MARKET SOUNDING EXECUTION PLAN

Transcription

1 Inland Revenue Transformation Mobilisation Programme MARKET SOUNDING EXECUTION PLAN Project Sponsor: Greg James Prepared by: Sourcing Team Date: 25/06/13 v 3.0.0

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3 Document Control File Name TMP Sourcing Market Sounding Execution Plan v Contact Person Status Final Draft Document Review History No Date Change Description Contact May-13 Released to the Sourcing Management Team Jun-13 Released to the Programme Leadership Team Jun-13 Released to the Transformation Steering Committee Jun-13 Released to the Sourcing Management Team Jun-13 Released to the Procurement Director Jun-13 Released to the Procurement Director Document Signoff This Market Sounding Execution Plan has been endorsed and 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 PLT Members Chair Approved by PSC Members Chair CLASSIFIED IN CONFIDENCE - INLAND REVENUE PROTECTED Page 5 of 25

4 Table of Contents 1. Purpose of the Market Sounding Execution Plan Market Sounding Objectives and Outcomes Rules Governing Market Sounding Market Sounding Steps Market Sounding Approach Step 0 Pre-Market Sounding Communications Step 1 Market Sounding Launch Step 2 Written Points of View Step 3 Analysis of Written Points of View Step 4 Follow-up Meetings Step 5 Complete Analysis and submit MS Findings Report Areas for Sounding Market Sounding Probity Risks and Mitigation Strategies Communications and Stakeholder Management Activities Review and Approval Points Deliverables Dependencies Appendix A Meeting Protocols CLASSIFIED IN CONFIDENCE - INLAND REVENUE PROTECTED Page 6 of 25

5 1. Purpose of the Market Sounding Execution Plan The purpose of this document is to explain how Inland Revenue (IR) will engage with the market through a Market Sounding (MS) process. Key findings will be used to inform the procurement approach and wider programme planning and will take place prior to any formal procurement activity. This plan should be read in conjunction with the Procurement Plan which outlines the entire procurement approach. Both the domestic and international markets will be targeted by the MS stage. The procurement approach is further supported by the development of a Domestic Market Strategy. This makes a number of recommendations for the Programme Steering Committee to consider. One of these is to undertake a MS exercise. This plan documents: the key objectives and outcomes of the MS stage; the MS steps and how they will be executed, including timeframes and duration; the information and questions that will be tested with the market; and the deliverables that will be developed to support this process Market Sounding Objectives and Outcomes The MS stage is a planning stage and will be conducted in advance of any formal procurement process. It is not, in any shape or form, a pre-qualifying or procurement stage. The value of this stage will be determined by the quality of information obtained that will assist IR and the market in preparing to execute a procurement process. The MS stage has been designed to: publically share with the market IR s transformation mobilisation programme, including the scope, objectives and indicative schedule; invite views from the market on their capability and appetite to deliver the required outcomes; seek market feedback on the commercial considerations and risks which may impact on the structure of the procurement process and any services delivery model; and identify any other major issues or concerns from the market which may impact on the procurement process. Upon completing the stage, it is expected that IR will have: raised the profile of IR s transformation mobilisation programme in the market; canvassed the views of the market in terms of their interest and perceived issues; explored further (where required) with the market to gain an understanding of the commercial drivers; and gathered information to support or challenge both the procurement process and subsequent timeframes. The output of this stage will be a report containing the key findings and any recommendations that will be used to inform the procurement process and wider programme planning. The report will be submitted to the Programme Steering Committee for acceptance of the recommendations. CLASSIFIED IN CONFIDENCE - INLAND REVENUE PROTECTED Page 7 of 25

