Government Courier Services Framework: RM1006 An Introduction to the

1. Government Courier Services Framework: RM1006 An Introduction to the Government Courier Framework RM1006 A Guide for Central Government

2. Central Procurement Category Management Team • Dave San – Category Lead for Office Solutions • Janine Hannan – Category Lead for Courier and Post • Lee Corrigan – Category Manager • Tony Fellowes – Category Manager • Lesley Bond - Category Manager • Debbie Mylett - Category Manager • Gina Holt – Category Specialist • Rob Dyson – Category Specialist • Contact:- hmrc.cppostcourierimplementationteam@hmrc.gsi.gov.uk

3. Reasons for Change • The Comprehensive Spending Review 2010 set challenging reductions in budgets for Central Government and this impacts upon procurement. • The Green Review identified that Central Government is not maximising its position as a significant buyer within the market and consequently is subject to significant price variance and does not achieve best value for taxpayers’ money. • The Efficiency & Reform Group (ERG) are working to transform how Central Government improves procurement of commonly used goods and services. This is being done through the Centralised Procurement (CP) Programme whose mission is to ‘Transform how Government buys common goods and services through centralised category management, standardisation of specification and aggregation of spend to deliver significant sustainable cost reductions from the existing baseline of £13bn, in the region of 25% over four years. • Central Procurement will have common goals (slide 5)

4. HMRC’s Role Government Procurement Service (GPS) is the delivery service for the CP Programme and consists of the transformed former Buying Solutions and designated Departmental units with expertise in specific categories. HMRC is the lead department for the Post & Courier Category for Central Government and operates as GPS. The Deep Dive was the first step towards transforming the Category, this was the gathering and analysis of information to determine what is spent where, and how, and to identify whether this can be done better. This evidence was needed to help understand what works well, what can be improved and how. The Framework was then developed following collaboration with Central Government, and awarded based on an evaluation panel formed of both category managers and subject experts from Central Government and the wider public sector providing both commercial and technical assurance that the services provided will deliver value for money. The Courier Category Strategy has been signed off by all Central Government Commercial Directors at the Procurement Reform Board (PRB). The framework is fully enabled for Central Government Departments, their ALB’s and Wider Public Sector.

5. Central Procurement Strategy: Goals • Strategic Goals for 9 common categories • Aggregation and leverage Central Government requirements • Eradicate product cost differences • To put in place volume bound contractual vehicles (where appropriate) • Rationalise and standardise requirements • Accurate spend and consumption data • Fit for purpose contracting vehicle with ease of access • Deliver cashable savings 24/08/2014 5

6. 9 Centralised Categories • Office Solutions • Professional Services • Energy • Fleet • Travel • Learning and Development • IT commodities • Print Management • Advertising and Media 24/08/2014 6

7. Courier: Category Goals • Strategic Review Goals for Courier Category • To deliver cashable savings for Central Government Departments of 10% 2013/14. Target Spend Under Management (SUM) £12.6 million. • To deliver Value for Money, standard costs and transparent pricing models • To put in place consolidated and leveraged contracts • To standardise specifications and processes • To deliver coherent, visible and intelligent Management Information • To exploit market capability, knowledge and innovation • To deliver flexible contracts scalable for future requirements • To support Government Small & Medium Enterprise (SME) agenda 24/08/2014 7

8. Courier Category Strategy Development • Closed DWP/HMRC dedicated network.Inter-site mail distribution using dedicated vehicles and sortation facilities to minimise contamination of mail with that of other clients. • Best value for money will be achieved by open competition. • Cost model flexibility to enable cost reductions should mail volumes reduce. • National courier requirements. To cover ad hoc and regular courier service needs of Central Government and Wider Public Sector – i.e. next day, same day, cash / cheque movements, secure and tracked deliveries. • Potential to leverage spend through aggregation and deliver cashable savings. • Regional and local requirements. To serve local and regional hubs, for ad hoc and regular needs. • Will address the SME agenda. • Likely to be attractive to local Government authorities. • The emerging strategy following the deep dive identified a Framework was the optimum solution to deliver the strategic goals. Stakeholder engagement, supplier research, market testing and analysis have validated that a Framework is best placed to support category transformation. This model also supports development of next generation Courier Category strategies and optimising delivery against the growth agenda (SME’s) resulting in Performance Reform Board sign off. 24/08/2014 8

9. GPS Centralised Courier Category Government Procurement Service “Tailored” (Single supplier, known requirement) RM1006 1. Same Day - National 2. Next Day 7. Same Day -Regional 3. International “Seasonal” RM1008* (DfE’s Exam Paper Contract) 5. Secure Services (including Cash) 4. Dangerous/ Hazardous Goods 6. Mail Screening “Dedicated Courier Network” RM963 (HMRC & DWP) * This contract is enabled for wider use and further information is available on request

