TMT Supplier Engagement Event – April 2014

1. TMT Supplier Engagement Event – April 2014

2. Agenda 10:30 – 10:45 10:45 – 11:15 11:30 - 12:00 12:00 – 12:15 12:15 – 13:15 01:15 – 01:35 01:35 – 02:00 02:00 – 02:30 Welcome, Introductions, House Keeping & Purpose of Day Strategic View & Customer Feedback TMTii Customer Viewpoint • Highways Agency • Transport Scotland • Warwickshire County Council TMTii Service Descriptions Summary TMTii Outcomes Breakout Sessions Procurement Strategy LUNCH SME Agenda Sustainability Agenda Commercial Principles Procurement Process & Next Steps Questions and Answers to Panel

3. Introductions Mike George - CCS Category Lead TMT Malcolm Eastoe – CCS Category Specialist TMT Chris Stevens – CCS Category Manager – ICT Services Mark Etherton – CCS Category Manager – ICT Services David Coburn - CCS Category Lead – ICT Services Kris Ross – CCS Senior Category Lead – ICT Services Heather Dodds – Highways Agency – TMT Replacement contract lead Traffic Technology Division David Marshall - Transport Scotland - Network Operations Gafoor Din - Warwickshire County Council - Principal Engineer for Traffic Control & Information Systems Richard Hassett – Cabinet Office SME Agenda Representative

4. House Keeping • Timings • Fire Alarm Test and Exits • Restrooms • Refreshments

5. Purpose of today • Early Supplier/market engagement • Concept stage - No commitment to go to market • No commitment to lotting structure presented in PIN or presented today • All input received at this stage will be considered but may not be taken forward or acted upon due to limitation/restriction placed upon CCS • Review of current TMTi FWA • Requirement for new TMTii FWA • Informal: • Sharing our TMTii thoughts/approach • What does the market have to offer • 2-Way • Not the ‘finished article’: • Open to feedback/revision (today or afterwards) • Balancing views/requirements/needs of different stakeholders • Q&A • Session • Questions Board & Box • eMail Scene Setting

6. Strategic View • Crown Commercial Service (CCS) Vision: • To deliver value for the nation through outstanding commercial capability and quality customer service. Our role is to provide an integrated commercial and procurement service for Government and the UK public sector, including Health, Local Government, Devolved Administrations, Education and Not for Profit organisations. • Vision in Practice: • CCS has a key role in supporting the delivery of the Government Spending Review Strategy • Chancellor of the Exchequer, George Osborne, Comprehensive Spending Review (CSR 2013) targeting efficiency savings

7. Strategic View The role of CCS Frameworks in delivery of the Government Spending Review Strategy: • Government acting effectively as a single customerwhen purchasing goods and services. • Promoting collaboration on solutions across Public Sector • Creation of a procurement vehicle facilitating individual or collaborative procurements of varying scales • This desire for local government integration further increases the requirement for suppliers to make sure they have a good understanding of local agendas. • Promote increase shared services adoptionparticularly on an intra-regional basis, particularly if suppliers can offer specific solutions targeted at specific policies or problem areas. Framework as a vehicle for

8. Strategic View The role of the TMT Framework ? TMT Framework supporting Government Spending Review Strategy: • Reducing cost of TMT across government – VFM • Focussing pan-public sector TMT requirement • Enable collaboration where possible • Creating competitive market for TMT services • Increasing number & mix of suppliers, including SMEs • Streamlining procurement processes for TMT related services • Specify outcomes rather than inputs • Standardise • Fast route to market Consolidate Demand Competition Choice Efficiency

9. Customer Feedback - TMTi Positive: • Has delivered significant savings to the Tax Payer • Saves us time and money as we don’t have to go to OJEU • Covers a significant degree of our TMT requirements • There isn’t much the framework does not cover (TMT) • Appreciate the support CCS have provided in use of Framework Room for improvement: • Framework awareness across Wider Public Sector (WPS) • Complex call-off process – lengthy and costly to implement • Limited number of suppliers on lots – limited choice • Limited catalogue options & inconsistent approach to deployment Key objective of TMTii – Build upon success of TMTi through addressing identified issues Working together

10. HA High Level Requirements for TMTii April 2014 Highways Agency Network Delivery and Development (NDD) Traffic Technology Division (TDD) Heather Dodds