6 1.2. Rules Governing Market Sounding The rules that will apply during the MS stage will be provided in full in the information pack available to the market during the launch of the stage. Anyone submitting a written point of view or otherwise participating in the MS stage will be required to accept that they are bound by the MS rules. Some of these rules are as follows: service provider(s) are under no obligation to respond; a response is not a prerequisite of participation to a future procurement process (if any); IR does not expect to share nor receive any confidential or commercially sensitive information; responses may be required to be disclosed to the public under the Official Information Act 1982; and IR may use or disclose any information received or elements of any response for the purpose of developing aspects of the sourcing approach, plans or supporting materials or for any IR business or operational purposes; and Service providers are responsible for all their costs associated with participating in Market Sounding. It should be noted that participation by service provider(s) in the MS stage will be voluntary and open to all interested service providers regardless of location, size or current relationship with Inland Revenue. It will be made clear in all external communication that not participating in the MS stage (or not to be invited by IR to participate in further follow-up meetings) will not preclude a respondent from submitting a tender or participating in any consortium submitting a tender in any future tender process. CLASSIFIED IN CONFIDENCE - INLAND REVENUE PROTECTED Page 8 of 25

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8 Table 1: MS Timeline Step Indicative timeline Pre-Market Sounding Communications 8 Jul 2013 Market Sounding Launch 15 Jul 2013 Written Points of View 15 Jul Aug 2013 Analysis of Written Points of View 5 Aug Sept 2013 Follow-up Meetings 5 Aug Aug 2013 Complete Analysis and submit MS Findings Report 6 September Step 0 Pre-Market Sounding Communications The communications and engagement activity that will take place as part of pre-market sounding will provide the context and big picture for changes IR may make and describe a transformed IR that will deliver: 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; 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. The Sourcing Tactical Communication and Media Plan (Section 5) extracted from the Communications and Engagement Approach provides the guiding principles, key messages, target audience groups, their communication needs and preferred communication channels that will lead IR into MS. A Notice of Intent to launch MS will be posted on the Government Electronic Tenders Service (GETS) 1 website from 8th July Step 1 Market Sounding Launch MS will be openly advertised on the GETS and will be promoted using other appropriate and identified forms of media (as per the Communications and Engagement Approach), e.g. advertisements in national and international publications. Subject to the necessary approvals, the Market Sounding Launch will occur on 15 July 2013 and will take the form of launch communications and the release of an information pack on the GETS website to support the MS stage. 1 GETS supplies information about New Zealand Government contract opportunities. GETS is accessible to all interested service providers, both domestic and international. It meets New Zealand s Government Rules of Sourcing. CLASSIFIED IN CONFIDENCE - INLAND REVENUE PROTECTED Page 10 of 25

9 Promotional activities will signpost the market to the information pack by means of for example links on the public IR website. news releases and backgrounders; and advertising in selected publications and websites. The information pack will consist of: An Information Brief this document will describe IR s business context, transformation mobilisation programme overview, the proposed procurement approach, MS steps/instructions and sounding areas which IR is seeking to learn more from the market. Frequently asked questions (FAQ) and answers this document will contain IR s response to commonly asked questions about the programme and the proposed procurement approach. The FAQ will be a living document that will be updated on GETS periodically as questions are asked and answered from the market. In addition to the documents above, service provider(s) will be encouraged to review all other publicly available documents on the transformation mobilisation programme via the IR internet site Step 2 Written Points of View Following the release of the information pack, the market will be invited to provide a response to some or all of the areas of sounding (Section 3). Without at all limiting the range and scope of areas sought for feedback, it will be requested that all written points of view correspond to questions and sounding areas in the information brief, unsolicited information which does not relate to the sounding areas may not be considered or accepted by IR. Service provider(s) may respond to as many of the questions as they deem appropriate to their particular areas of skill and experience. Service provider(s) will be encouraged to keep responses succinct and in a simple format so as to minimise time in analysis. Written points of view must be submitted by close of business on 2 August. Late responses may not be considered as part of the analysis of responses. All responses will be acknowledged, and service providers thanked for their responses by Step 3 Analysis of Written Points of View All written points of view and information received from the market will be assessed by the following representatives/subject matter experts (as required): Sourcing work stream Commercial Lead; Legal experts Procurement Team members; and Business Advisor representatives. A thematic approach to analysis will be adopted; this will involve the identification of common areas of feedback amongst the market responses in regards to the sounding areas (Section 3). Content within the written points of view, which correspond to the sounding areas and in turn align to the MS objectives, will be used to inform the MS Findings Report. CLASSIFIED IN CONFIDENCE - INLAND REVENUE PROTECTED Page 11 of 25

