Expression of Interest (EOI) - classic.ird.govt.nz · Greg James Deputy Commissioner Change Inland Revenue is changing to make it faster and easier for all New Zealanders to deal

Expression of Interest (EOI)

for the provision of

Business Transformation Services

3 October 2013 Ref: 2013050

Important note: Please read all sections of this EOI. By submitting a response to this EOI you will be deemed to have accepted the EOI Rules.

Greg James

Deputy Commissioner

Change

I nland Revenue is changing to make it faster and easier for all New Zealanders to deal with us. Our changes wi ll create a future tax and social policy system that helps deliver better public services and makes New Zealand a good place to live, work and grow a business.

The Transformation Market Brief released in August th is year set out I nland Revenue's vision for the future, our t ransformation goals and outcomes for New Zealand . Th is call for Expressions of I nterest {EOI) is the next maj or step towards change and we look forward to participation from potential service providers.

I nland Revenue's transformation is a large and complex journey that will run across a number of stages over several years. This EOI is the first stage of a proposed four-stage procurement process, and will help us select a shortlist of potential service providers with the capability, capacity and experience to support the Transformation Programme, to deliver the detailed design of the first stage and va lidate the rema ining stages.

We expect to work with a number of service providers across a range of areas during I nland Revenue's entire transformation programme.

Our changes will make a real difference for New Zealand . Through th is EOI and beyond we are looking for organ isations who can work with us to build a 21st century tax administration that makes it easier, faster, and cheaper to do business with I nland Revenue and across Government.

I invite you to read the goals, objectives and background outlined in th is EOI document and supporting material, and welcome your participation in the EOI process.

Greg James

Deputy Commissioner Change

Pagel 1 October 20 13 Ref: 2013050

Table of Contents 1. Background ....... ..... ..... . .... . .. .. ..... ................................................. ..... ..... . .. 3

2. Purpose of this EOI .. ... .. .. ... .. ... ... .. ................................................ . .... . .. .. . .. 3

Changing Inland Revenue •••••••••••••••••••••••••••••••••••••••.••••.••••.•••••••••••••••••••••••••••••• 5

3. New Zealand Government agenda .. ..... ................................... .... .. ... .. ... .. ... .. 6

4. IR for the Future . .. ... .. ... .. ... .. ... .. ... .. ... ..... ............................. .. ... .. ... .. ... .. ... .. 6

In Ia nd Revenue today ...................................................................................... 9

5. Inland Revenue organ isational context . .................. . .................. . .. ... .. .. ... .... 10

Transformation Programme •••••••••••..••••.•••..•••..•••.••••.••••.••••.••••.••••.••••.••••.•••••••• 13

6. Transformation background ... ..... ..... ............................................ .. ... .. ... .... 14

7. Target Operating Model ... ..... ..... ..... ........................................ .... .. ... ..... .... 16

8. Programme delivery approach .... . .... . .... .................................... ... .. ... .. ... ... . 19

Scope of services •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 20

9. Scope of services .... ... .. ... .. ... .. ..... ......................................................... .. .. 21

EOI process .••••..•••..•••..•••..•••.•••••••••.••••.•••..•••..•••..•••..•••.••••..•••..•••..•••..•••..•••..•••• 26

10. Procurement process .. ... .. ... .. ... .. ... .................................................. ... . .. .. . . 27

11. Expression of Interest process .. .. ... .. ........................................... ..... ..... .... . 30

Statement of requirements ............................................................................ 35

12 . Statement of requirements .. .. ... .. ... .. ... .. ... .............................. ..... ..... .... .. ... . 36

13 . Evaluation criteria .... .. ... .. ... .. ... .. ... .. ... .. ............................ ..... .... .. ... .. ... .. ... . 50

Terms and conditions ..................................................................................... 51

14. Terms and conditions of this EOI.. .. . ................................................. ... .. ... .. 52

Appendices ..................................................................................................... 60

Appendix A - Current-state technology infrastructure ......................... .. ... .. ... . .... . ... 62

Appendix B - Conceptual application architecture ................................. ... .. ... .. ... .. .. 65

Appendix C - Some minimum contract terms ............................................... .. ... .. .. 68

Attachments ................................................................................................... 70

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1. Background

In August 2013, Inland Revenue released the Transformation Market Brief which set out Inland Revenue's vision for the future, transformation goals and desired outcomes. An overview of the procurement process to engage a service provider(s) in relation to the Business Transformation Programme (''Transformation Programme" or "the Programme") was also provided.