11. Strategic Road Network (SRN) • The HA is responsible for operating, maintaining and improving England’s SRN • All motorways and major A trunk roads • Assets £108 billion • On average 4 million drivers use the SRN every day. • The SRN represents 3% of roads in England, yet it carries around a third of all traffic in England. • SRN length is 4,300 miles / 7,000 km

12. Total Assets (February 2014)

13. TTD Procurement Strategy • Since October 2011, • ‘The Traffic Management Technology Framework is the defaultroute for procuring new TTD contracts’

14. TTD Use of TMTii HA’s share of TMTFi spend (October 2013) • 24 contracts let (January 2012 to March 2014) • Combined contract value of £44,000,000 • Pipeline (April 2014 to March 2016) • 14+ contracts • Estimated value of £86,000,000 • Not including Pinch Point schemes that will come up in 14/15 and 15/16 • Delivery partners of the HA will use TMTFiion our behalf

15. Future of Highways Agency • April 2015 HA will become a Publicly Owned Company • Announced June 2013 after Spending Review 2013 • Secures and will continue to secure long term investment from the Government • Significant programme of investment beyond 2015 • Includes funding for delivery of major projects and planned roads maintenance programme • CEO Graham Daulton: “We in the Agency will be looking to work with our partners and colleagues in the supply chain to deliver this work with the continuing commitment to efficiency and innovation that has already been demonstrated.”

16. Growing capital investment programme • Linking to Route Based Strategies • High volume of activity across the network • Capacity and capability challenge • Lower Thames Crossing • Capital renewals • Longer term • investment • (SR13) • Pinch points • Medium term • Roads Programme • (SR13) • 1 Smart Motorways • 2 Conventional schemes (widening, bypasses etc…) • Today’s Roads Programme • (SR10) • 3 A14 Cambridge to Huntingdon scheme

17. HA Requirements

18. HA Would Like • Larger choice of Suppliers including SME’s • More smaller Lots, or use sub-lots • Warranties on equipment • Ongoing maintenance • Catalogue facility • Delivery Partners ability to set up contracts on our behalf • Incentivising supplier performance management framework

19. Lots That The HA Would Like • Lot 2: Traffic Signals & Ramp Metering • Lot 3: Electronic & Interactive Message Signs • Lot 4: Traffic & Vehicle Monitoring Services • Lot 6: Environmental Monitoring Services • Lot 7: National Traffic Control (NTC), Urban Traffic Control (UTC) & Common Database Systems • Lot 8: Traffic Management Research & Consultancy • Lot 11: Ancillary Equipment Lots that the HA do not use: • Lot 10: Traffic Safety • Lot 5: Parking & Access Control Services • Lot 9: Street Lighting Services

20. For All Equipment Lots Need to all include all of the following: • Calibration; • Installation; • Research and Development; • Associated spares and maintenance; • Associated data capture facilities; • Training; • Business support services; • Helpdesk support • Associated software, maintenance and support

21. HA Proposed Lot Structure

22. Transport ScotlandCurrent and Future Use of the Traffic Management Technology Framework David Marshall Operations Policy Manager Trunk Road Network Operations Transport Scotland

23. c • The Scottish Trunk Road Network measures over 3,400km in length and with a gross value of over £16 billion is the Scottish Government’s single biggest asset. • Transport Scotland, an agency of the Scottish Government, is responsible for managing, maintaining and improving the network on behalf of Scottish Ministers. • Trunk Roads are vital to Scotland’s economy with 39% of road travel taking place on Trunk Roads. • Management of the traffic on our network is supported by: • 150 variable message signs; • 500 overhead lane control signals; • 140 CCTV cameras; • 1700 traffic monitoring installations; • 800 emergency telephones; • An extensive journey time system.

24. c Traffic monitoring, control and informing is carried out from the new National Traffic Control Centre at South Queensferry, near Edinburgh. This increasingly complex road network now makes use of Intelligent Transport Systems to help regulate the flow of traffic at some particularly busy locations.

25. c • The maintenance and improvement of this network could not take place without the many procurement exercises required to enlist the services of the private sector. • In each case all the possible procurement options are considered and there is an increasing awareness within Transport Scotland of the benefits of using the Traffic Management Technology Framework. • Recent procurements through the Framework include: • The upgrading of 48 safety cameras to digital; • Average speed camera equipment for the A9; • 3D laser scanning equipment for use in accident investigation; • Traffic Management Technology Consultancy Services.

