1. IT Industry Briefing Pricing Customs IT Market Testing Jo Hein, National Manager IT Market Testing, Australian Customs Service
2.
3.
4.
5. The purpose of this pricing briefing is to provide an overview of the Pricing requirements. Briefing Purpose
6. IT Industry Briefing Pricing Customs IT Market Testing Carolyn Beake - Financial Team Leader
7.
8.
9.
10.
11.
12.
13. Pass Through Expenses Pass-Through Expenses means any cost or expense, related to the Services, but does not include any overhead, allocation of overhead, administrative overhead or specific management fees, margin, or other mark-up by the Service Provider or its Subcontractors. General Pricing Requirements
14.
15. Retained Expenses Retained Expense means a charge that is to be managed and paid directly by Customs General Pricing Requirements
Murray Harrison, Customs Chief Information Officer Jo Hein, National Manager, IT Market Testing Carolyn Beake, Financial Team Leader Slide show presentation Handout, Question Sheet Question Process – complete sheet and tear off questions, hand to end of row when Alicia and Sue go up and down aisle. Murray and Jo will answer you. Video taping session. Will be on Customs website in the next week or so.
Murray Harrison, Customs Chief Information Officer Jo Hein, National Manager, IT Market Testing Carolyn Beake, Financial Team Leader Slide show presentation Handout and Question Sheet Question Process – complete sheet and tear off questions, hand to end of row when Alicia and Sue go up and down aisle. Murray and Jo will answer you. Video taping session. Will be on Customs website in the next week or so.
This presentation does not cover the requirements for Multiple and Alternative Tender responses – these have been covered in the other briefings
For each of the four RFTs, there is a word document (Schedule 4) and an excel document (Pricing tables) Some of the content of these documents is common and some content is tender specific Schedule 4 has numerous references to the relevant Services Requirements document, as well as references to the Current Environment document, Services Agreement and Data Room. It is important that these documents be consulted as well as the RFT as a whole, prior to completing the pricing tables.
Tenderer’s must submit a Complete pricing proposal which covers the bundle requirements of Schedule 1 (Services Agreement), Schedule 2 (Service Requirements), Schedule 3 (Performance Requirements) & Schedule 5 (Customs Multi Party Arrangements) All pricing must be provided in Australian dollars , Tenderer’s are required to assume risk of any currency fluctuations Pricing in the worksheets is required to be GST exclusive , with a single figure for GST to be provided in the summary sheet Pricing in the worksheets is required to be exclusive of inflation . A separate sheet has been provided for annual pricing adjustments. Customs will sponsor security clearances for all initial personnel approved by Customs for Transition and for delivery of the Services following Transition, but will only fund a 10% change in the base number of personnel each year.
In line with the IT Management Principles stated in the RFT, Customs is requesting pricing which will provide it with transparency and value for money The split of the components has been created to enable Tenderers to match their pricing to the underlying cost drivers. Price points have been requested for Hardware, Software and Support and Maintenace Each price point is referenced to a clause/number of clauses in the Bundle Service requirements. Tenderer’s are required to provide details of their costing methodology including any cost drivers and assumptions which they have relied on.
The Tenderer is required to specify Base Services Base Services Charges consist of: Service Charges; Pass Through Expenses; and Retained Expenses.
The pricing proposal submitted must take into account a variance in the current environment, current volumes, specifications and infrastructure of + 10%. Details of the current environment are provided in the Current Environment document included within the RFT and in the information contained in the Data Room. Customs has taken this approach so that significant changes in the environment will trigger discussions between Customs and The Service Provider, rather than there being an automatic change in the pricing.
Service Charges have been defined in the Glossary as: the charges paid or payable to the Service Provider by Customs in accordance with Schedule 4 – Pricing Requirements; or, in the case of Services provided by a Panellist for RFT 2, means the charges paid or payable to the Panellist by Customs under an approved Work Order.
Pass-Through Expenses means any cost or expense, related to the Services, but does not include any overhead, allocation of overhead, administrative overhead or specific management fees, margin, or other mark-up by the Service Provider or its Subcontractors.