The Transformation Market Brief signalled Inland Revenue's approach and work undertaken to date to deliver a "Portfolio of Change" in response to:

• the Government's goals to derive better va lue from publ ic services (including more integrated All-of-Government services);

• internal pressures including ageing business processes and technology infrastructure; and

• changing customer needs including demands to interact electronica lly.

The aim of Inland Revenue's Transformation Programme is to address t hese issues and deliver tangible benefits, including the ability to implement policy and legislative changes more quickly, and to provide Inland Revenue's customers with a range of interactive services and information.

To deliver this business-led transformation, enabled by technology, capabilities are required across many areas including, project management, change management, business ana lysis, business process reengineering , solution architecture and software development. While Inland Revenue possesses some of t hese capabilities, the scale and complexity of the transformation will require additional skills and expertise. Inland Revenue expects to work with a number of service providers across a range of areas over the duration of the Programme.

2. Purpose of this EOI

The scope of th is EOI includes a range of potential work t hat is required to support the Transformation Programme. The purpose of this document is to seek expressions of interest from service providers with the capabi lity, capacity and experience in relation to that range of work.

Suitably experienced and qualified service providers are invited to respond to this EOI, from which I nland Revenue intends to invite a shortlist of potential service providers to participate in a Competitive Dialogue stage, as described in section 10.4 ( I nland Revenue's procurement process).

At the conclusion of the procurement process, Inland Revenue intends to engage a service provider(s) to deliver the detailed design of the first stage of the Transformation Programme and validation of remaining stages.

For future work, Inland Revenue may choose to engage further the selected service provider(s) , approach the market, or use another appropriate procurement process to select a service provider(s) .


Potential service providers responding to this EOI are referred to as " Participants" in this document. To assist Participants with their responses, the document sets out:

• the goals and intended outcomes of the Transformation Programme;

• Inland Revenue's 'current state' ;

• key activities and milestones that have been ach ieved ;

• Inland Revenue's 'target state';

• details of the proposed four-stage procurement process (of which this EOI process forms the first stage);

• response requirements, instructions and key timelines;

• the organisation information requirements, compliance requirements, and m inimum capability and experience requ irements that Inland Revenue is looking for Participants to meet or satisfy;

• key requirements that Inland Revenue is looking for Participants to demonstrate;

• the evaluation criteria and weightings that Inland Revenue intends to apply to the evaluation of the key requirements, which is set out to assist Participants in developing their responses; and

• the terms and conditions of participation.

Participants are encouraged to first refer to section 12.3 (Minimum capability and experience requirements) , followed by section 14 (Terms and conditions of this EOI), before proceeding further.


Part A: Changing Inland Revenue

Page IS October 2013 Ref : 2013050

3. New Zealand Government agenda

In January 2012, the Government outlined four priorities which Inland Revenue directly contributes towards, these are:

• responsibly managing the Government's finances;

• rebui lding Christchurch;

• building a more competitive and productive economy; and

• delivering better public services within tight financial constraints .

Inland Revenue also supports the Government's overall Information Communication Technology {ICT) strategy and Better Public Services (BPS) objectives (www.ssc.qovt.nz/better-public-services ) by delivering lower cost, customer-centric services and being focused on cross Government opportunities to improve the way New Zealanders access Government services. BPS initiatives such as New Zealand Business Number (NZBN) or ReaiMe will be considered within the Programme's design principles.

4. IR for the Future

4.1 Vision and transformation goals

Inland Revenue contributes to the economic and social wellbeing of New Zealand by providing high-quality tax and social policy services to the Government and all New Zealanders.

I nland Revenue works with customers and other organisations to make tax compliance easy and to g ive New Zealanders confidence that everyone pays and receives the right amount. Inland Revenue 's vision is to be a world-class revenue organisation, recognised for service and excellence.

IR for the Future has been developed as I nland Revenue's strategic blueprint for change to deliver this vision. It describes a business-led, technology-enabled Transformation Programme that aims to transform I nland Revenue into a customer-focused, world-class revenue organisation over several years . Specifically, IR for the Future aims to deliver:

• efficient self-management options for customers that provide speed and certainty;

• a broader approach to compliance based on smarter use of information and a wider range of interventions;

• a range of different working relationships with other organisations, including strategic partnerships to deliver some services;

• less transactional work and less direct contact with customers;

• excellence in complex technical work;

• more automation and streamlined information flows;

• greater use of commercial IT products in Inland Revenue's systems and services; and

• a healthy culture which Inland Revenue staff value and thrive in .


4.2 Summary of case for change

Inland Revenue needs to deliver existing services faster and more cost-effectively, and to implement changes in tax and social policies more rapidly.

