Banking API Consultancy Requirements 2016/17

Tender description

Summary of the work Looking for a supplier with connections to banking industry and expertise in tax and digital that will help in the discovery phase of enabling banks to integrate with HMRC through APIs so that tax can be calculated and submitted directly from a bank account for customers. Expected Contract Length 8 weeks Latest start date 20/01/2017 Budget Range £60,000 to £130,000 Why the Work is Being Done Her Majesty's Revenue and Customs has committed to an API first strategy for its customers to be able to submit their tax. In order to offer more convenience we would like to explore the possibility of customers being able to calculate and pay their tax straight from their bank accounts. This will give taxpayers – especially small enterprises – a better view of their tax liabilities. It may also give banks a closer connection with their customers. The work has to be completed by 31 March 2017. Problem to Be Solved How can banks integrate to HMRC? What APIs does HMRC need to offer that will have the biggest impact on their customers? What is the best strategy to engage and work with banks to make this happen? What should a user journey look like that would be useful for the banks and their customers? How can HMRC help "sell" this proposition to banks so that they commit resources to this project and integrate with HMRC? Who Are the Users As a small business owner I need to be able to see my VAT and other tax liabilities any moment in time in my online bank account so that I can set money aside and pay HMRC directly from my bank. Early Market Engagement HMRC has had initial meetings with banks to validate if they would be willing to integrate with HMRC. We have also done some user research to see if taxpayers would find this a useful service. Initial investigation into the idea and feasibility. Work Already Done Initial investigation into the idea and feasibility. Existing Team There is a programme director and a part time user researcher. The supplier will be working with a mix of contractors, civil servants and banks in order to implement this solution. Current Phase Discovery Skills & Experience • Have a strong network and reputation within the banking community? • Have accounting and tax expertise and an understanding of the tax marketplace? • Have experience in delivering digital mobile and web based products for corporate clients? • Have an understanding of the requirements of Small and Medium Enterprises when it comes to banking context? Nice to Haves Work with agile methodology Work Location Dorset House, 27-45 Stamford St, London SE1 9NN, UK as well as at various bank sites or even at supplier premises. Working Arrangments Mostly on site of HMRC offices as well as occasionally at various bank offices. Security Clearance Regular government clearance. No. of Suppliers to Evaluate 5 Proposal Criteria • Technical competence • Technical solution • Team structure • Value for money Cultural Fit Criteria • Work as a team with HMRC and the banking community • Have a strong reputation for trust and transparency Payment Approach Capped time and materials Evaluation Weighting Technical competence 70% Cultural fit 10% Price 20% Questions from Suppliers 1. 1) Are there any specific COTs application packages or technologies that HMRC wish to ensure it can integrate with? No. At this stage it is an open discussion to get engagement of banks so that they can integrate to HMRC APIs. Read about HMRC API Developer Hub here https://developer.service.hmrc.gov.uk/api-documentation.We are particular looking for companies that can design and build a Most Viable Product to take to banks for which they will need web/mobile knowledge as well as accountancy knowledge. The supplier should have contacts with banks at a senior level so that we can pitch the product to banks and get them on board for the next stage of the project. We are open to technologies being used. 2. 2) When HMRC requests suppliers to complete the skills, experience and evidence document, does the Authority intend to request suppliers to provide evidence for the specific people who will be doing the work or organisational capability? We would like to see organisational capability and to some extent who will be doing the work. For instance as we are looking for some accountancy expertise we would like someone that has tax experience on their CV so they can guide us from a tax point of view. We would like to see a sample of an accountancy/tax expert and a technical expert. You can also state that your firm has done work with X, Y and Z banks and have good connections there. 3. 3) Please can we confirm the expected word count for the essential and nice-to-have skills and experience response? A) There is no set word count but ideally should be less than 750 words per section. 4. 4) Is there any further information available at this stage, or will there be any further information provided to shortlisted suppliers at the next stage of the procurement? A) No further information at this stage but shortlisted suppliers may be requested for more information or further evidence. 5. 5) What is the expected timeline for this procurement? A) We hope to have selected a supplier by 10th Jan 2017 and begin work no later than 20th Jan 2017. 6. 6) Would you consider an agency able to offer this remotely? A) No. We would like the work to be in our offices in London or at banks sites. As this project will require the team to get more buy-in from HMRC as well as banks. So it will require work from HMRC’s offices in Southwark, London. 7. 7) Is there a supplier call where potential suppliers can find out more information? No 8. Do you have an example of the likely response template if we were to get to down to the next stage? No 9. Do you have a high level timeline for the next stages of the procurement so we can line up resources as needed over the Christmas / New Year period? We will try and determine the winner by 10th Jan, 2017 and aim to begin the work by 20th Jan, 2017 or earlier if possible 10. Please can you reconfirm our understanding of the scope of the requirement. At this stage, you are looking to develop initial business requirements and build the need and business case for an API or you are looking to develop functional and technical requirements for the API with a view build the API as an immediate next phase. We are looking to develop the initial business requirements and build the need and business case for the API. We would build the actual API in the next phase but in this phase we will need to establish the need for the APIs. 11. What skillset are you looking for in the resources, is it more domain oriented with specific tax advisory specialisation or is it more technical in nature with a focus on Digital/ API/ Integration etc. We are looking for a mix of the two. We would like someone on the team with domain oriented tax expertise so we can be assured that the solution works from a tax/accounting perspective as well as digital experts to help us develop and communicate the MVP to banks. 