Each category of pricing in each worksheet has a “Pass Through” table. Where this table is used, sufficient descriptions and assumptions must be provided
Retained expense means a charge that is to be managed and paid directly by Customs
Each category of pricing in each worksheet has a “Retained Expenses” table. Where this table is used, sufficient descriptions and assumptions must be provided
There are a number of areas which are common to all Pricing Tables (including Applications, Management and Support). These are: Assumptions Labour Rates; and Annual Pricing Adjustments
There are also a number of areas which common to Main Processing, Internet and Secure Gateway and Voice Infrastructure Pricing Tables. These areas are not included in the Applications, Management and Support RFT due to it being a panel arrangement. These are: Financial Summary Transition Accommodation and Equipment Cost Allocation Matrix Termination for Convenience Guarantees and Unconditional Financial Undertakings
Two types of assumptions tables have been provided: General assumptions which are relevant to the entire pricing proposal Specific assumptions which are relevant to the particular worksheet Tenderers must state all assumptions which affect pricing in either the general or specific assumptions tables.
Hourly and Daily Labour Rates have been requested. Where more than eight hours are worked on any business day, daily rates will apply. Short Term – requirement < 30 days Long Term – requirement => 30 days Customs will base the price of resources required for projects on these rates
Tenderers to specify the resource categories for which they are providing rates Tenderers are required to provide Expert, Senior and Junior rates for each of the resource categories specified
The Tenderer must complete Pricing Table APA-2 in the Annual Pricing Adjustment Worksheet by applying its selected inflation adjustment algorithms and indices to the annual Total Service Charges and: provide the nominated indices for the most recent twelve consecutive quarters; provide exact and specific citations of the nominated indices; and include sufficient detail to allow complete verification of all relevant calculations. An Annual Pricing Adjustment will be applied each anniversary of the Final Handover during the term of the Services Agreement. The first adjustment will be applied on the first anniversary of the Final Handover.
Totals for Service Charges, Pass-Through Expenses and Retained Expenses are drawn from the other sheets Tenderers are required to enter Purchase Price for assets to be transferred from Customs – this purchase price amount should be sourced from the data room. Tenderers should refer to clause 5 of the RFT Body for Customs approach to hardware and software for each RFT. Tenderers are required to enter the total amount of GST.
The Tenderer must provide pricing for Transition in the Transition worksheet The Tenderer’s proposed pricing must be based on the Tenderer’s submitted draft Transition Plan for the relevant bundle The Tenderer must provide a breakdown of pricing and must propose a payment schedule that is linked to milestones as described in the draft Transition Plan.
The Tenderer must provide details of Accommodation and Equipment required to be located at the Customs premises for Personnel and Equipment
The Tenderer must specify the proposed Customs equipment required by the Tenderer’s staff at each Customs site Customs will provide only standard furnishings (eg desks, chairs, file cabinets and similar items) of the same quality and number that it normally provides to its own office staff. The Service Provider must provide all specialised Equipment needed to deliver the Services.