Technology improvements have raised expectations around service levels and the quality of interactions. Customers now expect a seamless and secure online experience with Government.

Given increases in complexity, and the fact that it has been over 20 years since Inland Revenue 's last significant transformation, it is becoming difficult for Inland Revenue to deliver its services from within its current framework.

Key challenges I nland Revenue is facing are outlined below:

• Inland Revenue is increasingly unable to rapidly and economically implement policy changes and other Government priorities, such as the timely implementation of the child support scheme changes;

• customer compliance levels are relatively high but they have been static or under pressure and the targets set for 2015 will be difficult to meet;

• taxation and social policy debt levels have been increasing, placing the integrity of the revenue system at risk;

• there is a risk of an operational failure that could severely impact Government's ability to collect and distribute money; and

• Inland Revenue is unable to satisfy the changing expectations of customers to make it easier and less costly to receive entitlements and meet obligations.


4.3 How the change will benefit New Zealand

Benefits for New Zealand and Inland Revenue are summarised in the table below :

Benefit area

Improved customer experience

Economic benefits to New Zealand

Improved revenue system integrity

Reduced time to implement policy initiatives

Financial benefits to the Crown

Reduced risk of operational failure

Summary

Provide certainty to customers that they have met obligations, simplify customer requirements, and Improve customers' experience with Inland Revenue and Government.

Reduce customer compliance costs associated with meeting tax and socia l policy obligations by reducing the time businesses and other customers spend on tax compliance.

I ncrease voluntary compliance, and reduce errors, through simpler systems, as well as reducing fraud associated with filing incorrect tax information, not filing required obligations, and/or obtaining social entit lements fraudulently.

Greater speed and less cost in introducing and implementing policy changes within Inland Revenue and other agencies.

Increase Crown revenue, and benefits to other Government agencies, through increased compliance, improved accuracy of tax assessments, reduced numbers of customers in debt, and achieving productivity savings within Inland Revenue.

Reduced risk of a technology or process fai lu re lim it ing In land Revenue's ability to collect tax or disburse entitlements .

Page IS October 2013 Ref: 2013050

Part B: Inland Revenue today

Page 19 October 2013 Ref : 2013050

5. Inland Revenue organisational context

This section provides an overview of Inland Revenue's current state across key dimensions including people, processes, policy and platforms.

5.1 Inland Revenue at a glance

As New Zealand 's principal revenue agency, Inland Revenue collects approximately 80% of annual core Crown revenue ($53 . 7 billion) and deals with 7.3 million customers.

Inland Revenue reaches more New Zealanders than any other agency. Each year, Inland Revenue interacts with and provides services to a high volume of customers. For instance in 2012 alone :

• Individuals - f iled about 1.2 mi llion annual tax returns;

• Employers - about 195,000 employers f iled 2 million employer monthly schedules with PAYE deductions for employees during the year;

• Companies - over 420,000 company returns were filed; and

• GST payers- 3 million GST returns were filed by 630,000 registered customers.

Inland Revenue also plays an important role in administering a number of income-related social policy products, including:

• KiwiSaver: I nland Revenue administers the superannuation savings scheme by collecting contributions from wage and salary earners and transferring them to scheme providers for investment. In 2012-13, Inland Revenue distributed $3 .1 bill ion to scheme providers on behalf of 2.1 m illion members.

• Working for Families Tax Credits: Inland Revenue jointly administers this programme with the Ministry of Social Development. In 2012-13, Inland Revenue distributed $2 .6 billion in entitlements to support working families.

• Child Support: in 2012-13, Inland Revenue col lected $435 million from 179,000 paying parents and distributed $226 million to custod ial parents.

• Student Loan Scheme: I nland Revenue jointly admin isters this programme with the Ministries of Education and Social Development (Studylink). I n 2012-13, Inland Revenue collected $ 1.1 billion in repayments from 711,000 borrowers.

• Paid Parental Leave: I nland Revenue makes payments for the Ministry of Business, Innovation and Employment to parents who take leave from their job or business to care for a child .

In 2012-13, Inland Revenue made $ 165 million in payments to 26,000 applicants. Inland Revenue supports customers to manage their obligations and entitlements through a variety of self-help and customer services. In 2012-13 Inland Revenue:

• received 6.4 million customer service contacts;

• received 18 million self-help service enquiries;

• made 90,000 outbound calls from contact centres as part of campaign work; and

• delivered 22,000 events to assist customers including seminars, expos, advisories and one-to-one visits .


