Transformation Programme. Sourcing Workstream PROCUREMENT PLAN. Inland Revenue. 28/06/2013 v1.0 FINAL Reference:

Transcription

1 Inland Revenue Transformation Programme Sourcing Workstream PROCUREMENT PLAN Project Sponsor: Greg James Prepared by: Sourcing Team Date: 28/06/2013 v1.0 FINAL Reference:

2 Document Control File Name Plan_IR TP Procurement Plan_ _v1.0 Contact Person Status FINAL Document Review History No Date Change Description Contact May-13 Released to the Sourcing Management Team Jun-13 Released to the Procurement Director Jun-13 Released to the Programme Leadership Team Jun-13 Released to the Procurement Director Jun-13 Released to the Procurement Director Jun-13 Released to the Programme Steering Committee Jun-13 Released to the Procurement Director Jun-13 Released to the Programme Steering Committee Document Signoff This Procurement Plan has been approved as follows: Formal Review Area Name Signature Date Advisor Ernst & Young Advisor Ernst & Young Reviewed by Procurement Engagement Partner Quality Assurance Partner Procurement Manager Endorsed by Procurement Graham Pomeroy Procurement Director Endorsed by Enterprise Architecture Jon Frere Chief Architect Endorsed by Risk & Assurance Vanessa Johnson Group Manager Endorsed by PLT Members Chair Approved by PSC Members Chair Page 2 of 24

3 Contents 1. Purpose of this Procurement Plan Transformation Programme Background Programme Objectives Scope of Procurement... Error! Bookmark not defined. 3. Procurement Process Indicative Timeline Assumptions Market Coverage Governance and Management Framework Sourcing Team Negotiation Team Review and Approval Points Probity Plan Communications and Engagement Approach (High Level Plan) Risk, Issues and Change Management Dependencies Appendix 1: Roles and Responsibilities Appendix 2: Procurement Documentation and Deliverables Page 3 of 24

4 1. Purpose of this Procurement Plan The overall objective of the procurement process is to engage a transformation service provider(s) for Inland Revenue s (IR) Transformation Programme. The service provider(s) will be responsible for supporting the delivery of the Transformation Programme This plan supports the Sourcing Strategy 1 which has been approved by the Investment Board (IB) and outlines the rationale for the entire approach to engage the service provider(s). In developing this plan the new Government Rules of Sourcing 2 and the New Zealand Government Procurement Principles have been considered and, where applicable, additional better practice guidance has been adopted. The plan is structured as follows: Background a summary of the Transformation Programme background, requirements, market analysis and scope Approach the plan to engage the service provider(s), including the procurement process, timelines and assumptions Governance the framework for the execution of the procurement process and evaluation of supplier responses, including review and approval points General process information including communication, probity, dependencies and assumptions Appendices plus supporting information The procurement process outlined in this plan proposes the most effective and efficient method of securing both a high quality and a cost effective outcome. Specifically, the objectives of the process are expected to (in no particular order): identify and engage transformation service provider(s) with the capability, capacity and experience to assist with the planning and delivery of Inland Revenue s Transformation Programme; achieve a high quality of delivery by ensuring that a contract is awarded to a service provider(s) who can meet the requirements specified by IR in line with quality expectations; and achieve a cost effective outcome by agreeing a commercial arrangement with the service provider(s) that adequately addresses quality, time, cost, benefits and risk. 1 The Sourcing Strategy outlines the following key components: Contract Model, Delivery Model, Scope, Requirements and the Procurement Process 2 Government Rules of Sourcing, Rules for planning your procurement, approaching the market and contracting, May 2013, available: Page 4 of 24

5 The process, stages and steps are dependent on a number of key decisions, assumptions and milestones being met. It should be noted that the process could change if for example: feedback during the process indicates that the process will not be supported by the market, or can be amended to better support the agreed objectives; responses after the Expression of Interest or Request for Proposal, or findings from the Competitive Dialogue, suggest that an amendment to the process is required to achieve the agreed objectives; resource or time constraints mean that the process requires amendment to align with a new Transformation Programme baseline; or decisions taken from Ministers on the scope of the Transformation Programme require the process to be amended. The timescales for the procurement process could change if for example: internal and ministerial decisions are not received in accordance with the current baseline plan; critical milestones are not achieved in the sourcing workstream, or in other workstreams where sourcing has a dependency; the evaluation process for the Expression of Interest and Request for Proposal take longer than scheduled; and the resources needed to support the process are not in place. This Procurement Plan will be subject to version control. Where these activities result in a required change to this plan a formal change control process will be undertaken, and ensure the review and approval points detailed in Section 5 are engaged to provide their formal endorsement and approval. Further details are provided on assumptions and dependencies in Sections 3.2 and 6 respectively. Page 5 of 24