Cost Allocation Matrix once completed will provide: Identification of who will bear the costs incurred or associated with the services provided Confirm who assumes responsibility for the component Confirm that there are no additional surcharges
The Tenderer must propose a schedule of capped payments for maximum unavoidable losses in the event that Customs terminates the Services Agreement for convenience, and explain the method by which they were calculated
For the purposes of Evaluation, indicative prices of all guarantees or unconditional financial undertakings must be included in the Pricing Tables The Tenderer must provide a unit rate per million within $5 million ranges for Guarantees or Unconditional Financial Undertakings The Tenderer must describe the costing methodology used to calculate the Guarantees or Unconditional Financial Undertakings
The Tenderer must propose an invoicing process for the recurrent services. The Billing Period for these recurrent services will be based on a payment cycle relating to a calendar month. The timing of submission of invoices with be consistent with the submission of monthly performance reports Invoices must be provided in electronic format Invoices containing charges for services performed more than 90 days previous will not be accepted. General requirements re content are detailed in Attachment A
The next section of this briefing details the bundle specific requirements for each of the four RFTs As already stated, for each of the four RFTs (Main Processing, Applications Maintenance and Support, Voice Infrastructure and Internet and Secure Gateway), there is a word document (Schedule 4) and an excel document (Pricing tables)
Main Processing Bundle In addition to the common worksheets already described, there are nine additional worksheets which reference directly to the Schedule 2 – Main Processing - Service Requirements: Data Centre Services IBM Mainframe Services Optional IBM Mainframe Services Unisys Mainframe Services Unix Midrange Services Windows Midrange Services Storage Services Data Warehouse Services Disaster Recovery Services I will now briefly discuss each of these worksheets
Data Centre Services Pricing has been requested for Data Centre Services on a fixed monthly basis. The price is required to be split between Mainframe, Midrange, Storage and Data Warehouse. Details of square metres allowed for each category has also been requested
IBM Mainframe Services Pricing has been requested for IBM Mainframe Services on a fixed monthly basis. The price is required to be split between Hardware, Software and Support and Maintenance. Details of the licence basis and assumed underlying volumes for Software has also been requested
The Tenderer may provide an optional pricing model for the IBM Mainframe and associated services detailed Schedule 2 – Main Processing – Service Requirements, clause 6. The purpose of this option is to provide the Tenderer with the opportunity to cost the IBM Mainframe Services on a basis other than that requested in clause 6 of this Schedule. Completion of the Optional IBM Mainframe worksheet in the Main Processing Pricing Tables does not exclude the requirement to complete the IBM Mainframe Services worksheets in the Main Processing Pricing Tables. The Tenderer must provide sufficient details to allow Customs to fully understand the Pricing model
Unisys Mainframe Services Pricing has been requested for Unisys Mainframe Services on a fixed monthly basis. Pricing is required for Support and Maintenance.
Unix Midrange Services Pricing has been requested for Unix Midrange Services on a fixed monthly basis. The price is required to be split between Hardware, Software and Support and Maintenance. Details of the licence basis and assumed underlying volumes for Software has also been requested
Windows Midrange Services Pricing has been requested for Windows Midrange Services on a fixed monthly basis. The price is required to be split between Hardware and Support and Maintenance.
Storage Services Pricing has been requested for Storage Services on a fixed monthly basis. The price is required to be split between Hardware, Software and Support and Maintenance by Platform (i.e. Mainframe, Midrange, Data Warehouse). Details of the licence basis and assumed underlying volumes for Software has also been requested
Data Warehouse Services Pricing has been requested for Data Warehouse Services on a fixed monthly basis. The price is required to be split between Hardware, Software and Support and Maintenance. Details of the licence basis and assumed underlying volumes for Software has also been requested
Disaster Recovery Pricing is requested for the six Disaster Recovery Scenarios specified in Schedule 2 - Main Processing - Service Requirements – clause 3.17 Each scenario is required to be priced separately DR Testing Services have been requested on a per test basis
Disaster Recovery Additional Pricing has been requested for Disaster Recovery on a fixed monthly basis. The price is required to be split between Site Service Charge, Hardware, System Software, Support and Maintenance and Execution Services Details of devices, pricing basis, price per unit, and assumed underlying volume for hardware has been requested Details of the licence basis and assumed underlying volumes for Software has also been requested
The Applications Maintenance and Support Pricing Tables are split between: Technology Rates General Rates and Other Rates
Rates have been requested for Expert, Senior and Junior personnel The Tenderer must provide details of any volume discounts that will be offered and the requirements for the discounts to apply in the Volume Discounts Sheet A short term rate is for less than 30 working days. A long term rate is for 30 or more working days. Customs will negotiate a travel allowance based on non SES allowance where the out of scope project or ad hoc requirements is located outside of the ACT.