5.2 Organisational structure

As at 30 June 2013, Inland Revenue employed 5,628 ( full-time equivalent) staff across New Zea land. I nland Revenue is organised into nine business groups:

• Change: is responsible for the design and delivery of Inland Revenue's investment portfolio . Change brings together project and programme management, portfolio support, service design and enterprise architecture capability including ownersh ip of the transformation agenda;

• Corporate Integrity and Assurance: provides independent advice and assurance on the integrity of the tax system matters and Inland Revenue governance. The group manages corporate legal, procurement, and risk and assurance services, and has involvement in the Christchurch rebu ild;

• Performance, Facilities and Finance: provides f inancia l, accounting, planning and reporting services, and manages I nland Revenue's property and facilit ies;

• Information, Intelligence and Communications: manages and integrates Inland Revenue's corporate and customer information, research , evaluation and intelligence, and a range of communications and stakeholder services;

• Office of the Chief Tax Counsel {OCTC): provides technical advice and services on the correct interpretation and application of taxation law through public and taxpayer rulings, disputes resolution, and escalations and advice;

• People and Culture: provides HR advice, tools and resources to build leadership, help shape organ isational culture, and ensure Inland Revenue has the right people with the right skills in the right jobs;

• Policy and Strategy: is responsible for developing tax and related policy, forecasting and analysis, strategic planning and drafting tax law;

• Service De live ry: manages services that collect revenue, disburse payments and provide information to customers. Service Delivery works with customers and other organisations to make compliance easy and give New Zealanders confidence that people pay and receive the right amount; and

• Technology Strategy and Operations: leads Inland Revenue's I nformation and Communication Technology (ICT) strategy and provides ICT operations and services to support business performance.

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5.3 Customers and channels

Inland Revenue provides services to three broad customer groups:

• Individuals and Families: all individuals who are not registered to pay GST or PAVE (as an employer) . Families include customers who have Working for Families entitlements and child support entitlements and/or obligations;

• Business Customers: includes small and medium enterprises (individuals and entities who are registered for GST and/or PAVE); large enterprises (including all non-individual entities with turnover exceeding $100 million (NZD)); and not-forprofit enterprises (includes all entit ies exempt from income tax and not belonging to large enterprises); and

• Third Parties: organisations I nland Revenue works with to enable customers to receive entitlements and meet their obligations. This may include organisations that interact with a customer on behalf of Inland Revenue, interact with Inland Revenue on behalf of a customer, or interact with the customer and may influence the compliance of the customer. Third parties also include organisations I nland Revenue supports to meet external regulations.

New Zealanders access Inland Revenue services through a wide range of channels including internet, email, face-to-face, fax, paper, telephone, employer, and via third parties. The internet is the most widely used channel, but a considerable volume of paper is still required for filing returns and correspondence. Inland Revenue's preference is to use digital channels to improve services for New Zealanders.

5.4 Application and technology environment

I nland Revenue operates a mixed information technology model, combining internally owned and supported services with managed services and leasing via third-party providers.

The current key applications and technology infrastructure comprise:

• approximately, 1,920 'back-end infrastructure' assets;

• Oracle/Linux environment (Server OS, RDBMS, Data Warehouse, Middleware and I ntegration);

• decentralised location, management and operation of infrastructure ;

• over 7,000 desktop clients used by staff for access to Inland Revenue's systems;

• core legacy based mainframe environment (Unisys COBOL 74/ALGOL./UNC);

• SAP corporate back-end environment (ERP ECC 6, PSCD, Finance, HR, Portal, Business Warehouse);

• Oracle/ Siebel (Public Sector Suite); and

• IBM (Document Manager, Workflow and Xpress Client).

The current technology infrastructure has evolved over time in response to business needs, organisational priorities and project delivery timeframes. For additional information on Inland Revenue's technology infrastructure and conceptual application architectu re refer to Append ix A and Appendix B respectively.

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Part C: Transformation Programme

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October 2013 Ref : 2013050

6. Transformation background

In May 2008, Inland Revenue commenced work to stabilise its ageing technology platform, FIRST. Through this work, it became clear that Inland Revenue did not have the right operating model or capabilities required to deliver effective services in the future.

Inland Revenue's Execut ive Board agreed there was a compell ing case for change and a transformation agenda was subsequently initiated . To date, Inland Revenue has completed work across the first two phases of the Transformation Programme and work is currently underway to ach ieve the objectives of a ' Mobilisation' phase .

. . Inland Revenue's current position

Figure 1 : Transformation Programme phases

A summary of each phase is provided below, including the key milestones achieved.