6 2. Transformation Programme Background The Transformation Programme has been established to respond to Government goals to derive better value from public services (including more integrated pan-government services), internal pressures (such as an ageing information technology system) and environmental drivers centred around IR s customer s needs. The aim of the Transformation Programme is to address these issues and deliver tangible benefits, including the ability to implement policy and legislative changes more quickly, and to provide IR customers with a range of interactive services and information. IR has completed a transformation blueprint, an associated indicative business case that sets out options for Government, and a detailed plan for the delivery of the Transformation Programme. The Transformation Programme is now building on this work, which will include development of high level design, detailed design and implementation of key initiatives of the Transformation Programme. The Transformation Programme is subject to specific Government business case approval at determined stages throughout. The Transformation Programme has recently entered into the phase of work named Mobilisation. It is to be delivered over the 2013/14 and 2014/15 financial years, and is designed to deliver the following objectives: 1. agree the preferred option for the delivery of transformation in terms of the overall roadmap, scope, costs, benefits, timing and risks; 2. engage a transformation service provider(s) to assist IR in the planning and delivery for transformation, and contract them to undertake the completion of the technical and business design for the first stage of transformation; 3. obtain all agreements, including detailed business case, funding and contract approvals for IR to engage a preferred transformation service provider(s); and 4. ensure IR is ready to manage and govern the on-going delivery of transformation Programme Objectives The overall investment objective, as outlined in the Programme Business Case, 3 implement the capabilities required to deliver IR s vision IR for the Future by: is to improving agility so that policy changes can be made in a timely and cost effective manner; delivering more effective services to improve customer compliance and help support the outcomes of social policies; improving productivity and reducing the cost of providing services; improving the customer experience by making it easier and simple for taxation and social policy customers; 3 Business Transformation, Delivering New Zealand s future revenue system, Programme Business Case, March 2013 Page 6 of 24

7 increasing the sharing of intelligence and information cross-government to improve delivery of services to New Zealanders and improve public sector performance; and minimising the risk of protracted system outages and intermittent systems failure. Market analysis has provided an overview of key lessons from similar projects and potential service providers in the market. These key lessons have informed the preferred delivery model, scope and contracting model choices within the Sourcing Strategy Scope of Procurement Inland Revenue s transformation will be separated into a number of stages and delivered over a number of years, subject to specific Government approval at various stages. To reduce the risks of a large-scale transformation programme, each stage will consist of a number of smaller, discrete initiatives. Multiple reviews will also be performed across initiatives and stages with on- and off-ramps as appropriate. Each initiative will require a range of skills and capabilities to be successfully delivered. While IR possesses some of these capabilities, the scale and complexity of change required will present the organisation with resource challenges. IR is therefore seeking to engage a transformation service provider(s) with the capability, capacity and experience to assist with the planning and delivery of Inland Revenue s Transformation Programme Whilst the specificity of the first stage is still being determined and is subject to Ministerial approval, in any case, IR will need to transform the way it does business. The Programme Business Case 4 outlined six significant needs: radically improve the implementation of policy changes; provide smarter and more efficient customer-oriented processes including a shift from paper-based to digital; further pool information and intelligence to help improve the efficiency and effectiveness of the public sector; provide simple, clear and integrated delivery of services to customers; advance our intelligence and risk assessment capability to better target non-compliant behaviour; and deploy a modern technology platform that is flexible, scalable and reliable. 4 Business Transformation, Delivering New Zealand s Future Revenue System, Programme Business Case, March Page 7 of 24

8 3. Procurement Process To identify a preferred transformation service provider(s), a four-stage process will be used. For each stage a detailed execution plan will be developed to inform stakeholders on the steps, timescales and specific activities. The four-stages are outlined below. Figure 2: Procurement Process The Transformation Market Brief 5 was released on 21 August 2013 that sets out the vision for IR and the approach to transformation. This Brief is the official Notice of Intent for the EOI stage and is supported by communication activities, including meetings in Christchurch, Wellington and Auckland. The meetings will engage with the tax and IT sectors to explain the scale and complexity of the transformation and provide details about the procurement process. Expression of Interest (EOI) The EOI stage will verify whether interested service provider(s) have the capability required to perform the role of the transformation service provider(s). The outcome of the EOI will be a recommended shortlist, to move to the Competitive Dialogue stage. Competitive Dialogue 6 (CD): CD is a process recommended by the Ministry of Business, Innovation and Employment (MBIE) for use in complex procurements. During CD, IR will engage in discussions with a shortlist of service providers on proposed approaches and contractual documents, prior to a Request for Proposal stage. IR aims to: o develop and agree a commercial framework, including indicative costs and associated contractual documents 5 Transformation Programme, Changing Inland Revenue, Transformation Market Brief, August 2013, available: 6 Competitive Dialogue is only used in exceptional circumstances for 'particularly complex' supply, services and works contracts where it would not be possible to award a contract using the open or other procedures. That is, a contract where the buyer is not objectively able to: define the technical means capable of satisfying its needs or objectives; or specify either the legal, financial or commercial make-up of a project. In other words, where the buyer needs the expertise of the market to identify and/or design a feasible fit-for-purpose solution. Page 8 of 24

