Management-related services

Tender description

Following an earlier PIN published by MOD on 20.11.2014 (2014/S 226-399411) relating to soft market testing in respect of Defence Business Services (DBS), MOD is now considering a newly formulated alternative option, termed the ‘Corporate Service Integration and Innovation Provider’ (CSIIP), whereby a contractor would be appointed to manage, transform and integrate a number of services provided by DBS and other internal and external service providers. The MOD is therefore issuing this PIN both to update the Market in respect of its potential plans for the future of DBS and to seek the market's views on the CSIIP option (through ‘soft market testing’). The DBS organisation within MOD was established on 4.7.2011 by bringing together the Finance, Civilian HR, Vetting and some Knowledge and Information (K&I) services into a single shared service organisation, creating a centre of ‘shared service’ expertise. Subsequently, the Service Personnel and Veterans' Agency (SPVA), which provides support services to Armed Forces personnel and Veterans, was brought into the DBS organisation in April 2014. A Management Partner was appointed to operate and transform the DBS organisation while, at the same time, making significant savings; contract CTLBC/1580 Defence Business Services Management Contract was placed on 14.3.2012 and will complete on 18.4.2016. DBS's 2 700 staff deliver a range of Business Services within an operations budget in excess of 170 000 000 GBP making it 1 of the largest shared service operations in Europe. Previous Market Engagement: Following previous market testing undertaken in 2015 (notified through the previous PIN referred to above), MOD has considered in more detail the options for DBS service delivery post-expiry of the current DBS Management Contract and has concluded that a full outsource of DBS as a single contract before 2018 may not represent best value for money and that a better solution might be achieved through an alternative commercial model — a ‘CSIIP’. MOD now wishes to informally explore the potential of this model with the Market more generally before proceeding with any formal competitive contract action. MOD is not currently contemplating an equity ‘Joint Venture’ arrangement (or similar) with 1 or more partners for the CSIIP. Programme Time Scales: Although subject to ongoing work, including internal approval processes, MOD aims to refine and confirm the CSIIP option through this market testing activity, then presuming the decision is taken to proceed with the CSIIP option, issue a Defence Contract Notice in the OJEU to initiate a competitive procedure in summer 2016, an Invitation to Negotiate (ITN) in late summer 2016 anticipating a contract award in summer 2017. Soft Market Testing: The CSIIP model has been specifically developed to deliver MOD's strategic goals within Departmental constraints and structurally is closely related to both the Global Business Services (GBS) model adopted by a number of private sector organisations, many of whom have a similarly mixed in-house and outsourced economy for delivery of shared services and a Service Integration and Management (‘SIAM’) function commonly used in IT outsourcing, both of which may be models which the market is familiar with. The approach has been chosen as it has the potential to offer greater flexibility and agility in service delivery by enabling the incremental introduction of new services into DBS, and the potential outsourcing of current and new services on a service-by-service basis through further discrete contract action(s) in the future. The CSIIP entity itself, which MOD is intending to procure, is intended to deliver the following requirements: — Delivery of the management, continuous improvement and integration of services provided by multiple providers, both external and in-house, into an end-to-end user capability; — Provision of an enduring transformation capability that can take on and transform additional services, alongside existing services; — Provision of the ability to look across the Department and identify services suitable for transformation; — The delivery of a number of shared service technology platforms including a multi-channel contact capability, an integrated MI capability and a service management and reporting capability; — Provision of flexibility to take on additional services as the Department develops confidence in delivery. To achieve this, MOD anticipates that the CSIIP entity will (inter alia) deliver the following broad functions in respect of Departmental corporate services: — Executive management and oversight of DBS operations; — Delivery of certain service operations (including, for example, customer services, service management and service integration); — Service change and transformation (including, for example, on boarding of new customers and services); — Business relationship management with business units across MOD and other customers across Government. It should be noted that the day-to-day delivery of services to customers and users will in general be undertaken by third parties (or on an in-house basis in DBS/MOD), distinct from the CSIIP provider, although the CSIIP provider will be contracted to be accountable for their delivery on an integrated and coherent basis through appropriate contract oversight and management action. The CSIIP will also be contracted to identify and manage transformation opportunities within the entire DBS scope, as well as seeking out broader efficiency opportunities, progressively delivering savings to MOD whilst ensuring effective service delivery and continuous improvement throughout. Owing to this key role in the management and coordination of service delivery, it is considered likely that the CSIIP provider will not be permitted to bid for contracts for direct service delivery within the DBS construct. Through market testing, MOD wishes to explore in detail the prospective role for the private sector, test the commercial principles being considered and understand likely interest from industry in any subsequent competition centred on the CSIIP option. MOD is therefore primarily interested now in seeking views from organisations that may have an interest in the provision of the CSIIP capability and is particularly interested in seeking views from organisations with prior expertise and experience in a role where they have been required to manage and integrate a portfolio of service providers, such as might be the case for a SIAM provider or an entity providing Global Business Services to industry customers. MOD would also be interested to hear from organisations that may have innovative approaches or technology that could be applied to this role. Furthermore, MOD is interested in understanding the views of Small or Medium Enterprise-sized providers who may have a future role in DBS and their input to this market testing is encouraged. All parties who express an interest in participating in market testing will be issued