10 2.6. Step 4 Follow-up Meetings Representatives from the market may be invited to attend a follow-up meeting with IR. Separate meetings will be held with each representative that accepts IR s invitation for a follow-up meeting. Meetings may be required where: IR requires greater understanding of the perspective/point of view provided; segments of the market are under-represented, (this may require contact with representatives who did not provide a response to the MS questions); areas of interest are not adequately covered; MS objectives are not met. The follow-up meetings are expected to be held in the period 5 August August IR will be represented by the following roles/areas: Transformation Mobilisation Programme Director; Sourcing work stream Commercial Lead; Procurement Manager; and Business Advisor representatives. A Probity Auditor may also attend these meetings as an observer, and in addition meeting protocols (Appendix A) will ensure any perceived probity risks are managed Step 5 Complete Analysis and submit MS Findings Report Information gathered during the MS stage will be used to develop a MS Findings Report summarising the analysis of the written points of view and minutes from follow-up meetings and will include any recommendations. The report will be submitted to Programme Steering Committee for acceptance of recommendations. The report and recommendations will then be used to inform the procurement process and wider programme planning. CLASSIFIED IN CONFIDENCE - INLAND REVENUE PROTECTED Page 12 of 25

11 3. Areas for Sounding The MS stage provides IR with the opportunity to gain valuable information from the market to inform the procurement process and wider programme planning. Detailed in the table below are the areas for sounding plus potential questions to be posed to the market. These questions will form part of the information brief which is provided to the market via GETS to launch the MS stage. Key area of sounding: IR s Transformation Mobilisation Programme The Procurement Process Competitive Dialogue Rationale for key area of sounding: IR s transformation mobilisation programme will be of a scale unseen before in New Zealand, similar in scope and complexity to transformations that have occurred in the United Kingdom in HMRC and Australia at the ATO. Market feedback on the design and objectives of the programme can support and/or challenge the programme design and provide IR with valuable feedback on areas where the programme may be adjusted to achieve enhanced outcomes (such as improved value for money). IR seeks to achieve a high quality of delivery and a high quality commercial outcome through the execution of the procurement process. IR has proposed a four stage procurement process in order to meet these objectives. Requesting feedback from the market on the objectives and proposed design of the process may provide IR with insight as to how the process may be amended to achieve enhanced outcomes (i.e. improved value for money). The Competitive Dialogue (CD) stage is based on the process pioneered by the European Union for use in large or complex procurement programmes, and where there is a need to discuss all aspects of the proposed procurement process. In the context of IR s transformation mobilisation programme the purpose of this stage is to: design a focus area of the high level design for Tranche 1; Proposed questions to the market: Describe effective transformation programmes that you have participated in or have detailed knowledge in? - Did these programmes deliver successful outcomes? What improvements, if any, do you think could be made to IR s transformation vision, objectives and desired outcomes? Are you involved in or aware of any large scale transformations that might have an impact on the market and its capacity to deliver this programme of change (e.g. resource availability, specialist skill sets etc)? What changes if any would you make to the proposed procurement process to enhance commercial and service delivery outcomes for both IR and potential service provider(s)? What do you consider to be a reasonable timeframe in which to complete the execution of the proposed procurement process? What are the most significant risks that you believe may be associated with the proposed procurement process, and measures would you suggest to mitigate these risks? What is your point of view on the Competitive Dialogue objectives, approach and outcomes proposed by IR? Where you have previously been involved in a competitive dialogue exercise process; - outline the process - comment on areas of risk and potential mitigation CLASSIFIED IN CONFIDENCE - INLAND REVENUE PROTECTED Page 13 of 25