Phase

Concept:

This phase focused on determining what and how In land Revenue needed to change to effectively meet current demands and future requ irements.

Scope:

Th is phase focused on delivering the scope of the Transformation Programme.

Key activities and milestones

The Concept phase achieved the following objectives:

defined the problem and developed a high-level transformation concept;

established a Transformation Programme Business Unit and appointed a Deputy Commissioner to drive transformation plann ing;

explored what a transformed In land Revenue m ight look like and possible pathways to ach ieve this fu t ure state. This work formed the basis of a new strategic document, IR for the Future, which was launched in March 2011;

engaged an external consultancy (Capgemini was engaged from December 2011 to March 2013) to provide the expertise and additiona l capacity required to assist with transformation plann ing and definition; and

developed a baseline v ision and a delivery plan for a Programme Business Case (completed in January 2012) .

The Scope phase achieved the following objectives:

a current-state assessment was undertaken and a Target Operating Model (TOM) was developed in collaboration with Capgemini ( in May 2012);

commenced work on the Programme Business Case. This involved Treasury's " Better Business Cases" processes and independent quality assurance (IQA) processes;

presented the Programme Business Case to Ministers and obtained


Phase

Mobilisation:

This phase Is focused on supporting key components of the Transformation Programme that require mobilisation prior to the delivery phase.

Deliver:

This phase is focused on provid ing In land Revenue w ith the ability to operate, as per the TOM, through the implementation of a set of init iatives.

Key activities and milestones

Cabinet agreement on the strategic direction;

developed a set of customer personas and scenarios to illustrate the desired improvements to customer experiences across segments, channels, products and services; and

commenced work to identify a service provider(s). This included the engagement of Ernst & Young to develop a sourcing strategy and procurement plan.

The Mobilisation phase is designed to deliver the following objectives:

agree the preferred option for the delivery of the Transformat ion Programme in terms of the overall roadmap, scope, costs, benefits, t iming and r isks;

engage a service provider(s) to deliver Inland Revenue with the detailed design of the first stage of the Transformation Programme and validation of remaining stages ;

obtain all agreements, including Detailed Business Case funding and contract approvals for Inland Revenue to engage a service provider( s);

define the overall road map for the Transformation Programme and other initiatives that Inland Revenue will undertake to deliver IR for the Future; and

prepare Inland Revenue to manage and govern ongoing delivery of the Transformation Programme.

The Deliver phase will achieve the following key activities:

implement a governance model to enable oversight of the service provider(s), design and the Programme;

onboard and manage the service provider(s) through the established governance mechanism;

init iate and execute the functions necessary to deliver the transformation;

segment the transformation into projects in accordance with the proposed delivery model;

commence high-level monitoring of project progress to ensure the delivery of outputs to plan ; and

commence solution and delivery of the t ransformation objectives.

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7. Target Operating Model

The Transformation Programme involves systematic and comprehensive transformation of Inland Revenue's operating model (involving people, processes, policy and platforms).

The Target Operating Model (TOM) defines Inland Revenue's 'target state', as shown below. Refer to Attachment 3 for additional information on the TOM.

Support 'System'

Figure 2 : Target Operating Model {TOM)

7.1 What will be transformed?

The TOM describes a transformed Inland Revenue that will result in:

• a s implified and flexible organisation stripping out duplication and complexity;

• an agile way of working that will result in a faster time to market for Government policy and reduced cost of change;

• significantly improved core ' collection' and ' disbursement' functions that will result in greater revenue collection and which can be leveraged across Government;

• a new way of working across agencies, including:


• sharing and coordination, across database systems, of trusted data to improve productivity, accuracy, detection of fraud and forecasting;

• breaking down traditional agency boundaries to enable cross Government and third party distributed delivery of services; and

• provision of 'expert services' to support cross Government risk and fraud analysis.

• t ransforming productivity through:

• greater use of third party capability;

• greater use of digital channels which may also significantly reduce costs;

• increasing the agility of the business to use 'better practice' through people, processes, policy and platforms;

• the reduction of paper inside Inland Revenue; and

• managing resources proactively to cope with demand peaks and troughs.

• improved inte raction of citizens and businesses with Inland Revenue through:

• the use of digital channels to improve access to real-time information, provide greater certainty to customers, and make it easier for customers to interact with Inland Revenue;

• working towards enabling a single view for a customer across multiple agencies; and

• developing of current and future state customer personas and scenarios to describe the desired future state customer experience across customer segments, channels, products and services. Refer to Attachment 4 for more deta ils.