9 o o o examine cultural fit and the suitability of shortlisted service providers to enter into a relationship with Inland Revenue collaborate with a shortlist of service providers to create a shared vision and common understanding of proposed approaches, and refine the scope and requirements of the Transformation Programme and assess feasibility and alignment with programme objectives. The CD process will include a series of briefing sessions, interviews and service provider presentations covering key aspects of the Programme and proposed contractual documents. Inland Revenue may also conduct site visits to the premises of service providers or nominated client reference sites. During CD, service providers will be able to work with Inland Revenue to better understand requirements and refine their approach for RFP. Request for Proposal (RFP) An RFP will facilitate the approach by which IR will formally request offers from possible service providers and ask that they outline their offers in terms of time, quality, cost, benefits, risks and commercial principles for the first SoW. The outcome of the RFP will be a recommendation of no more than two service providers to move to the Negotiation stage. Negotiation (NEG) The Negotiation stage seeks to reach agreement on the MSDA and SoW for Stage 1 detailed design, on terms acceptable to IR. Note that the negotiation timeline of 4 weeks is indicative only and is based on the important assumption that the significant number of expected and usual issues, which are normally resolved in the Negotiation stage, will be resolved between IR and the service provider(s) in sufficient detail (i.e. agreed contract wording) during the EOI, CD and RFP stages. If this assumption is not met, our experience is that negotiations could take up to six months, which will delay the selected service provider(s) from commencing any activity for IR until all contractual matters are concluded and the appropriate documentation is signed. The outcome of the Negotiation stage will be a recommendation of a transformation service provider(s) (to be engaged to undertake the first SoW) and a contract ready for execution (subject to necessary approvals) Indicative Timeline The procurement process is estimated to take weeks from EOI Launch and Execution to Contract Award. This time has considered government response timeframes for service providers. Table 1 below shows the sequence and duration of activities and indicative milestone dates. Statutory holidays have also been considered including the Christmas break (2013). For detailed information refer to the Sourcing MS Project Plan. The start and end dates for each task within the procurement process indicates a window in which more detailed activities will be documented within the execution plans for each stage, e.g. The state date for EOI Launch and Execution does not necessarily identify the date documents will be released to the market. Page 9 of 24

10 Table 1: Indicative Timeline Task Start Date End Date Ministerial Decisions Approval to release EOI Document to the market Approval to release the RFP to the market Approval of the detailed business case and permissions to award the contract Expression of Interest (EOI) EOI Planning and Approval* EOI Launch and Execution EOI Evaluation, Findings and Reporting EOI Probity Audit Report Competitive Dialogue (CD) CD Planning and Approval* CD Scheduling and Logistics CD Launch and Execution CD Findings and Reporting CD Probity Audit Report Request for Proposal (RFP) RFP Planning and Approval* RFP Scheduling and Logistics RFP Launch and Execution RFP Evaluation, Findings and Reporting RFP Probity Audit Report Negotiation Negotiation Planning and Approval* Negotiation Launch and Execution Negotiation Findings and Contract Approval Negotiation Probity Audit Report Milestone: Contract Award * includes probity and communications requirements for each stage Page 10 of 24

11 3.2. Assumptions There are a number of underlying assumptions that have been made which have informed the above dates; these are documented below: the effectiveness of the communication and stakeholder management and, information activities for internal and external stakeholders; IR resources are in place prior to the EOI which have the time and capability to determine the relative merits of different suggestions/proposals made by service providers during the process; having sufficient detail and capability to define and hold dialogue with prospective service providers about the business outcomes sought; a set of requirements that are articulated in a specific, measurable, actionable, reasonable and time bound way facilitating quality responses from the market is in place prior to the CD; maintaining contestability from EOI to the conclusion of Negotiation providing IR commercial leverage; having the right level of funding to support the process, particularly the CD; the agreement of a preferred option by Cabinet; the use of the CD to validate and confirm requirements addressing any risks or issues early; agreeing in principle a commercial framework with service providers during CD for inclusion in the RFP thereby reducing the time taken to finalise a contract in the NEG stage; and having service providers indicate commitment to key contractual terms (i.e. actual contract wording) during the EOI, CD and RFP stages, rather than during the negotiation stage alone Market Coverage In accordance with New Zealand Government procurement policy, the procurement process has been designed to maximise market coverage, and to offer both domestic and international service providers a fair and reasonable opportunity to participate in the programme. For instance the EOI stage is open to all service providers, will be openly advertised on the Government Electronic Tenders Service (GETS) and use other forms of media as and when required. The detailed steps for each stage will be documented in the stages execution plan. The recommendations set out in the Domestic Market Strategy (DMS) have also been considered to inform and support the development of the procurement process. Analysis undertaken as part of the DMS identified appropriate mechanisms to engage the domestic market that offered the best balance of cost, benefit and risk, such as better practice communications. The procurement process has been designed to ensure service providers are not unfairly discriminated against and to enable IR to manage internal and external expectations in relation to local market participation. Page 11 of 24

