Postal Services Supplier Event 1pm – 2.30pm Victoria Quay, Edinburgh 5 July 2011

1. Postal ServicesSupplier Event 1pm – 2.30pmVictoria Quay, Edinburgh5 July 2011

2. Introductions Phil Norman: Portfolio Manager for Corporate Services, Scottish Procurement Lynn McCann: Portfolio Specialist for Corporate Services, Scottish Procurement

3. Formalities Fire Alarm There is no fire test scheduled: If the fire alarm sounds leave at the nearest available fire exit. Toilets These are situated in the main conference room corridor. Questions There is a Question & Answer session at the end, however if you feel the question is relevant to the current slide, feel free to ask!

4. Background.. Scottish Procurement has Ministerial endorsement to manage the procurement of a specified range of common goods and services across all sectors Established to deliver sustainable best economic value for money (VFM) solutions in line with national targets, through effective collaboration throughout the procurement cycle and compliance to national contracts. An estimated £1 billion of the c£8 billion Public sector spend on goods and services across Scotland relates to ‘Category A’ goods and services. • Category A Definition • 1) Goods or services are standard or of a similar nature across the largely common requirements of users in the public sector in Scotland. And/or; • 2) Where the utilisation of contracts established by a single central organisation would offer: • a) improved cost through consolidated procurement volumes and value • b) optimised use of scarce procurement resources and skills and to concentrate market intelligence information. • 3) Where a single contracting interface facilitates the efficiency and competitiveness of suppliers. Current Category A

5. Background.. • Current ‘Category A’ agreements • Corporate Services: Travel Services, General Stationery & Office Paper, IT Consumables; • Utilities: Gas, Liquid Fuels, Electricity; • Professional Services: Consultancy, Temp, Interim Temp; • IT Hardware: Desktops, Laptops; • IT: A range of network agreements, IT Managed Services, Telecomms. • Circa £89m delivered back to the Scottish Public Sector since 2008 • All Scottish Procurement contracts are advertised for use by Scottish Public Bodies. Individual organisations fit into the following sectors: • Police; • Fire & Rescue; • NHS Scotland; • Local Authorities; • Central Government (Core departments, Agencies and Non Departmental Public Bodies); • Higher and Further Education; • Registered charities, registered social landlords and voluntary organisations.

6. Background.. National Category Forum (NCF) NCF is a dedicated cross sector group of individuals tasked with developing Category A Strategies. The NCF for Postal Services consisted of representation from Scotland Excel, NHS National Procurement, Advanced Procurement for Universities & Colleges (APUC), Central Government Centre of Procurement Expertise (CGCoPE), Local Authorities and Scottish Local Government Procurement Forum (SLGPF) The forum was developed in 2009, bringing in cross sector experience and sector idiosyncrasies to ensure that standard and non-standard requirements are included within the strategy.

7. What do we Expect from Suppliers and Category A collaborative agreements? In order to help us do business with you in a mutually beneficial manner suppliers can contribute by: Providing best value goods and services across the Scottish public sector; Sharing your plans for technology or service development and your ideas and opportunities for improvement in the way the public sector procures these requirements and manages supplier relationships; Embracing e-technology opportunities such as those offered by eProcurement Scotl@nd (ePS); Proactively engaging in continuous improvement programmes; Offering cost reduction and other efficiency and/or service initiatives that deliver best value to the Scottish public sector; If successful when bidding for Category A contracts, being fully engaged and supportive of our structured supplier management process that will be used to measure all suppliers on a periodic basis, including provision of relevant management information. Providing feedback on tender processes. Last but not least, ensuring that the best value offer for both parties is available

8. Key Background points (Scottish Public Sector)

9. Postal Services background Current picture • Scottish Public sector spend on Postal Services is circa £35m per annum; • Current annual contractual spend is circa £8m; • 85 organisations access the current agreement; • Agreement focuses predominantly on everyday mail opportunities through Down Stream Access; • Organisations are prioritising their local Postal Services strategies at different levels; • Various internal processes and decision makers; • Broadly there is limited alignment between different services and ways of working….

10. Postal Services background Continued.. Observation 40% of spend is with 10 organisations Big spend areas not all aligned to one sector – The top 10 includes NHS, Government and Local Council organisations.

11. Requirement:Strategy

12. Requirement.. Key objectives of the strategy • To leverage the £35 million, spent annually, to realise improvements in the value for money obtained in the sourcing of Postal Services, including reductions in service and product prices, enhancements to product and service and improvements in service levels, where appropriate; • To increase the take up of leading processes and practices across the Scottish public sector; • To increase knowledge of alternative Postal Services; • To capture all postal activity and determine all the key decision makers pertaining to Postal Services across the Scottish public sector; • To reduce the negative environmental impact of the use of Postal Services.

13. Requirement - Strategy.. Services to be covered within Postal Services • 2+ day collection and delivery to addressee; • Next day collection and delivery to addressee – Central belt Scotland only; • Consolidation (collection) of low volume mail items; • Hybrid Mail; • Production of Planned Mail.

14. Structure of Frameworks

15. Requirement – Strategy Continued.. Structure of Frameworks Scottish Public Sector Postal Framework and Strategic Management • Ad-hoc and Hybrid Mail (1 principle supplier) • Mandatory • 2+ day service (both Machine and non-machine readable mail) • Hybrid Mail • Service all geographical areas of Scotland • No minimum volume requirements for organisations to access these services • Expected • Next day service - Central Belt • A network of suppliers to fulfil the requirement Planned Mail (1 principle supplier)

16. Requirement – Strategy Continued.. • Ad-Hoc & Hybrid Mail – What does this lot consist of? • The collection of physical mail from Public Sector organisations, throughout Scotland, and delivery to the addressee. The production of ad-hoc mail via a Hybrid Mail service. The lot consists of three distinct services: • 2+ day delivery to all UK addresses and; • Next day delivery to Scottish central belt postcodes and • Hybrid Mail. • Hybrid Mail is a desk to door service covering, but not limited to, off site mail production for ad-hoc printing/mail generation. • It is anticipated that documents will be printed, folded, enclosed and posted by the supplier. • It is understood that the action of the final mile delivery may be undertaken by a third party organisation. • A key element to the evaluation is the on-going cost management initiates and quality improvement programmes. • It is positively promoted by Scottish Procurement to develop sub-contractors, partners and third party providers when developing your supply chain for your solution.