12 Key area of sounding: Rationale for key area of sounding: examine the cultural fit and suitability of potential service providers; support the development of aspects of the sourcing approach, plans or supporting materials; and draft and negotiate contract documents (including legal terms and conditions and contractual documents) and to assess the likelihood service providers will commit to these. Information from the market on the CD stage will provide IR with an indication as to how familiar service providers are with competitive dialogue procedures, allowing for better management of the process. Feedback from the market may also enable IR to better identify and mitigate any risks in association with this phase. Proposed questions to the market: - tell us what you would do differently a second time around Service Delivery Model The service delivery model defines how service providers may organise themselves to deliver any proposed statements of work. It is important to understand how potential service providers view the risks and benefits associated with providing the services to deliver the programme and how these risks can be mitigated. Market analysis has indicated that over the last 5 years, a Prime Contractor model has been the most common service delivery model for similar transformations across the world. The market can provide valuable feedback on what the most effective delivery model might be for a programme of this kind. Do you think a Prime Contractor model where a single provider holds the commercial contract, and sub-contracts additional services is a reasonable model for this type of contract? If not, please explain what you think the optimal service delivery model is and why? Commercial Model The commercial model will govern how the awarded contract will be managed day-to-day and how IR interacts with the selected service provider(s) over the duration of the programme. What do you consider as the most appropriate commercial model for a programme of this scale, duration and complexity (i.e. governance, deliverables, pricing and payment mechanism, performance management approach, duration and incentives/sanctions)? Local Participation Given the size of IR s transformation mobilisation programme, the programme is likely to be viewed as an opportunity through which to build capability in the local marketplace. It will be important for IR and the service providers to identify opportunities for domestic market involvement and to leverage local expertise and capability, where appropriate. Service provider points of In your experience, how has meaningful local participation been achieved in transformations of a similar nature? What measures would you suggest to support the development of sustainable capability and capacity in the domestic New Zealand market? CLASSIFIED IN CONFIDENCE - INLAND REVENUE PROTECTED Page 14 of 25

13 Key area of sounding: Rationale for key area of sounding: view may enable IR to better understand barriers local service providers expect to face in participating in the transformation. The market may also provide insight on effective ways to achieve meaningful local participation. Proposed questions to the market: Contestability The programme s complexity and scale may limit the number of potential long-term transformation service providers with the required capability and capacity to assist a transformation of this kind. Ensuring there is sufficient contestability during the course of the procurement process is important for delivering value for money. Market feedback on the transformation, contract scope and the procurement process can provide IR with valuable feedback on areas where the programme can be adjusted to ensure a sufficient level of contestability and achieve value for money. Would you consider participating in the procurement process, if not, why not? How do you think IR could increase competition in the procurement process? Do you think the procurement process will be competitive? If so, to what degree? Subcontracting Arrangements Transformations of this complexity and scale require a complex set of roles, skills and qualifications to meet the stated outcomes. To meet this need, the preferred service provider(s) is likely to use subcontractors to perform significant amounts of work. Problems at the subcontract level can have a significant impact on the service provider s ability to meet their contractual obligations. What subcontracting approaches do you believe would give IR an adequate level of comfort regarding delivery quality and certainty, whilst providing control for the service provider(s) to manage subcontractor performance? Pricing and Payment Mechanisms There are a range of pricing models available to IR, e.g. unit rate, lump-sum, variablesum, success fee etc. Transformations of this scale and complexity vary in the pricing model adopted. Furthermore, different pricing models can have an impact on the overall attractiveness of the programme and may influence the competitive tension during the procurement process. Market feedback on different pricing models can provide IR with valuable feedback on what has/has not worked well in comparative programmes and preferences of service providers in regards to payment mechanisms. Describe effective pricing and payment mechanisms that you have observed with programmes such as this? Risk Management and Risk Sharing Given the complexity, timeframes and fundamental change associated with IR s transformation mobilisation programme, it will be necessary for IR to effectively identify and closely manage risk. Risks may be financial, reputational, operational or strategic in nature. Feedback from the What are some of the significant risks that arise from and during a transformation of this size and scale? CLASSIFIED IN CONFIDENCE - INLAND REVENUE PROTECTED Page 15 of 25

