidates for Service
Levels.
+ Financial Service Level Credits .
are DUE for Service Level
Failure. .
Key Performance Indicators are treated the same as Service Levels
(monthly reporting, Performance Improvement...) except they do not have
Service Level Points associated with them.
Key Performance Indicators can become Service Levels and vice versa.
Figure 5.3.1 Performance Target Types @
Expected Service Level - ESL
Qfticese
100% Expected __Levelof service purchased (provided).
Below this level, Supplier is not delivering
Service Credits intr quali I
F [threshold SS
Service credits are a reduction in the amount payable for service Threshold Level. STL
services (so do not include VAT). Service Credits apply: \ : ue ;
+ From the relevant TMO Service Level Adjustment Point for Defines “bad service” where the service
the TMO 4 I quality is so low that the business is I
ie Services; an‘ 0% I clearly adversely affected. I
IP Esape the relevant FMO Start Date for the FMO services.
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5.3.2 Service Level articulation
Uae Ze En
management I bat ruins
Service Level Articulation
The Service Levels are articulated within Tables 1 and 2 of Schedule 2.2 Service Level Table Annex A. These are in the formats shown in Figure
5.3.2 (a) and Figure 5.3.2 (b). These figures show example text for the descriptors that can change for each Service Level in black within
chevrons and replace numbers that are variable with #e.9. <example text that uses a number in it : #>.
Table 1 of Schedule 2.2 shows if measure is categorised as a Service level or KPI, start point for TMOs with reference to Adjustment points,
variation to ESL during TMOs, start date for Future Mode of Operation, periodicity of measurements and Service Point Allocation.
22
at B:
2412
Figure 5.3.2 (a) Example extract of Table 1 from Schedule 2.2 Service Level Table Annex A
@
Ref Service TMO 1 TMO 1) TMO I TMO I TMO I TMO FMO Service
Measure SLAP ESL 2 2ESL 3 3 Start Points
SLAP SLAP I ESL Date allocated
<SI or SD> <Shared SL or
Component SL or KPI>
<REFH> —<SL Title> <SL or <Adj point <FMO <nla>—<nla> </a> <n/a>—<M#-DH> —<Monthly> <tt>
KPI> _ refs> sL>
Table 2 of Schedule 2.2 gives a description, method for the performance calculation, hours of service, what is measured, and sets out the
Expected Service Level and Service Threshold Level for Future Mode of Operation.
Figure 5.3.2 (b) Example extract of Table 2 from Schedule 2.2 Service Level Table Annex A @
EME) <ABCX>
_ <Service level title>
<Target time of Target Time1
Measurement clock to start at event 1 for each occurrence.
Clock to stop at event 2 when status of occurrence becomes xyz>
<A x 100 WHERE: A= Total number of item occurrences meeting Target
B B = Total number of item occurrences in Measurement Period. >
~ <24 hours per day, all year.>
<To carry out the FMO service level calculation, Supplier will capture:
+Time and date of occurrence lifecycle event 1 that marks the start of measurement,
«Time and date of occurrence lifecycle event 2 that marks successful completion: >
I <H#%>
HEN>
gaze “ q
Service Level Management
The Supplier is required to investigate and correct all Incidents and Problems, regardless of whether they constitute Service Level Failures, in
accordance with Schedule 2.1 requirements. This is to include all commercially reasonable efforts to restore services & meet Service Levels as
‘soon as practicable, and provision of Recovery Plans and evidence that root causes have or shall be corrected
Increasing severity / priority by request
A facility by which Post Office can request an Incident be given a
higher Severity or Priority is to be provided. This re-prioritisation will
be subject to agreement and incidents will be reported against based
on their original classification.
For incidents raised to a higher Severity Level, the service level clock
will either restart at the higher severity level or continue with the time
remaining on the lower severity (whichever is shorter).
In the event that a Severity is raised, there will be a review after the
Incident is resolved to see if there is a requirement to amend the
severity setting guidelines for that type of Incident
Remediation of Component Service Level or KPI
Where Supplier fails to achieve a Component Service Level or Key
Performance Indicator, at its own cost, it is required to:
+Identify underlying causes of failure.
Manage incidents according to severity
The Supplier is to manage Incidents categorised by severity. Sub
categorisation of ‘priority’ may also be used to assist prioritisation.
The severity levels are described in terms of the impact, and
‘summarised in Appendix C.5. The full categorisation of Incidents to
Severities will be defined in the Operations Manual.
Supplier may escalate issues arising from failure to achieve Service
Levels in accordance with Schedule 8.1 Governance and failing
resolution through the Dispute Resolution Procedure. The Service
Level regime continues to apply during an escalation or dispute and
suppler is to continue proactively resolving outstanding issues.
Remediation of Shared Service Level
‘Where Supplier fails to achieve a Shared Service Level, itis to identify
the causes, and thereby determining a responsible party.
«If failure is due to the Supplier it will remediate following the same
procedure as for Component Service Levels.
«If failure is due to another Supply Chain Member the Supplier this,
may result in that supply Chain Member preparing a service
remediation plan. The Supplier is responsible for managing the supply
(Oxgig Member's service remediation plan.
«Submit within 5 Working days a Recovery Plan for improving
performance, specifying remedial actions and recovery period.
Post Office review the Recovery Plan to decide if Supplier
should proceed or should submit a revised plan.
-Upon approval implement the Recovery Plan, and conduct weekly
reviews of that implementation unti it is complete.
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5.4 Sl Component Service Levels and KPIs
Overview of the SI Component Service Levels Key Points
SI Component Service Levels are measures that cover the operation
of the SISD services for Service Integration.
The Service Levels are articulated within the agreement as set out in
5.3. The list in Table 1 of Schedule 2.2 Service Level Table Annex A
‘ = Measures may have been removed or new ones added;
is split into the categories of:
+ Component SI Service Levels; = There is much less detail here than in Schedule 2.2 Service Level
+ Component Service Desk Service Level; Table Annex A as the detail is also subject to change; and
+ Shared SI Service Levels; and = Some measures listed here as KPIs may now be Service Levels
+ SIKPIs. and vice versa.
To see the latest details consult the current Schedule 2.2 Annex A or
Performance Management Reports.
These were the Service Levels and KPIs at execution, they can change
through the mechanisms described in 5.8. Consequently:
= Some details of description may now differ;
Table 5.4(a) gives a feel for what the Component SI Service Levels cover by listing the original set, note these may now differ. Reference is.
made below to severity levels. See Appendix C.5. for a summary of severity levels and the Operations Manual for detail.
Table 5.4 (a) S/ Component Service Levels (at signing date)
Service
Level Ref
Service Measure Title from Table 1__ Précis of Service Level Description from Table 2
Percentage of Severity Level 1 and Severity Level 2 Incidents from across the Supply
Chain for which the response actions listed in service level description are completed
within the target time:15 minutes for Severity 1; 20 minutes for Severity 2 Incidents.
Percentage of Severity Level 3 and Severity Level 4 Incidents raised within the hours of
SISD Incident Response
Sisht (for Severity Level 1 and 2 Incidents)
Incident Response
SISD2 (for Severity Level 3 and 4 incidents)
operation from across the Supply Chain for which the response actions listed in service
level description are completed within the target time of 2 hours.
Percentage of Incidents assigned to the Supplier in each period for resolution that are
SISD3__ SI Incident Resolution completed to the User's satisfaction within target times for their severity ranging from 4
hours to 5 days. Note there is a 30 day grace period following service take on.
The percentage of reports (including the Performance Management Report and all reports
required to be provided by the Supplier in accordance with Schedule 8.4 (Records
Provisions)) that the Supplier delivers on time
The number of Change Requests which are scheduled for implementation, but which are
failed and/or backed out.
The number of Critical Security Patches (Security patches outside formal releases) which
SISD6 _Failed Critical Security Patches are scheduled for implementation across the supply chain, but which are failed and/or
backed out (excluding failures through no fault of Supplier e.g. faulty patches),
The number of items within a sample from the CMDB item-level records which are
Report Delivery
SISD4 (including Security Reports)
SISD5 Failed Changes
Accuracy and Completeness of the
SISD7 accurate, combined with the number of samples of actual Supplier configuration items for
CMDB
which the corresponding record exists and is accurate.
Seice Catalogue Requests - Percentage of Service Requests for which the Supplier is responsible, that are fulfilled in
sisos gue Req accordance with the agreed time frames in the Service Catalogue. Measurements to
‘ompleted on Time ree with I , ‘
exclude time periods of Supply Chain member(s) activities.
‘Accuracy, Timeliness & Completeness The Number of sampies of Service Catalogue items delivered by the Contactor within 10,
sisD9 Ys PI working days (including updates or changes to Supply Chain Member services).
of Seivice Cataicgiie 100 items to be measured per Measurement Period.
Table 5.4(b). gives a feel for what the SI KPIs cover by listing the original set, note these may now differ.
Table 5.4 (lb) S/ KPIs (at signing date)
Service
Level Ref
Service Measure Title from Table 1 Précis of Service Level Description from Table 2
sisp Kpi1 Problem Management : Root Cause RCA published to Post Office for Severity 1 Incidents in accordance with the agreed
Analysis (RCA) report published Operation Manuals
Problem Management: RCA actions ‘The percentage of RCA actions delivered within committed timescales.
SISD KPI2 completed within agreed timescales _N.B Actions can be re-scheduled with the express written agreement of Post Office
The percentage of monthly problem management aged case analysis reports for Cross
‘Supply Chain Member problems provided by 8th Working Day of month.
Where a Cross Supply Chain Member problem is an Incident or Problem caused by more
than one Supply Chain Member.
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5.5 SD Component Service Levels
=
Paragraph JAWUO
Overview of the SD Component Service Levels Key Points @®
SD Component Service Levels are measures that cover the operation I These were the Service Levels and KPIs at execution, they can change
of the SISD services for Service Desk. through the mechanisms described in 5.8. Consequently:
The Service Levels are articulated within the agreement as set out in
5.3. The list in Table 1 of Schedule 2.2 Service Level Table Annex A,
is split into the categories of
= Some details of description may now differ;
= Measures may have been removed or new ones added;
+ Component SI Service Levels; = There is much less detail here than in Schedule 2.2 Service Level
+ Component Service Desk Service Level: Table Annex A as the detail is also subject to change; and
+ Shared SI Service Levels; and = While no KPIs are listed here new KPIs are not precluded and re-
+ SIKPIs (Note: the contract doesn’t preclude SD KPIs in future). categorisation may move Service Levels to be KPIs and vice versa.
To see the latest details consult the current Schedule 2,2 Annex A or
Performance Management Reports.
Table 5.5.gives a feel for what the Component SD Service Levels cover by listing the original set, note these may now differ. Reference is made
below to severity levels. See Appendix C.5. for a summary of severity levels and the Operations Manual for detail.
Table 5.5 SD Component Service Levels (at signing date)
Service
Service Measure Title from Table 1_ Précis of Service Level Description from Table 2
Level Ref
Percentage of ‘Fixable Call's (excluding Severity Level 1 Incidents) where the issue has
SISD10 _ First Contact Resolution been completed to the user's satisfaction during first Call to the Service Desk.
‘Fixable Call’ is where a solution in the knowledge base can resolve an issue remotely.
Percentage of Incidents not Resolved on first contact between User and Service Desk
SISD11 _ Incident Assignment accuracy which are then assigned by Service Desk to the appropriate Supply Chain Member.
‘Resolved’ is to identify root cause, and deploy permanent fixes to correct the Incident.
Percentage of Severity Level 1 and Severity Level 2 Incidents whose records are updated
SISD12 _Incident Update Time in accordance with the Target Times. Which, for Level 1, is not less frequently than every
thirty minutes and Level 2, not less frequently than every sixty minutes.
Percentage of telephone calls made to Service Desk in each period which are answered by
SISD13 Speed to Answer (telephone) a Service Desk Agent within 20 seconds of caller selecting the option an IVR menu; or call
being directly routed. Note there is relief when call volume spikes.
Percentage of emails to Service Desk in each period which are answered by a Service
SISD14__Speed to Answer (email) Desk agent within 4 hours. Where answered means taking actions as specified in Service
Level description and excludes Automated acknowledgement responses.
Percentage of calls made to Service Desk during each period which are abandoned. i.e.
SISD15 Call Abandonment Rate caller terminates call after thirty seconds of not being connected to a Service Desk Note
there is relief when call volume spikes.
The percentage of Customer respondents to a Service Desk customer satisfaction survey
carried out in a Measurement Period whose overall rating was satisfied or very satisfied or
an equivalent.
Customer Satisfaction with the Service
SISD16 Desk
The availabilty of the Service Desk to receive reports of Incidents, Service Requests and
SISD17 _Service Desk availability Change Requests from a user authorised to access the Service Desk expressed as a
percentage for each Measurement Period.
Percentage of User Administration Requests within the required timeframes in the
Operations Manual. User administration includes adding, deleting, updating access rights
and account suspension. For example: Account additions, emergency removals.
User Administration Requests -
SISD18 Completed on time
The number of users set-up with all services and training ordered and delivered without
SISD19___User Setup Accuracy fault or service omission
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5.6 Shared Service Levels
Overview of the Shared Service Levels
Shared Service Levels are measures that cover the wider services,
and their management by the SISD
The Service Levels are articulated within the agreement as set out in
aragraph CO
Key Points ®
These were the shared Service Levels at execution, they can change
through the mechanisms described in 5.8. Consequently:
* Some details of description may now differ.
5.3. The list in Table 1 of Schedule 2.2 Service Level Table Annex A
is split into the categories of.
+ Component SI Service Levels;
+ Component Service Desk Service Level;
+ Shared SI Service Levels; and
+ SI KPIs (Note the contract doesn't preclude Shared KPIs in
future).
= Measures may have been removed or new ones added.
= There is much less detail here than in Schedule 2.2 Service Level
Table Annex A as the detail is also subject to change.
= While no KPIs are listed here new KPIs are not precluded and re-
categorisation may move Service Levels to be KPIs and vice versa.
= To see the latest details consult the current Schedule 2,2 Annex A
or Performance Management Reports.
Table 5.6 gives a feel for what the Shared Service Levels cover by listing the original set, note these may now differ.
Table 5.6 Shared Service Levels (at signing date)
Service
Level Ref
Service Measure Title from Table 1_ Précis of Service Level Description from Table 2
The percentage of Customer respondents to an IT Service customer satisfaction
survey of a random sample of 10% Post Office Users across all IT Services, carried
ut in a Measurement Period whose overall rating was satisfied or very satisfied
‘Overall Customer Satisfaction with the
SHARED( IT Services
‘A % reduction in the volume of Incidents from the first Measurement Period. (Note the
measurement period is annually.)
Inthe first period Supplier just needs to provide details of the volumes, thereafter this,
Service Level is calculated
In the second period the ESL is to be a 3% reduction.
The ESL for the third and subsequent periods is to be agreed using an agreed
baselining process to be documented in the Operations Manual.
SHARED2 Reduction in Unique Incident Volume
There is relief to allow for ‘bedding in time’ where incidents within three months of a
change can be disregarded from the calculation if caused by that change and Supplier
had fulfilled their obligations.
Measurement and reporting only commence for this Shared Service Level once the
Shared Service Level is effective with respect to one or more Supply Chain Member(s)
who are party to the same Shared Service Level.
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5.7 Service Credit Calculations
=
5.7.1 Overview
Overview
Failure to attain an Expected Service Level is a Service Level Failure.
Service Points can accrue for Service Level Failure. The amount of
points is based on the point allocation recorded in Schedule 2.2
Annex A and the mechanisms for reflecting the impact of repeat
failures and also for reflecting the impact of low volumes on the
measurements.
Service Points convert into a deduction from charges known as
Service Credits. Service Credits are set off against the next period’s
Service Charges thereby reducing that invoice.
Figure 5.7.1 Service Point Accrual
ZS
100% expected esty)— I No Service Points accrue
>) Service Points accrue I
hreshoid (STL)
ens, Service Points accrue only if
S the performance is not subject
I to the algorithm for calculating
I lowvolume events
I Service Points only accrue in respect of a Shared Service I
I Level when that Service Level is effective with respect to1or
I more Supply Chain Members (unless agreed otherwise that
I would be on ‘go-live’ of that party's relevant service).
Service Point Allocation, Accrual and Limits
The Total Monthly Service Points Available for allocation is 2500. i.e.
the sum total of Service Points allocated to Service Levels in Table 1
of Annex A is to be 2500 or less.
Service Points, when accrued are in the amount allocated to that
Service Level in Schedule 2.2 Annex A. (unless amended by other
mechanisms as further described in this section 5.7.1 and 5.7.2eg.
exemptions or multiple failures).
The Total Service Points accrued across all Service Levels is:
+ Limited in each Month to 2000; and
+ Limited in a Contract Year to 12,000.
Calculation of Credits given Service Points
Each Service Point results in a Service Credit equating to a certain
percentage (specified in Schedule 7.1) of the aggregate Monthly
Service Charges (for the month in which the points accrued) e.g. 1pt
= 0.0125%. Service Credits are set off against the charges in the
following period.
Limits on Credits
Services Credits are calculated and apply monthly and limited:
(a)in each month to 25% of the Service Charges paid, due or which
would have been payable during that month; and
(b)in each Contract Year to 12.5% of the Service Charges paid, due
or which would have been payable.
Critical Service level Failure
Ifa Critical Service Failure occurs, Post Office may exercise rights
and remedies (including Termination & seeking damages.) They are
deemed to have occurred if a Component Service Level allocated
more than 175 points fails to meet the STL two months in a row and
in other circumstances where high numbers of points are repeatedly
Beesued, See 5.7.2
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Key Points
Service Points equal to the allocated number for effective Service Levels
accrue upon Service Level Failures unless:
18
*Low volume event algorithm is triggered by less than 100 events.
*Repeat Failures mean a multiplier amends the allocation.
"Exemptions apply or it isn't selected after a Single events has lead to
multiple failures.
Subject to limits, Service Points accrued are totalled and converted to
service credits to be set off against the charges in next invoice.
Service Downtime and Service Points
Service Points will accrue in relation to Availability Service Levels, if any
Service Downtime occurs as a result of maintenance undertaken by the
‘Supplier (including Emergency Maintenance) exceeds four (4) hours in
any Measurement Period. See 5.7.2.
Low Volume Events Algorithm
For performance measured in percentage terms, when less than 100 of
the measured items occur, then the measurement is subject to the Low
Volume Events algorithm and the number of compliant items to be
successfully completed for the Service Level (either ESL or TSL) to be
considered as achieved is calculated using the algorithm.
Method: the number of items occurring during such Measurement
Period will be multiplied by the Expected Service Level percentage and
the product rounded down to the nearest whole number.