12 4. Governance and Management Framework The execution of the Sourcing Strategy and the evaluation of service provider responses will be undertaken in accordance with the following governance structure: Figure 3: Programme Governance Structure Investment Board Steering Committee Deputy Commissioner Change Programme Director Evaluation Panel Programme Leadership Team 4.1. Sourcing Team The Sourcing Team will provide the administration, management and advice required to run a successful process and provide necessary support to the Evaluation Panel, Programme Steering Committee and the IB. This group will be responsible for the day-to-day execution of the entire procurement process in accordance with agreed plans, correspondence, enquiries and communications, preparation of committee papers, and the development of findings reports on behalf of the Evaluation Panel. For further information on the roles, responsibilities and membership refer to Appendix 1: Roles and Responsibilities. The final determination of the procurement and probity approach and processes, will be agreed by the Procurement Director in conjunction with the Sourcing Team. A Shared Services Team will support the Programme Director to ensure that the approach and processes are compliant and align with governance requirements, legislative or policy requirements, and to ensure that risks relevant to particular activities are highlighted for consideration where these can be identified by the Shared Services Team. It is important to note that the workstream lead (Commercial Lead) sits within the Programme Leadership Team (shown in Figure 3). Figure 4: Sourcing Team Structure Programme Director Project Coordinator Senior Project Manager Shared Services Teams Project Advisor Communications Contract Management Team Ernst & Young (Business Advisor) Corporate Legal (Legal Advisor) Procurement Key External Legal Services Senior Probity Specialist Procurement Sourcing Team Shared service line Direct Reporting/ Advisory line Probity Advisor (External) Page 12 of 24

13 Evaluation Panel At an operational level, the evaluation of responses will be led by an Evaluation Panel and supported by the Sourcing Team. The Evaluation Panel will be responsible for the overall evaluation and making a formal recommendation to the IB indicating which shortlisted service providers should be taken through to CD and subsequently, which service providers in the RFP should progress to Negotiation. Both the members and Chair of the Evaluation Panel will be endorsed and approved by the Steering Committee. To ensure the right mix of capabilities a recommendation process will be undertaken and involve members of procurement, probity and others. The Evaluation Panel s primary role is to score and evaluate responses. The main responsibilities are to: approve and endorse the evaluation methodology, criteria and weighting; assess and score responses in accordance with the evaluation process set out in the Evaluation Plan; and prepare the Findings Report, including recommendations and advice to the PSC for endorsement (with support from the sourcing team). The detailed evaluation process, roles and responsibilities will be agreed via the detailed evaluation plans for each stage Negotiation Team The Negotiation Team is responsible for reaching agreement with the preferred service provider(s) on the MSDA and SoW for Stage 1 detailed design. The team will undertake negotiations on the basis of pre-determined objectives in order to finalise the pricing and contract documents. The outcome of the Negotiation stage is a recommendation to the Deputy Commissioner Change, accompanied by a contract ready for award. Members of the Negotiation Team will be appointed by the IB. Page 13 of 24