17. Requirement – Strategy Continued.. Planned Mail This lot is for the production and delivery of Planned Mail. It is anticipated the service will be achieved via secure transfer of address and data files to an off site print location where the mail will be printed, sorted and passed for delivery to the final destination. It is recognised that there may be a number of ways to achieve the service and that the use of sub-contractors, partners and third party providers may be required.

18. Requirement – Strategy Continued.. • Key components and considerations of your bid: • Both Ad-Hoc (& Hybrid Mail) and Planned Mailing • Ensure that all Scottish Public Sector’s organisations are catered for; • Where the use of sub-contractors, partners and third party providers are required please detail this within the bid; • Detail plans for mail improvement programmes; How; Priorities; Net result; • Ensure security elements are detailed and coherent;

19. Evaluation

20. Evaluation Weighting.. 100% ITT 65% 35% Statement of Requirements ITT Questionnaire PRICING Cost Management Technical Corporate Social Responsibility Security Pricing Schedule Framework & Account Management Delivery Lot 1 – Ad Hoc & Hybrid Mail

21. Evaluation Weighting.. 100% ITT 60% 40% Statement of Requirements ITT Questionnaire PRICING Cost Management Technical Corporate Social Responsibility Security Pricing Schedule Framework & Account Management Delivery Lot 2 – Planned Mail

22. Quality Evaluation.. • Statement of Requirements & ITT Questionnaire (Lot 1- 65%, Lot 2- 60% Planned Mail) • Across both lots there are general ‘Mandatory’ requirements; • Within each lot there are specific to the lot ‘Mandatory’ requirements; • Suppliers are asked to confirm acceptance of the ‘Mandatory’ Requirements; • Under each section there are a number of statements that are minimum requirements; • For Hybrid Mail, part of the evaluation will be undertaken on ‘usability’; • Each question has an overall weighting applied and a word count; • Tender Evaluation Panel consisting of representatives across the Scottish Public Sector has been established;

23. Cost Evaluation.. Lot 1 – Ad-hoc and Hybrid Mail Pricing accounts for 35% Two pricing schedules for this lot: Pricing Schedule 1 – Ad-hoc Mail Collection and Delivery; This section of the pricing schedule will list the Postal Services currently being purchased by those Scottish Public Sector organisations accessing the current agreement and based upon the current contract volumes for period January – December 2010. Evaluation of Pricing Schedule 1 will be undertaken on the total service price based on current contract volumes for period January – December 2010 Pricing Schedule 2 – Desktop Hybrid Mail; Evaluation of pricing schedule 2 will be undertaken on the total service price based on a number of realistic scenarios that will be provided within the ‘Instructions to Tenderers’.

24. Cost Evaluation Continued.. Lot 2 – Planned Mail (40%) There will be one pricing schedule for this lot: Evaluation of Pricing Schedule for Planned Mail will be undertaken on the total service price based on a number of realistic scenarios that will provided within the ‘Instructions to Tenderers’. Management Information and Scenarios Management information for period January – December 2010 will be provided, this will include a breakdown of current contract services and volumes utilised in this period. The scenarios which will be utilised in the evaluation of Hybrid Mail and Planned Mail will also be provided for information.

25. Cost Evaluation Continued.. Principle of Scoring Methodology For the Statement of Requirements ITT Questionnaire, the tenderer scoring the highest mark will be awarded the maximum overall % score e.g. 65%. Other tenderers will be scored down proportionally. Pricing will work in the reverse – i.e. the lowest price will get the full percentage, and all other tenderers will be scored down proportionally.

26. General

27. Accessing Tender Documentation.. Suppliers are required to request access to the tender documentation following the contract notice publication. Suppliers wishing to access the ITT and related tender documentation should e-mail procurementcorprateservices@scotland.gsi.gov.uk or call Lynn McCann 0141 242 5837. Completed tenders must be saved and submitted through Tender Submission Postbox facility on the Public Contracts Scotland website. Further details of this facility are available at http://www.publiccontractsscotland.gov.uk/sitehelp/help_guides.aspx Suppliers are advised to allow adequate time for uploading documents and to dispatch the electronic response well in advance of the closing time to avoid any last minute problems. The postbox closes precisely at the time stated. If you are unable to submit a tender using this system you are requested to advise the contact detailed in the Invitation to Tender letter, no later than 7 days prior to Tender submission deadline.

28. Timeline.. Jun 11 Jul 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 Mar 12 Apr 12 PIN Complete Tender ITT Selection and Award Evaluate ITT Framework Implementation Preparation Contract Award Framework Commencement Framework Management = ITT issue date: 7-14th July = ITT submission deadline: 7-14thth September = Framework award: 29th November = Framework commencement: 1st March

29. Contract notice will be published on Public Contracts Scotland. It is anticipated to be published between the 7th and 14th July 2011: www.publiccontractsscotland.gov.uk Contract award will be between 13th and 21st December 2011 Contract commencement 1st March 2012 Where suppliers are intending to forge partnerships or consortia, it is strongly advised to develop these as soon as is viable. Next Steps..

30. Suppliers in attendance today..

31. Questions & Answers

32. Close