12. Is there any specific security clearance constrain for this requirement No 13. Will the early market engagement (idea & feasibility) described in the ‘Banking API Consultancy Requirements 2016/17’ be made available to the supplier applicants during this application phase, or only to the successfully selected supplier? It will be made available to the successful selected supplier. 14. Please may the Authority share the template in which suppliers need to respond to? There is no standard template in which to submit your response 15. What are the specific desired outputs of this 8 week phase? Prototype of what solutions could look like for the banks, workshops and commitments from banks that they will invest in developing and testing the solutions with their customers, an established need for this solution. 16. Are there other stakeholders that need to be engaged, other than the Banks e.g. Software Providers or SME Consumers? We will need to briefly investigate the impact on the software providers. 17. Do HMRC have any comments on the potential sensitivity behind bank records provided through the SME API solution revealing potential tax irregularities of customers? We can work on the details through this discovery phase. 18. Do you expect this opportunity to fall under the proposed changes to off payroll working within the Public Sector, and will you be deducting tax at source? https://www.gov.uk/government/consultations/off-payroll-working-in-the-public-sector-reform-of-the-intermediaries-legislation 19. Do you expect this opportunity to fall under the proposed changes to off payroll working within the Public Sector, and will you be deducting tax at source? This is just an initial phase of the project. We do not intend to deduct tax at source but simply help our customers calculate, view and submit their tax liabilities in a simpler manner 20. i, The Banking API Consultancy Requirements ("the requirements") refers to calculating and paying tax in respect of bank account customers. It is clear from the requirements that there is specific focus on small enterprises. Is consideration also to be given to individual taxpayers and larger businesses? We may look at Self Assessment for individual taxpayers but will not likely focus on larger businesses at this stage. Our initial hypothesis is to focus on VAT as this may have the highest need and easiest to begin with. 21. option that you expect to be considered as part of this analysis? In considering how tax should be calculated via the taxpayer's bank account is engagement with third party tax software vendors an option that you expect to be considered as part of this analysis? Yes – we can consider it. This is a discovery phase so all options are open. 22. Does the analysis required extend to considering how the data exchanged via the API will connect to HMRC systems for real time analysis/population of digital tax accounts?We may look at Self Assessment for individual taxpayers but will not likely focus on larger businesses at this stage. Our initial hypothesis is to focus on VAT as this may have the highest need and easiest to begin with Yes it does.Yes, we would like to extend to considering how data exchanged via the API. 23. We assume that the standard call off agreement terms and conditions shall apply. Please can the Authority confirm this? 2. We assume given the scale and the nature of the work that no Parent Company Guarantee shall be required. Please can the Authority confirm this? Yes the standard call off agreement terms and conditions shall apply. No Parent Company Guarantee shall be required. 24. Are responses allowed to have images / graphics as part of the answer and what impact will this have on the word limits? You can add images and it does not have an impact on the word limit. 25. In addition to demonstrating technical competence and relevant experience, are you looking for ideas on possible approaches to the “Problem to be solved”? Do you require one person working with you on a full time basis for the 8 week period? Would you be open to discussing alternative staffing? What key outcomes do you hope to achieve by the end of the project? Is one of the intentions for banks to calculate VAT and other taxes payable by their customers? Or will the tax calculations be performed in HMRC’s digital accounts and the results downloaded to customers’ bank accounts? Yes – ideas and possible approaches are welcomed. We are open to fulltime or parttime basis but if the budget allows you than full time would be preferred. Yes we are open to discussing alternative staffing. Key outcome is to get commitment from banks that integration with HMRC is something they would like to do and that this idea is also feasible and beneficial for HMRC customers. 26. Answer Continued from above Q Yes one the intentions is for banks to calculate VAT and other taxes. We are open to the idea to perform tax calculation at HMRC digital accounts and this recommendation will be a part of the discovery work. 27. Is there any baseline regarding the security that such APIs will require? No there is no baseline and we will design the high level security aspects in the discovery phase. 28. Do you foresee the User Journey developed to include the security mechanism? Yes – we will consider the security implications. 29. In developing our thought leadership for the Financial Services sector, we have developed material and assets exploring such close interaction between Banks and Tax Authorities, how can such thinking be used to accelerate this project? It will be up to the supplier to suggest ways in which we can accelerate the project with their thought leadership. We are working in an agile manner and the supplier can add a lot of ideas and values on what they think would be best to serve the British people. 30. Would the MVP you describe include any security? Yes – it should consider the security implications of the solution. This may be at a high level at this stage. 31. From our experience of working in the Financial Sector, such value-added services are welcomed. Could the target segments also include sole traders? Yes – it can include sole traders. 32. Do you see the team made-up from a permanent core set of individuals by HMRC and the suppliers and pulling in expertise as required We have limited HMRC team allocated to this at the moment so it will mostly be made up of supplier. The next phase may get more allocation of HMRC staff. 33. Would the MVP you describe include any data? Yes – ideally we would have some data going through the MVP so that it makes the solution more tangible for the banks.