14 5. Review and Approval Points The extent by which information is developed and provided progressively builds into more detailed documentation from one stage of the procurement process to the next. Key documents, e.g. this Procurement Plan, the Communications and Engagement Approach (High Level Plan) and the Probity Plan (which sit over the entire procurement process), will require approval from the Programme Steering Committee. Which key deliverables are reviewed and endorsed, and by which governing body, is shown in the responsibility assignment matrix below. Within each stages execution plan, a more detailed responsible, approve, consult and inform (RACI) matrix will describe the participation of various roles and responsibilities in completing deliverables. Table 2: Review and Approval Points GOVERNANCE R A I = Responsible = Accountable = Inform IR Deliverable Owner Evaluation Panel Programme Director DC Change (Executive Sponsor) Programme Steering Committee Investment Board ICT Ministerial Committee Procurement Plan Procurement Manager R A I Communications & Engagement Approach Communications Lead R A I Probity Plan Probity Specialist R A I EOI Execution Plan Procurement Manager R A I EOI Market Document Procurement Manager I R A I EOI Evaluation Plan Procurement Manager R R A I Appoint Evaluation Panel Prog. Director R A I Release of EOI Prog. Director R A I I I EOI Findings Report Procurement Manager R I A A I CD Options Paper Procurement Manager R A I RFP Structure and Definition Paper Procurement Manager R A I Contract and Commercial Options Paper Procurement Manager R A I CD Invitation to Participate Procurement Manager R A I I CD Execution Plan Procurement Manager R A I CD Findings Report Procurement Manager R I A I I RFP Execution Plan Procurement Manager R A I RFP Evaluation Plan Procurement Manager R R A I Release of RFP Prog. Director R A I I I RFP Findings Report Procurement Manager R I A I I Negotiation Execution Plan Procurement Manager R A I Negotiation Findings Report Procurement Manager I A I I I Permission to execute contract Prog. Director R A I I A Page 14 of 24

15 For more information on the key documentation, refer to Appendix 2: Documentation and Deliverables Probity Plan Probity protocols specific to the Transformation Programme will be managed using a separate Probity Plan supported by a Probity Administrator, a Senior Probity Specialist and Audit New Zealand as the Probity Auditor. Specific probity risks and mitigations relevant to each stage of the procurement process will be outlined in each stage s execution plan. The Probity Plan will align to the principles and guidelines as detailed in IR s Probity Framework. For more information on probity management, refer to the Probity Plan Communications and Engagement Approach (High Level Plan) Communications, stakeholder management and media activity is managed by a separate Communications and Engagement Approach (High Level Plan), and is supported by specific members of the Sourcing Team. A communication plan will be developed for each of the procurement stages and this will detail the guiding communication principles, messages and channels to be used for each stage Risk, Issues and Change Management A Sourcing Risk Register is being maintained during the procurement process using IR s Enterprise Risk Framework (RMF). These include risk and issue descriptions, owners, gross ratings, treatment plans and residual risk levels. The register will be maintained and updated fortnightly by the Sourcing Team. The Programme Management Office maintains the risk, issues and change management at a programme level; this includes input from the Sourcing, Design and Programme Construct work streams. The risks will be reported to the Programme Director on a weekly basis through the Weekly Report and High and Extreme risks to the PSC on a monthly basis. Page 15 of 24

16 6. Dependencies There are a number of inputs that the procurement process is dependent on, these relate particularly to the Strategic Analysis workstream and to the Design workstream. These dependencies are outlined below: Cabinet and Ministerial decisions The execution of the procurement process is dependent on Cabinet (and/or Ministerial) approvals at different stages. In April 2013, the Programme Business Case was agreed in principle by Cabinet, with a direction that IR undertakes further work guided by the ICT Ministerial Committee to ensure that Ministerial priorities for transformation are fully understood. These further discussions with Ministers will determine the direction, outcomes and scope of the Transformation Programme as a whole and, as such, are critical inputs to the outcomes sought through the entire procurement lifecycle. The strategic importance of IR s Transformation Programme means that endorsements from the Minister of Revenue and, potentially, the ICT Ministerial Committee will also be sought before the issuance of an EOI into the market. Cabinet s approval is required for the issuance of the RFP and prior to finalising a contract with the preferred service provider(s). Obtaining both these formal approvals and endorsements will be managed in close conjunction with the Strategic Analysis workstream. Probity plans have been developed and the Probity Advisor, Probity Auditor and Senior Probity Specialist will be in place The successful execution of the procurement process will require a proactive and robust approach to managing probity. This will require external advisors to be in place (the Probity Advisor and the Probity Auditor) and for internal resources to coordinate probity activities (the Senior Probity Specialist). The Probity Advisor will be required to develop a Probity Plan in conjunction with the Senior Probity Specialist, endorsed by the head of Procurement. It is expected that the Probity Auditor will then confirm at each stage of the procurement process that there are no probity issues relating to the execution or evaluation plans, or with the activities undertaken (via a Probity Audit Report or by any other means it deems appropriate). Key documentation is approved in line with indicated timescales The successful execution of the procurement process is dependent on the approval of documentation overseeing the entire process (i.e. the Procurement Plan) as well as the documentation for each stage, e.g. the execution plans, evaluation plans and supporting artefacts. If this documentation is not developed or approved within the timescales outlined, the result will likely be delays in the process. In addition, the procurement process is also dependent on programme inputs and decisions at each stage. In particular, it will be necessary for the right resources to be in place at each stage, including procurement, project management and communications specialists within the Sourcing Team. Key inputs will be required regarding the Transformation Programme to ensure that service providers receive the information needed to inform their responses. Page 16 of 24

