The Scottish Government

SCOTTISH gOVERNMENT

Scottish Procurement Directorate

GUIDANCE FOR USING THE FRAMEWORK FOR IT SERVICES SCOTLAND 3 (FITSS3) -

CONTENTS

Subject Page

1. Introduction

2. Definition of Multimedia, Web Design & Development Services

3. Why establish a Framework?

4. The Suppliers

5. Commercial Terms

6. Terms and Conditions

7. Seeking Bids

8. Bid Evaluation

Supplier Contacts

Grading Definitions

Contract Travel and Subsistence Rates (Jan 04)

Guidance Notes on Terms and Conditions

Covering Letter for use when Trading

Request for Technical Proposals Schedule

Price Schedule

Letter to Establish Interest in Tendering

1 - Introduction

A framework is in place for the Provision of Multimedia, Web Design & Development Services to the Scottish Executive. It can be used by other Scottish Contracting Authorities. The framework commenced on 1st February 2005 and will run for 3 years. Additionally, there is the option of extending the contract for a further 12 months.

2 - Definition of Multimedia, Web Design & Development Services

Includes all stages of the website development through analysis, design, development, testing, implementation, audit and evaluation, and ongoing support to the systems.

3 - Why establish a Framework?

- The framework has been established for a number of reasons, including:

- To add to your choice of procurement routes.

- Increased efficiency of the procurement process - the time period from project initiation to contract award will be reduced, for example by not having to advertise the requirement in the Official Journal of European Union if the requirement is above the threshold. That said, it should be made clear that a "sensible" amount of time must be provided to allow tenderers to respond to requirements. This will vary with the size and complexity of the requirement. A guide is 3 to 5 weeks, however, urgent requirements can be dealt with quicker.

- Reduced resource effort to complete the procurement since certain aspects of a tenderers background, e.g. financial stability have been assessed in advance. The Scottish Government will arrange for the companies' financial position to be regularly assessed.

- The procurement process should as a result be less costly for framework users and suppliers alike.

- Common terms and conditions - customers and suppliers need only become familiar with one set and the need to renegotiate and/or redraft for each procurement is reduced significantly or removed altogether. Variations on an order by order basis are only permissible where there are specific difficulties in relation to Intellectual Property Rights concerning third party software.

4 - The Suppliers

7 companies have been appointed to the framework. These are as follows:

- DELL CORPORATION

- LOGICA CMG UK LTD

- METHODS CONSULTING

- SOPRA GROUP

- REAL TIME ENGINEERING

- SIFT GROUP LTD

- XANSA UK LTD

Contact details are provided in Appendix 1.

5 - Commercial Terms

As well as demonstrating their capabilities in the area of providing Multimedia, Web Design & Development Services, tenderers submitted fixed daily rates (excluding vat) for different grades of personnel. For the purposes of the framework, a day consists of a minimum of 7.5 hours of productive work, excluding time for meals and travel to the normal place of work.

This daily rate information will allow you to estimate budgets for individual projects. The various grades and descriptors are set out in Appendix 2 and details of the fixed rates are available from Robert Pullar, Scottish Procurement Directorate (SPD) on 0131 244 8198 or alternatively by email at Robert.Pullar@scotland.gsi.gov.uk. These rates are Commercial in Confidence and must not be shared with external parties, unless by specific agreement with the Scottish Executive.

The daily rate includes Travel and Subsistence expenses for work to be done in Edinburgh or Glasgow in their day rates. For work carried out outwith these areas, Travel and Subsistence expenses are restricted to ruling rates as set out in Appendix 3

6 - Terms and Conditions

One uniform set of Terms and Conditions has been agreed with all of the contractors on the framework. These are available on request.

Important notes:

(1) While the intention is that the standard set of terms and conditions agreed will suit most circumstances, depending on the nature of the requirement some of the standard terms, particularly those which define IPR (Clause 7 ) may not be wholly appropriate. This is most likely to be the case where the requirement is identified as having a high risk of failure. You must assess the risks of a project failing or being poorly performed and decide if an amendment to the standard terms and conditions is required for that particular order. This must take place before the ITT is issued and details of any change must be included in the ITT so that all potential tenderers are aware of the change and to ensure that all tenders are submitted on an equal basis. Additionally, there may be cases where an Escrow clause may be required. Details are given at Appendix 4.