General rates have been requested where the rate is not subject to variation based on the underlying technology General rates have been requested for the following Services as described in Schedule 2 – Applications Maintenance and Support – Service Requirements Applications Architecture Services Requirements Analysis and Definition Services Quality Assurance and Testing Services Project Management Services
Technology rates have been requested where it is likely that the rate may vary based on the underlying technology General rates have been requested for the Software Maintenance Services as described in Schedule 2 – Applications Maintenance and Support – Service Requirements
Other Rates have been requested for On Call and Call out Services For On Call Rates – Unit Rate and Unit Measure Call Out Rates - % change to the standard rate and unit measure
Voice Infrastructure Bundle In addition to the common worksheets already described, there are seven additional worksheets which reference directly to the Schedule 2 – Voice Infrastructure - Service Requirements: Voice Platform Services Voice Support and Maintenance Services Handset Services Video Conferencing Services Call Centre Services Operator, Directory and Call Accounting Services Other Services and Equipment Tenderers should note that as the proposed initial term is for 18 months, Year 2 is for a period of 6 months only. I will now briefly discuss each of these worksheets
Voice Platform Services Pricing has been requested for Voice Platform Services on a per standard end basis. An evaluation baseline for Standard Ends has been provided The price is required to be split between Hardware and Software.
Voice Support and Maintenance Services Pricing has been requested for Voice Platform Services on a a fixed monthly basis.
Voice Platform Services Pricing has been requested for Handset Services on a per handset basis. An evaulation baseline for handsets has been provided. Handsets have been categorised as: Standard Analogue Standard Digital Standard IP Advanced Digital Advanced IP
Video Conferencing Services Pricing has been requested for Video Conferencing Services on a fixed monthly basis. The price is required to be split between Hardware, Software and Support and Maintenance. Details of the licence basis and assumed underlying volumes for Software has also been requested
Call Centre Services Pricing has been requested for Call Centre Services on a fixed monthly basis. The price is required to be split between Hardware, Software and Support and Maintenance. Details of the licence basis and assumed underlying volumes for Software has also been requested
Operator, Directory and Call Accounting Services Pricing has been requested for Operator, Directory and Call Accounting Services on a fixed monthly basis. The price is required to be split between Hardware, Software and Support and Maintenance. Details of the licence basis and assumed underlying volumes for Software has also been requested
Customs may, from time to time, during the Term of the Services Agreement, require additional or new services Tenderers are requested to provide pricing for Hard Physical Voice MACS, Handset Hardware and Video Conferencing equipment based Tenderers are permitted to include other items it believes to be relevant in this schedule.
Voice Infrastructure Bundle In addition to the common worksheets already described, there are five additional worksheets which reference directly to the Schedule 2 – Internet & Secure Gateway - Service Requirements: Gateway Services Disaster Recovery Corporate Web Hosting Other Gateway Services Other Services and Equipment I will now briefly discuss each of these worksheets
Gateway Services Pricing has been requested for Gateway Services on a fixed monthly basis. The price is required to be split between Hardware, Software, Support and Maintenance and Telecommunication Services Details of bandwidth and price per unit have been requested for Telecommunication Services Details of the licence basis and assumed underlying volumes for Software has also been requested
Disaster Recovery Pricing is requested for the six Disaster Recovery Scenarios specified in Schedule 2 – Internet and Secure Gateway - Service Requirements – clause 3.17 Each scenario is required to be priced separately Pricing has been requested for Disaster Recovery on a fixed monthly basis. The price is required to be split between Site Service Charge, Hardware, Software and Support and Maintenance Details of devices, pricing basis, price per unit, and assumed underlying volume for hardware has been requested Details of the licence basis and assumed underlying volumes for Software has also been requested
Corporate Web Site Hosting Pricing has been requested for Corporate Web Site Hosting on a fixed monthly basis and a variable monthly basis. Fixed Component: A fixed price is required for Hardware, Software and Support and Maintenance Variable Component The variable price is required for Corporate Web Site Hosting Traffic Charge An evaluation baseline for Average MB downloaded per month has been provided
Schedule 2 – Internet & Secure Gateway – Service requirements describes a number of services which Customs may elect to procure during the term of the Services Agreement: In line with these requirements, the Other Gateway Services Worksheet requests pricing for: IP Address Management; Domain Name Management; Remote Access Services; and ISP Services. Pricing must be proposed on a per unit basis. The relevant unit must be specified.
Customs may, from time to time, during the Term of the Services Agreement, require additional or new services Tenderers are permitted to include any items it believes to be relevant to this bundle.
![Administration ,[object Object],[object Object],[object Object],[object Object]](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)