7.2 How will Inland Revenue transform?

Inland Revenue's transformation will be separated into stages and delivered over a number of years, subject to specific Government approval at various stages. To reduce the risks of a large-scale transformation programme, each stage will consist of a number of smaller, discrete initiatives. Multiple reviews will also be performed across initiatives and stages with access to on and off-ramps where appropriate.

The scope and timing of the transformation will evolve over time and will be subject to ongoing Ministerial approval. As the Programme develops and evolves I nland Revenue expects the precise nature and need for support from service providers will also evolve and change.

P agel17 October 2013 Ref: 2013050

7.3 What are the outcomes of the Transformation Programme?

I nland Revenue will be looking to work with a service provider(s) to deliver the expected outcomes of t he Transformation Programme. Figure 3 provides an overview of t hese key outcomes.

Enabling secure digital services

Advance channel strategy work including redesigning website and continuing development of customer tools with customers Encourage customers to self manage and use digital channels Improve the collection of GST and PAVE in formation from business

• Deploy services required to streamline PAVE, e.g. validation checks Develop integrated intell igence and interventions for PAVE

Streamline income & business t ax processes

i • Design of streamlined Income and business tax processes with stakeholders Proof of concepts and/or pilots to test key design concepts

, • Acquire/build additional services required to support Income and business taxes

• Transition Income and business taxes to the future state

Streamline social pol icy delivery

• Design of streamlined socjal oolicy deliyerv with stakeholders • Proof of concepts and/or pilots to test key design concepts

Acquire/build additional services required to support social policy delivery Transition social policies to the future state

Key Outcomes: The majortty of customers self-manage and use digital services Digital border established Businesses' compliance burden to fulfil PAVE [and GST] obligations Is reduced Improved data accuracy and certainty of Income tax deduct ions and social policy entitlements and obligations for individuals Less processing and fewer customer contacts Customers have confidence that their personal in formation is secure

Key Outcomes: Compliance burden to fulfill Income and business taxes obligations is further reduced Less processing and fewer customer contacts surrounding income and business taxes Compliance assurance activities are Intelligence-led

• Increased reliability and flexibility (including policy agility) for Income and business taxes

Key Outcomes: Social policy processes are digital and streamlined

• Less processing and fewer customer contacts surrounding soda! policy Enforcement activities are more focused and require fewer resources

• Increased reliability and flexibility (Including policy agility) for social policy products

Complete delivery of the future Revenue System ] Key Outcomes: • Revenue system is flexible &. government has policy agility

' • Design, with stakeholders, of remaining services to be t ranslt lone.d ! • Infrastructure supporting the revenue system is robust Proof of concepts and pilot to test key design concepts 1 • Revenue system compliance Is higher Acquire/build additional services i • Inland Revenue is intelligence-led, leaner and more productive Transition to the future state _. _. --·---·---------_) • Increased lnteroperablllty with other agencies/thi rd parties 1

Figure 3: Transformation Programme outcomes

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8. Programme delivery approach

The proposed Programme delivery approach aims to provide the necessary operating guidelines, governance, arch itecture and business design inputs to define the Transformation Programme. During the procurement process, Inland Revenue will work with potential service providers to further refine the approach to delivering the Programme.

Programme Delivery Model

The Programme Delivery Model comprises a number of interrelated delivery functions necessary to deliver a business transformation . Each delivery function is supported by methods, tools and techniques. Please refer to section 9 {Scope of Services) for further information on key aspects of the delivery model.

I Governance and stage-gating

I Enterprise Architecture

I Programme management

I Programme perfonnanoe monitoring and evaluat ion I Quality Assurance

I Service provider- management

Strategy Ta111et Operating rlJB•Iroi'ZlJi'l Model and Enterpri,se Delivery management

Arc::bitecture Business Framework Design ) System design } Configure/ } Test } Verify } Implement } Support/

Definition Migrate Warranty

I Integration management

I Ted10ical infrastructure and environment management

I Organisational change and engagement

Figure 4: Programme Delivery Model

l l l )

l ) \

l l l

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Part D: Scope of services

9. Scope of services

The scope of this EOI includes a range of potential work that is required to support the Transformation Programme. The purpose of this document is to seek expressions of interest from service providers with the capability, capacity and experience in relation to that range of work.

Suitably experienced and qualified service providers are invited to respond to this EOI, from which Inland Revenue intends to invite a shortlist of potential service providers to participate in a Competitive Dialogue stage, as described in section 10.4 (Inland Revenue's procurement process).