26. c • Looking towards the future, TMTii will provide an important option when considering procurement strategy. It will offer the following advantages: • A streamlined process with easy access to approved expert suppliers; • A model contract document with standard terms and conditions that can be tailored to particular projects; • A wide ranging and flexible lot structure; • The use of the eSourcing tool to manage the further competition process; • The ability to order from catalogues. • The use of the TMT Framework ties in with our Corporate Plan’s stated intention of “using transport public procurement to maximum effect so that the public sector makes maximum use of its purchasing power”. • Transport Scotland has an ambitious programme of road improvement works to deliver over the next few years, ranging from small but important road safety improvements to major schemes such as the £3 billion A9dualling project.

27. Warwickshire - Requirements Traffic Control and Information Systems Team Design Services Gafoor Din – Principal Engineer

28. Resources

29. Traffic Control and Information System Team are responsible for: Revenue Costs • Traffic Signal Junctions - 97 • Pedestrian Crossings – 195 • Car Park Management Signs - 44 • Automatic Rising Bollards - 8 • Real Time Passenger Information – 10 • CCTV Cameras - 12

30. Improved network management Improving safety Better travel and traveller information Better public transport More efficient freight transport Reducing environmental impact TOOLS OBJECTIVES Outcomes Delivering Outcomes notImplementing Technology

31. Warwickshire - Requirements The provision of:- a complete end to end solution for the preliminary design, detail design, equipment provision, installation, commissioning, maintenance and decommissioning. OR Any element of the above

32. UTC (Urban Traffic Control System) Remote Monitoring SystemMaintenance Revenue Costs

33. Asset Management Before After

34. Key Lots Lot 1 Traffic Management Solutions Lot 2 Traffic Signals Lot 3 Electronic and Interactive Message Signs Lot 4 Traffic and Vehicle Monitoring Services Lot 5 Parking and Access Control Lot 6 Environmental Monitoring Systems Lot 7 Urban Traffic Monitoring Control (UTMC) systems or Common Database systems Lot 10 Roadside Safety

35. Service Descriptions Summary Traffic Management Solutions Traffic Signals and Ramp Metering Traffic and Vehicle Monitoring Services, Including Road Charging Active Traffic Management & GIS (incl. VMS) Parking and Access Control Services Environmental Monitoring Services National Traffic Control, Urban Traffic Control and Common Database Systems Traffic Management Research, Consultancy and Project Management Street Lighting Services (incl. LED) Traffic Management - Roadside Safety Sustainable Transport - Alternate Vehicle Fuel/Energy Infrastructure Traffic Management Communications • Vehicle Guidance Systems Catalogue [Ancillary] Summary of Demand Determined So Far TBC

36. TMTii Outcomes What does TMTii need to deliver over and above Goods & Services? Transformation: Scalable and Flexible Procurement Vehicle/Solution Innovation (Supplier lead) Sustainability Transparency Increasing standardisation & commoditisation Focus on pan-public sector Traffic Management requirement Pan-public sector awareness Performance Best of breed Increased sharing of best practice, lessons learned Outcome/output based performance management - KPIs Value For Money (VFM) – Savings For The Nation (Tax Payer) Obligations Assist customers in meeting their duties under the Traffic Management Act 2004 Meet wider Government Agendas/Policies (Efficiency Savings, SME, Sustainable Procurement, Green/Environmental)

37. Breakout Session • Group A • What we (the Supplier) can bring to a TMTii – Value Proposition • New Services / Technology • Added Value e.g. • Innovation • Promoting framework (What does TMTii have to have to release the potential – what do we (CCS) need to build into specification / ask suppliers?) • Group B • What works well (more of) / not so well (less of) within TMTi • What we (the Supplier) would like to see from TMTii • What we (the Supplier) would like CCS to do more of • Group C • What customers are asking us (the Supplier) for • When approaching us (the Supplier) under the Framework • When approaching us (the Supplier) outside of the Framework (What does TMTii have to have to release the potential?)