Note: Supplier may propose alternative calculation methods for particular
Service Levels. Where Post Office approve an alternative it will apply and
the Supplier incorporates it in the Operations Manual
Repeat Service Level Failure
Repeat Service Failures change the amount of Service Points to be
accrued for a failure through a multiplier. See 5.7.2. They are failures of
a particular Service Level that are the:
+ Third (or subsequent) failure in any six month rolling period; or
+ Second (or subsequent) failure in consecutive months.
Events or periods will be disregarded in calculating performance against
a Service Level where Supplier demonstrates its cause was:
+ A requested resource reduction and Supplier had warned of failure.
+ Equipment identified and agreed in writing to be ‘Unserviceable
Equipment Prior to the failure and Post Office failed to repair it and
Supplier has met its Refresh and Technical Currency obligations.
+ An unresolved cause, existing at the time of transition of Service to the
Supplier for which Supplier is excused until agreed as resolved
+ Post Office or Supply Chain Member failure to meet a responsibility
Single events leading to multiple failures
Where a single event or occurrence results in the failure to meet more
than one Service Level’s ESL or STL, and Supplier establishes this to
Post Office's reasonable satisfaction. Then either:
+ Post Office select one of the failures to accrue Service Points; or
+ A default selection made, selecting the failure with highest points.
Service Points do not accrue for the multiple failures not selected.
Where the same event then results in further Service Level Failure in a
subsequent month, Service Points may be accrued (regardless of
whether points were accrued in the month of the event's occurrence).
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5.7.2 Service Downtime, Repeat Failures and
Critical Failures oe =< reac
Service Downtime and Maintenance Schedule
The Supplier will maintain a Maintenance Schedule to be agreed with Post Office and updated through the governance.
Supplier can arrange for maintenance to the Supplier's system (other than Emergency Maintenance or activities already in agreed Maintenance
Schedule) through getting approval for planned maintenance from the Post Office Representative (see Schedule 9.3). It is then entered onto the
Maintenance Schedule. Once approved the planned maintenance is known as “Permitted Maintenance’. Supplier can book a maximum of four
hours Service Downtime for Permitted Maintenance ina Measurement Period.
This four hours (or less) will be subtracted from the total number of hours in the Measurement Period when calculating Availabilty or measuring
performance against the Availability Service Levels.
Repeat Service Level Failure
A Repeat Service level Failure is a Service Level Failure for a particular Service Level that is the:
a) Third (or subsequent) failure in any six month rolling period; or
b) Second (or subsequent) failure in consecutive months.
Repeat Service Failures change the amount of Service Points to be accrued next time there is a Service Failure through a multiplier applied to the
Service Point allocation
The multiplier remains in place or increases until two consecutive months of achieving the Service Level which resets the multiplier to 1
Ifa recovery plan is completed and there is only one month of achieving the Service Level then, the subsequent Service Level Failure will be
allocated the same number of Service Points as the previous Service Level Failure i.e. the multiplier that may otherwise have been used is
replaced by the use of the same number of Service Points as previous failure. See the note on the 1* repeat failure in Figure 5.3.1
Multiplier due to 6 month rolling period repeats
Event Multiplier
From the date of the third Service Level Failure of the 125 From the date of the second Service Level Failure of
same Service Level 3 the same Service Level
From the date of the fourth Service Level Failure of 15 From the date of the third Service Level Failure of the 15
the same Service Level same Service Level
From the date of the fifth or any subsequent Service <= From the date of the fourth (or any Subsequent) =
Level Failure of the same Service Level ‘ Service Level Failure of the same Service Level
atysyI
injies
Performance Target Types
service Level in example assumed )
peptide sae Poesia meter I For22 troling repeat falures it's the 4" falure so mulipie set to 1.5.
eer [Fej222 cmecsives repentant he 2 are 0 miter node
‘ehieved 1 in6 ‘Achieved 26 II 4 faite, 4in 6 30.8 repeat ved 48 I [Achieves in
Not consecutive I_I Not consecutive consecutive soa repeat I I Not consecutive Conseeatve Achieves II Not consecutive
Not a repeat I I Nota repeat Arepeat & 4” fare I Nota repeat Not a repeat I Nota repeat
Mutipier unchanged I I Mulpler unchanged I I Multiplier up to 1.5 I Mutipier unchanged I I So Mutiper re-setto 1 II Mutipler unchanged
This month = 0 I [This montn= [his month 15°? [This month = ‘This mont = I =o
3° falure; 3 in 6 so a repeat
e e e e { e I Not consecutive
ESL iv Arepeat & 3rd failure
OKT a o + But Sch 2.2 C 2.4 applies so.
[ioamreste Le eee same points as ast false
I Nota repeat 2 falure ;2in 6 a Ss, Tnamonne 15P
Matipier unchanged I I Rot sensative 5 faire: 4in6 so. repeat I I 6 fare 5in
Te Netuplerancnangea [I Notcenmecutva ‘repeat & 5° fare ‘repeat & 6 faire I Arepeat 6 faire
I Mutter anc ats 3 Matpier upto 1.75 Wiper set at 178 again II utipier wp to 15,
aes Mattie up to 4-25 ‘This month= 1.75'P ‘This month= 1.75°P I this monthe 15°)
SS 1X \S
= i\ \
— ad a)
tehleved oh-Pedeerretoheer 5 raittrperede faa tu pasar ae For2.2 tring i's the 6” I [Put his ax faire as
onsecutve oF Not Petes Melero fate hance folowing he I I ebierse the 1 repeat
is®@ —aunjiey 1S8 Ista repeat/ Which fae sit for 2.2.1 OR sgllnyaiennaan te lier. I Sevecu ae teas
Fo) 222 sopens to muitper [pension Son22C 24 says II conisecutve faire the I_I fale and hen never
IR Recovery Plan Completed 3° failure would incur 1°P. rmuttipier is 4.75. II Rave a multiplier
Critical Service Level Failure
Critical Service Failure are deemed to have ocourred in any of the following circumstances:
+The Service Threshold Level for a Component Service Level allocated 175 Service Points or more (known as a Critical Service Level), has not
been achieved in two consecutive Measurement Periods, or in any three periods in a rolling six period window; or
+All Service Levels accrue a total of 1250 Service Points within each of two consecutive periods; or
+The sum of Service Points accrued across any three periods in a rolling six period window is 3500.
If a Critical Service Failure occurs, Post Office will be entitled to exercise its rights and remedies described in the Agreement (including
‘Fetmigétion Rights and/or the right to seek damages).
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5.8 How Performance Management
Changes Over The Term
5.8.1 Overview
Overview
2.2Path
Schedule
Paragraph 4
The contract anticipates that while Performance Management processes may remain stable that various aspects of the regime such as point
allocation and Service Levels should change over the term of the contract without a need for invoking the Change Control Procedures.
Implementation
The applicable Service Levels come into effect in line with Service Level Adjustment Points and FMO start
dates.
Wider implementation and the ‘go-live’ of services provided by Supply Chain Members (e.g. incident
management services) can trigger changes to the operation of the Service Level regime (e.g. accrual of
Service Points for Shared Service Levels).
Establishment of the Performance Management System. See 5.8.2.
Control Documents
There are Control Documents, changes to which would affect the operation of Performance Management.
By their nature these may change over the term, but at the time of writing these include:
+ Change Management Note;
+ Change Request Note;
+ Work Order Process template; and
+ Operations Manual (in which procedures for Service Point allocation may be defined).
Changes possible outside the
Schedule 8.2 (Change Control
Procedures)
Several types of changes can be made outside of Schedule 8.2 Change Control Procedures including:
+ Allocation of Service Points;
+ Re-designation and promotion of Performance measures between being SLs and KPIs; and
+ Annual reviews.
The Change Control Procedures
Should either Post Office or the Supplier wish to change the fundamental processes, this should be dealt
with through the Change Control Procedures,
Post Office may where necessary (i. itis a type of change not achievable through the other mechanisms)
use the Schedule 8.2 (Change Control Procedures) to change Service Levels. Including from April 2014
onwards Additions, Deletions, and Modifications to Service Levels. See 5.8.3.
This may, for example, be
required to highlight
importance of the Services
during peak periods; for
example during December
and March.
Changes possible outside the Schedule 8.2 Change Control Procedures
Reallocate Points ® Service Point allocation
Post Office may unilaterally review and amend the Service Points allocation for Service Levels. Allocations
in any month may not exceed the Total Monthly Service Point Available for Allocation.
The procedure for notifying the Supplier of changes is either as agreed within the Operations Manual or if
that is not yet agreed for Post Office to give the Supplier 30 days written notice.
For example, to reflect the
delivery performance in
support of Key Business
services.
Re-designation » Movement of KPIs and SLs
Post Office may re-designate existing Service Levels as Key Performance Indicators . Also, Post Office
may promote existing Key Performance Indicators into being Service Levels.
The procedure for notifying the Supplier of changes is to give the Supplier 30 days written notice.
With a view to more
accurately reflecting the
changing business needs of
Post Office and other
Service Recipients.
Scheduled Reviews » Annual Review - Review and Revision of KPIs and SLs
Annually (less often if desired/more often as agreed) Post Office and Supplier review the Service Levels.
Reviewing the achievement of the service level regime objectives; alignment with Post Office's business
conditions; quality and delivery of the Services; changes required to the Service Level regime to align
Service Levels to the Services, and to improve performance of the Services.
Entering into good faith negotiations within 30 days of completing a review to adjust Service Levels if
requested by Post Office. Supplier to act reasonably in considering new Service Level structures.
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5.8.2 Establishment of the Performance
Management System a
Overview Key Points
The Performance Management System that will be
established during implementation is to provide the method
The Performance Management System:
for managing the Services: "Details method for managing the Services:
+ Toensure that the Supplier is complying with the = To ensure that the Supplier is complying with the Service Levels; and
Service Levels; and = For identifying any Service Level Failures in the performance of the
+ For identifying any Service Level Failures in the ‘Supplier and/or delivery of the Services.
performance of the Supplier and/or delivery of the "Is provided by Supplier in draft within thirty working days of the Effective Date for
Services. approval by Post Office.
+Is to be implemented immediately upon approval revised and resubmitted upon
rejection or escalated if resubmission is rejected.
*Is to be reviewed at the relevant governance forum.
"Is to be documented within the Operations Manual according to requirement
3.3.9.
“Approval of the Performance Management System will not relieve the Supplier of
any obligation it has under this Agreement (including the obligation to meet the
Service Levels and KPI's).
Establishing the System
Within thirty working days of the Effective Date the
Supplier will provide Post Office with a draft Performance
Management System for approval
Post Office will notify the Supplier within ten working days
of its approval or rejection
+If the draft Performance Management System is approved
by Post Office it will be implemented immediately
«if rejected Post Office wil identify the changes it requires I MlbaeaAManMDrrM uA adc) beh ca
and the Supplier is to amend the draft Performance The Performance Management System includes details of the Supplier's
responsibilities in respect of the following
+Notifications to the Service Desk of service failures and other defects in the
Supplier's performance and/or delivery of the Services;
+Self-monitoring using industry recognised and current service management
processes and tools;
+Satisfaction surveys;
Performance review.
“Post Office audit;
+The processes and systems to monitor effectively performance of the Services
as against the Service Levels and KPI's;
+The format and content of the Performance Management Report; and
+How the Supplier will comply with the obligations set out in Parts A (Service
Revising the System Level Management) and C (Service Credit Regime) of Schedule 2.2 (Service
+ The Supplier may wish to make changes to the Levels)
Performance Management System and can provide The Performance Management System, the Service Level log, any reports,
Post Otfice with an undated craft Performance summaries produced, and any other document or record reasonably required by
ost ip Post Office are required to be available to Post Office on-line and capable of
Management System description for approval. being printed
+ Post Office may require reasonable amendments and
the Supplier will make such amendments and re-
submit
+ Until such time as an updated Performance + Post Office will notify the Supplier within ten working days of its receipt of the
Management System is approved by Post Office the initial draft Performance Management System and of its response (approval
9 ys PPI y or rejection) to it. If rejecting it the notice doing so is to identify the changes
existing Performance Management System will required
continue to apply. + Post Office need to work with the Supplier to calibrate the Customer
+ The Performance Management System is also to be Satisfaction survey e.g. ensure definition of good aligns with that expected.
reviewed at the relevant governance forum.
Management System to incorporate the changes required
and re-submit within five working days.
+f Post Office does not approve the resubmitted version,
the matter may be escalated in accordance with Schedule
8.1 (Governance).
+Failing resolution in accordance with that schedule within
ten working days, it can be referred for resolution in
accordance with the Dispute Resolution Procedure.
Post Office Obligations
Performance Report Data
Post Office can raise any additional questions and/or request any further information regarding any Incident and/or any Service Level Failure and
the Supplier is required to provide such documentation to verify the level of the performance.
The Supplier is to keep appropriate documents and records (e.g. Service Desk records, Service Failure log, training programmes, goods
received documentation, Supplier accreditation records, complaints received etc.) in relation to the Services and other requirements to be
satisfied. Maintaining accurate records of Incident histories for a minimum of 7 years and providing prompt access to such records to Post Office
upon request. The records and documents of the Supplier will be available for inspection by Post Office and/or its nominee at any time and Post
Office and/or its nominee may make copies of any such records and documents.
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5.8.3 Addition, Deletion and Modifying Service
Levels i
Service Level Additions, Deletions, & Modifications [[aygtytic ®
After 6 months from the Effective Date, Post Office may add, delete or
change the Service Levels by sending written notice to the Supplier. Best © cach ae Torn the tect Dale cost cies nay ody
delete or chi the Service Levels. The procedure for achie\
The Supplier must respond to Post Office within 30 days of receipt of the I 1 we ae fle a ie a is s H he iy ie . ' ice
written notice with a Service Level Change Proposal. involves consultation wit the Supplier, the ending of writen
Itis anticipated that this will be done with a view to more accurately notices ond mie Crenge Control Eoeerure.
reflecting the changing business needs of Post Office and other Service
Recipients. Post Office Obligations
Before adding a new Service Level or KPI, Post Office will provide the
Supplier with an opportunity to express any concerns (including the The agreement specifies that Service Levels will be
availability of measuring tools). quantifiable, measurable and objective.
Post Office will consider any reasonable concerns before making its + Post Office must provide the Supplier with an opportunity to
decision whether to add a new Service Level or KPI. express concerns.
+ Before making its decision whether to add a new Service Level
or KPI Post Office will consider any reasonable concerns
expressed by the Supplier.
Written Notice
May contain multiple additions, deletions,
and/or changes.
These specify additional costs and
expenses (with reasons) to implement the Final Costs
changed Service Level (based on actual
direct costs, no allowance for profit or risk),
The final amount of Supplier's direct
costs incurred as a result of
implementing the changed Service Level
will be determined via the Change
Control Procedure.
Service Point Allocation after changes
Service Point allocations for all Service Levels in a month must equal the Total Monthly Service Points Available for Allocation.
Where a Service Level has not had a Service Point allocation defined for it, then the Service Point allocation will be zero.
Expected Service Levels and Service Threshold Levels for New Service Levels
The Expected Service Level and Service Threshold Level for new Service Levels will be agreed between the parties
If not agreed then the these performance targets are to be calculated as follows:
«if at least four consecutive months of the service measurements exist then these will be used to discuss and agree the values to be set.
- If still unable to agree, either party may escalate the matter for resolution in accordance with Schedule 8.1 (Governance).
- Ifthe matter is not resolved within 5 working days through that escalation then either party may refer the matter for resolution in
accordance with the Dispute Resolution Procedure.
«if the relevant measurements do not exist, then the Supplier will begin providing monthly measurements within sixty calendar days after receipt
of Post Office's written request, subject to agreement on such measurements through the Change Control Procedure.
+Meaning eventually there will (or should be ) 4 or more actual Service Level Performance measurements captured at which point Post Office can
request in writing that these be used to discuss setting the target values as if they had originally existed as above
+When there is (or should be ) 4 or more actual Service Level Performance measurements but one or more is missing:
- Then when one measurement is missing it is constructed by just using the value of the highest of the 3 actual measurements; or
- If multiple measurements are missing they are constructed by using the highest actual measurement in formulas as follows"
For the first missing measurement For each remaining missing measurement after the first:
(Highest actual) plus (20% of (100% minus Highest Actual)) (Highest actual) plus (35% of (100% minus Highest Actual))
e.g. where the highest actual = 95% e.g. where the highest actual = 95%
Then 95% + (20% x (100% -95%)) = 96% Then 95% + (35% x (100%-95%) = 96.75%
* Note: These formula assume 100% is perfect. If 0% is actually perfect performance then formulas are to be amended appropriately
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6.
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Change Control
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This section should be read by
users with an interest in
understanding the mechanisms
through which the Supplier and
Post Office interact to deliver
changes to the SISD services
and the associated terms and
conditions under which the SISD
services are operated.
The processes captured in this
section cover the key capabilities
required to manage change to the
services, contract and Service
Levels through the standard, fast-
track and emergency change
procedures.
Users involved in the delivery of
change to the SISD services
should use the content in this
section to understand the overall
process, the responsibilities of both
the Supplier and Post Office within
the process and the key
management information available
to Post Office.
It does not cover the SISD ITIL
related services for Change
Management as schedule 2.1 (and
also the content within the
Operations Manual called for within
schedule 2.1) document these and
the processes for changes to the IT
services that the SISD facilitates
delivery of.
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6.1 Section Contents
Section Overview
The Change Control section provides a summary of the various mechanisms for managing change within the contract as outlined in the contents
below,
Change Control — Contents
Section Description Schedule(s) Page
Sets out the structure of the change control section. Highlighting that this
; section is limited to discussion of the change control of SISD services i.e.
61 Section Contents ; : ; NA 63
ection Court excluding the wider change management that the SISD services
themselves support.
62 Change Control Summary A” ¥eMview ofthe types of change processes, principles and service 84 64
documentation, that support change.
63 Standard Change Description of the process and key aspects of the process to make 81 65
“= Procedure changes to the SISD services that are consumed by Post Office. :
How other types of change, including ‘Fast-Track’ and ‘Emergency’
64 Other Change Procedi 84 66
rer Change Procedures Change are managed between Post Office and Supplier.
5 _ Project Work Order The process which the parties will follow when Post Office wishes to o a
“Process consider procuring Project Services from the Supplier.
5 HowChange Control Summarises the mechanisms and triggers for changes within the NA 68
‘© Changes Over The Term —_ management of contract change.