17 Requirements, the level of identification of business and technical requirements needed to inform each stage are in place The successful execution of the procurement process is dependent on a number of inputs from the Design workstream. The technical inputs needed to inform each stage of the procurement process have been agreed and the work programme for the Design workstream has been developed to ensure that the inputs needed to inform each procurement stage are in place. If the inputs needed from the Design workstream are not available within the required timeframes, or to the required standards, then it is likely the result will be delays to the process. Contract documents are developed throughout the procurement process up to the conclusion of the negotiation stage The procurement process is dependent upon the development of, and service provider(s) binding commitments to, a draft Master Services and Deliverables Agreement, and Statement of Work for Stage 1 detailed design, throughout the procurement process. Based on that important assumption, the timeframes built in for negotiations has been limited to four weeks. (If this assumption is not met, our experience is that negotiations could take up to six months). Until all contractual documentation is signed by IR and the service provider(s), the service provider(s) will be unable to commence working on any aspect of the Transformation Programme. The four weeks is dependent on the effective development of contractual documents throughout the course of the EOI, CD and RFP stages, service provider(s) binding commitments to contract terms during these stages, and effective engagement with key stakeholders such as Corporate Legal and Procurement during the process. At each stage of the procurement process, the objectives are achieved along with timing and critical milestones Each stage of the procurement process is dependent on the previous stage delivering its anticipated outcomes within the agreed timeframes. If a particular stage overruns, or the anticipated outcomes are not realised, e.g. it has not been possible to agree a shortlist of service providers to proceed to the next stage, then this will impact on the timeframes and objectives of subsequent stages. Programme level communications Before engaging with the market on the Transformation Programme and proposed procurement approach, the market has been adequately briefed. This will ensure that the market is prepared for the EOI and clarity is provided on the intent, process and expectations of interested service providers. A Transformation Market Brief will be released providing information and context for the transformation and market briefing events will be held to achieve this. This will be underpinned by an External Communications Plan for Market Engagement. Page 17 of 24

18 7. Appendix 1: Roles and Responsibilities The procurement process will be conducted by the Sourcing Team. The Sourcing Team will be responsible for the day-to-day execution and to ensure that procurement activity is undertaken in a fair and transparent manner. The Sourcing Team s responsibilities are as follows: Programme Director Senior Project Manager Project Coordinator Sourcing Lead/Business Advisor Lead Procurement Manager Procurement Specialists overall delivery of the Sourcing workstream and management of the Sourcing Team in collaboration with workstream leads, work to achieve the Programmes and Sourcing streams objectives ensure the Sourcing Strategy and procurement process is being adhered to, meets the new Government Rules of Sourcing and aligns to business expected procedures works with the procurement team to execute procurement activities as the procurement team is accountable for ensuring that procurement process meets procurement and government policy requirements lead effective supplier negotiations and oversee final contract documentation, including schedules develop, lead and manage effective relationships with a range of internal customers and stakeholders project management support for the activities of the Sourcing Team deliver against the Sourcing Work Plan develop and maintain detailed plans for each stage of the procurement process identifying dependencies within the workstream and across the programme project manage the development of key deliverables arising from the plans, including necessary endorsement and approval activities, across the workstream components assist the Business Advisor and the Procurement Manager to plan and schedule the stages of the procurement process under the instruction of the Probity Advisor assist the Senior Probity Specialist to implement probity processes as they affect the proposed procurement process support communications activities develop and maintain key project controls risk, issues, change registers, status reports as required by the Programme Management Office maintain risk, issue and change registers draft status reports and other reporting material develop and maintain schedules provide team administration support development and completion of all procurement process stage planning documentation and deliverables; determine the steps and tasks required for effective procurement process stages; provide specialist advice as required for the procurement process; and report all sourcing risks to the programme. manage the execution of the procurement process stages and the evaluation of all responses; ensure the procurement process, scoring and evaluation of responses are compliant with probity requirements and Government requirements; development of the procurement process stages Findings Reports; and manage the debrief process with unsuccessful respondents. provide specialist procurement support in engaging with prospective service providers assist the Business Advisor in the development of key process documents Page 18 of 24