14 Key area of sounding: Rationale for key area of sounding: market will enable IR to better understand potential risks from the perspective of service providers. Insight from the market may also allow for the effective anticipation and mitigation of risks, through the design and implementation of the procurement process. Proposed questions to the market: Innovation Innovation in the procurement process may allow for an enhanced commercial outcome and enhanced service quality. IR acknowledges that the market has greater visibility of innovative procurement processes and solutions. Market feedback will help IR harness these tools and ideas in order to ensure the most effective processes are being used. In your experience, what innovative procurement processes have contributed to better outcomes for both the client and the service provider(s)? How would you suggest IR promote innovation during the procurement process? Financial and Economic Analysis The results of financial and economic analyses have significant implications for the determination of a project s priority and affordability. Financial analysis considers the internal cash flow consequences of the options while the economic analysis looks at the overall impacts on the economic welfare of the community, i.e. in terms of net economic benefit. What are some of the typical customer readiness and/or interagency costs that might arise from a transformation of similar scale? Have you experienced any issues with budgeting and prioritising transformation change against a changing portfolio of competing demands, especially across changing external environments? CLASSIFIED IN CONFIDENCE - INLAND REVENUE PROTECTED Page 16 of 25

15 4. Market Sounding Probity Risks and Mitigation Strategies The table below sets out some specific probity risks and mitigation strategies that are relevant to the Market Sounding (MS) stage of the Programme. These risks should be considered in addition to any general risks identified for the Programme as a whole. Please note that the proposed mitigation strategies are of a strategic nature and more specific detailed advice will be provided should the need arise. It is expected that the role of the Senior Probity Specialist will be to ensure that the mitigation strategies presented below are considered and adhered to. These risks and mitigation strategies have been reviewed by the Probity Advisor. No. Probity or probity General related risk Mitigation Strategies 1 Perception that MS will be used to structure requirements of the future stages of the procurement to suit a particular result 2 Actual or perceived advantage to service provider(s) in future stages of the programme by virtue of their participation in the MS stage 3 Use of service provider(s) information (including intellectual property) by IR Documentation will state the purpose and objectives of the MS stage and how responses will be used e.g. to inform the procurement process. In the interests of transparency, IR will specify how it will treat responses in the MS approach to market. The MS stage as a whole will be transparent. All information provided to service provider(s) in the MS will be provided to all other potential service provider(s), so that future stages of the programme are conducted on a level playing field. IR will clearly communicate to the market that participation in the MS is not mandatory. IR will have the ability to utilise any information (including intellectual property) submitted by service provider(s) in the development of future procurements associated with the programme or otherwise. As such, the conditions of participation in the MS stage will expressly state that IR can use information submitted by service provider(s) for future procurement and for other purposes, and, if a participant does not want certain information used in this way, this information should not be submitted. 4 Conflicts of Interest IR will ensure all personnel involved in the Market Sounding Phase have completed a Conflict of Interest (COI) Declaration and where appropriate management plan protocols are adhered to. Personnel will be reminded that COI declarations should be updated as conflicts arise. Where appropriate specialist probity advice will be sought in line with the Probity Plan protocol. Step 1 Market Sounding Launch CLASSIFIED IN CONFIDENCE - INLAND REVENUE PROTECTED Page 17 of 25