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6.2 Change Control Summary
All
Overview Key ge Control Points
This section gives an overview of the procedures for eg c
Change ie. changes that could affect the Agreement Except for in schedule 2.1, a Change is defined as “any Contract Change (For
between Post Office and the Supplier. Contract the avoidance of doubt excluding any operational change).”
changes must follow the Change Control procedures. = Three types of Change Control procedure: Standard, Fast-track and Emergency.
See Table 6.2 and Sections 6.3 and 6.4 for
=e ©
descriptions of the procedures. = Each party bears its own costs in agreeing Changes, except when Supplier pays
In addition to the Change Control procedures Post as use of Change Control Procedure is a result of their error or Default.
Office may also wish to consider procuring Project = Changes in charges must be proportionate to changes in required resources
Services from the Supplier and will do this via a Project oe f s e ;
Work Order. See Section 6.5. = Post Office may also procure additional Project Services using a Project Work
Order.
Note that Change has multiple meanings within the
agreement (see call out below) * There are two key Control Documents relating to Change (Control Documents
can be amended outside of Change Control Procedures see schedule
13):Change Management Notes and Change Request Notes.
hange Principles
Each party shall bear its own costs in relation to the Where either Post Office or the Supplier identifies the need for a Change,
preparation and agreement of each Change. When the either party may at any time request a Change.
use of the Change Control Procedure is as a result of + No Change shall be valid until such time as it has been authorised and until
any error or Default by the Supplier then both parties’ such time the Agreement shall continue in force as if the Change Request had
costs incurred shall be paid for by the Supplier. not been made.
+ Any discussions, negotiations or other communications which may take place
in connection with any proposed Change, prior to approval, will not be binding
for either Post Office or the Supplier.
+ Inthe event that the Supplier implements a Change which has not been
authorised, such Change shall not be valid and shall not be binding on Post
Office
+ Unless stated, where there is a change of circumstance that affects the
Supplier's ability to comply with the Agreement, the Supplier shall bear the
costs of implementing any such Change.
Changes shall be calculated and charged in
accordance with the principles and day rates set out in
schedule 7.1. The Supplier is only entitled to increase
the Charges in proportion to the required additional
resources, Sub-contractor services and/or materials
(providing it can demonstrate that these are required in
the Change Management Note)
Table 6.2 Types of Change Procedure
Type of Change —_ Description Schedule
Standard Change The standard procedure for either Post Office or the Supplier to raise a change request and see itthrough 5
Procedure to. a Change being approved. :
A change that needs to be implemented via an expedited process. If both parties agree that a change
should be a ‘Fast-Track’ change then the period of the following timings will change!
+ 15 working days is reduced to 5 working days. 8.2
+ 10 working days is reduced to 2 working days.
+ _S working days is reduced to 1 Working Day
Fast-Track Change
Procedure
If the Supplier needs to make a Change to the contract in order for it to comply with its obligations the
Emergency Change Supplier is able to, at its own risk and expense, to proceed with an ‘Emergency Change’. Within 15 working
Procedure days of implementing the Emergency Change the Supplier must provide Post Office with a signed Change
Management Note. Post Office can choose to accept or reject this (outright or for modification).
Change has multiple meanings within the agreement.
Note there is a distinction between changes to the contract and changes to the IT services that the SISD facilitates delivery of.
In most of the agreement (i. all but schedule 2.1) ‘Change’ is the term used to describe changes to the SISD contract made via the Change
Control Procedure as described in schedule 8.2 and explicitly excludes Operational change.
In schedule 2.1 ‘Change’ has the meaning defined in the ITIL framework. Schedule 2.1 describes the SISD ITIL related services for Change
Management thus schedule 2.1 (and also the content within the Operations Manual called for within schedule 2.1) is where the processes are
documented for changes to IT services ie. the kind of change that alters information in the Post Office configuration management database or
configuration management systems.
Schedule 2.1 describes how as part of Change Management Services the SISD define and document within the Operations Manual the change
processes and a Change Authorisation Matrix to approve cross Supply Chain Member Changes. It also requires the SISD to manage the
Change Advisory Board (or “CAB") in accordance with the governance schedule.
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6.3 Standard Change Procedure
Overview
The processes to be followed in case of a
Standard Contractual Change is depicted in Figure
63.
The figure includes responsibility charts for these
processes, defining roles and responsibilities
between Post Office and the Supplier.
The detailed SISD Standard Change Management
Process can be found in Schedule 8.2 and the
Operations Manual
Post Office send a Change request , the Supplier
responds with a Change Management Note ,
which is then reviewed , clarified and either signed
or rejected.
Change Manger.
= The Supplier shall initiate a change by issuing a Change Management Note (CMN) to
Post Office ‘s Contract Manager.
= Both forms are accessible in Schedule 8.2.
+ The Supplier shall assess and document the potential impact of a proposed Change
in a CMN before the Change can be either approved or implemented.
* Post Office shall have the right to request amendments to a Change Request,
approve it or reject it .
* No proposed Change shall be implemented by the Supplier until such time as a
Change Management Note has been signed and issued by Post Office.
Key Points
= Either party may request a change to the SISD contract.
" Post Office shall initiate a change by issuing a Change Request to the Suppliers
Figure 6.3 Standard Contractual Change Responsibilities
"Any request should state whether it considers the
I proposed Change to be a Fast-Track Change.
Send Change Request
Form to Supplier's
Change Manager
Post
Office
Prepare and submit a
‘Supplier CMN to the Post Office
Manager
[within 10 working days]
"Where more than 10 working days are required the
I Supplier shall respond within five working days to the
I Post Office Change Manager.
‘If the Supplier requires any clarifications before it can
‘deliver the Change Management Note, then the time
‘period shall be extended by the time taken by Post
I Office to provide those clarifications.
Produce clarifications
and update/re-write CMN
[within 5 working days]
Review the CMN and
action the next step in
the process
[within 15 working days]
Request CMN
amendments
If Post Office does not sign the CMN within the 15 day
time period, then the Supplier can notify Post Office
and if the CMN is still not signed within another 5
working days of the notification, then the Change shall
be deemed to have been rejected
Countersign printed
copies of CMN
Accept CMN
Reject CMN
Explain rejection in
writing to Supplier.
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6.4 Other Change Procedures
Overview
Outside of the Standard Change Procedure other change processes can
be used should the circumstances dictate. These procedures are
described below. The specific processes should be described in detail in
the Operations Manual.
Emergency Change
Change proposed by Post Office
Post Office can verbally request the SISD Supplier immediately implement
an Emergency Change, provided that Post Office shall, as soon as
practicable after implementation of the Emergency Change, provide a
Change Request for the retrospective change which shall then be
progressed via the Standard Change Procedure.
Change proposed by Supplier
If the Supplier determines that a change is strictly necessary in order for it
to comply with its obligations and there is insufficient time to comply with
the Standard Change Procedure the Supplier can at its own risk and
expense to proceed with the Emergency Change.
The Supplier must obtain prior written approval from Post Office's Contract
Manager to proceed with each Emergency Change.
15 working days after implementing the Emergency Change the Supplier
must provide Post Office with a signed Change Management Note by e-
mail.
Fast-Track Changes
=
Key Points
= Emergency changes can be raised by both parties to expedite
implementation of critical changes.
* Following implementation of the emergency change a change
request shall be raised to document this.
= Fast-Track changes can be made in circumstances where it is
desirable to expedite the processes set out in the Standard
Change Control Procedure. Timescales are reduced.
= Changes to the Service Levels can happen through the Change
Control Procedure; or through implementation of written notices
requesting change as described in 5.8.1.
= Settlement agreements reached and documented in the course
of resolving a dispute, may unless it is agreed to implement the
resolution in the form of a separate Change Management Note,
constitute a Change to the Agreement to the extent necessary.
To ensure efficiency, there may be circumstances where it is desirable to expedite the processes set out in the Standard Change Control
Procedure. If both parties agree that a change should be fast-tracked and this is confirmed in writing, then the following timescales shall apply.
Note that these reductions can be further revised by agreement between the parties in writing.
15 becomes
working days
40 becomes
working days
becomes
Changes To Service Levels
Various aspects of the Service Level regime can change over the term
of the contract without a need for invoking the Change Control
Procedures e.g. point allocation, designation as a KPI or Service Level
and revisions after annual reviews. See section 5.8.1.
Post
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5
working days
2
working days
1
working day
Settlement Agreements
Itis possible that in the course of resolving a dispute (see section
7.5) that the parties either accept a mediator's recommendations
or otherwise reach agreement on the resolution of the Dispute
The agreed resolution shall be recorded in writing and signed by
each party. Itis then binding on both parties, and unless it is
agreed to implement it in the form of a separate Change
Management Note, the resolution constitutes a Change to the
Agreement to the extent necessary,
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6.5 Project Work Order Process
Overview
It is expected that outside of it's core SISD activities the Supplier will
work with Post Office, providing resource when staffing project work.
Key Points
* There is a difference in the process by which Post Office
acquires Project Services and Resource Augmentation from
the Supplier.
* Resource Augmentation are the Services procured to deliver
This section outlines the process which the parties will follow when Post
Office wishes to consider procuring Project Services from the Supplier.
Post Office activities outside of project work. These should
be ordered via the Service Catalogue.
* Alist of Project Services can be found in Schedule 12. This
section outlines the process to procure them (The Work
Order Process).
= Unless otherwise specified in the Project Work Order, the
Supplier has agreed to put twenty per cent (20%) of any
Project Fees at risk.
Supplier and Post Office were to agree changes to this process
At contract signing the Project Work Order process (Schedule 12)
required further refinement to be agreed between the parties within 30
days of the Effective Date or Change Control thereafter. (This page
reflects that original version as revisions were not available at time of
writing).
Initial Project Assessment
Post Office may request an Initial Project Assessment to enable early assessment of the viability of a potential Project. The table below shows the
types of Initial Project Assessments that Post Office can request and the outputs that will be obtained from the Supplier. Post Office is not
required to request an Initial Project Assessment before requesting that the Supplier prepare a draft Project Work Order.
Delivery of Initial Project Assessment
request Timescale
Project Request Type _Description
Request for Information _Will be varied in nature and may involve a vague, speculative or Two working days from receipt of the Project
business need as opposed to a defined requirement. request unless otherwise agreed.
Budgetary Estimate Requests primarily concerned with obtaining outlined pricing as —_ Five working days from receipt of the Initial
‘opposed to detailed design and implementation methodology. Project Assessment request unless otherwise
agreed.
Project Initiation
If Post Office wishes to consider procuring Project Services from the Supplier, Post Office may provide its high level project requirements and
may request that the Supplier prepares a draft Project Work Order. The template of a Project Work Order can (at execution) be found in
Schedule 12, Appendix 1 of the contract.
Delivery timescale of PWO post Project
Project Re st Ty De ‘iptic
roject Request Type escription Imitation request
Formal Proposal Project requests requiring a full draft Project Work Order. Project Fifteen working days from receipt of the
requests for well defined activity which is highly likely to proceed. _ request unless otherwise agreed
‘Small Project Proposal Small Projects involve a co-ordination of activities, but do not Ten working days from receipt of the request
require formal project management. A draft Project Work Order _unless otherwise agreed.
for small Projects is required, but with less detail
Agreeing the Project Work Order
‘Schedule 12, paragraph S lists the minimum information that a work order should contain. It is the Suppliers responsibility to ensure the Project
Work Order has sufficient detail required to enable Post Office to carry out its assessment of the project. The below flow chart summarises the
steps to agreeing a Project Work Order.
Figure 6.5 Agreeing the Project Work Order
PWO signed off by both SURpHe! Petiorms te
project services related to
parties
ee Any changes toa
PWO are subject to
the normal Change
Control Procedure
IT&C Change
Portfolio Board
to review draft Refer issue to Governance
Pwo Post Office and Supplier to peceas and Diegite
mares on changes Resolution if required
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6.6 How Change Control Changes Over Th
I seo
Term "
Overview
In the contract it is not anticipated that the Change Control Process or the associated documents will change over the term of the contract. There
are however processes in place should either Post Office or the Supplier wish to amend the Change Process or any of the associated
documentation. These processes are outlined below:
The Change Control Process There are no plans in the contract to amend the Change Control Process post the effective start date.
However, should either Post Office or the Supplier wish to change the process, this should be dealt with
through the Change Control Process that is currently in effect.
‘Change Control Documents There are three documents concerned with Change that are classed as Control Documents:
+ Change Management Note;
+ Change Request Note; and
+ Work Order Process template.
This means that these documents are subject to the "Control Document Operational Procedures" should
they need to be amended. This process was undefined at execution and was to be agreed within 3
months of the Effective Date.
No change to a Control Document can take effect until the amended Control Document has been signed
as approved by the relevant individual for each party identified in the "Authority Matrix" Control
Document. Contents of the matrix were to be agreed within 3 months of the Effective Date.
Both parties are responsible for ensuring that all Control Documents remain current and fit for purpose.
Change Management during SISD __Any change during the Implementation Period is also expected to go through the Change Control
Implementation Process as either a standard or fast-track change.
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Tf. Governance
This section should be read by
those with an interest in
understanding the governance
forums and processes that are
used by the Supplier and Post
Office to manage and deliver the
SISD contract.
Governance is implemented for
delivery of the SISD contract and
also for the wider delivery of
services. Both are key to
successful delivery of the contract
objectives. Only governance of the
SISD contract is covered by this
handbook.
The forums, processes and
activities described in this section
provide a framework for clear
accountability across the Supplier
management team and an
embedded culture of continuous
performance improvement.
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7.1. Section Contents
Section Overview
The governance section provides a summary of the formal governance arrangements in place between Post Office and the Supplier as outlined in
the contents below.
Governance — Contents
Section Description Schedule(s) Page
7A Section Contents Sets out the structure of the governance section. NA 71
Provides an overview of the guiding principles from which the governance
Governance Summary and Processes and forums have been derived, highlighting key outputs and
72 " management information that are produced in this area and the regular 81 72
Scheduled Meetings . a
joint forums that will be used to manage
the contract.
73 The Supplier Account The key personnel that are responsible for managing and delivering the 93 14
: Team contract and Post Office rights over them. :
74 The Supplier Performance Sets out the on-going performance management activities 22 5
‘ Review that the Supplier account team will undertake. ”
75 __!ssue and Dispute Overview of the provisions that apply in the event of a dispute or issue at =
‘ Management between parties. S
76 How Governance Changes Summarises the mechanisms and triggers for change within the NA 7
. Over The Term governance framework.
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7.2 Governance Summary
Overview
The governance processes and obligations described in
this section have been derived from a set of common
principles that Post Office are embedding across their
major IT Supplier contracts.
These principles will enable global standardisation in the
ways in which Post Office manage contract delivery.
Supporting Documentation
The material contained in the handbook is a summary of
detailed information contained in the contract schedules.
To obtain a full appreciation of this topic, readers should
also consult the following:
Schedule 8.1 (Governance).
Key Outputs & Products
itis the responsibility of the Supplier to manage the
Supply Chain Members to provide sufficient information
so that it can provide reports including following to Post
Office prior to Governance meetings
+ Updates;
+ Forecasts;
+ Budgets; and
+ Variance reports .
The Governance Structure
Governance Principles
The following list provides a summary of the contracted governance principles
and provides an insight into the ways of working that underpin delivery of the
contract. The governance structures have been designed to
*Provide robust and transparent forums in which the Supplier's performance in
relation to the Services and the Agreement can be discussed and properly
managed;
* Align the parties’ objectives and overall strategy;
*Make the Supplier aware of Post Office's business and IT requirements and
objectives on a regular basis;
*Provide a structure for co-operative and proactive management of the
Services which is capable of evolving to meet the changing needs of Post
Office's business from time to time and to deliver Service improvements over
the Term of the Agreement;
*Help ensure the provision of the Services in accordance with this Agreement;
Identify early and, wherever possible, resolve potential problems and issues
(including Disputes) in a co-operative manner;
In the event of any termination or expiry of this Agreement, help ensure that
the Services are successfully handed over to a Replacement Supplier or are
taken back “in-house” by Post Office without any break in Service continuity for
Post Office in accordance with Schedule 8.5 (Exit Management); and
*The governance structure shall be subject to annual review and is expected to
evolve to meet the needs of Post Office's business and to maintain the
relationship between Post Office and the Supplier.
The Governance structure is designed to provide robust and transparent forums in which the Supplier's performance in relation to the Services.
and the Agreement can be discussed and properly managed,
A full Terms of Reference, attendees and logistics for each Board can be found in Schedule 8.1, Appendix A. Start dates and frequency
summarised in Table 7.2 below.
A summary of key aspects includes that:
+ Post Office may request additional Boards be formed but may also remove any Boards and not replace them.
+ Attendance at Board meetings should be in person wherever possible.
+ Schedule 8.1 paragraph 2.3.8 outlines the Suppliers responsi
Table 7.2 Boards start date and frequency
ies in relation to each Board.
Board Start Date Frequency
IT&C Steering Board Within 30 days of Effective Date Monthly! for 6 months and then quarterly.
Enterprise Architecture Board Within 30 days of Effective Date Monthly! for 12 months and then quarterly.
Executive Relationship Forum Within 60 days of Effective Date Quarterly’, until 12 months after Effective Date, then 6 monthly.
Supply Chain Executive Forum Within 60 days of Effective Date Quarterly’, until 12 months after Effective Date, then 6 monthly.
IT Supplier & Service Board Within 90 days of Effective Date Monthly"
IT&C Management Board Within 21 days of Effective Date Weekly*
IT&C Change Portfolio Board ‘Within 60 days of Effective Date Monthly*
Architecture Review Board Within 30 days of Effective Date Every two weeks’ for 6 months then monthly.
Information Security Management Within 60 days of Effective Date Monthly’
SI Contract Board Within 30 days of Effective Date Monthly*
ol Ferrormance and Commercial Within 90 days of Effective Date Monthly!
Post ‘ Note these frequencies can instead be as directed by Post Office
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Figure 7.2 The Governance Structure @
IT&C Steering Board
A formal escalation point in relation to
the IT Supplier & Service Board's
management and resolution of any
issues and Disputes.
Enterprise Architecture Board
Agrees/sets changes to
technology/architecture strategy,
principles, information management
and information security.
e—
Strategic Board Forums
Executive Relationship Forum
Review overall relationship and agree
initiatives to ensure the continued
success.
Supply Chain Executive Forum
Review suppliers relationship and agree
initiatives to ensure the continued
success and resolve any conflicts of
interest.
Architecture Review Board
Assure that all technology change
aligns to Post Office's roadmap and
strategy. Lead and ensure that
technology is planned for
Management Boards/Meetings
IT&C Change Portfolio Board
Ensure future pipeline and current
change plan are delivered successfully
to time, cost and quality. Understand,
ratify and manage demand for change.