with an information pack that will provide further details about the CSIIP role, the specific CSIIP requirement and specific aspects of the model upon which MOD wishes to focus during the market testing. MOD anticipates being able to issue this information pack to parties who respond to this PIN by the end of February 2016. Recipients of this information will be asked to provide specific information to MOD about themselves and their interest in the CSIIP role (the information pack will provide full details) and whether they would wish to be considered for participation through bilateral discussion or wish to prepare some written thoughts for the consideration of MOD. MOD anticipates that suppliers participating in this market test may do so through: — Bilateral discussions with MOD; — Providing written responses in accordance with the guidance provided in the information pack; — Participating in Q&A process. It is recognised that the number of organisations responding to this PIN may be high with significant interest in attending a bilateral discussion. MOD would hope to have a bilateral discussion (if requested) with all those suppliers who declare a likely interest in tendering directly to MOD in any future competition to appoint a CSIIP. However, if the number of suppliers with such an interest is so high as to be unmanageable (envisaged to be no more than 10-12), MOD may: (a) Hold 1 or more plenary sessions; and/or (b) Hold discussions with a supplier who is representative of a common approach or issue, such a representative being selected at the MOD's discretion on the basis of the criteria detailed below; and/or (c) Hold shorter bilaterals or written/telephone communications on specific and company-sensitive declared issues. A record of the sessions under a) and b) above will be available to all suppliers responding to this PIN on a non-attributable basis through the promulgation of the summary report detailed below. In the event that MOD selects a representative sample of suppliers (in accordance with (b) above), such a sample will be selected which in MOD's view together demonstrate a sufficient depth of knowledge and experience and provide a balanced cross-section of the potential market. In making the selection of that sample MOD will consider, using its professional skill and judgement, the following: — Size of enterprise, so as not to exclude SMEs solely in favour of larger companies; — Industry sector, so as to balance the range of parties potentially interested in the CSIIP requirement; — Defence background, to enable reflection of the differing challenges and considerations likely to be experienced through contracting defence related organisations and other service delivery specialists; — Scope of interest against the core aspects of the CSIIP requirement as explained in the information document; — The quality of the responses to the information requested in the information document. Although at this stage MOD is primarily interested in suppliers who wish to fulfil the CSIIP role, if there is sufficient interest, MOD would consider holding a plenary session for suppliers whose interest would be as a sub-contractor in any tier of the supply chain. For the avoidance of doubt, failure to be invited to participate in bilateral discussions (if such circumstances arise), or in the market testing process in any capacity, will not preclude any organisation from submitting a tender in any future competition and no prospective bidder will be disadvantaged by non-participation in this market testing process. During the market testing process, all parties who have expressed an interest in participating, whether or not they are selected to participate in the bilateral discussions, may, having read the information pack, send to the point of contact any thoughts or observations they have in the light of the information pack, which MOD will consider. Furthermore, if any party has particular questions, they can be directed to the point of contact and MOD will strive to respond to them, although this will be on the basis that the question(s) and answer(s) will be shared with all interested parties and therefore anything commercially sensitive in nature should be avoided. Following the completion of the market testing process, MOD will promulgate a summary report providing details of the discussions held (but not including any information which is commercially sensitive in nature) to all suppliers responding to this PIN, on a non-attributable basis and intends to publish to all respondents the full list of organisations who respond to this PIN. Confidentiality: It is considered likely that parties who go on to participate in the bilateral discussions will be required enter into non-disclosure undertakings with MOD. Failure to enter into an acceptable Non-Disclosure Agreement (NDA) with MOD will preclude participation in the bilateral discussion element of the market testing process. Process Summary: For the avoidance of doubt, the market testing process to be taken forward following this PIN is as follows: — Parties who are interested in participating in market testing in accordance with this PIN should contact MOD through the identified point of contact by no later than 29.2.2016; — All such interested parties receive an information pack providing further, more detailed information, and explaining what MOD would like to receive from the interested party — this should be despatched to respondents by 29.2.2016; — Each interested party provides information to MOD having seen the information pack (full instructions for this will be included in the information pack although information will be requested to be with MOD no later than 7.3.2016); — In the event that interest in bilateral discussions with MOD is unmanageably high, MOD will consider the approaches detailed at a), b) and c) above; — Discussions are undertaken. It is currently anticipated that such discussions will take place in the 1st half of April 2016; — We anticipate that the market engagement process, including Q&A outside of the bilateral discussions, will conclude no later than 30.4.2016. Point of Contact: Interested parties should respond to this PIN by e-mail, no later than 29.2.2016 to: CSTT-FDBSProcurementTeam@mod.uk including the reference ‘MOD CSTT CSIIP Market Testing’. Disclaimer: In issuing this PIN and engaging with the market, MOD is not committing to carry out any procurement in relation to the requirements stated in this PIN. As stated above, MOD reserves the right to select an appropriately representative sample of interested parties from those who respond to this PIN, with whom to conduct the market testing exercise. Non-participation in this soft market testing exercise will not be taken into account in any future procurement. With reference to 1.4) above, MOD does not envisage purchasing on behalf of other contracting authorities but nevertheless reserves the right to do so. MOD will not be liable to reimburse any costs incurred by any parties who respond to this PIN.