16 5 Consistency of information provided by IR The MS Information Brief will identify a contact person for clarification questions and other queries. Any questions from service provider(s) which are not submitted via the nominated contact person will be re-directed to the contact person. All questions will be submitted and responded to in writing. Step 2 Written Points of View 6 Late responses IR will communicate the protocol for dealing with late responses which articulates in what circumstances IR will accept late responses. Exclusion of late responses needs to be balanced against the benefits of encouraging participation in the MS (which may lead to a better outcome for IR). 7 Fair and equitable treatment of responses during analysis of written responses 8 Communication with service provider(s) The market will be made aware of how IR intends to use the information and views provided. This will also include the circumstances where IR intends engage in follow-up meetings (either in writing or face to face). Responses will be treated in line with the purpose and objectives. Communication with service provider(s) for the purposes of clarifying aspects of a written response will be via a single point of contact (to ensure consistency of information). Step 3 Follow-up Meetings with Individual Service provider(s) 9 Consistency of information provided by IR An agenda will be prepared for the meetings and all meetings will follow the agenda. An independent observer (e.g. Probity Auditor) may be present during meetings to ensure that probity is complied with. Written notes will be kept of all discussions during the meetings. All meetings will be conducted in accordance with the Meeting Protocols (attached as Appendix B) defined in this plan. Steps 4 and 5 - Analysis of Responses and Market Sounding Findings Report 10 Perception that particular ideas are included to benefit a particular participant or due to improper considerations 11 Neutrality of MS Findings Report Responses will be analysed in line with the agreed purpose and objectives as per this Plan. The representatives analysing the responses will be suitably qualified, i.e. comprised of subject matter experts that are able to understand/interpret responses to the questions. Any conflicts of interest will be carefully managed. There will be a probity review and /or audit to ensure the MS Execution Plan has been followed. The MS Findings Report will reflect the findings that are consistent with the purpose and objectives of the MS Stage. If the findings are likely to be ascribed to any particular participant in the MS IR must satisfy itself that this resulted from a proper and fair process. CLASSIFIED IN CONFIDENCE - INLAND REVENUE PROTECTED Page 18 of 25

17 5. Communications and Stakeholder Management Activities A Communications and Engagement Approach has been developed and identifies the framework and governance for the communication activities for the duration of the procurement approach. Specific communication objectives, key messages and activities were developed for each stage and outlined in the Sourcing Tactical Communication and Media Plan Pre-Market and Market Sounding. The following tactical communications activities support the MS stage. Pre-Market (sequenced) from 5 July Activity Timing Rationale Place story and supporting info on IR website and in IR publications Place Notice of Intention to publish MS pack on GETs website Issue news release and backgrounder distribute as widely as possible Include NZ and international channels. Reference back to IR website Offer interview with Naomi feature story demonstrating IR s understanding of its customers needs and the importance of a wellfunctioning revenue agency to NZ s future Aim for metro Sundays/ Business features /Listener or possibly national radio Materials/statements prepared for REACTIVE use to manage issues/events As soon as pre-market phase begins. Once web info available (and we are confident that other risks are managed) Follow soon on release of news release + backgrounder Use if/when required, to address particular issues prompted by external events or activities Gives IR a place to direct people wanting info about the programme Controlled environment/message Over time, becomes the place people expect to see info about the programme (no surprises, encourage perception we are being open and transparent) Expect that may not result in high-profile or immediate stories, but will help lift media understanding and acceptance of programme and its rationale Purpose is to bring the human face to why IR is modernising and who it is intended to benefit Use similar tone and style to Struan Little s op-ed on Information sharing, published in the DomPost. Messaging to cover how IR is seeking: new ways of interacting with customers; fundamentally different ways of designing and delivering services; innovation in collaboration with other agencies and private entities; replacement of core system technology; new ways of thinking about information; and (if published), include a link on the IR website/s media page/s. Market Sounding (sequenced) from 5 July Activity Timing Rationale IR (main public) website As soon as MS begins Display link from Provide base information about MS CLASSIFIED IN CONFIDENCE - INLAND REVENUE PROTECTED Page 19 of 25

18 Activity Timing Rationale page Link to GETs website homepage of website, and link body text to GETs website Signpost to info on GETs website Publish MS information pack on GETs Paid space selected range of NZ media and international procurement publications Wide release news release + backgrounder explain MS, IR picture. Follow-up news release and posting on GETs website thank service provider(s)/advise Sounding closed/provide indicative timeframe for next stages/reminder that responses used to inform future procurement design process As soon as MS begins Suggest July (asap after MS start date) Suggest July (asap after MS start date) Week that MS closes Government focal point for all procurement materials Market accustomed to checking GETs Signpost market to materials on IR4TF and GETs websites Substantiate IR s lack of favour to any particular provider/s Publications to be confirmed by IIC MS / IR calls for innovative solutions (small placements, logo + signpost to GETs website) Use both digital and print media Announce IR has gone to market Substantiate IR s commitment to being as transparent and open as possible Provide platform for media engagement Substantiate IR s neutrality to any particular service provider(s) Issue news release to domestic and international publications Release can be relatively brief, but with detailed backgrounder attached Signpost to info pack on GETs Demonstrate courtesy/ human face of IR Engender positive relationships market Set expectations that procurement process. timelines are dependent on Cabinet decisions Set expectations that IR will continue to communicate when it has relevant info to share Publish text of news release and backgrounder on IR website CLASSIFIED IN CONFIDENCE - INLAND REVENUE PROTECTED Page 20 of 25