19 (including Government Electronic Tender Service (GETS) /Contact Officer and Evaluation Advisor) Business Advisor Ernst & Young including: stage execution plans procurement materials evaluation plans and evaluation criteria brief the Evaluation Committee and Expert Evaluation Team(s) as necessary draft evaluation findings reports manage the proper receipt and handling of supplier submissions and facilitate the robust evaluation of submissions manage the process according to the approved plans support the Legal Advisor in the on-going development of contractual terms assist in implementing activities arising from the Probity Plan respond to supplier questions as necessary provide the interface between the Sourcing Team and GETS based activity and communications manage timely postings on the GETS record respondent questions allocate questions to be answered track responses to the questions publish answers to the market other interface activities relevant to stage execution plans plan and coordinate Evaluation Committee and Expert Evaluation Team(s) activities arrange secure evaluation facilities plan and schedule Evaluation Committee and Expert Evaluation Team(s) meetings as per the stage evaluation plans ensure all participants are aware of dates and times of meetings, and other deadlines and are available ensure all participants have the necessary materials to undertake evaluation and understand the process that they are to adhere to manage any issues arising during the evaluation processes development of plans, procurement materials, guidelines and templates to support the procurement activities develop initial project plans and schedules develop initial risk register develop the Procurement Plan (this document) develop stage execution plans, evaluation plans, evaluation criteria and supporting process artefacts and templates develop bid or briefing material Legal Advisor leadership of the development of contractual terms and conditions for the appointment of a transformation service provider(s) Specialist Legal Support Senior Probity Specialist ensure adherence to IR contractual practices and policies specialist legal support to enable the development of contractual terms and conditions for the appointment of a transformation service provider(s), and provide other legal advice as required development and management of specialised probity plans as required, in line with IR s standard probity framework engaging with specialist probity advisor services where required ensuring all procurement processes are designed and conducted to reflect the following probity principles: identification and management of conflicts of interest, confidentiality, accountability and transparency, achieving value for money, and ethical behaviour analysing complex probity risks and identifying (or seeking advice) on Page 19 of 24

20 appropriate mitigation strategies providing (or seeking) advice on specific probity issues or processes, often involving sensitive information implementing and managing conflict of interest protocols for and advising/approving management plans to ensure any actual, perceived or potential conflicts of interest are identified, declared and managed provide probity advice to the procurement specialists and/or IR personnel as required protect the integrity of IR s procurement processes through the application of probity protocols, ensuring governance protocols are in place to manage potential probity escalations ensuring decisions and processes adopted in the course of the procurement are auditable and publicly defensible; ensuring and managing any irregularities, (alleged or perceived) in the procurement process are investigated; provide probity briefings and presentations as required liaise with the Probity Auditor to ensure they have visibility of key procurement activities and coordinate the attendance of the Probity Auditor as necessary provide any necessary reporting arising from the probity plans Probity Advisor providing specialist probity advisory services to IR the development of a probity framework developing and advising on probity protocols reviewing the implementation of probity protocols analysing complex information to provide advice on risk and mitigation strategies providing expert advice on ad-hoc probity questions meeting with key IR personnel to clarify any queries regarding the probity related documentation and advice; reviewing specialist probity plans developed for specific programmes and projects providing specialist advice on conflict of interest protocols and management plans providing any other probity advisory services as required by IR Probity Auditor is responsible for assessing plans for suitability to meet probity requirements, and to audit and report on our activities against those plans and compliance with the new Government Rules of Sourcing Communications Advisor(s) development and delivery of the Communications and Engagement Approach develop the Sourcing Communications and Engagement Approach develop communications detail for stage execution plans draft communication artefacts support external information releases and announcements support media engagement Admin & Logistics provide administrative and logistical support for procurement activities Contract Management Team manage secure facilities for coordinate/book facilities for briefings, workshops, interviews schedule briefings, workshops, interviews with participants coordinate production of collateral as needed Note: to be established prior to RFP phase. on-going contract management responsibilities including relationship protocols with the transformation service provider(s) Page 20 of 24