38. LUNCH

39. Getting Full Value from SME suppliers Richard Hassett Small & Medium Enterprise Programme 1 April 2014

40. The Coalition Agreement “We will promote small business procurement, in particular by introducing an aspiration that 25% of government contracts* should be awarded to small and medium-sized businesses and by publishing government tenders in full online and free of charge.“ Re-iterated in the Mid Term Review: “We will aim to ensure that 25% of government spend goes to SMEs” *by value directly and in the supply chain UNCLASSIFIED Getting Full Value from SMEs

41. The Prime Minister’s speech 11 Feb 2011 “Today, we are announcing big changes to the way government does business.” “No one should doubt how important this is.” “It’s important for getting to grips with our deficit – as it will help us tackle waste and control public spending.” “...the system doesn’t encourage small and medium-sized businesses, charities and social enterprises to compete for contracts… …the very firms who can provide the competitive pressure to drive down costs.” “.... wherever possible, we’re going to break up large contracts into smaller elements, so that SMEs can make a bid and get involved” Getting Full Value from SMEs

42. What is an SME? SMEs must be “autonomous”. There is a complicated definition of autonomy but it means not owned nor controlled by another enterprise EU headquartered SMEs retain their SME status if they outgrow the limit for both the rest of that financial year and the whole of the following financial year Getting Full Value from SMEs

43. Key SME Programme Reforms • Changing buying behaviours and supporting achievement of the 25% aspiration Getting Full Value from SMEs

44. Direct spend with SMEs has increased FY11/12 vs FY12/13 direct spend • In FY12/13 • 9.4 % is spent indirectly with SMEs • 10.5% is spent directly % of total Central Government spend on Goods and Services Getting Full Value from SMEs

45. 7 key steps to working with SME suppliers 1. Understanding that the goal is “Getting Full Value from SME suppliers” This means buying from an SME supplier every time they are the best value for money. 2. Setting Optimal Contract Sizing i.e. Knowing when Big is Beautiful and when Small is Beautiful 3. Using optimal lotting structures 4. Getting the Best (SME) Bidders Bidding 5. Getting them to Do Good Bids (we already have a fix for this by hosting bidding skills seminars) 6. Winning the hearts and minds of the customers (to be happy to buy from suppliers new to them) 7. Avoiding common pitfalls in delivery by providing appropriate help in contract management to both buyers newly buying from an SME and to SME’s supplying for the first time. Getting Full Value from SMEs

46. The EU directive will help ¶ Transposition within 2 years but planned for late 2014 ¶ Buyers will have to sub-lot or explain their reasons. The Recitals suggest that reasons could include restricting competition or making execution hard. ¶ Turnover caps limited to 2 times the contract value ¶ Buyers can limit the number of lots any one bidder can win ¶ Pre-market engagement explicitly permitted ¶ Greater use of supplier self-declarations where only the winning bidder has to submit certificates ¶ Poor prior performance is explicitly permitted as grounds for exclusion ¶ Simplification of the rules on Dynamic Purchasing Systems ¶ Ability to reserve awards to VCSEs for a limited period ¶ E-marketplaces expressly permitted ¶ Minimum times for responses are cut by a third to allow for faster procurements Getting Full Value from SMEs

47. Further opportunities 1. Moving away from risk aversion and taking a proportionate approach to risk 2. Being driven by customer needs rather than procurement processes 3. Make more use of SBRI 4. Mobilise the supply chain to increase their use of SMEs and encourage prompt payment Getting Full Value from SMEs

48. GDS are driving change from the heart of Government • 127 digital projects • 25 exemplar projects including: Electoral registration, Rural support (CAP), PAYE for employees, Criminal Record Check & Visa Applications Exemplar projects GDS Oversight of central government projects • Approve technical aspects of projects • Facilitate pre-market engagement with departments • Advise on technical architecture • Build skills & drive behavioural change in departments • Promote Open Standards New procurement channels • G Cloud • Digital Services Framework (DSF) • Simplification of the framework tendering process Getting Full Value from SMEs

49. SME spend on G-Cloud is going from strength to strength £m, invoices • G-Cloud 3 • 83% of suppliers are SMEs • 58% of total spend is going to SMEs • G-Cloud 4 • 84% of suppliers are SMEs Getting Full Value from SMEs

50. Through G Cloud SMEs win over two thirds of Central Government IT business %, invoices Getting Full Value from SMEs