IT&C Management Meeting
Ensure delivery of Post Office IT&C
function's management objectives
Ensure progress of quarterly
management plan/goals.
IT Supplier & Service Board
A formal escalation point in relation to
the SI Performance & Commercial
Review Board's and the SI Contract
Board's management and resolution of
the issues and Disputes.
S$! Contract Board
Review and approve Changes,, resolve
contractual issues, report to IT Supplier
and Service Board.
SI Performance & Commercial
Review Board
Review and manage the performance of
the Supplier against the Service Levels,
the Service Requirements and the
‘Agreement.
Info Security Management Boards
To set overall ownership, direction for
and assurance of the end-to-end
information security and compliance
management.
Operational Boards/Meetings
SI Operation Boards
These Boards will be managed by the
SI Performance and Commercial
Review Board. Post Office have the
right to chair and set the agenda of
these meetings if it wishes
PO Operational Boards
The Supplier will contribute to Post
Office Operational Boards at the
request of Post Office
Board is responsible for managing the SISD Supplier's performance
of the Services under the Agreement including, where appropriate,
‘overseeing the Supplier's management of Supply Chain Members.
Other Boards within the governance
structure. Decisions at these Boards may
may effect the SISD day-to-day operations.
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7.3 The Supplier Account Team
Overview
This section describes the primary members of
the Supplier team (see Figure 7.3) and the
enhanced rights that Post Office have with
regard to them. Full role descriptions for these
individuals can be found in Schedule 9.3.
These enhanced rights ensure that Post Office
is able to retain overall control of the Supplier
team and the personnel that comprise it.
Enhanced Rights Over Key
Account Team Members
Appointment of key team members:
+ Key account team members are to be
assigned to providing roles for specified
periods to Post Office;
+ The Supplier must provide the identity and
employment history of any proposed key
account team appointments and Post
Office have the right to interview prior to
appointment;
+ The Supplier will ensure that the role of any
Key Personnel is not vacant for any period
longer than ten working days;
+ Within 14 days of a new appointment Post
Office can object and if the Supplier cannot
satisfy Post Office’s concerns, then a
replacement must be found.
Replacement of key account team members:
+ The Supplier must get written consent from
Post Office before replacing any key
account team member unless the person
is; physically unable to work, suspended or
dismissed, they resign from their
employment with the Supplier or obtain an
alternative job within the Supplier
+ Where possible at least 3 months notice
will be provided by the Supplier of its
intentions to replace Key Personnel
Removal of key account team members:
+ Post Office may request the removal of a
the Supplier key account team member.
where they are deemed to be performing
unsatisfactory;
+ Post Office will not be liable for the cost of
replacing any member appointed to a Key
Personnel role.
Schedule\ 93
Client Executive
Responsible for the relationship between
Post Office and the Supplier and has overall
responsibility for the delivery of SISD
Services.
Key Supplier Team Members @
Senior Service Manager
(Infra & Apps Management)
Responsible for managing the Applications
and Infrastructure Tower suppliers, ensuring
that the Towers work collaboratively with their
counterparts in the other Towers.
Director
Provide the commercial and Commercial
and financial management of the Supplier
service and manage the commercial and
financial management Services
Service Desk Manager
Provide Steady State Service Delivery
commitments as per agreed solution and
manage Change Requests as necessitated byI
the contract.
Service Director
Responsible for the Service being delivered
to Post Office from the Supplier and across
the Supply Chain.
Test Manager
Accountable and responsible for overseeing
all test and assurance activities on the
Implementation Programme.
Chief Architect
Responsible for developing, integrating and
maintaining the Cross Supply Chain Design
Coordination Process and Tools.
SISD Implementation
Director
Maintain overall accountability for the SISD
Implementation programme, the Tower
Implementation Programmes, In-flight and
Change Projects and the Incumbent Exit
Management programme.
Security Operation Manager
Responsible for activities as defined within the
Security Management Plan.
SISD
Implementation Manager
Responsible for the overall delivery of the
‘SISD Implementation Plan and the overall
management of the three SISD
Implementation sub-programmes.
Security Architect
Responsibilities will include reviewing
changes to ensure that security
considerations are raised appropriately as
part of the change control life cycle.
SD Implementation Manager
Accountable and responsible for the delivery
of the Service Desk Implementation
programmes.
Senior Service Manager
(Network & Data Centre)
Responsible for managing the Networks
Tower Supplier and Data Centre Tower
Supplier, collaboratively working with their
counterparts in the other Towers.
Communications Manager
Accountable for the Business Relationship
Function and is responsible for maintaining
the approved communications channels for
the SISD.
Post Office Obligation
Post Office will provide and maintain a list of
their key personnel, contacts, and notification
and escalation points.
Senior Service Manager
(Workplace)
Responsible for managing the Workplace
Tower Supplier. They will also assist the
Service Director in ensuring that the Towers.
work collaboratively with their counterparts in
the other Towers.
HR TUPE Transition Manager
Responsible for the successful transfer of
Post Office and Fujitsu employees, ensuring
full compliance to TUPE and integration of
employees into Atos.
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7.4 The Supplier Performance Review
Overview Key Points
Schedule 2.2 Part B paragraph 2 outlines what the SISD
Performance Management Report is and the Performance Review
process that Post Office will undertake of the Supplier.
= As part of the Governance process, the Supplier will report to Post
Office on the incidents and Service Levels upheld in the supply chain in
the previous period.
Itis important for Post Office to monitor the Suppliers performance
to
+ Ensure that the Supplier is complying with the Service Levels
and its obligations; and
+ Identify any Service Level failures in the performance of the
Supplier and/or delivery of the services.
Table 7.4 Service Reporting ®
When the report
is produced
= The form of this will be in both a written report and in a verbal update
each month.
« The Performance Review Meeting is an opportunity for Post Office to
understand any incident or Service Level Failure that has occurred that
month.
Report Type Description
The Performance Management Report will be in the format set out in the Performance Management
System (to be defined within 30 days of the Effective Date).
As a minimum it will give information on: Monthly. Within 8
+ The monitoring undertaken: working days of the
+ The actual performance of each Service Level for the period (and previous 12 periods): end of each
+ Asummary of any Incidents that have occurred or are outstanding with a description including their Measurement
severity and status of remedial actions being taken; Period (Each
: period is one
Performance —. Additional details for repeat or Severity 4 incidents; month).
aot + The number of Service Points awarded and Service Credits relating to each Service Level failure;
+ The Service Credits to be applied in the Period indicating the Service Level Failure(s) to which the Soft Copy by email
Service Credits relate; oe on
+ Arolling total of the number of Service Level Failures and the Service Credits incurred: (and Hard Copy it
+ Details of any failure to meet Key Performance Indicators in the period; and requested).
+ Relevant particulars of performance by the Supplier which fail to meet requirements.
Post Office (acting reasonably) may also from time to time require these to contain other details.
See Appendix C.5 for a description of severity levels.
rn , Every Quarter
Post Office will require a quarterly written summary of the monthly Performance Management Reports that (Ye'
Quarterly have been prepared during that quarter. Within 12 working
Summary Prep 1g that quarter. days of the end of
These are to contain details that Post Office (acting reasonably) requires.
each quarter.
The Supplier will develop and implement a Satisfaction survey managing it throughout the supply chain According to
Satisfaction making it consistent between Supply Chain Members. The survey is to inform the customer experience implementation
Survey and support continual improvement throughout the Term. It will Include measures related to Milestones in
implementation activities and, related to customer satisfaction and user experience. Schedule 6.1
Performance Review Meeting Performance Management Report Data
Both parties will attend performance review meetings on a monthly basis I I The Supplier is required to provide the raw data and detailed
(or as agreed). The performance review meetings will be the forum for ‘supporting information for the reports in the medium and format
the review of the Performance Management Reports and Quarterly specified by Post Office from time to time.
Summaries. The performance review meetings will be: No post-reporting adjustment will be made to any Service Level
“Within 1 week of Performance Management Report being issued, and Performance data or supporting information without Post Office's
+Fully minuted by the Supplier. approval. See also Section 5.8.2.
The prepared minutes will be circulated by the Supplier to attendees at Incidents where the severity level was raised upon Post Office
the meeting and also to Post Office's Representative and any other
recipients agreed at the relevant meeting. The minutes of preceding
request are reported on at the original level.
month's performance review meeting will be agreed and signed by the Post Office Satisfaction Survey
Supplier's Representative and Post Office's Representative at each Post office may assess the level of performance of the Supplier
meeting. The agenda will typically entail working through each report. and gather improvement suggestions using surveys.
Post Office can raise additional questions and/or request further If the responses reasonably suggest that the Supplier is not
information regarding any Incident and/or any Service Level Failure and meeting its obligations, Post Office can raise this to Supplier.
the Supplier is required to provide such documentation to verify the level_I I The Supplier must, as soon as practicable ensure it takes
of performance. measures to achieve the improvements necessary to meet its
obligations.
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Issue and Dispute Management
Paragraph All
Overview
Issues and Disputes are to be resolved in accordance with governance
as set out in schedule 8.1. or failing that in accordance with the Dispute
Resolution Procedure as described in schedule 8.3
‘Disputes’ are disputes, differences or questions of interpretation arising
out of or in connection with the SISD Contract. There are three identified
types of Dispute and issue:
+ Implementation Disputes and issues;
+ ICT Disputes or technical disputes and issues; and
+ Billing Disputes or non-technical disputes and issues.
The Dispute resolution procedure commences when a ‘Notice of
Dispute’ is served by either party on the other.
. Ey
+ Issue and Dispute Management processes will apply where Post
Office and the Supplier cannot resolve a dispute or issue in good
faith through negotiation. This should be a last resort and all other
means of negotiation between Post Office and the Supplier should
have been exhausted.
+ In the event of no resolution, issues escalate to become disputes, in
which case their resolution shall go through the Dispute Resolution
Process.
+ Anissue can occur on Run Activities as well as Project Activities.
+ Resolution of Disputes (settlements) are recorded in writing and
can form changes to the agreement unless a Change Management
Note is used to implement the resolution.
Key Points
The illustration below outlines the issue resolution process for each type of issue and the dispute resolution procedure is also described. Each
process only continues if the Supplier and Post Office cannot resolve the issue or dispute at that stage. Where agreement on the resolution of a
Dispute is reached it is recorded in writing, signed by each party and is binding on both parties, Unless it is agreed to implement it in the form of a
Change Management Note, the resolution constitutes a Change to the Agreement to the extent necessary.
Post Office SISD Implementation
Programme Director and the
Supplier SISD Implementation
Programme Director.
v
The SISD Implementation
Programme Board.
SI Performance & Commercial
Review Board meet with
representation from all parties to
attempt to resolve issue/dispute.
v.
IT Supplier & Service Board
discuss the status and associated
papers in attempt to resolve
issue/dispute.
y
IT&C Steering Board meet with
representation from all parties to
attempt to resolve issue/dispute.
I
SI Contract Board meet with
representation frpm all parties to
attempt to resolve issue/dispute.
v
IT Supplier and Service Board
meet with representation from all
parties to attempt to resolve
issue/dispute.
Md
IT&C Steering Board meet with
representation from all parties to
attempt to resolve issue/dispute.
I
y
solu'
Dispute
Procedure ( commences
y
n one party serves a Notice of
v
pute)
if a dispute is not settled within 20 Working Days of referring the dispute to the Dispute Management Procedure
then Post Office can refer the matter to CEDR Model Mediation Procedure.
If referred to mediation a Mediator is appointed and the Mediator assists the parties in reaching a settlement
or if unable to do so and it is jointly requested produces a non-binding recommendation on terms of settlement.
if parties are unable to resolve the dispute using mediation
or Post Office does not enlist mediation within 120 Working Days of the initial referral to the Dispute Management Procedure
then either party may refer the dispute to the English courts.
Expert Determination
As set out in Schedule 8.3, Paragraph 4. Post Office can
initiate the expert determination procedure in relation to an
ICT Dispute or Billing Dispute (or other matter as agreed in
writing) where the Dispute Management Procedure (and if
applicable Mediation) have failed.
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7.6 How Governance Changes Over The
=m
Term “
Overview
In the contract itis stipulated that the Governance structure and the Boards that sit within this (at either Strategic, Management or Operational
Level) can be formed but may also be removed, at any time, at the request of Post Office. This should be managed through the normal change
request procedure.
Annual Review Meeting One annual review meeting shall be held each year throughout the Contract Term to determine how the Boards
and Operational Boards have operated throughout the year.
The annual review meeting will be attended by SI Performance & Commercial Review Board members of the
‘Supplier and of Post Office. The agenda should include:
*A review of how the Boards and Operational Boards have operated throughout the past year;
+if any Boards and Operational Boards have not been effective, whether they should be disbanded;
Whether it is appropriate for any new Boards or Operational Boards to be added; and
-Whether the scope or terms of reference for any existing Board or Operational Board should be amended or
added to.
In preparation for this meeting the SI Performance & Commercial Review Board will prepare and submit a
report to the IT&C Steering Board setting out the recommendations of any changes or additions relating to the
governance structures.
The IT&C Steering Board will consider the annual report of recommendations and if appropriate, review and
agree in principle to amend this Governance structure through the Standard Change Control Procedure
Governance during SISD During the Transition Period Post Office and the Supplier will use Governance to monitor progress, make
Implementation decisions and resolve outstanding issues and disputes.
The Supplier will establish and maintain during the Implementation Period a joint SISD Implementation
Programme Board which shall oversee the SISD Implementation Programme. The full Terms of Reference for
this Board are detailed in Schedule 6.1. [Annex 3: Governance]. An overview of the Terms of Reference is
outlined below:
+The SISD Implementation Programme Board shall comprise a number of representatives to be agreed
between the parties and is a minimum contain key SISD Implementation roles (Supplier SISD Implementation
Director, Supplier Programme Office, Post Office SISD Implementation Director)
+ In order to be valid and carried, any recommendations, resolutions and other decisions attempted to be
made or carried at any meeting of the SISD Implementation Programme Board shall only be approved
following agreement by the Supplier SISD Implementation Director and the Post Office SISD
Implementation Director.
+ Ifthe SISD Implementation Programme Board resolves to vary or add any provisions of the Agreement,
such variations or additions may only be agreed and effected pursuant to the Change Control Procedure.
+ Post Office will determine the time and location of the meeting as soon as possible post contract signature.
Changes tothe Governance + _Post Office can decide throughout the term to create and disband either Strategic, Management or
Boards/Members Operational Boards (and may change the terms of reference or requirements relating to such Boards).
+ _ Ifthe Supplier wishes to replace any of its Board Members or any Post Office representative at any SI
Operational Board they should notify Post Office in writing and must obtain agreement by Post Office.
+ Post Office may substitute or replace any of its own Board Members upon written notice to the Supplier.
+ All changes to the Governance configuration should go through the normal Change Control Process.
Noting that Operational Boards can be changed, replaced or added without the need for such change to be
effected through the Change Control Procedure see paragraph 2.4.1 schedule 8.1.
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8. Other key principles
This section should be read by
those with an interest in
understanding the commitments
and obligations in the contract
that relate to; Cooperation and
Collaboration, Business
Continuity and Disaster
Recovery, and IPR, data and
confidentiality.
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8.1 Section Contents
Section Overview
This section provides a summary of each of the respective topics as outlined in the contents below.
Other Key Principles — Contents
Section Description Schedule(s) Page
8.1 Section Contents Sets out the structure of the Other Key Principles section. NA 81
8.2 Other Key Principles Giving an overview of the other key principles. All 82
a3 Cooperation and Sets out the requirements around positive working across the supply ec os
: Collaboration chain. °
The reporting obligations that the Supplier have on the internal business
84 Diente Recoven? and continuity and disaster recovery testing that they shall undertake on Post 86 84
Office services.
Tacs
85 IPR, Data and Outline of any clauses or obligations on the Supplier and Post Office that 42, 85
‘5 Confidentiality relate to IPR, data and confidentiality. st
52.
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8.2 Other Key principles
Paragraph RUMI Paragraon UII Poracrann ES pargaen af
Overview Key Points
This section provides a brief introduction to some of the other key Gc Guinida Ghlneas altesdy dieclesed in this handbook tise aieeaine
Principles and terms that form the SISD agreement. key terms and principles that should be known and understood by
While not warranting their own section in the Handbook, they are operators of the contract.
thought important enough to recognise here as an appreciation of
" = These include how Notices and Conflict of interests should be dealt
them may be beneficial
with by the parties.
Table 8.2 Other key principles of the SISD agreement
‘Summary Descri
As part of the agreement, Post Office and the Supplier have agreed a set of Common Assumptions see C.6. These primarily
S regard IPR, logistics and both parties employees.
ommon
Assumptions The Supplier can request a Change via the Change Control Procedures if they are able to demonstrate that a ‘Common
Assumption’ is materially inaccurate in a way they couldn't have been expected to know, it had been relied on, and that the
inaccuracy has had an adverse affect.
The Supplier will discuss with Post Office any conflict that there is or will be between any of the Standards or between any of the
Standards (Post Office's policies and procedures, the British or international standards, Government codes of practice and
guidance referred to in Schedule 2.3), and will comply with Post Office’s decision on the resolution of that conflict.
Conflicts of
Interest
Schedule 2.7. contains a requirement that the service desk be in a location which enables the Supplier to meet Post Office
requirements. Clause 48.7 (part of the clause on protection of personal data) acknowledges that at execution the Supplier's
Locations _ solution intended to provide some services from outside the UK. the only service provided outside of the UK are the Manila
service desk and the service management support centre in Mumbai. If other services are provided offshore, or from difference
locations, there will be data protection implications (see CMS risk report for further details).
‘Any notices given under or in relation to this Agreement will be in writing, signed by or on behalf of the party. A notice should be
either delivered personally or by pre-paid first class post. With regards to receiving a notice, a notice will be deemed to have
been received if:
Delivered personally, at the time of delivery;
+In the case of pre-paid first class post, 3 working days from the date of posting;
«In the case of fax , on the day of transmission if sent before 16:00 hours of any Working Day and otherwise at 09:00 hours on
the next Working Day and provided that, at the time of transmission of a fax, an error-free transmission report has been received
by the sender; or
«In the case of email, at the time that the email enters the Information System of the intended recipient provided that no error
message indicating failure to deliver has been received by the sender and provided further that within twenty four hours of
transmission a hard copy of the email signed by or on behalf of the person giving it is sent by pre-paid first class post, recorded
delivery or registered post to the intended recipient.
Outside schedule 3 Post Office does have other responsibilities and obligations that (are not specifically allocated as a ‘Post
Office Responsibility’ so a breach would not trigger the relief/compensation mechanisms but) are binding and which the SISD
will be able to enforce in the usual way.