(2) You are required to include a statement in the covering letter that makes it clear that the "Customer" is defined as your own organisation or whatever is normally included in your own standard terms and conditions.

7 - Seeking Bids

The basis on which the framework has been established is that each of the suppliers on the framework will normally be asked if they wish to receive an ITT for a specific project. Those who express an interest must be invited to tender.

When awarding call-off contracts under the Framework Contract, there may be circumstances (e.g. where specialist niche skills are required) where one company is likely to offer best value for money from the outset and therefore, the call-off contract can be awarded to that particular company without running a mini-competition. However, users should contact SPD for advice if this could be the case.

Generally however, for the purposes of selecting a contractor, all framework suppliers should be invited to compete in a "mini-competition". The award criteria used for the mini-competition must be the same as the award criteria used to award the Framework Contract. This is not to say that all the criteria needs to be applied, as judgement can be exercised where, for example, it has already been established that there is little to choose from between the framework suppliers in a particular criterion, or where some criteria are not relevant to the particular call-off requirement. However, it should be borne in mind, that it is not permissible under the framework to seek to negotiate changes to terms and conditions which have already been agreed, or to substantially change the remit of the framework (except as detailed under Section 6 above).

All decisions must be based upon objective and fully defensible grounds, which should be recorded for audit purposes.

As is the case with any procurement project, a Specification/Statement of Requirements is required.

An ITT document is required, but this will take a briefer form than the standard ITT. A proposed ITT Covering Letter is provided at Appendix 5.

The ITT will only contain the following:

Covering Letter

Schedule 1 Statement of Requirements

Schedule 2 Request for Technical Proposals

Schedule 3 Price Schedule

The Request for Technical Proposals should include, but not be limited to, details of the tenderers' skills and experience in the provision of the specific requirement and this should include CVs of the proposed key staff and probably contact details for a reference to whom a similar service has been provided. A suggested Request for Technical Proposals schedule is provided at Appendix 6 and a sample Price Schedule at Appendix 7.

The ITT will not need to ask for financial information (e.g. audited accounts), details of business probity, Form of Tender as this information has already been obtained.

As a precursor to issuing the ITT, each of the suppliers on the framework should be contacted to establish their interest in tendering for the work, unless there are exceptional circumstances. A template letter is provided at Appendix 8. However a telephone call would suffice if time is an issue.

Subsequently, the ITT must be issued to all suppliers who have expressed an interest in receiving it. This is important. The terms of the framework agreement dictate that all suppliers appointed to the framework will normally be given the opportunity to tender for work which they are interested in. There is no guarantee of winning any work, but the opportunity should be provided to all, unless there are compelling value for money reasons to the contrary.

This general approach is designed to ensure continuing and developing competition amongst the successful suppliers. The framework is not normally to be used to simply select a supplier for the work without competing the requirement, unless this demonstrably offers best value for money and is a fully defensible course of action.

8 - Bid Evaluation

Evaluation criteria will need to be developed because every requirement is unique.

We suggest that, for those contractors submitting bids and that are subsequently shortlisted, you allow them to make presentations of their proposals in person. This allows opportunity to clarify issues raised in your assessment and meet those responsible for delivery.

Criteria for the presentation should be drawn up for evaluation. It is essential that the presentations are scored against this pre-determined evaluation criteria.

APPENDIX 1

SUPPLIER CONTACTS

APPENDIX 2

GRADING DEFINITIONS

APPENDIX 3

CONTRACT TRAVEL AND SUBSISTENCE RATES (Jan 04)

APPENDIX 4

GUIDANCE NOTES ON TERMS AND CONDITIONS

Section 1. DEFINITIONS

"Authority" is defined as the Scottish Ministers.

Where the contract is to be awarded by an Executive Agency, Non-Departmental Public Body or other Contracting Authority, the tenderer must establish for themselves whether it is appropriate to contract as the Scottish Ministers or whether their own Agency/NDPB/Contracting Authority name should be substituted. If the latter, then this must be set out clearly in the ITT Covering Letter.