21 8. Appendix 2: Procurement Documentation and Deliverables The key procurement deliverables (e.g. execution, evaluation and findings reports) are shown in the table below: Deliverables Description Date EOI Execution Plan EOI Market Document EOI Evaluation Plan EOI Findings Report The EOI Execution Plan will outline how IR will engage with the market using an Expression of Interest (EOI) process. The EOI will be used to identify and evaluate service providers that possess the required capabilities to perform the role of IR s transformation service provider(s). Specifically the Plan will document: the objectives and outcomes of the EOI stage, the EOI steps and how they will be executed, including timeframes and duration, probity risks and mitigation strategies, resources required, roles and responsibilities and the review and approval points, the deliverables that will be developed to support the process, and any risks, issues and/or probity concerns identified as part of the process. The EOI Market Document will provide the necessary context (e.g. background information, business and technical requirements, evaluation criteria and weighting), to support the service providers in putting together their EOI response. Specifically the document will provide: background information and the EOI invitation; statement of requirements, including an overview of the Programme, proposed delivery approach, scope of the transformation, service provider capabilities required and commercial principles; instructions and timelines associated with response submission, evaluation and notification; the mandatory requirements of the EOI and the criteria against which responses will be assessed; the rules and conditions applicable to the EOI; and response and Returnable Schedules, including detailed requirements and tax/secrecy forms. The EOI Evaluation Plan will provide the governance and framework required for conducting the evaluation of the EOI responses. The Plan will document requirements to minimise risk in the EOI process and ensure compliance with the new Government rules of sourcing. Specifically the Plan will document: the framework for conducting the evaluation of EOI responses, the process and criteria for receipting and evaluating responses, the governance structure and detailed roles and responsibilities relevant to the EOI evaluation, and how compliance with business requirements and timeframes will be achieved. The EOI Findings Report will outline the key findings from the EOI stage and present the recommended shortlist of service providers to be invited to participate in a planned Competitive Dialogue (CD) stage. Specifically the Report will provide: an overview of the EOI evaluation process undertaken, 24-Sept Sept Sept Dec-13 Page 21 of 24

22 CD Execution Plan CD Findings Report RFP Execution Plan RFP Evaluation Plan a recommendation of a shortlist of service providers to participate in the planned CD stage, any risks, issues and/or probity concerns encountered during the EOI process, and any implications for subsequent stages of the procurement process. The CD Execution Plan, informed by the CD Options Paper, will outline how IR will engage with the market using a Competitive Dialogue process. The CD will be used to primarily mitigate risk but also to validate assumptions, develop a commercial framework and to examine cultural fit. Specifically the Plan will document: the objectives and outcomes of the CD stage, the CD steps and how they will be executed, including timeframes and duration, resources required, roles and responsibilities and the review and approval points, the deliverables that will need to be developed to support the process, and any risks, issues and/or probity concerns identified as part of the process. The CD Findings Report will outline the key findings from the CD stage and present findings, lessons learned and recommendations or impacts to subsequent stages of the procurement process, e.g. decisions and inputs that might be incorporated into the RFP documentation. Specifically the Report will provide: an overview of the CD process undertaken, any risks, issues and/or probity concerns encountered during the CD stage, any implications for subsequent stages in the procurement process, and findings and insights gained from CD participants throughout the process. The RFP Execution Plan will outline how IR will engage with the market using a Request for Proposal process. The RFP will be used to evaluate the shortlisted service providers to identify the preferred service provider(s) to perform the role of IR s long-term transformation provider. Specifically the Plan will document: the objectives and outcomes of the RFP stage, the RFP steps and how they will be executed, including timeframes and duration, probity risks and mitigation strategies, resources required, roles and responsibilities and the review and approval points, the deliverables that will be developed to support the stage, and any risks, issues and/or probity concerns identified as part of the process. The RFP Evaluation Plan will provide the governance and framework required for conducting the evaluation of the RFP responses. The Plan will document requirements to minimise risk in the RFP process and ensure compliance with the Government rules of sourcing. Specifically the Plan will document: the framework for conducting the evaluation of RFP responses, the process and criteria for receipting and evaluating responses, 30 Jan Apr May May 14 Page 22 of 24

23 RFP Findings Report Negotiation Execution Plan Negotiation Findings Report the governance structure, and detailed roles and responsibilities relevant to the RFP, and how compliance with business requirements and timeframes will be achieved. The RFP Findings Report will outline the key findings from the RFP stage and present the recommended service provider(s) to be invited to participate in the planned Negotiation stage. Specifically the Report will provide: an overview of the RFP evaluation process undertaken, a recommendation of the preferred service provider(s) to be invited to participate in the planned Negotiation stage, any risks, issues and/or probity concerns encountered during the RFP process, and any implications on the Negotiation stage for consideration. The Negotiation Execution Plan will outline how IR will engage with the preferred service provider(s) using the Negotiation process. The Negotiation stage will be used to finalise contractual documents for the engagement of the preferred service provider(s). Specifically the Plan will document: the objectives and outcomes of the Negotiation stage, the Negotiation steps and how they will be executed, including timeframes and duration, resources required, roles and responsibilities and the review and approval points, the deliverables that will need to be developed to support the process, and any risks, issues and/or probity concerns identified as part of the process. The Negotiation Findings Report will incorporate the findings from the Negotiation stage, informed by specified personnel involved in negotiations. Specifically the Report will provide: an overview of the Negotiation process undertaken, terms, conditions and contractual obligations confirmed throughout the process, pricing, payment mechanisms and wider commercial arrangements agreed, any risks, issues and/or probity concerns encountered during the stage, and a recommendation of a preferred service provider(s) for contract award. 30 Jun Jun 14 Page 23 of 24