19 6. 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 approach to the next. A responsible, approve, consult, inform and endorse (RACIE) assignment matrix is being used at each stage of the procurement approach to describe the participation by various roles and responsibilities in completing deliverables. The MS RACIE is shown below. R A C I E = Responsible = Approve = Consult = Inform = Endorse Programme Sourcing Team Procurement Director Group Manager Communications & Inquiry Chief Enterprise Architect Group Manager, Corporate Risk & Assurance Chief Financial Officer Corporate Legal Probity Auditor Programme Leadership Team Programme Steering Committee Commissioner Inland Revenue MS Execution Plan R E E C I E A Pre-MS Media Release Content R E I A Memo from CIR to Govt Agencies R E I I A Information Brief R E E C C I E A Questions R E E C C I E A Frequently Asked Questions R E E C C I E A Launch Media Release Content R E I A Paid Advertising Content & Channels R E I A Follow-up Meeting Script R C I I C A MS Findings Report R E E I I I I E A For more information on the documentation, deliverables and indicative dates of approval, refer to the deliverables table below (Section 7). CLASSIFIED IN CONFIDENCE - INLAND REVENUE PROTECTED Page 21 of 25

20 7. Deliverables The following is a list of deliverables which will be produced for the MS stage. Each deliverable will be subject to an endorsement and approval process either outlined specifically in the RACIE table above or through the standard review and acceptance process for the programme deliverables. Deliverable Title MS Execution Plan (this document) Notice of Intent MS Information Pack* Participant Control Sheet Follow-Up Meeting Script Minutes of Follow-Up Meetings MS Findings Report Steering Committee Decision Documents Probity Report Description of Deliverables This plan outlines the optimal approach for engaging the market to ensure that the procurement process has been tested with both domestic and international service providers and that the approach will be supported by the market. This notice will be published on GETS on 8 th July 2013 to signal IR s intention to issue a market sounding exercise. Message will be consistent with pre-market sounding comms The information pack published on GETS will contain the background information necessary to inform the market, so that responses to questions are of sufficient quality. The information pack will consist of: Information Brief Questions(including sounding areas and questions) Frequently asked question and answer sheet (FAQ) A spread sheet will be used throughout the MS stage to record which service providers submit written points of view, which questions are responded to, invitation and acceptance for follow-up meetings, and to record questions and answers (via the Contact Officer) which may be uploaded into the FAQ on GETS to comply with probity requirements. A follow-up meeting script will be developed to guide and structure each meeting and to ensure the correct sounding areas are discussed. Minutes of any follow-up meetings with service provider(s) will be required to support findings, clarify participant responses and to comply with probity requirements. Analysis of the written points of view and minutes of follow-up meetings will be used to develop a Findings Report. The Report will identify: market responses to key information requirements; key themes and issues raised by service provider(s); any key risks and issues noted; and recommendations and next steps. Documents will be developed as required for the Steering Committee outlining: key decisions required to meet the MS objectives; provide updates on progress against the MS timeline, including risks, issues and actions; and confirming priorities and next steps. An interim probity report will be developed by the Probity Auditor within seven working days of the completion of the MS stage, and will assess the measures IR have implemented to mitigate the various identified probity risks of this stage. Indicative date 28-Jun Jun June-13 For the duration of the MS stage 5-Aug-13 5-Sept Sep-13 As required 17-Sept-13 * This documentation may be updated whilst available on GETS depending on questions from the market or amendments as required. CLASSIFIED IN CONFIDENCE - INLAND REVENUE PROTECTED Page 22 of 25