At the conclusion of the procurement process, Inland Revenue intends to engage a service provider(s) to deliver the detailed design of the first stage of the Transformat ion Programme and validation of remaining stages. The detai ls regarding the scope of the first stage will be provided in later stages of the procurement process.

For future work, Inland Revenue may choose to engage further the selected service provider(s), approach the market, or use another appropriate procurement process to select a service provider(s) .


The table below lists the key transformation capabil ity areas required of the service providers.

Key transformation capability areas

Legacy migration Master data management

Revenue collections Receipting

B2B integration Security strategy

Customer relationsh ip management Knowledge management

Information management Case management

Information sharing Channel strategy

Document and records management Leveraging organisational services

Product design Identity management

Policy delivery Online presence and usability

Service orientated architecture Correspondence generation

Business process re-engineering Continuous improvement

Business intelligence and analytics Scalable infrastructure

Business activity monitoring Business rules management

Workflow Performance management

Campa ign management Organ isational change management


In delivering the transformation capability areas listed above, Inland Revenue may require a service provider(s) to perform, or assist in performing, some of the delivery roles outlined in the table below.

Delivery role

Strategy

Target operating model (TOM) and enterprise architecture framework defin it ions

Governance

Enterprise architecture

Programme management

Programme performance monitoring and evaluation

Example activities

The strategy function provides the direction that In land Revenue w ill pursue, and outlines the steps to ach ieve its business goals in support of the stated business m ission .

The TOM defines the future state capabilities across policy, processes, people, and platforms that are required to deliver on IR for the Future.

The enterprise architecture framework defin itions function provides the frameworks, methods, principles and standards which are used to define the architecture and common business, information and system services for In land Revenue.

The enterprise architecture framework definit ions are based on The Open Group Architecture Framework v9 (TOGAF9), supplemented by the Integrated Arch itecture Content Framework, and use Arch imate as the modelling notation and SPARX-EA as the modelling tool and repository.

The governance function provides the model, structure, process and involvement required of governance groups across the stages of the delivery programme.

The enterprise architecture funct ion provides the organ ising logic for and definition of the business and information services and systems that reflect and realise the TOM.

Enterprise arch itecture includes the development of the content for the common services models for business, information, information systems, technology infrastructure and security at the conceptual and logical levels of the architectu re framework, and the corresponding solution and integration architectures that realise these services.

The Programme management function provides a framework for Inland Revenue to manage multiple related projects concurrently.

The Programme management framework is implemented through the Programme Management Office whose primary focus is to manage the scope, schedule, resources, quality, change management, performance, integration, finance and governance of the Programme.

The Programme performance monitoring and evaluation function will measure performance in the Programme. It will function over the life of the Programme and measure the Programme performance and intended benefits.


Delivery role

Service provider management

Business design

Delivery - Delivery management

Delivery - Systems design

Delivery - Configure/migrate

Delivery - Test

Delivery - Verify

Delivery - Implement

Delivery - Hand-over/ business acceptance

Example activities

The service provider management function will manage the service provider(s) over the life of the Programme and outlines the core integration with supporting/related business functions including procurement and the business as usua l {BAU) commercial team.

The business design function focuses on defining Inland Revenue's business process, design, and requirements management. It covers the comp letion of personas, scenarios, process maps and supporting business requ irements. The outputs from the function w ill enable the articulation of business requirements so that t hey are solution agnostic. The hand-over of execution responsibi lities is between the business design and systems design components.

The delivery management function articulates the approach applied to the delivery of the initiatives.

The system design function translates the high level business requirements and solution architecture inputs into detailed requirements and specifications of a system so that it is fit for purpose.

The configure function refers to building and/ or configuration of new services, processes, solutions and capabil it ies related to a specified scope when a particular part of the Programme is being delivered.

The migrate function refers to the transition of existing services, processes, FIRST system resources (logic and data) and updating the operating model of In land Revenue.

The test function proposes several test cycles to confirm t he system has been built correctly as per the business, functional and techn ica l requirements defined in the system and techn ica l design.

The verify function allows the evaluation of a system in terms of its fitness for use as part of the operating model of Inland Revenue. It includes acceptance testing, load testing, security testing and non- functional testing of the system developed.

The implement function executes the activities necessary to deploy the newly built and tested service platform and modified legacy systems into production.

The hand-over/ business acceptance function involves the formal handover of the system from the service provider(s) to Inland Revenue business.


Delivery role

Delivery - Support/ warranty

Integration management

Technical infrastructure, security and environment management

Organ isational change management and engagement

Example activities

The support/ warranty function is support provided by the service provider(s) and/ or Inland Revenue's internal IT resources which monitor the system and provide technica l and functional support to enable smooth ongoing operations.

