April 2016 RM1045 Network Services: Developing Your Invitation to Tender (ITT) / Request for Proposal (RfP) Document Set

2 Agenda Introduction Deciding when to Start your Procurement Requirements Gathering Current Service Definition Future Service Requirements Transition Planning Pre-Procurement Market Engagement Procurement Considerations Typical ITT/RfP Composition Q&A

3 Introduction Buying Telecoms & Network Services can be complex and daunting Re-procuring layered services requires planning & preparation Benefits of re-procuring include up-to-date T&Cs and pricing CCS Network Services team can help you! Using pre-existing agreements (like RM1045 Network Services) reduces some of the risk & complexity Catalogues can provide easy access to less complex services and/or components of more complex services Invest time into your ITT to achieve a better outcome!

4 Deciding When to Start your Procurement Common Decision Points to start the procurement process… Contract Expiry –Planned expiry of one or more of your component services Relocation / New Site –Expanding or moving to incorporate new premises Emerging Requirements –Increased use of mobile apps Increasing Demand –Bandwidth utilisation increasing with hosted services Change in Working Practice –Increase in remote working, reduced dependence on physical locations …in any event, give yourself plenty of time!

5 Requirements Gathering Requirement External Internal Current Service Organisational Strategy Budget Future Service Transition/Migration Planning Industry best practice Government Policy Technical/Service Innovation Law Existing Routes to Market Collaboration / Aggregation

6 Current Service Definition A full analysis of what exists today… Service Audits –Site locations & post codes –Service type(s) / asset lists / Direct v Indirect / underlying carrier(s) –Numbering schemes (and ownership) –Bandwidth & utilisation / call usage, call profiles & concurrent calls Contract Review –Asset ownership / TUPE implications –Initial Term + extension options –Early Termination Charges –Exit & Service Transfer

7 Future Service Requirements Articulating your future requirement… Supplier / Market Requirements –Don’t unnecessarily aggregate components: Right product, Right Supplier, Right Price –Consider ‘Agency Services’ for complex layered services Service Requirements –Try to specify outcomes and not specific technologies –Comply with Policy, such as Cloud First & Digital by Default –Apply suitable security requirements Network Requirements –Resilience options –PSN v Private Backbone v Internet Service Levels –Can have a significant impact on price –Incentivise successful delivery through appropriate service credit regime Exit & Service Transfer –Don’t forget to plan how you will transition from this service at the end of the agreement

8 Transition Planning Your ITT should articulate how you expect the transition to occur… Transition team composition & Governance –Incumbent supplier, incoming supplier & customer resources will be required –Roles & responsibilities clearly defined Type of transition –Transformation / WITO / Novation –Milestone transition by component / dual running –Site by site Transition Plan –Testing & acceptance plan –Plan access to sites / ensure clearance of staff is understood –Asset transfer –TUPE / staff transfer –Service transition –Staff training

9 Pre-Procurement Market Engagement Testing your requirements with the market… Commercial models –Mix of one-off versus amortised/ongoing revenue charges Procurement options –Single v multiple procurements / single v multiple suppliers –Agency Services / Cross lot competitions Route to market –OJEU, Framework, MoUs, sub-threshold spend Develop options to meet Service Requirements –Take the opportunity to explore a number of suppliers solutions to your requirement Transition / service transfer options –Test appetite, perceived risks

10 Procurement Considerations For inclusion in your ITT… Business Case –Benefits realisation –Delivering value for money Supplier Assurance –Due Diligence –Discovery Days (pre- & post-ITT publication) –Bidder Clarification Process Pricing structure & evaluation –Be clear on what you want included in the price – and what’s excluded Award Criteria –Predefined in RM1045 – specify appropriate to your procurement Contract Commencement v Service Commencement

11 Typical ITT Composition (1 of 2) Applying all of the above into your ITT/RfP… Instructions –General information –Response guidance –Evaluation plan –Terms of Participation Statement of Requirements –Detailed requirement specification –Transition plan Award Questionnaire –Quality &/or Price components

12 Typical ITT Composition (2 of 2) Order Form –Identify options, such as applicable law Terms & Conditions –Standard terms –Special terms Declaration of Compliance –Ensures suppliers comply with requirement & process

13 Questions & Answers