Notices
Obligations
outside
schedule 3 For example there are requirements on Post Office’s decision making process. Throughout the schedules there are
expectations that Post Office will review and agreefapprove items and provide input see Appendix C Tables C.1.
Clauses 36 to 41 of the Main Terms and Conditions outlines some simple terms regarding Supplier personnel. These include
pence inet ensuing the continuity of personnel at Post Orfice and that all personnel are properiy vetted.
Principles Non-Solicitation is also discussed. For the first twelve months of the Term neither party will attempt to solicit or entice any
person employed by the other party.
Clause 14 entitles Post Office to allow the use and benefit of the Services to be extended to any Affiliate of Post Office, and
other Service Recipients. ‘Affiliate’ and ‘Service Recipient’ being terms defined within Schedule 1 definitions.
Other Service In practice Service Recipients includes customers of the Post Office such as DVLA, DWP, UK Border Agency, environment
Recipients _ agency, Bank of Ireland, Santander, RMG etc.
Post Office have agreed to use reasonable endeavours to notify the Supplier as soon as reasonably practicable on becoming
aware of a new Service Recipient that requires the use and benefit of the Services.
The Supplier must be comply with Post Office's policies and procedures, the British and international standards, Government
codes of practice and guidance referred to in schedule 2.3 (Standards) together with any other specified policies or procedures
identified in schedule 2.3 (Standards).
Post Office are to notify the Supplier of changes or proposed changes to these standards, and Supplier may then raise a
Change Management Note if necessary. SISD is not entitled to charge for compliance with new or enhanced standards if these
are deemed to be industry standard. e.g.. moving from ITIL v3 to v4.
In certain circumstances, described in Clause 67 of the Main Terms and Conditions, Post Office has the Right Of Step-in
meaning amongst other things that Post Office may :
+Require the Supplier to take steps that Post Office considers necessary to rectify the state of affairs giving rise to Post Office's
right to step-in;
*Appoint any person to work with the Supplier in performing all or a part of the Services; and
Take steps that Post Office considers appropriate to ensure the performance of all or part of the Services.
Standards
Step in rights
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8.3 Cooperation and Collaboration
Overview
Cooperation and Collaboration between the Supplier and other Supply
Chain Members will be key to the delivery of the requirements of Post
Office.
To achieve this the Supplier will facilitate information exchange
between Supply Chain Members, which will drive continued
improvement of the cross delivery service management processes.
It should be noted that the Supplier is obliged, as per the contract, to
cooperate and collaborate with other parties where this wil:
+Enable such Supply Chain Members and third parties (as
applicable) to provide services to Post Office;
«Enable the Supplier to provide the Services to Post Office;
+Facilitate achievement of the Post Office Objectives; and
*Deliver measurable benefits to Post Office.
Communication Plan and
Cooperation and Collaboration
Evidencing
The Supplier will define a communication plan (there is no date by
when this is due) for facilitating information exchange between Supply
Chain Members, including measurement methods to prove
improvements, and make this available to Post Office.
It will also be important for the Supplier to demonstrate how its
cooperation and collaboration efforts have benefited Post Office in
establishing and maintaining positive, collaborative and effective
working relationships with:
Post Office’s relevant internal functions; and
All other Supply Chain Members or potential Supply Chain Members
of IT Services to Post Office
A balanced scorecard tool could be used to prove positive,
collaborative and effective working relationships across the supply
chain.
Key Supplier Obligations
The Supplier has some key obligations with regards to cooperation
and collaboration:
+The Supplier should enter into and maintain non legally binding
Operating Level Agreements with relevant Supply Chain Members,
and any other third parties that interface with the supply chain and
whose services are critical to the success of other Supply Chain
Members.
+Prepare an Issue Management Procedure and manage the
resolution of issues between:
— Two or more Supply Chain Members; or
— Post Office and Supply Chain Members,
*Provide to a Supply Chain Member all information and assistance
(including reasonable access to premises, personnel, equipment,
services and facilities and providing information, documents and
instructions regarding operating environment, system constraints,
protocols, interfaces and other operating parameters) as required to
enable such Supply Chain Member to provide services to Post Office
and to facilitate achievement of the Post Office objectives.
za:
Key Pi
= There are some key obligations in the contract with regards to how
the Supplier collaborates with other Supply Chain Members.
its
= The Supplier needs to define a communication plan for facilitating the
flow of information around the Supply Chain Members.
= Abalanced scorecard tool could be used to prove positive,
collaborative and effective working relationships across the supply
chain.
Key coope! n & collaboration objectives
There are a number of key cooperation and collaboration objectives for
the Supplier: The SISD should
+Form and conduct collaborative partnerships with all other Supply
Chain Members;
+Manage relationships between all Supply Chain Members and support
and deliver effective, efficient, fit for purpose, stable and operable IT
Services to Post Office;
Utilise a collaborative approach to knowledge and skills sharing,
benefiting Post Office and the Supply Chain as a whole;
+Work collaboratively with other Supply Chain Members, and with
functions of Post Office. Where issues and faults arise in relation to IT
Services provided to Post Office, each Supply Chain Member shall
adopt a ‘fix first find fault later’ approach;
Work with Post Office and other Supply Chain Members to enable and
improve proper and robust Assurance regimes; and
«Interact and cooperate with such other Supply Chain Member or
provider in an unbiased manner, and otherwise in good faith and in the
best interests of Post Office.
Key Post Office Obligations
+ Post Office will provide the Supplier with details of any changes in
the agreements with Supply Chain Members which will impact the
Supplier's ability to manage and report on the Supply Chain
Members performance including changes to services, Service
Levels and pricing
+ Post Office will provide the Supplier with reasonable notice of any
new members to be added into the Post Office Supply Chain and
will comply with any obligations it has regarding the on-boarding
and off-boarding plan for that new member.
+ Post Office will notify the Supplier in a timely manner any changes
to the business functions, Post Office specific contacts or any
changes to their roles.
+ Post Office will notify the Supplier of any changes to Post Office
approved communication channels.
+ Exchange of commercially sensitive information may cause
competition concerns. Post Office will need to take steps to
mitigate these risks. See legal risk report prepared by CMS for
further details.
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8.4 Business Continuity and Disaster
Recovery
Overview
A disaster is described in the contract as ‘means an event that will
result in the loss of all Services from a specific Contractor Data
Centre, Supplier Service Desk site or other Supplier site delivering
Services to the Post Office’
The contract sets out the Supplier's requirements in relation to the
Business Continuity and Disaster Recovery (BCDR) Plan and the
development, maintenance, testing, amendment, review and
implementation of this plan.
The BCDR Plan
A document (that will be a Control Document, as per Schedule 13)
will detail the processes and arrangements which the Supplier shall
follow to manage continuity of the business processes and
operations following any failure or disruption of any element of the
Services and the continuity of the Services in the event of a Disaster.
A {ull list of the required contents of the Supplier's BCDR plan can be
found in Schedule 8.6, Part A
Review and Amendment of the BCDR Plan
The Supplier should maintain and review the BCDR plan on an on-
going basis and within three months of any part of the plan having to
be implemented
The Supplier will undertake regular risk assessments in relation to
the provision of the services not less than once every six months.
Within 20 days of that review the Supplier needs to issue a report to
Post Office that details the reports findings and any plans for
addressing any changes in the risk profile of the BCDR plan.
On agreement from Post Office, the Supplier should implement the
changes suggested as quickly as possible.
Testing of the BCDR Plan
The BCDR plan shall be tested at very least once a year (but
preferably on an on-going basis). However, Post Office also have the
right to request that additional testing is undertaken where itis
considered necessary.
Following each test, the Supplier shall send to Post Office a written
report summarising the results of the test and identify any actions or
remedial measures necessary.
Within 1 month of the failure being identified with regards to the
BCDR Plan, the Supplier should have remedied this or be able to
show that they are taking steps to do this.
Impact of a Disaster
The BCDR arrangements are expected to be such that in the event
of any Disaster it is anticipated that there will be;
sno loss of Service other than the loss of active calls and other active
transactions at the point of Disaster;
sno reduction in the scope of Services provided ; and
the continued delivery of the Services to the quality defined in
schedule 2.1 (Service Requirements) and schedule 2.2 (Service
Boer" elsewhere in the Agreement.
Os
86
Paragraph All
Key Pi
* The Supplier is required to produce and maintain a Business
Continuity and Disaster Recovery (BCDR) Plan and implement and
test this plan throughout the contract term.
its
= Proving to Post Office that this plan is current, compliant and robust
will instil confidence that should a ‘disaster’ occur, Post Office will
continue to receive its mission critical services.
Business Continuity Element of the plan
The BC element of the plan should set out the arrangements that are to
be invoked to ensure that the business processes and operations
remain supported in the event of a failure in or disruption. This should
include:
The altemative processes, (including business processes), options
and responsibilities that may be adopted in the event of a failure in or
disruption to the Services;
+The steps to be taken by the upon resumption of the Services in order
to resolve and address any prevailing effect of the failure or disruption
including a root cause analysis of the failure or disruption:
+The various levels of failures of or disruptions to the Services that are
reasonably foreseeable in respect of the Services ("Failure Levels");
and
«The steps to be taken to remedy to the different Failure Levels.
Disaster Recovery Element of the plan
Disaster Recovery Plan shall ensure that upon the occurrence of a
Disaster the Supplier properly manages the continuity of the business
operations of Post Office supported by the Services following any
Disaster or during any period of service failure or disruption
The disaster recovery plan should include:
<The technical design and build specification of the Disaster Recovery
System;
*Details of the procedures and processes to be put in place in relation
to the Disaster Recovery System and the provision of the Disaster
Recovery Services;
*Details of how the plan will comply with security standards and ensure
that compliance is maintained for any period during which the Disaster
Recovery Plan is invoked; and
*Any testing arrangements regarding disaster recovery.
Key Supplier Obligation
Conduct a post- supply chain disaster review with Supply Chain
Members and Post Office as appropriate, following any invocation of IT
Service Continuity, Business Continuity or Supply Chain Members
Disaster Recovery plans to understand the cause of the Supply Chain
Disaster and plan for the restoration of the IT Services to the pre-
Supply Chain Disaster state and implement actions to eliminate or
mitigate future occurrences.
Key Post Office Obl:
Post Office will provide the Supplier with details of Post Office's IT
Service Continuity Management requirements for new or changed
business services and the business criticality to Post Office of such
new or changed business services.
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8.5 IPR, Data and Confidentiality
Overview
The protection of Post Office's IPR, data and confidentiality will be of
paramount importance to this contract and the on-going relationship
between Post Office and the Supplier. Several schedules throughout
the contract touch upon these subjects
This section gives a top level view of the related provisions and
responsibilities.
st Office IPR
The Supplier will not acquire any right, tile or interest in or to the
Intellectual Property Rights of Post Office or its licensors, including
the:
+Post Office Software;
+Specifically Written Software;
+Post Office Materials;
-Database;
+Project Specific IPRs; and
+Post Office's Know-How.
Note that Post Office grants the Supplier a licence to use these
listed materials for purposes connected with the delivery of Services
for the period of the Term and any termination assistance period.
Where the Supplier acquires, by operation of law, title to Intellectual
Property Rights it will, at its own cost and expense and as soon as
reasonably practicable, assign in writing such Intellectual Property
Rights as it has acquired to Post Office on the request of Post
Office.
rs IPR
Post Office will not acquire any right, title or interest in or to the
Intellectual Property Rights of the Supplier or its licensors, including
the:
Contractor Software;
«Third Party Software;
Contractor's Background IPRs; or
Contractor Know-How.
Note that Post Office is granted a licence to use these listed
materials for any purpose connected with the receipt or use of the
Services for the period of the Term and any termination assistance
period.
e Suppl
SB arecroon eS Paros (UNO cause face
Key Points ®
* While neither party acquires rights to the others IPR they both grant a
licence to use the materials to each other for the duration of the Term
and any termination assistance period.
* The Supplier will not store, copy, disclose, or use Post Office Data
except as necessary for the performance by the Supplier of its
obligations under this Agreement or as otherwise expressly
authorised in writing by Post Office.
= The Supplier acknowledges that Post Office is subject to the
requirements of the FOIA and the Environmental Information
Regulations and will assist and cooperate with Post Office to enable
Post Office to comply with its Information disclosure obligations.
Confidentiality
Both parties agree to:
Treat the other party's confidential information as confidential and
safeguard it accordingly; and
*Not disclose the other party's confidential information to any other
person without the owner's prior written consent.
The only exception to this is if there is a disclosure required by Law.
The Performance Management Reports, data and detailed
supporting information will be Post Office's confidential information
Post Office reserves the right to share data across Supply Chain
Members and other third parties as reasonably required by Post
Office.
+ The Supplier shall create and maintain a cross Supply Chain
Governance Library and develop and communicate the process for
collecting and maintaining library artefacts to Post Office and
Supply Chain Members.
+ For the avoidance of doubt, all items and artefacts in the
Governance Library and the Operations Manual shall be Post
Office Know-How and or Post Office Intellectual Property Rights for
the purposes of clause 42 (Intellectual Property Rights) of the main
body of this Agreement.
Key terms and Con
jons
+Clause 42 - 46 IPR
Listed below are selected clauses within the Main Terms and Conditions containing relevant information regarding IPR, data and confidentiality:
The general IPR principles of the contract and the licences granted by both parties
*Clause 47-48 Data and security How Post Office and Personal data should be handled and managed by the Supplier
+Clause 49-50 FOIA — confidentiality The process regarding FOIA requests and how Confidential Data is managed
*Clause 550 Information sharing Clauses regarding the sharing of information across Supply Chain Members
*Clause 55 Security How the Security Policies and the Security Management Plan should be managed
*Clause 58 IPR Indemnity The process of an IPR claim
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9. Appendix
The Appendix contains
supporting documentation for
other sections.
This material should be used in
conjunction with the section from
which it is referenced within the
handbook.
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9.1 Appendix - Contents
Section Overview
The other key principles including Business Continuity section provides a summary of each of the respective topics as outlined in the contents
below.
Appendix — Contents
Appendix Description Schedule(s) Page
9.1 Section Contents Sets out the structure of the Appendix. NA 89
an The implementation timeline as proposed by the Supplier outlining when
A.1.1 Implementation Timeline caryices achieve Future Mode of Operation (FMO). 64 80
High Level Implementation — The hi : ; :
igh Level Implementation plan as described by ATOS in the context
4.2 _ Plan from the ISFT Sls Wee cnanaee 64 91
response
Further Implementation , , , oe 7
ag furtnerimp Other relevant information on the Implementation activities e.g. testing 64 92
31 Supply Chain and its High level overview of the Post Office Supply Chain Model and wa 2
= operation Ecosystem.
Key Objectives of the IT The specific objectives as set out in paragraph 2 of Schedule 2.1
B.2 Supply Chain operating _describing the Key Objectives of Post Office's IT Supply Chain Operating 24 94
Model Model.
B3 Supply Chain Matrix An overview of what the Supply Chain Matrix is and how it used. 24 95
Post Office Approval / ‘Supporting materials including list of activities for Post Office and the
c Agreement Required & Supplier to agree upon, Operations Manual contents, the definitions of Various 96
Incident Severity the Incident Severity Levels and underpinning assumptions
D Glossary Set of key terms discussed in the Handbook. Varoue 107
, Describing the versions of this handbook, the content they are based
E Handbook Version Control on, revisions made in each version and potential future revisions. NIA 108
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A.1.1 Implementation Timeline
Paragraph All
Implementation Timeline (TMO/FMO)
The implementation timeline proposed by the Supplier outlined that services would achieve Future Mode of Operation (FMO) at various points with
some services going through a transformation mode of operations as described within Figure A.1.1
)
[eb [war I aoe I way [un [ial
1.1 Supply Chain Member Mgt.
1.2 Issue Resolution
1.3 Contract Compliance Mgt.
; ‘
1.5 IT Services Risk & Compliance Mgt.
2.4 Strategy Management
2.2 Financial Management
2.3 Service Portfolio Management
2.4 Demand Management
2.5 Business Relationship Management
2 ae ey
3.5 IT Service Continuity Management
3.6.1 Information Security Health Checks (ISHC)
3.6.2 Information Security Health Checks - New
4.1 Service Asset And Configuration Mgt.
4.2 Change Management: Major
ls en
4.4 Transition Services
5.11 Incident and Service Request Management
5.1Q Request Fulfilment
5.2 Event Management
5.3 Problem Management
5.4 Facilities Management
5.5 Technical Management
6 Continuous Serv. Imp.
7.1A Solution Design Governance
7.2 Programme Office & Standards
SOURCE: ISFT_Imp_Atos Implementation Solution Summary_130822.ppt
CMO, jO and FMO explained
+ CMO Service(s) - means any pre-existing ‘current mode of operation’ service delivered to Post Office through its existing supply chain of
Incumbent Contractors or existing personnel as at the Effective Date;
+ TMO Service(s) - means any Service that is in TMO;
+ TMO - means “transformation mode of operation’, being the interim operating model delivered by the Supplier in relation to each TMO
Service as set out in schedule 4.1;
+ FMO Service(s) - means any Service that is in FMO;
+ _ FMO - means the operating model known as “future mode of operation” where the Supplier is required to meet the requirements for a
Service as set out in schedule 2.1 (Services Requirements).
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A.1.2 High Level Implementation Plan
schecule Cra
Paragraph JUS
Overview
The High Level Implementation plan can be found in Schedule 6.1 (Annex 4). The Roadmap reproduced in Figure A.1.2a shows each of the
Programmes and Projects mapped onto the SISD Implementation period. Key deliverables and milestones are also highlighted. The roadmap also
shows the mobilisation phase of the SISD Implementation. For further detail for SISD implementation see Schedule 6.1 (Annex 4) the SISD
Implementation Plan.
Implementation
Management
People
ernie
Weis Aeoeensece
rie deren
Dic Acts
re dersvennce Laser na mene ob 0 Serer
Dice Semi na Hire Snir bs Scar
DH0 Acertaree
Service Integration
MOBILISATION
Service Desk
Legacy Contracts/
Suppliers
Towers
oo OEM 0 cHea:cr 8 open ree
How Implementation Plans fit together
In executing implementation activities there are likely to be a variety of plans between the respective supply chain members.
bt Ue Figure A.1.2b How implementation Plans fit together
link together. The Integrated
Implementation Plan sets out an
appropriate level of detail regarding the
tasks and activities that need to be carried
out and dependencies that need to be
managed to complete the Implementation
Programme in accordance with the
individual Tower Supplier Implementation
Plans, the Incumbent Supplier exit plans
and the SISD Implementation Plan.