21 8. Dependencies There are a number of inputs that the MS stage is dependent on, these relate particularly to programme level communications, necessary approvals, probity requirements and the Strategic Analysis and Design work streams. These dependencies are outlined below: Cabinet and Ministerial endorsement is received Although a formal decision is not required from Ministers to proceed with the MS stage, it is understood that the IB will be looking to the ICT Ministerial Committee to support the execution of the stage. This endorsement will be required prior to commencing engagement with the market. IR hopes to secure endorsement at the ICT Ministerial Committee meeting on 4-Jul-13. Procurement Plan has been developed and approved The Procurement Plan supports the Sourcing Strategy and outlines the rationale for the entire procurement approach. The plan includes the overarching procurement objectives and outcomes, the documentation necessary to ensure compliance with the new Government Rules of Sourcing. Probity Plan has been developed and approved The Probity Plan provides the authority and structure for the way in which probity issues will be addressed during the MS stage. The plan is expected to set out standards of practice and behaviour for personnel involved in the stage as well as defining roles and responsibilities in relation to probity compliance. Communications and Engagement Approach has been developed and approved The Communications and Engagement Approach provides the framework for how communications will support the procurement approach. The plan is expected to detail who, why and when IR will engage with stakeholders, identify roles and responsibilities and confirming the different channels to be used. Programme level communications are approved It will be necessary that the market has been made aware of the programme and associated market engagement before the MS Launch. This will ensure that the market is prepared for MS and clarity is provided on the intent and IR s direction. A Media Plan will require approval to be proactive in the communications approach and to mitigate communication risks associated with the MS stage. Programme Sourcing Team is in place and roles and responsibilities are defined The skill sets and capabilities required to successfully execute the MS stage will need to be defined and in place within the Sourcing Team prior to the MS Launch. The execution of MS will require specialist skill sets across legal, probity, communications, procurement and other project management expertise. Completion of Conflict of Interest Forms Prior to MS, all staff members involved in this stage have completed and submitted a Conflict of Interest declaration. This includes individuals with the following responsibilities: all members of the procurement team (staff, contractors and consultants); CLASSIFIED IN CONFIDENCE - INLAND REVENUE PROTECTED Page 23 of 25

22 all members of the evaluation panel; any consultant asked to advise the team; anyone involved in making a recommendation; anyone involved in approving a recommendation or making an important decision; anyone making a financial approval for the procurement; and anyone the probity advisor deems required for disclosure. All individuals engaged by IR have a responsibility to follow all policy and procedural requirements established by IR to manage any related interests that will, or could give rise to, a conflict of interest. Testing Commercial Principles and Concepts The MS stage will be used to test commercial principles and concepts for contract documents with the market. This will allow IR to identify any preferred terms identified by service providers. It will be necessary to identify these early on to ensure and support the development and agreement of contract documents throughout the procurement process. CLASSIFIED IN CONFIDENCE - INLAND REVENUE PROTECTED Page 24 of 25

23 9. Appendix A Meeting Protocols The MS meeting protocols as outlined within the Probity Plan are attached below. ANNEX A: MEETING PROTOCOL 1. Introduction This Protocol sets out the probity requirements for the conduct of meetings with service provider(s) during the Market Sounding stage of the Programme (Meetings). 2. Information management 2.1. An agenda must be developed for the Meetings and retained in the Programme records Each Meeting must be conducted in accordance with the agenda to avoid any unauthorised disclosure of information to service provider(s) and any inconsistent information being provided to service provider(s) It should be made clear to service provider(s) in Meetings that any statements made by IR during the Meetings cannot be relied on as amending or adding to anything already published by IR in relation to the Programme unless that amendment or addition is confirmed by IR in writing. 3. Compliance with Probity Requirements 3.1. The Probity Auditor should be present at all Meetings to ensure that they are conducted in accordance with probity requirements and to respond to any probity-related queries All IR personnel who will be involved in the Meetings must be: a) given a copy of this Protocol; and b) briefed by the Probity Auditor in relation to the probity requirements for the Meetings. CLASSIFIED IN CONFIDENCE - INLAND REVENUE PROTECTED Page 25 of 25