"Purchase Order" is defined as the document setting out the Customers requirements for the Contract.

Within the Executive, contracts are normally awarded using a standard Contract Award Letter. This is the document where the Customer requirements for the contract are clearly set out and all communications that have passed between the two parties in order to reach agreement are referenced.

Whatever the format of the Purchase Order, an awarding body must issue documentation that describes the final requirements of the contract in an appropriate amount of detail. It is probably not adequate just to refer to the Invitation to Tender since the final terms may be different from those set out therein. As a minimum the Purchase Order should refer to:

1. "This Purchase Order is issued in accordance with the terms of the Framework for IT Services Scotland 3 QLJ 7/22 / Case 1336 as amended by our Invitation to Tender reference <variable> (if amended)."

2. "The Services to be provided are all as per your tender, reference <variable>, dated <variable> (plus any further variations agreed thereafter which should be set out in the Purchase Order)."

Clause 7 - INTELLECTUAL PROPERTY RIGHTS

Generally, under this Framework all Intellectual Property Rights in any specially written software will vest with the Contracting Authority. Where third Party software forms part of the solution, as the default position, Contractors are required to grant the Contracting Authority a non exclusive perpetual royalty free licence to use the third party software. Where this is impossible (due to a third parties unwillingness to grant this to the Contractor), then this must be made clear in that Contractors tender response for that specific piece of work. This can then be taken into account during the evaluation process.

ESCROW

The term Escrow can be defined as "the holding on deposit by a third party of confidential material on certain terms as to its release or control and use". In software terms it is generally the source code which is placed in Escrow. There is no specific provision for Escrow as under Intellectual Property Rights in FITSS3, we have made the stipulation below, which affords adequate protection in general.

7.3 The CONTRACTOR shall supply the AUTHORITY with a copy of the Source Code of any Specially Written Software upon acceptance of the relevant element of the Specially Written Software pursuant to Clause 6.

However, notwithstanding the above, there may be occasions where an Escrow agreement is desirable, e.g. during a long term development where there are large time delays between defined deliverables or phases. There is annual charge made by the firm for maintaining an Escrow arrangement. An example of a firm which specialises in Escrow agreements is the NCC Group. A link is attached for your information.

http://www.nccglobal.com/escrow/index.htm

This information is provided for general guidance only and framework users must satisfy themselves whether the existing terms and conditions are sufficient or whether an Escrow arrangement is necessary.

APPENDIX 5

COVERING LETTER FOR USE WHEN TENDERING USING FRAMEWORK FOR IT SERVICES SCOTLAND 3 QLJ 7/22 / Case 1336

«Salutation»

1. You are hereby invited by <insert name of Contracting Authority> to tender for the provision of <variable>.

2. Your tender must be in accordance with the terms of the contract awarded to you to appoint you the Framework for IT Services Scotland QLJ 7/22 / Case 1336. [For Contracting Authorities, other than the Scottish Executive, the following should be added. "Please note that on this occasion the "Customer" as defined in the terms and conditions for that framework will be <insert name of Contracting Authority>"].

3. <variable> copies of your tender should now arrive not later than <time> on <date>. It is the responsibility of all Tenderers to ensure that their tender is delivered not later then the appointed time. The Contracting Authority may not consider tenders after that time.

Tenders should be addressed to:

<insert details of Contracting Authority>

4. The <Contracting Authority> are not bound to accept the lowest priced or any tender. Any tender that does not accord with all the requirements of this Invitation to Tender may not be considered.

5. Clarification requested before the tender return date which has a material effect on the understanding of the requirement will be anonymised and, time allowing, will be shared with all tenderers. Enquiries regarding the Invitation to Tender should be addressed to the undersigned <or variable> and fax or email is preferred.

6. Please acknowledge receipt of this Invitation to Tender and its accompanying documents confirming, by faxing or emailing the undersigned, your intention to submit a tender or not. If it is not your intention to submit a tender then please return the enclosed documents to this office and indicate your reason for not tendering on this occasion.