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A.2 Further Implementation Information
"
Overview
The purpose of the SISD Implementation Programme is:
«To ensure an orderly, efficient and effective implementation of the interim TMO Services and the final FMO Services; and
+Provide Post Office with the agreed Principal Benefits on the dates specified in the SISD Implementation Initiatives in Annex 5 (SISD
Implementation Initiatives) of Schedule 6.1 (Implementation).
The high-level responsibilities of the Supplier, Post Office, the Incumbent Providers and the Tower Contractors with respect to both the SISD
Implementation Programme and the wider Implementation Programme, are outlined in Figure A.2 below:
Figure A.2 High Level Responsibilities
It is also important for Post Office to understand some of the key terms and conditions linked to the implementation such as Delay and Correction
Plan as described in Section 3.3.4.
Post Office Obligations
Schedule 3 - ‘Post Office and Supply Chain Member Responsibilities’ provides a list of obligations that Post Office should adhere to regarding
transition (and normal operations) that when breached, may trigger a 'Post Office Cause’ or a ‘Supply Chain Member Cause’.
These should be studied by those individuals who are involved in transition activities. The obligations on Post Office regarding transition can be
grouped into the following:
«Supporting the SI Supplier with management of Supply Chain Members;
sLogisties support; and
«Provision of knowledge to SISD Supplier.
Delays or impacts attributable to a ‘Post Office Cause’ or a ‘Supply Chain Member Cause’ may trigger the reliefs and compensation payments
under the Main Terms and Conditions.
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B.1
Overview
Over the next three years Post Office will evolve it's IT Supply Chain and how it
operates within the business.
The figure below illustrates how the target Supply Chain was envisaged at time of
writing. This may change as the strategy evolves and the optimal set of Towers
are determined and established
This Handbook is focused on the Service Integrator Service Desk (SISD)
contract and its operation and the illustration below shows where these fit within
the supply chain.
The SISD supports the business (Post Office), facilitating the fulfilment of the
business's requirements through the coordination and management of the supply
chain members in order to that the desired benefits are delivered.
SISD wil provide end to end Service Integration and management of the other
Towers and the respective Frameworks . This includes Supply Chain Member
Management Services that cover the processes and support for on-boarding and
offpoarding other suppliers. In addition to this it will provide services of it's own
including; Service Desk, Service Provider Assurance, Service Knowledge
Management, Service Transition Planning and Support, Service Validation and
Testing.
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Supply Chain and its Operation
Key IT Sourcing Principles
Below are a set of key sourcing principles that have
previously been outlined for the supply chain:
+Outcome based requirements;
Industry standard services at market competitive prices;
Retention of control in the retained organisation;
+Suppliers own the Service Assets;
+Service differentiation for different business needs;
“Market pricing (and benchmarking) is the best form of
cost control; and
“Utility (consumption) based charging models.
All these principles should be applied across the supply
chain.
igure B.1 illustrative depiction of the IT Supply Chain
Post Office
Frameworks
Towers
Po Surce: ‘Eco System Principles’ pack dated 15 July 2073.
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B.2 Key Objectives of the IT Supply Chain
Operating Model
Post Office Objectives for the IT Supply Chain Operating Model
Post Office has the following specific objectives as set out in paragraph 2 of Schedule 2.1 for the IT Supply Chain Operating Model:
1.1 Each Supply Chain Member shall form and conduct collaborative partnerships with all other Supply Chain Members in relation to the
performance and delivery of all IT Services to Post Office in accordance with Good Industry Practice.
1.2 The relationships between all Supply Chain Members shall support and deliver effective, efficient, fit for purpose, stable and operable IT
Services to Post Office to the agreed service requirements and standards for those IT Services.
1.3 The governance frameworks described in this Agreement (including in Schedule 8.1 (Governance), the Operations Manual, and otherwise in
this Schedule 2.1 (Service Requirements)), and any other contract between Post Office and a Supply Chain Member, and Supply Chain Member
participation in such governance frameworks, shall be proactive, supportive, utilising a collaborative approach to knowledge and skills sharing,
benefiting Post Office and the Supply Chain as a whole
1.4 Each Supply Chain Member shall deliver IT Services to Post Office using an integrated, innovative and strategic approach in accordance with
Good Industry Practice.
1.5 Each Supply Chain Member shall be focussed on maintaining, delivering and improving user support, user experience, and Post Office
customer satisfaction in relation to IT Services provided to Post Office. Each Supply Chain Member acknowledges that the maintenance, delivery
and improvement of such factors or items are critical to the effectiveness of IT Services provided to Post Office.
1.6 Each Supply Chain Member shall work collaboratively with other Supply Chain Members, and with functions of Post Office (if applicable), in
relation to the provision of IT Services to Post Office. Where issues and faults arise in relation to IT Services provided to Post Office, each
Supply Chain Member shall adopt a ‘fix first find fault later’ approach
1.7 Each Supply Chain Member shall work with Post Office (and other Supply Chain Members, as appropriate) to enable and improve proper and
robust Assurance regimes in relation to the delivery of IT Services by Supply Chain Members to Post Office.
1.8 Where a Supply Chain Member's activities in relation to the provision of IT Services to Post Office has a significant bearing on the activities of
any other Supply Chain Member or any other potential providers of IT Services to Post Office, that Supply Chain Member shall interact and
cooperate with such other Supply Chain Member or provider in an unbiased manner, and otherwise in good faith and in the best interests of Post
Office.
1.9 Each Supply Chain Member shall conduct its activities in relation to any IT Services it provides to Post Office, in order to support Post Office
to achieve benefits, including the following:
+A sustainable run rate reduction in costs throughout the lifetime of each contract between that Supply Chain Member and Post Office;
+Enablement of Post Office to deliver on and support Post Office's strategic plan (relating to Post Office's ICT and business strategies);
+Enhancement of the capability of Post Office IT&C function;
*Creation of a post-transformation Post Office IT&C organisation that is business focused, efficient, responsive and flexible;
+Enhancement of the quality of IT services provided by Post Office IT&C to its customers or users;
Provision of a catalyst to transform, improve and consolidate Post Office’s Supply Chain, from which all IT Services are provided to Post Office
(including the use of new technologies, standardisation of techniques and methods); and
The overall improvement of all IT Services provided to Post Office, and the delivery of increased value for money for Post Office in relation to all
IT Services that it receives.
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B.3 Supply Chain Matrix
The Supply Chain Matrix lists Framework Contractors, Incumbent Contractors and Post Office Obligations
other suppliers and their relationship to the Services provided by the SISD.
Schedule 3 contains many responsibilities and
The Supply Chain Matrix defines which SISD services relate to which suppliers within obligations for Supply Chain Members that the SISD
the supply chain. It describes the participants in the supply chain, and itis also central__I Supplier will rely upon . Post Office need to procure
that the Supply Chain Members will fulfil these
to the definition of the term Supply Chain Member used throughout the requirements responsibilfies and obligations.
and the wider agreement,
Requirement Reference Requirement Description
1.1.4 Part of Supply Chain Monitor and manage all relevant Supply Chain Members (as documented in the Supply Chain Member
Member Management matrix), performance against agreed OLAs and other measures including Service Levels and KPIs.
1.3.1 Part of Contract The Supplier shall be responsible for developing, integrating and managing the Contract Compliance
Compliance Management process, and implementing and maintaining Tools in order to perform such responsibilities, to ensure that all
Supply Chain Member and Post Office contract deliverables and obligations (including audit and compliance
deliverables and obligations) across Supply Chain Members are managed and controlled. The requirements
set out in this 1.3 (Contract Compliance Management) shall only apply to a Post Office contract with a
Supply Chain Member, if the Supply Chain Member is identified in relation to this 1.3 (Contract Compliance
Management) in the Supply Chain Member Matrix.
6.24 Part of Continual Service Provide an annual Audit of each Supply Chain Member (to the extent identified in the Supply Chain Member
Improvement Matrix and report on an annual state of improvement.
Term Definition from Schedule 1
Supply Chain Member Means any Tower Contractor, any Framework Contractor, any Incumbent Contractor, or any other Supplier
listed in the Supply Chain Matrix and “Supply Chain Members” shall have a corresponding meaning.
Incumbent Contractors Means all suppliers delivering services to Post Office as at the Effective Date, excluding any services provided
under a Tower Contract.
Incumbent Suppliers Means the suppliers listed from time to time in the Supply Chain Matrix (current practice) relating to suppliers in
scope for SI/SD where such matrix indicates via a tick that a relationship exists between the Supplier and the
particular incumbent supplier in respect of the Exclusive Services only.
Supply Chain Matrix Exclusivity
Supply Chain Matrix means the Supply Chain Matrix as set out in Annex A of Schedule 2.1 The Supply Chain Matrix is referred to in the
(Service Requirements); description of exclusivity as given in Clause
: = 13.2 of the Main Terms and Conditions:
13.2 Subject to the remainder of this clause
13 (Exclusivity) and Post Office's
obligations under public procurement rules
ae and competition law, Post Office appoints
bb the Contractor as its exclusive service
provider for each service listed in clauses
13.2.1 to 13.2.4 (Exclusivity) from the later
of the date from exit from the relevant
als Incumbent Supplier and the date of receipt
by the Contractor from Post Office of the
Acceptance Certificate for that FMO
Service and such exclusivity shall continue
during the Initial Term in relation to the
following Volume Charge based services:
13.2.1 Change Management Services;
13.2.2 Incident Management Services;
13.2.3 Request Fulfilment Services; and
13.2.4 Access Management Services,
strictly in the Contractor's capacity acting as a
Service Integrator for Exclusive Services
under the Supply Chain Matrix (together the
“Exclusive Services’)
See also 3.3.1.
fi
t
i
iu
EEE eee oa ae
I Definition from Schedule 1 and Image from Schedule 2.1 Annex A
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C.1 Post Office Approval/Agreement Required
Table C.1 Requirements & references to approval, agreement and input needed from Post Office
Requirement Type of Input For what
Schedule 2.1
standards for the process interfaces used by the cross Supply Chain Member Processes....the
Final approval allocation of responsibilities; the use of, and interfaces with, common systems tools, documented
operating procedures; policies, key controls and reporting...document these items in the
Operations Manual.
a Timeframes to design and implement processes , either set outin the Operations Manual or agreed
. Agree :
with Post Office
O12 Final approval ...Standards, policies, controls, guidelines and Releases for Cross-Delivery Service Management
Processes ...document these items in the Operations Manual...
ae a ; Collaboration with Post Office and other Supply Chain Members, develop effective and efficient
1.10. ‘collaboration 4
governance processes and meeting structures...
The Contractor shall define and maintain a balanced scorecard measurement method and Tool to
01.10.2 Approval prove positive, collaborative and effective working relationships and, subject to approval by Post
Office, shall implement this Tool
Within three (3) months after the Effective Date, prepare and complete an Operations Manual...to
01.105 Written approval also obtain Post Office's written approval of the content and structure of the Operations Manual
within such timeframe...
~. maintain and update the Operations Manual as necessary fo maintain is on-going accuracy...
0.1.10.5 Written approval updates or changes to the Operations Manual to be notified to and approved in writing by Post
Office...
Possible specifying of {imeframe by which Operating Level Agreements or olher agreement belween the Contractor and
01.107 ; Supply Chain Members are effective. [As requirement says “...or other timeframe specified by Post
timeframe Office "I
01108 Agnes [Following a new ITIL edition or change to the current ITIL edition] agree...(as appropriate) the
: steps required to maintain alignment and/or Compliance to related standards
Possible direction of I__ Possible direction to exempt Supplier from requirement to complete any Contractor Changes and
0.1.10.9 Supplier regarding ITIL validate that all Supply Chain Member agreed Changes have been implemented within 12 months
changes of the official publication of a new ITIL edition or change to the current ITIL edition,
0.1.10.10 Written approval ...before undertaking any new material initiatives or Changes as defined in the Operations Manual.
0.4.11.5 Agree any improvements to the inter Supply Chain Governance processes
023 Approve “Approve set of users for access to the governance library
Aah Agree further acts Possible specification of further acts required to perfect the assignment of any right, tile or interest
= required in or to the Intellectual Property Rights of data
03.4 Agree data or ‘Specification of data or information to Share and exchange with Post Office andlor other Supply
information for sharing _ Chain Members.
O34 Request Data Request data from Supplier to be provided.
03.4 Possible agreement Possible agreement on the form in which data is provided when requested by Post Office
anes ae document and artefacts templates to be used in relation to data sharing between Supply Chan
ae Members and Post Office
06.1 Approve approval of, cross Supply Chain Innovation processes, policies, principles and standards
O74 Approve ‘approve a Quality Assurance Programme for the Supplier to develop, implement and maintain.
~..Onee the Issue Management Procedure has been prepared by the Contractor and approved by
peepee Post Office in accordance with this section 1.2...
124 Management Procedure [fect 1-2.2.2] the first version of the Issue Management Procedure (and any updates thereafter)
shall be approved by Post Office in accordance with the same process of approving the Operations
Manual set out in section 0.1.10.5
a Dee ‘Approve any action taken by the Supplier in relation to contracts between Post Office and Supply
: Chain Members e.g. acceptance of contract deliverables
159 Approve Approval an assurance programme related to the risks carried by the IT Services required
Tie he Tappropriate, agree with Post Office steps required to resolve or miligate any negative Impact of
2 changes to Industry Standards
Agree the frequency of any reports, risk logs, action plans, key controls and risk indicator data in
1.5.28 Agree
relation to the provision of any of the IT Services
2410 Agree The frequency of the periodic Demand Management reporting
2541 Approval by Post Office Approval of communication channels to all Post Office Users and Service Recipients where
service delivery applicable, as well as Supply Chain Members,
25.2 Approval by Post Office 5 sFnition of communication plan
service delivery
253 A ‘Additional agreements regarding Post Office communications policies with which communications
gree
should be compliant.
The Satisfaction Survey format, terms and process (2.6.12 requests approval to act of
2a eppravall recommendations of the survey)
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C.1 Post Office Approval/Agreement Required
Table C.1 Requirements & references to approval, agreement and input needed from Post Office - continued @)
Requirement Type of Input For what
the frequency of the regular communications and updates published by Supplier to ensure
aes ae awareness of Post Office satisfaction requirements and objectives.
34.2 Approval The content of the Service Catalogue shall be provided to Post Office for approval
‘Approve the definition, recommendations and Implementation of the Service Levels for new or
3.2.4 Approval changed IT Services. Unless agreed otherwise, the Contractor shall not implement the new IT
Service until the new Service Levels have been agreed.
3246 Approval TT Service reporting measures...service-based reports ...land]... reporting schedule as defined in
the Operations Manual.
a5 oe appropriate modelling techniques and trend analysis to predict the performance of Cross-Delvery
: PP Services under a given volume and variety of work
34.10 Approve Approve implementation of any cost-effective solutions to services with avalabilly and reliability
SAAB 412 Agree/Approve Remedial action to improve Supply Chain Members availabilty shortfalls
3.4.20 Approve -..4 planned and preventive maintenance strategy for cross Supply Chain Services.
Where the Post Office does not have a documented IT Service Continuity Plan(s) encompassing
35.3 Approve all IT Services, the Contractor will develop, implement and maintain IT Service Continuity Plans,
using the Contractor's best practices and standards
all continuity plans discussed in this Schedule 2.1 (Service Requirements) and activities including
358 Agree ,
plan updates, test and invocation
a process that will determine and modify the list of enical applications on an annual basis
gel eerie throughout the Term
3511 Approve a process that will determine and modify the list of Supply Chain Services on an annual basis
PP! throughout the Term in accordance with the Change Management Process
35.13 ‘Approve a process to obtain immediate access for nominated personnel by Post Office to such procedures
PP! in a Supply Chain Disaster situation
35.1573.5.16 Approve Testing processes and timings of key Components of the IT Service Continuity Plans
Approval by Post Office
3.6.17 information security and the Information Security Health Check remediation plan
assurance group
36.37 ‘Approve Personnel providing information to, or supporting the management of security
any action that is required to be taken to address the original security risk or to improve the forensic
3.6.43 Agree
investigation process.
ISHC remediation plan to Post Office information security and assurance group as defined in the
3.6.12 Approve Operations Manual
ee) Age The level of access to the Configuration Management System (CMS) afforded to the Post Office
and the Supply Chain Members
41.6 Agree Format of Service Asset and Configuration Management Asset life-cycle plan
415 Approve Data models for the Supply Chain CMDB
4.4.13 Approve Formal control by the Supplier over the configuration baseline for across Supply Chain Services
42,114.23 Agree Change Management governance framework, processes, policies, principles and standards
425 Agree the criteria for Emergency Changes, Normal Changes and Standard Changes
‘Change Authorisation Matrix to approve cross Supply Chain Member Changes. In the Operations
42.6 Agree fe
427 ‘Approve ‘Supply Chain Change models and implement those in the Supply Chain Change Management tool,
PP! subject to approval by Post Office of such models and tool
4244 Approve ‘Change Allocation rules
42.13/4.2.34 Agree ‘Change Management report format and frequency of distribution
42.26 Agree ‘Communication channels to supply chain regarding planned and approved change controls
43.4 Agree ‘Supply Chain Transition Planning and Support policies, processes and standards
432 Agree the criteria for the use of the Transition Planning and Support process
437 Approve Policies, processes and practices relating to Service Transition Strategy
Vee Acniore “the lifecycle stages for the Cross-Delivery Service Transition, and the move from one stage to the
next should be subject to formal checks
A transition plan that describes the tasks and activities, and identify who is responsible for each
43.18 Approve task activity, to roll out a Release in a test and production environment that includes resource
allocation and risk/Issue Management
4444 Agree ‘Supply Chain Release and Deployment Management processes, policies, principles and standards
4414 ‘Approve the Release policies and principles across IT Services
the management of the Software Configuration Items and their distribution and implementation into
4415 Approve
the Production Environment across Services
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C.1 Post Office Approval/Agreement Required
Table C.1 Requirements & references to approval, agreement and input needed from Post Office - continued @)
Requirement For what
Implementation and back-out plans for approval across the Supply Chain Changes that will be
oe pppice included in a cross Supply Chain Release
the cross Supply Chain Service Validation, Testing process and Tools and the designs of the
44.24 Approve testing controls
44.24 Approve selected cross Supply Chain Service Validation and Testing Tools for all Supply Chain Members
442.10 Approve a matrix of User and design requirements to test cycles and scripts
Gross Supply Chain test Environment in accordance with the contracted responsibilities for the
ate Approve underlying Hardware and Software
44.217 Approve the criteria for managing and verifying projects are ready to move into Production
eee ie TT Servos -epecite depieyment guide forthe anion wak trough wit the relevant Supply Chak
the cross Supply Chain Knowledge Management process and Tools and establishing data and
45.14.55 Approve information management procedures
Details of the regular Assurance activites with the Supply Chain Members fo ensure information
45.13 Agree required to manage the Cross-Delivery Services is captured, stored, and presented accurately and
completely in the SKMS.