10. Framework Service Providers

11. Framework Service Providers cont…

12. Benefits of the Framework • Supports the wider Centralised Procurement strategy for courier services • A mix of established suppliers and emerging Small and Medium Enterprises (SMEs) • Covers the service gaps left by the disbanded Government Car & Despatch Agency i.e. Government Mail, Mail Screening and ‘Regional Plus’ • The regional lot aids customers’ ability to contract directly with local suppliers via a compliant, centralised vehicle • Offers a broad range of specialist accredited providers capable of shipping a variety of consignments including dangerous/hazardous goods, firearms and cash • The lot and charging schedule structure  facilitates direct awards and ease of access • Pricing structure transparency and standardisation of services leading to savings • Enables work to be placed with the right suppliers rather than relying on subcontracting • Allows the running of further competitions for disparate requirements over the whole framework • Award was based on an evaluation panel formed of both category managers and subject experts from Central Government and the wider public sector providing both commercial and technical assurance that the services provided will deliver value for money.

13. Next Steps • GPS will work with Central Government Departments directly and provide support to allow you to deliver against targets set by the Efficiency Reform Group (ERG) particularly with regard to improving procurement efficiency, maximising growth, facilitating spend under management and delivering savings. • The frameworks have been created following collaboration with category managers and subject experts from Central Government. • To enable us to refresh the information we hold and assist you going forward please can you provide the following information:- • Confirmation of the appropriate contact in your Department • An update with regard to the previously provided “deep dive” information i.e services/requirements, spend/volumes • Current situation with regard to contracts – expiry dates, current providers, whether through legacy frameworks or outside of centralised activity • This information is critical to allow us to prioritise/focus our activities and inform on-boarding strategies • Please forward a response to hmrc.cppostcourierimplementationteam@hmrc.gsi.gov.uk • by 19 April 2013

16. Customer Access - on boarding • Pipeline: • GPS has already identified potential customers who are able to join the framework over the coming months. • Existing/ legacy contracts due to expire • Novating contracts with framework suppliers • Government Car Despatch Agency closure interim arrangements • New requirements • Next Steps:- • GPS will now work with Central Government customers to identify a pipeline, providing support where required:- • Education when needed • Understanding requirements • Access to prices • Facilitating novation (where appropriate) • Central Government Departments wishing to make use of the GPS Courier Services Framework Agreement should access the Government Procurement website http://ccs.cabinetoffice.gov.uk/contracts/rm1006 . They must then complete, sign and return the Access Agreement form in PDF format. Upon receipt of a completed Access Agreement form, GPS will then provide the tender results and rates.

17. Customer Access - on boarding • Call Off Contract Award and Procedures - The “call off” award procedure is explained in Section 6 of the Framework Summary Document – clients should ensure that the call off document provided is completed in full in all cases. • In setting up the Framework Agreement the intention has been that an award could be made by:- • Direct Ordering without further competition; • Further Competition by lot; or • Further Competition across all lots, as referred to in the Framework Agreement Specification. • Direct Award:- • If a Contracting Body can determine that: • its Services Requirements can be met by the Framework Supplier's catalogue of the Services as set out in Framework Schedule 1 • the Framework Supplier provides the most economically advantageous solution in respect of the Contracting Body's Services Requirements; and • all of the terms of the proposed contract are laid down in this Framework Agreement and the Call-Off Terms do not require amendment or any supplementary terms and conditions; • then the Contracting Body may place an Order in accordance with the Direct Ordering Procedure.

18. Customer Access - on boarding continued… • Further Competition by Lot • Any Contracting Body ordering the Services under this Framework Agreement through a further competition shall: • develop a a Statement of Requirements setting out its requirements for the Services and identify the Framework Suppliers capable of supplying the Services; • refine the Call-Off Terms to reflect its Service Requirements in accordance with the regulations and guidance; • invite tenders by conducting a further-competition in accordance with the regulations and guidance; • apply the Further Competition Award Criteria to the Framework Suppliers' compliant tenders submitted through the further competition as the basis of its decision to award a Call-Off Contract for its Services Requirements; • on the basis set out above, award its Services Requirements by placing an Order with the successful Framework Supplier; • provide unsuccessful Framework Suppliers with a feedback in relation to the reasons why their tenders were unsuccessful.

19. Customer Access - on boarding continued… • Novation • Through customer engagement GPS may identify individual Departmental contracts for the provision of services with same suppliers aligned to the new framework structure. • In these cases there may be an opportunity to novate contracts across to the new framework which will offer the following benefit: • Opportunity to increase spend classed as under central management and control • Report additional savings through approved benefit methodologies • The following criteria must be considered and adhered to: • Contracts not currently called off a centrally let framework • Contractual conditions allow novation • Willingness of the supplier

20. Wider Public Sector The Wider Public Sector (WPS) are encouraged to make use of the new framework and there are various channels available for access. To obtain further information please contact the Government Procurement Service (GPS) . Your contacts for WPS requirements within GPS are:- Claire Murray – Claire.Murray@ccs.gsi.gov.ukDirect dial:  07833 620 645 Carmel Mannix – Carmel.Mannix@ccs.gsi.gov.ukDirect dial:  0151 672 2249