7. The declaration included with this letter must be completed and submitted along with your tender.

8. Tender evaluation criteria will include emphasis on quality as well as price. Each tender will be subject to a Technical and Financial Analysis. The aim of the analysis is to select the most economically advantageous tender(s) which represent(s) the best long term value for money. To achieve this a tender rating system will be used which will cover the following aspects:

8.1 the technical merit of the proposal and ability of the tenderer to successfully provide the requirement;

8.2 the quality and relevance of similar work done by the tenderer previously;

8.3 the quality of proposed staff - their skills and experience;

8.4 price.

Yours sincerely,

<insert name of sender>

DECLARATION

1. I confirm that the tender submitted for this project <title and ITT reference> will be governed by the terms of the contract awarded to my company under the Framework for IT Services Scotland 3 QLJ 7/22 / Case 1336.

2. In particular:

(i) I confirm that the terms and conditions of the framework (reference FITSS3 QLJ 7/22 / Case 1336) <as amended by this Invitation to Tender> shall apply to our tender and any resulting contract; and

(ii) I confirm that this tender is a Bona Fide Competitive Tender as defined under framework QLJ 7/22 / Case 1336.

Signature _________________________ Capitals ______________________

Position __________________________ Date ________________________

REQUEST FOR TECHNICAL PROPOSALS

The information provided by tenderers in response to this schedule will form an integral part of the overall evaluation.

1. Tenderers must provide a Method Statement detailing how they intend to deliver the services required, addressing the following:

- An understanding of the main issues to be addressed.

- An outline of how you propose to undertake the work.

- A response to each mandatory and desirable requirement including methods for meeting the objectives set out in the Specification/Statement of Requirements.

Quality of Service - Please describe the standards that will apply to the services to be provided.

2. Please provide CVs for key staff who will work on this project.

N.B. All CVs should contain the following information:

- Name

- Full employment history

- Relevant projects from the last 3 years, with details of the individual's role

2.1 CVs should be tailored to show only the information and experience that is pertinent to the requirement of this invitation to tender. Areas where you believe that individuals are particularly qualified and experienced to deliver the service should be highlighted. Each CV must not exceed 3 sides of A4 paper.

3. Relevant previous experience (references) - please provide information about the relevant projects which you will have referenced in your CVs, showing for each project:

- The client (including a named contact, address, telephone and facsimile number)

- The nature of the work carried out

- The value of the contract

- Numbers of staff employed on the contract

- The relevance of this experience to the Scottish Executive's requirement

We may take up references so you should ensure that any contact given is prepared to respond to a request.

4. Please provide a project plan, including resource schedule, broken down by grade, against each deliverable, setting out all anticipated milestones and dependencies. The plan must be provided in a recognised project management format e.g. MS Project.

5. Constraints - please detail any constraints which you perceive may impinge on your ability to provide a satisfactory service or to provide the deliverables on time.

APPENDIX 7

PRICE SCHEDULE

Fixed Price Contract - Sample

The price schedule should give sufficient breakdown of all the constituent parts of the deliverables under any given contract.

Daily Rates - Time and Materials Contract - Sample

Tenderers are required to submit their fixed day rates for this project for the different grades of personnel as defined in the Framework for IT Services Scotland 3 . This information must be provided by completing the table below.

These rates must remain fixed as per the FITSS3 terms and conditions of contract. Travel and subsistence costs for work done in Edinburgh and Glasgow must be included in the tendered rates

Grade Daily Rate (£) ex VAT

APPENDIX 8

LETTER TO ESTABLISH INTEREST IN TENDERING

«Salutation»

A requirement has arisen which <may/will> be tendered under the Framework for IT Services Scotland 3 - QLJ 7/22 / Case 1336.

A high level summary of the requirement is given below and you are asked to indicate whether or not you wish to receive the Invitation to Tender for this piece of work.

To make the process as quick as possible, an e-mail response will be acceptable and I would be grateful if you could get back to me by <variable> since it is our intention to issue the ITT shortly.

Summary Requirement

<variable>

Estimated Timetable

<variable>

Location of work

<variable>

To allow the project to proceed to the estimated timetable, we will on this occasion be requiring you to provide a tender response within <variable> days/weeks of the date the Invitation to Tender is issued. Please take this into account when deciding if you wish to receive the Invitation to Tender.

Yours sincerely,

<insert name of sender>