5.4.4 Agree the standards set by Post Office’s communications team to follow in all interactions with the Users
cross Supply Chain Incident Management and Major Incident Management processes, policies,
5.1AR Agree :
principles and standards
S1SL Agree Details of the enhanced level of Service with better response and resolution times for each of the
9! VIP Users throughout the Term
Hal es the priority of an Incident based on defined prioniization rules, and shall communicate the service
windows of the Incident with the Users
5.1.8R Approval ‘Communication with Service Recipient organisations.
the policies regarding which Authorised Users can raise or approve requests and how such
tee giles tequests shall be raised/managed
5.1.5Q Approve Service Request allocation and closure rules
51210 Approve a fulfiment procedure for each type of request
512k Approve the prioritisation and allocation rules which shall be used by the Service Desk and Contractor to
allocate Incidents and other events to all Resolver Groups and Supply Chain Members
i me Details of the enhanced level of Service with better response and resolution times for each of he
VIP Users throughout the Term
5.1.8R Approve ‘Communication with Service Recipient organisations
5.1.15 Agree Dates to receive info on products and Services procured through the Service Catalogue
513iR Approve resolution plans for Major, Severity T and Severity 2 Incidents to the relevant Post Office service
owner based on the Supply Chain Members recommendation
528 Approve the oross Supply Chain Services and correlating Services to be monitored
52.9 Approve Event correlation, categorization and closure rules
52.12 Approve process where critical Alerts are defined, alerted on, and responded to
531 Approve cross Suply Chain Problem Management processes, policies, principles and standards across
532 Agree actions to improve or correct Problems
5.3.10 ‘Agree ‘automated cross Supply Chain Problem Management tool or standard interfaces
53.32 Approve Closure of ‘problems’
6.15 Agree a Capability Uplift plan
aa Ree further targets for the improvement of each IT Service and its constituent technical services and
architecture planning
6.22 Agree further targets for the improvement of each set of processes
Tea Approve the project management methodology prior to deployment
7.2.15 Approve action plan and address resource and capability gaps for implementation appropriate actions
734 Agree Format of all project documentation
73.41 Agree Frequency of reporting management information and programme management outputs
7318.2 Agree Forums for contractor to report project progress
7.3.19.2(b) Approve ‘Any exception to Post Office Standards
ae (oe i = delivery methodologies in the Operating Manual, within three (3) months of the Effective
Post
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C.1 Post Office Approval/Agreement Required
Table C.1 Requirements & references to approval, agreement and input needed from Post Office - continued @
Reference ! Type of Input For what
Schedule 2.2
will produce and maintain a rolling maintenance schedule with regard to the Contractor System
("Maintenance Schedule") to be agreed with Post Office
third parties that are not Supply Chain Members whom the Supplier will cooperate and collaborate
Sch2.2A13.4 Agree
Sch22A185 jPelied byFOADreed ay,
y Supe - to be reasonably specified by Post Office and agreed to by the Contractor (acting reasonably)
, Third parties that are not Supply Chain Members whom the Service Level regime will support
Sch2.2A15 specifies bY PO Agreed collaboration with
y Supp! - to be reasonably specified by Post Office and agreed to by the Contractor (acting reasonably)
Third parties that are not Supply Chain Members whom provide components to be effectively
Sch2.2A16 eine PO Agreed integrated
- to be reasonably specified by Post Office and agreed to by the Contractor (acting reasonably)
Post Office may ...amend the Service Points allocation for Service Levels. ... The procedure for
Sch2.2.A4.1 Agree notifying the Contractor of these changes will be agreed with Post Office (and once agreed
incorporated into the Operations Manual).
[Frequency of review of the Service Levels]
Sch2.2A4.5 _ Input/ Agree ...less frequently as Post Office reasonably determines (or more frequently as agreed by the
parties), the Contractor will co-operate with Post Office in a review of the Service Levels
Sch2.2A4.17 Agree the Expected Service Level and Service Threshold Level for Service Levels added by Post Office
The Contractor wil produce and maintain a rolling maintenance schedule with regard to the
Contractor System ("Maintenance Schedule") to be agreed with Post Office...
Potential agreement to alternative arrangements for carrying out any maintenance to the Suppliers
System:
Sch22A54 Agree “When the Contractor wishes to carry out any maintenance to the Contractor System (other than
Emergency Maintenance or activities set out in the agreed Maintenance Schedule) unless agreed
otherwise, it will ensure that:
the timing of the planned maintenance is in accordance with the requirements of the Maintenance
Sch2.2A5.1 Agree
Sch2.2A54.1 Agree ‘Schedule or is as otherwise agreed in writing with Post Office Representative at least twenty (20)
working days in advance;
‘Agreed in writing 7 the maintenance activities and timing of maintenance are agreed to by the Post Office
Sch2.2A5.4.3 ‘
Approval Representative...
aoe ae 7. facility by which Post Office can request an Incident be given a higher Severity or Prority. Such
prioritisation will be subject to agreement between the parties
‘Within thirty (30) working days of the Effective Date the Contractor will provide Post Office with a
draft Performance Management System for Post Office's approval
Notify Supplier of receipt and response (approval or rejection) to Performance Management
System within 10 working days of the receipt of a draft Performance Management System.
Sch2.2B1.2 Approval
Sch2.2B14 Approval
Sch2.2B1.2 Approval Updates to the Performance Management System
Sch2.2B212 Approval Recovery Plan approval.
Sch 2.282213 Possible agreement7 Performance Management System Service description and will unless agreed otherwise,
Input / requirement contain...details as Post Office may reasonably require from time to time
Sch 2.2824 — Input/ requirement ...The Quarterly Summary will contain such details as Post Office reasonably requires.
[Details of monthly performance review meetings]
...performance review meetings will (unless otherwise agreed)...
[Details of location to publish Performance Management Reports I
...0f fo be published at an agreed location on the Post Office intranet...
Sch 2.2B25 Possible agreement
Sch22B28 Possible agreement
Sch2.2B36 Agree Remedial actions in the form of a recovery plan
6.1 The Contractor will provide for Post Office's approval, a method for calculating low volume
Sch2.2C6.1 Approval events for a particular Service Level. Once approved, the process will be incorporated into the
Operations Manual.
-list of Fixable Calls will be defined and agreed by the parties prior to the TMO Start Date...
Sch 2.2. Annex A.
Siebio Agree ixable Calls’ are Call types for which a solution already exists in the knowledge base and can be
resolved remotely.
Soh22ANMEKA goo, The Contractor may use an equivalent measurement system based on ratings 1-9, subjectto prior
siSD16 PP written approval of from Post Office (including any necessary recalibration).
Sch22. ANNEXA preg The Expected Service Level of third and subsequent Measurement Periods for SHARED2 and the
SHARED2 associated Baselining process
Sch 2.2. Annex A The FMO baseline will be measured during the frst Measurement Period and agreed at the first
SHARED2 le annual performance review
* Note: Not all schedules have been checked through to identify the examples of items needing input/agreement or approval. Sources for
SEE were Schedules 2.1 and 2.2 (including 2.2 Annex A)
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C.2 Operations Manual Content,
Production and Approval
There are many requirements that define the Operations Manual and its contents those listed in Table C.2 are requirements that govern the
creation of the operating manual and/or explicitly specify Operations Manual content. See also C.3 and C.4 for additional Operations Manual
content.
Table C.2 Requirements for Operations Manual production, approval and exp!
Requirement Key points
Regt: 0.1.1 "standards for the process interfaces used by the cross Supply Chain Member Processes....the allocation of
responsibilities; the use of, and interfaces with, common systems tools, documented operating procedures; policies, key
controls and reporting...document these items in the Operations Manual...
Reat: -..Standards, policies, controls, guidelines and Releases for Cross-Delivery Service Management Processes ...document
eqt: 0.1.2
these items in the Operations Manual...
~..effective and efficient governance processes and meeting structures fo Support the delivery and management of the
Regt: 0.1.10.1 Services. ..including all interfaces to the governance structures and processes defined in Schedule 8.1 (Governance), and
Schedule 6.1 (implementation).
Reqt 0.1.10.5 Within three (3) months after the Effective Date, prepare and complete an Operations Manual...to also obtain Post Office's
written approval of the content and structure of the Operations Manual within such timeframe.
Reqt 0.11054 ‘Specify the processes and procedures that shall be used by the Contractor.
Regt: 0.1.10.5 b ...the Issue Management Procedure.
Reqt: 0.1.10.5¢ clude any other item, requirement, timeframe or definition that is expressed to be set out in the Operations Manual by
‘ this Schedule 2.1 (Service Requirements) or otherwise by this Agreement.
~..the integrated processes and procedures necessary for the delivery of IT Services to Post Office by the Supply Chain
Reqt: 0.1.10.5¢ Members.
Regt 0.1.10.5 ... maintain and update the Operations Manual as necessary to maintain its on-going accuracy...
all updates or changes to the Operations Manual to be notified to and approved in writing by Post Office
Ata minimum, documentation of and reference to Operating Level Agreements or other agreements entered into between
Supply Chain Members and the Supplier. Including details as per 0.1.10.14 a, b and c , which include but are not limited
Regt: 0.1.10.14 to: the parties, periods, manner of working together to provide compliance, provisions relating to seamless provision of
services (including various processes), responsibilities, timing, dependencies, procedures (including escalation) to deal
with failures, a process for managing Supply Chain Member billing
‘the operational cross Supply Chain Governance processes, meeting structures for all Supply Chain
Regt 0.2.1: Members... Thereafter and throughout the term of this Agreement, the Contractor shall update reference to such
processes and meeting structures in the Operations Manual ... to maintain their on-going relevance and accuracy.
“Prepare and maintain a written issue management and resolution procedure which shall be set out in or attached to the
Regt 1.2.1 Operations Manual (the “Issue Management Procedure”)
REG 5.227 Maintain and update the Operations Manual based on Event Management trending information.
Validate that Problem resolution and corrective actions taken are sufficient to confirm that the Root Cause identified does
Regt 5.3.23 not reoccur in same or similar Environments. This includes (without limitation) updating manuals, procedures, and other
documentation,
ae ~completed the documentation of the delivery methodologies in the Operating Manual and obtained Post Office's written
—— approval of them within three (3) months of the Effective Date.
Post
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C.3 Requirements expressing content to
be set out in the Operations Manual
While requirements listed in Table C.2 specify Operations Manual content there are also the requirements listed in Table C.3 in which content is
expressed to be set out in the Operations Manual (thus requirement 0.1.10.5 c. applies making that content required for inclusion)
Table C.3 Requirements and Definitions expressing content to be set out in the Operations Manual
, except those process steps that are to be designed and undertaken by the Supply
Chain Members. [Can also make other agreements on timescales outside the operations manual]
~-the frequency [for Supplier to] conduct Audits on the effectiveness of ... Processes across all Supply Chain Member Services in
scope
0.1.4
0.18
0.1.10.6 Documentation of ITIL aligned Service Management Processes that are in accordance with the Standards defined in Schedule 2.3.
0.1.10.7__...integrated processes and procedures of the Supply Chain...
0.1.10.10 _ Timescales for creation, implementation and maintenance of any service remediation plans.
0.1.11.7 _ [Ssues related to the stafus of any OLAS or relationship between Supply Chain Members that Post Office may require ad-hoc
reporting on.
O34 [For some provision of datal...the form in which data is provided when requested by Post Office .
032 [In addition to contracted specifications] Standards, levels of integrity and formats of data to be received by Post Office and all
Supply Chain Members.
034 Data specifications and standards for Service Management data and the use of Tools
0.3.5.2 ____Data/knowledge gathering and distribution across all Supply Chain Members and Post Office
0.3.5.4 ___ Process for the providing knowledge and information to Post Office (and Supply Chain Members if directed by Post Office).
0.4.16 How Supplier will provide, manage, operate and maintain the Service Management Tools and Interfaces
044 Definition of information delivery via interfaces of data to Post Office systems.
048 The number of user access licences for the flexible query and report writing Tooling
1.1.6 Escalation procedures for Supply Chain Member underperformance.
12.411 Governance structure utiisable to promptly and efficiently resolve any disputes or issues between Supply Chain Members andlor
between Supply Chain Member(s) and Post Office.
‘The frequency with which to review deliverables and obligations for contracts between Post Office and Supply Chain Members
— that are subject to the requirements of section 1,3 (Contract Compliance Management).
15.13 The frequency with which to carry out internal Audits to assess and ensure compliance with the Assurance Programme
15.13. The timescales for making available fo Post Office the writen outcomes of intemal Audits for compliance with the Assurance
: Programme.
15.14 Te frequency with which to carry out Audits. on projects performed by Supply Chain Members fo assess their respective
. compliance with the Assurance Programme.
15.14 the timescales for making available to Post Office the writen outcomes of Audits on projects performed by Supply Chain
= Members to assess their respective compliance with the Assurance Programme.
1516 Details of the regular reporting to Post Office of the Contractor's Compliance with the Assurance Programme (and Schedule 2.5
(Security Management) and Post Office's applicable policies and standards defined in Schedule 2.3 (Standards)).
15.23 Definition of the regular reporting to Post Office in relation to risk and compliance assessment
Timescales and procedures for provision of regular reports to Post Office highlighting any issues of Compliance or non-
15.24 Compliance of IT Services with Law and any applicable Post Office policies and standards.
co ‘Seams and touch points between the new Supply Chain member and Post Office, Contractor and all existing Supply Chain
= Members for the in-scope processes.
175 Format for data being returned to the exiting Supply Chain Member.
SVN Cai of reports including updates, projections, forecasts, re-forecasts, budgets and variance reports to Post Office and
jovernance....
2.2.1 Timescales for the resolution of variances each month in relation to Financial Management budgeting and controlling
222 Definition of reports to Post Office and Governance in relation to Requisition, purchase order and Invoice Management.
2.4.10 ____ The frequency of the periodic Demand Management reporting.
25.1 ‘communication channels to all Post Office Users and Service Recipients where applicable, as well as Supply Chan Members
25.2 Definition of communication plan
253 ‘Additional agreements regarding Post Office communications policies with which communications should be compliant.
267 the frequency of the regular communications and updates published by Supplier to ensure awareness of Post Office satisfaction
requirements and objectives.
EEE) Definition of a Services Catalogue.
3.12 Intervals at which the Service Catalogue is created, implemented and maintained.
—< Tees for Supply Chain Members to implement changes as made to the Service Catalogue. [As an alternative to timescales
ae in
32.4 the cross Supply Chain Service Level Management processes and procedures across the Supply Chain
3.2.13 The definition of the real time service dashboard and access to it by Post Office.
3.2.15 The provision of IT Service performance reports.
3.2.16 The reporting schedule to produce service-based reports in accordance with.
32.17 Defnton of a governance framework that specifies Service Level performance reviews with Supply Chain Members and Post
ice.
5 Definition for management of the Supply Chain to optimise the capability of the IT Services and the supporting organisation to
deliver a cost-effective and sustained level of Service Capacity.
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Reqt Ref _ items, requirements, timeframes or definitions expressed to be set out in the Operations Manual
sae Definition for deployment of an integrated, cost efficient performance management system to monitor, manage and report on
Sc Services’ performance, current resource utilisation, trends, forecasts, and exceptions.
3.4.15 The provision of regular Availability Management reports to Post Office and the Supply Chain Members.
354 Dataon of the cross Supply Chain IT Service Continuity Management processes, policies, principles and standards across the
supply Chain.
The frequency of reporting to Post Office on all continuity plans discussed in Schedule 2.1 and activities including plan updates, test
and invocation.
35.22 The Post Office definition and procedures for declaring a Supply Chain Disaster.
3.6.16 Definition of service reports. [Also defined in Schedule 2.2 (Service Levels)]
3.6.29 The frequency of Security Report provision -
3.6.1.2 Submission of the Information Security Health Check remediation plan to Post Office information security and assurance group for
approval.
3.5.8
3.6.1.4 Logging of unresolved issues in the Information Risk Register and reporting to Post Office information security and assurance group.
The definition for the level of access to the Configuration Management System (CMS) afforded to the Post Office and the Supply
414 ,
Chain Members .
Production of periodic reports in relation to the provision and management of user role based access of Supply Chain Members and
4.1.16
Post Office service delivery, to the CMS.
Itmay be that the Operations Manual describes the “Due consideration to the business and technology risk and impact of planned
4.2.2 Changes” to use when carrying out the implementation, execution and on-going management of the Supply Chain Change
Management governance framework, processes, policies, principles and standards, as well as the Contractor's review and
implementation of requested Changes (as applicable)
426 Change Authorisation Matrix to approve cross Supply Chain Member Changes.
428 Documentation for pre-approvals for Standard Changes.
45.17 The required knowledge transfer across the Supply Chain
45.13. Delails of the regular Assurance activities with the Supply Chain Members fo ensure information required to manage the Cross-
Delivery Services is captured, stored, and presented accurately and completely in the SKMS.
5.1.38 Post Office's Security Requirements, policies and standards [in addition to detail in Schedule 2.5 (Security Management Plan)]
$.4.1C The standards set by Post Office’s communications team to follow in all interactions with the Users.
5.1.11 Specification for the recording of all incidents and provision of regular updates -
5.1.15 Definition for engagement with the Contractor Problem Management function to ensure that it provides an appropriate Root Cause
. analysis for any service failure with Service Desk responsibilities with an appropriate fix.
5.1.5L Details of the enhanced level of Service with better response and resolution times for each of the VIP Users throughout the Term
5.1.10 Generation of reports of those IT Services and Services offered by the Service Desk.
Specification of the data that the Service Desk shall capture [ as alternative to that pertaining to the Service Levels and KPIs defined
5120 in Schedule 2.2 (Service Levels),
5.1.8q The escalation process for expedited handling of high prioriized cross Supply Chain Service Requests based on the assigned
Priority Level.
1 11q Post Office's user interface standards and policies, including branding which may be varied from time fo time subject to Change
Sox Control.
518R Definition for management of the process of communication with Users, Supply Chain Members and Service Recipient
organisations (with the approval of Post Office).
5.1.30R Timescales for the production of Major Incident Reports for all Major Incidents and Severity 1 incidents.
53.6 Problem Management procedures describing escalation processes for expedited handling of high priorities across Supply Chain,
high severity Problems based on the assigned Severity Level.
3.3.25 Problem management related corrective actions [in line or in addition to those in OLA] to be taken by parties.
5.3.30 Processes to Coordinate Problem tracking efforts and nofiications to the Service Desk and Third-Party Vendor(s), and maintain
; regular communications between all parties until problem resolution [unless agreed between the parties via any OLA]
Maintenance of communications and provision of reports to Post Office and affected Authorised Users and, as necessary, to Third
53.33 Party Vendor(s) from the time a Problem is identified through to resolution. [may also be specified between the parties via any OLA]
The escalation required during management of the resolution of issues with Supply Chain Members following the audit of a sample of
544 Equipment Rooms at Post Office Facilities operated by the Supply Chain Members and reports on their quality identifying potential
issues that, in the opinion of the Contractor, could result in service interruptions.
Documentation of a fast path (5 Working Day) Solution Design cost estimation service for the delivery of new or changed
Tequirements from Service Recipients.
Timescales in which to identify and notify Post Office if any Solution Design relating to new or existing Services does not comply with
the items set out in section 7.1.4.1A (Solution Design Governance).
Timescales in which to recommend the changes or additions to the relevant Solution Design necessary to make such Solution
7.1.43A _ Design compliant with the items set out in section 7.1.4.1A (Solution Design Governance) following the event that the Contractor has
Notified Post Office of a non-compliant Solution Design under section 7.1.4.2A (Solution Design Governance).
The agreement with Post Office of changes to Solution Design following recommendations under section 7.1.4.3A (Solution Design
Governance)
The operational change process to follow for any changes to Post Office's Portfolio Programme and Project Management (PPM)
standards and policies.
7.2.14 Timescales in which to_make available to Post Office and a Supply Chain Member information held in the PPM repository
723. the definition for a rolling project Demand Management plan for Post Office in relation fo all Post Office projects for which the
= Contractor is responsible.
7.3.17 Timescales in which to carry out closure processes after completion of any Post Office project that the Contractor is managing.
73.17 timescales in which to provide clear written recommendations to Post Office as to the planning and delivery of future projects
: reflecting lessons learned.
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Example parts of Agreement that
express Operations Manual content
Requirements listed in Table C.2 and C.3 require or express content to be set out in the Operations Manual. In addition other parts of the
agreement also express content to be set out in the Operations Manual and (thus requirement 0.1.10.5 c. applies making this required for
inclusion). Examples’ of these parts of the agreement are set out in Table C.4
Table C.4 Example’ parts of agreement that express content to be set out in the Operations Manual
Reference
Defn 1: Service Catalogue
Items, requirements, timeframes or definitions expressed to be s in Operations Manual
Intervals at which the Service Catalogue is created, implemented and maintained.
Defn 1: Service Integrator for
Exclusive Services
Details of Access Management Services.
Defn 2.1: Operations Manual
‘Allthe Supplier operational management processes and procedures and interface points to other Supply
Chain Member Processes and procedures.
Defn 2.1: Security Reports
The Security reports required by the information security group including vulnerability management, Patch
management, security incident and Event management.
Defn 2.1: Service Request
The processes and procedures in relation to Service Requests which include but are not limited to:
information, advice, a Standard Change which is low risk, frequently performed, and low cost, or access toa
Service.
Defn 2.1: Supply Chain Member
Service Management
The interaction between Supply Chain Members in the delivery of the IT Services
Schedule 2.1 2 para 1.3
Governance frameworks
Schedule 2.2. Part A 4.1
Post Office may ...amend the Service Points allocation for Service Levels. ... The procedure for notifying the
Contractor of these changes will be agreed with Post Office (and once agreed incorporated into the
Operations Manual).
Schedule 2.2. Part A 5.4.2
Definition for normal Service Hours.
Schedule 2.2. Part A6
Definitions at the operational level for Severity 1 and Severity 2 for each function/module/system.
Schedule 2.2. Part A6
Definition for the full categorisation of incidents to Severities
Schedule 2.2. Part B 1.2
Provisions with which the draft Performance Management System will comply.
Schedule 2.2. Part C 6
Low Volume Events
6.1 The Contractor will provide for Post Office's approval, a method for calculating low volume events for a
particular Service Level. Once approved, the process will be incorporated into the Operations Manual.
Schedule 2.2 Part A Annex A:
Details of how information regarding Severity 1 Incidents and the response are to be posted by the
sisD1 Contractor via a communication channel, to the Post Office stakeholders and user community
Schedule 2.2 Part A Annex A:
SiSD8 Unless in the Service Catalogue: the time frames with which Service Requests are to be completed. ;
Schedule 2.2 Part A Annex A: :
siso18 Required timeframes for completion of User Administration Requests.
‘Schedule 2.2 Part A Annex A: Www
Criteria for time, and accuracy for Users setup.
SISD19
Schedule 2.2 Part A Annex A: Documentation of the baselining process (once agreed) for use in establishing the ESL for the third and
SHARED2 subsequent Measurement Periods for Service Level SHARED2
Schedule 2.2 Part A Annex A:
SISD KPI1 Rules for the publishing of RCA’s relating to Severity 1 Incidents.
Schedule 2.2 Part A Annex A:
SISD KPI2
Definition of completion within committed timescales for Root Cause Analysis actions
* Note: Sources for Table C.4 were limited to Schedule 1 Definitions, Schedule 2.1 Definitions, Schedules 2.2 (and 2.2 Annex A). Further
PORFegt the agreement not listed here will lso ‘express content that is therefore required in the Operations Manual
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C.5 Incident Severity
Schedule a]
oy J
Schedule 2.2 Part A paragraph 6 gives descriptions for the Incident/Severity level
Table C.5 and the notes below are reproduced from Schedule 2.2. The Operations Manual is to expand further upon these descriptions.
Table C.5 Severity level from Schedule 2.2 Part A paragraph 6
Severity Definitions Restoration
Level Targets
1 Means an Incident that results in a critical business impact where Post Office experiences: 4 hours
(i) a complete or substantial loss of service, or
(ji) data Problem making an essential part of the Contractor System unusable for the end users, or
(ii) the inability to access the Contractor System or Service.
2 Means an Incident that results or could result in potential severe business impact on the Service; an Incident 8 hours
where
(i) the Contractor System is materially adversely affected, but can be circumvented,
(ji) certain material aspects of the Contractor System are disabled, but the Service remains operable, or
(iii) some users are unable to access the Contractor System and this causes material adverse business
impact.
‘Materially’, includes, but is not limited to, Post Office suffers financial loss; business transactions cannot take
place; operations are affected.
3 Means an Incident that results in a minimal business impact for the Contractor System where non-critical 3 working days
functions or procedures are down, unusable, or difficult to use with some operational impact or can be
circumvented without material impact; a Incident where Post Office experiences no loss of service and which
does not cause an adverse business impact.
4 Means an Incident that results in little or no material impact for the Contractor System or Post Office's 3 working days
business; an Incident where the Contractor System is determined to be functioning as designed and may
result in a Change Request for modifications, enhancements, or routine Services; questions that may result in
authorised user training
Selected Notes from Schedule 2.2 :
+ Severity Level 1 Incidents are the highest (i.e. most serious) severity level and Severity 4 Incidents are the lowest (i.e. least serious) severity
level.
+ Severity 1 and Severity 2 will be defined at the operational level in the Operations Manual for each function/module/system.
+ To.allow prioritisation of a certain Severity of Incident, they may also be given a priority within a Severity to assist in managing Incidents
across the supply chain. Priority 1 is the highest Priority Level and Priority 4 is the lowest.
+ The Contractor will provide a facility by which Post Office can request an Incident be given a higher Severity or Priority. Such prioritisation will
be subject to agreement between the parties and will be reported against based on their original classification.
+ Ifan Incident is raised to a higher Severity Level, the service level clock will either be restarted at the relevant higher severity level or continue
with the time remaining on the lower severity (whichever is shorter).
+ Inthe event that a Severity is raised, there will be a review after the Incident is resolved to see if there is a requirement to amend the severity
setting guidelines for that type of Incident.
+ The full categorisation of Incidents to Severities will be defined in the Operations Manual
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C.6 Underpinning Assumptions
Several sets of assumptions are relied upon within the contract, underpinning the SISD agreement. ‘Common Assumptions’ are found within
Schedules 2.5 (Security Requirements), and Schedule 14 (Common Assumptions). More assumptions were included within Schedule 16
(Workforce Assumptions),
25 Tacs
a ili
Overview
Post Office employees who work with this contract should understand both general and specific assumptions that often place contractual
obligations on Post Office (in addition to the responsibilities already outlined for Post Office and Supply Chain Members in schedule 3.)
Common Assumptions in Schedule 14 Common Assumptions
Asset of Common Assumptions based on a set that had originally been issued by Post Office at ISFT were added this additional set of Common
Assumptions are listed in Table C.6 below.
Table C.6 Common Assumptions
Common Assumption Period during which the
assumption will apply
Post Office has sufficient licences for the Supplier to use Post Office architecture tools and Post Office
Project Server implementation. Where additional licenses are required, Post Office will supply atno cost to _For the Term
the Supplier.
Hit per Supply Chain Member will be carried our by the Supplier per year. For the Term
The Supplier will not fund Incumbent Provider's exit or implementation costs. For the Term
No office space will be available on Post Office premises - this includes during Implementation.”
For the Term
Transferring staff wittrot require access to Post Office corporate Tretwork but wilt be giverraccess to vertairr
Post Office systems where specifically required for their role, where requested by the Supplier and agreed by For the Term
Post Office in order to deliver the requirements in Schedule 2.1 (Service Requirements).
Until the expiry of the Post
. . - Office Employees Contract
Fixed contract term staff will not be made permanent prior to the Commencement Service Transfer Date of Verification Period or the
Post Office Commencement Transferring Employees or Fujitsu Commencement Transferring Employees. Fyjitsy Employees Contract
Verification Period, as
applicable.
Until the expiry of the Post
= 5 . Office Employees Contract
There will be no increases to base salaries prior to the Commencement Service Transfer Date of Post Office \erification Period or the
‘Commencement Transferring Employees or Fujitsu Commencement Transferring Employees. Fustey Emnployese Contact
Verification Period, as.
applicable.
‘As set out ir paragraph 7-1-1 ot Schedute-2-5 (Security Management) incumbent Suppliers are- compliant
with Post Office Security Policies. Without prejudice to the Supplier's obligations to manage Incumbent
‘Suppliers as set out in Schedule 2.1 (Service Requirements), the rectification of any pre-existing non- For the Term
compliances against Post Office Security Policies, or the management of any associated actions, attributable
to any Incumbent Supplier, are not included in the Charges.
The Service Desk is not considered by Post Office fo be “internal” to the Post Office network. For the Term
Common Assumptions in Schedule 2.5 Security Requirements
The security requirements schedule contains additional assumptions that were agreed to be ‘Common Assumptions’ for the purposes of clause 2
(Due Diligence) These are listed below:
Post Office Data does not comprise HM Government Data which is protectively marked and it is not a requirement of the Supplier's Service Desk
to handle HM Government data;
+The Contractor toolset and IT infrastructure will not store or process HM Government data and will not be connected to any HM Government
systems;
-Except as expressly set out at paragraph 2.2.12, the Supplier is not subject to compliance with the HM Government Security Policy Framework,
HMG accreditation or any HM Government Code of Connection. This includes the PSN, GSI or other networks; and
«Incumbent Suppliers are compliant with Post Office Security Policies.
Assumptions in Schedule 1 Part B Workforce Assumptions
Part B of Schedule 16 contains an extract from the ‘People Strategy’ document submitted in the Supplier's Final Tender. It provides details of
faRigtial assumptions and dependencies relating to the people transition activities, in addition to those detailed in Schedule 3.
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C.7 Selected Diary Reminders and Post
Office Responsibilities
Overview
Throughout this handbook key reminders for Post Office regarding the management of the SISD contract have been noted. A selection of those
for Post Office are collated and presented here.
Exit Planning
Written notice 6 or more months before expiry (or end of extension) Is needed fo extend the term into each of the extensions of one year.
Preparation will be required if Post Office wisn to conduct the first benchmark one year after the service Commencement Date. Ine activities tal
bhould be considered are as follows:
Appointment of an agreed benchmarker; and Benchmarking set-up.
je Supplier's performance oF Its obligations Is Subject to audit by Post Office (up to twice per annum per service}
Business Continuity
ost Office will provide the Supplier with details of Post Office's IT Service Continuity Management requirements for new or changed business
Bervices
Performance Management
Post Office need to work with the Supplier to calibrate the Customer Satisfaction survey e.g. ensure definition of good aligns with that expected.
Before making its decision whether to add a new Service Level or KPI Post Office will consider any reasonable concerns expressed by the
Supplier
Key Personnel
Post Office will provide and maintain a list of their key personnel, contacts, and notification and escalation points.
Services changing over the term
ost Office has obligations in the on-going change of Services and needs to review, approve and input as appropriate to many items and
Bctivities
Invoice Management
inform Supplier of rejections and acceptances promptly
Post Office must pay the Supplier within 30 days of receipt of a valid and final invoice. (Interest is payable on late payments of any undisputed
harges).
Co-operation and Collaboration
Post Office will provide the supplier with details of any changes in the agreements with Supply Chain Members which will impact the supplier's
pbility to manage and report on the Supply Chain Members performance including changes to services, Service Levels and pricing
Post Office will provide the supplier with reasonable notice of any new members to be added into the Post Office Supply Chain and will comply
ith any obligations it has regarding the on-boarding and off-boarding plan for that new member.
Post Office Oblig:
jonedule 3= "Post O PPIY ry
ransition (and normal operations) that when breached, may trigger a ‘Post Office Cause’ or a ‘Supply Chain Member Cause’
[These should be studied by those individuals who are involved in transition activities. The obligations on Post Office regarding transition can be
rouped into the following
ations
‘Supporting the SI Supplier with management of Supply Chain Members;
Logistics support; and
Provision of knowledge to SISD Supplier.
Delays or impacts attributable to a ‘Post Office Cause’ or a ‘Supply Chain Member Cause’ may trigger the reliefs and compensation payments
lunder the Main Terms and Conditions.
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D.
Overview
Glossary
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This glossary contains descriptions for the acronyms used within the contract handbook. Terminology and defined terms used throughout the
handbook are aligned with that in the agreement. Hence where terms are capitalised definitions for these terms can be found in Schedule 1 or
Schedule 2.1. Definitions. The notable exception being that for readability of the Handbook it uses “Supplier” to refer to ATOS IT Services UK
Limited rather than “Contractor” as used in the agreement.
ABV
BAU
BC/DR
BCDR
CAB
CEDR
CMDB
CMN
CMO
cMS
CPI
CSL
DR
ESL
Euc
FMO
FOIA
FTE
GsI
IcT
IPR
ISFT
ISHS.
Tac
TIL
Pos™®
Anticipated Business Volumes.
Business As Usual
Business Continuity and Disaster
Recovery
Business Continuity and Disaster
Recovery
Change Advisory Board
Centre for Effective Dispute Resolution
Configuration Management Database
Change Management Note
Current Mode of Operation
Configuration Management System
Consumer Price Index
Component Service Levels
Disaster Recovery
Expected Service Level
End User Computing
Future Mode of Operation
Freedom of Information Act
Full Time Employee
Government Secure Intranet
Information and Communication
Technologies
Intellectual Property Rights
Invitation to Submit Final Tender
Information Security Health Checks
Information Technology & Change
IT Infrastructure Library
Interactive Voice Response
107
KPI
MI
oGc
OLA
PMR
POL
POS
PPM
PSN
Pwo
RCA
SCM
‘SFIA
SI
sisD
SL
SLA
SLAP
SMEs
SMP
STL
T&Cs
T&M
TBD
TCO
TO
TUPE
VFM
vIP
Key Performance Indicator
Management Information
Office of Government Commerce
Operating Level Agreements
Performance Management Review
Post Office
Point of Sale
Portfolio Programme and Project
Management
Public Services Network
Project Work Order
Red Amber Green
Root Cause Analysis
Supply Chain Members
‘Skills Framework for the Information Age
Service Integration/Service Integrator
Service Integration and Service Desk
Service Level
Service Level Agreement
Service Level Adjustment Point
Subject Matter Experts
Security Management Plan
Service Threshold Level
Main Terms and Conditions
Time and Materials
To Be Decided
Total Cost of Ownership
Transformation Mode of Operation
Transfer of Undertakings (Protection of
Employment)
Value For Money
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E. Handbook Version Control
Version Control
‘The original version of this handbook reflected the contract as at the signing date of 26th September 2013 . Changes to the contractual terms that
may have been agreed subsequent to this date are only included where specifically recorded within table E. 1a below.
Details of changes to the contract can be obtained from the Post Office IT procurement team.
Table E.1a below lists the versions of this Handbook and gives a description including the revisions made and the source material that led to the
revisions.
Control of the SISD Handbook
Date Version Desc Author
Final First Draft of Contract Handbook.
4/11/2013 VO 10 Revisions: Initial version ready for wider review. Paul Holdforth
Source: Contract as at the signing date of 26th September 2013.
Revised draft reflecting feedback on vO 10
27/01/2014 020 Revisions: (see SISD - Contract Handbook v0 10 Review Comments Sheet v0 20.xis) Paul Holdforth
Source: Comments from Sanjay Chandarana and Tom Coulson.
Potential Handbook revisions
To provide visibility of the potential forward change of the handbook, Feedback and ideas for revising the handbook with expansions of its content
have been logged in Table E.1b.
s to the SISD Handbook
Table E.1b Potential Re
Revision Due Date
Ne Revision Description
4 Draft content on how Post Office manage performance for those services that do not have SLs. Not planned.
Inclusion of ways of working material giving specific guidance on actions and section of the contract to consult Not planned
following particular events
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Other than as stated below, this document is confidential and prepared solely for your
information and that of other beneficiaries of our advice listed in our engagement letter.
Therefore you should not refer to or use our name or this document for any other purpose,
disclose them or refer to them in any prospectus or other document, or make them available
or communicate them to any other party. If this document contains details of an
arrangement that could result in a tax or National Insurance saving, no such conditions of
confidentiality apply to the details of that arrangement (for example, for the purpose of
discussion with tax authorities). In any event, no other party is entitled to rely on our
document for any purpose whatsoever and thus we accept no liability to any other party who
is shown or gains access to this document.
© 2014 Deloitte MCS Limited. All rights reserved.
Deloitte MCS Limited. Registered office: Hill House, 1 Little New Street, London EC4A 3TR,
United Kingdom. Registered in England and Wales No 3311052.
Deloitte MCS Limited is a subsidiary of Deloitte LLP, the United Kingdom member firm of
Deloitte Touche Tohmatsu Limited ("DTTL"), a UK private company limited by guarantee,
whose member firms are legally separate and independent entities. Please see
www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its
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