Integration management provides the end-to-end alignment of all project delivery stages to the TOM, intended outcomes and the overall enterprise arch itecture and business design. The function removes siloed delivery and focuses on outcome-based delivery.

Techn ical infrastructu re, secu rity and environment management function provides the design, setup, data privacy and ongoing ma intenance of the technical environment across Inland Revenue and the new service platform.

The organisational change management and engagement function defines the framework for stakeholder management, communications and engagement ( including a compell ing case for change), determining change impacts and business readiness to implement the change, and developing robust change plans includ ing people transition, tra ining and culture change.


PartE: EOI process

-Page 126 October 2013 Ref : 2013050

10. Procurement process

10.1 New Zealand Government Procurement

New Zealand Government procurement is based on principles the Government Rules of Sourcing and good practice guidance. Collectively these provide a broad framework that supports accountability, sound practice and successful procurement outcomes. This framework is designed to attract creative and talented commercial service providers to deliver innovative and effective solutions, and to provide the best value for New Zealanders. See www.procurement.govt.nz for more details.

By encourag ing productive engagement with businesses through smart procurement, the Government aims to become more competitive in international markets and support national economic growth.

10.2 Inland Revenue procurement standards and probity protocols

Inland Revenue has appointed an independent Probity Auditor (Audit New Zealand) to formally audit each stage of the procurement process.

For each stage of the procurement process careful consideration will be given to any specific probity protocols with a view to providing a fair and level ' playing field ' for all service providers. For more detailed information about procurement processes at I nland Revenue visit www.ird.qovt.nz/ procurement which has been specifically designed for service providers interested in supplying Inland Revenue.

This website also provides information on Inland Revenue's supplier feedback process, which is a service managed by Inland Revenue. It provides an avenue for Participants to provide feedback regarding any issues related to the procurement process.

10.3 Previous engagements

Inland Revenue has received assistance from severa l externa l service providers during the plann ing stages of the Transformation Programme, including Capgemini and Ernst & Young. When considering whether any past or existing service provider may participate in further procurements relating to the Transformation Programme, I nland Revenue will assess the scope of the service provider's prior engagement.

Where Inland Revenue considers that any advantage, or perceived advantage, a service provider may have obtained by virtue of their prior engagement has been appropriately mitigated, Inland Revenue may permit the service provider to participate in future procurements relating to the Transformation Programme. This will depend on the service provider complying with Inland Revenue's probity requ irements, which may d iffer depending on particular circumstances.

Inland Revenue has made a decision not to exclude Capgemini from participating in any future stages of the Transformation Programme, including any procurement process for the provision of transformation services, subject to any applicable probity requirements being met.

Inland Revenue is aware that Capgemini's involvement in the Concept and Scope phases of the Transformation Programme may give rise to a perception that they have an advantage in further procurement relating to the Programme. This EOI document and


the supporting information provided have been developed with these considerations in mind. Ernst & Young were engaged on the understanding that the services required to develop the procurement approach for the Transformation Programme would exclude them from participating in the procurement process.

10.4 Inland Revenue's procurement process

Objectives

Inland Revenue is conducting a four-stage procurement process to identify a service provider(s) to assist with the Transformation Programme. The objectives of the procurement process are to :

• seek expressions of interest from service providers with the capability, capacity and experience to support delivery of the Transformation Programme;

• achieve high-quality of delivery by ensuring that contract(s) is/are awarded to a service provider(s) who can meet the requirements specified by Inland Revenue (section 12 Statement of requirements) in line with quality expectations;

• achieve a cost-effective outcome by agreeing commercial arrangements with a service provider(s) that appropriately addresses scope, quality, time, cost, benefits and risk; and

• engage a service provider(s) to deliver the detai led design of the first stage of the Transformation Programme and validation of remaining stages.

Procurement s tages and timeframes

Timelines for the four stages of the procurement process are provided in the table below. Participants should note that these timeframes are indicative only and as such, may be subject to change by Inland Revenue:

Procurement stage Estimated duration

Expression of Interest October - December 2013

Competit ive Dialogue January - March 2014

Request for Proposals Apr il -June 2014

Negotiation June -July 2014

Expression of Inte re st {EOI):

The EOI stage aims to identify service providers with the capability, capacity and experience in relation to the range of work required to support the staged delivery of the Transformation Programme. The expected outcome of the EOI stage is a shortlist of service providers to be invited to participate in the Competitive Dialogue stage.

Compe titive Dialogue {CD): CD is a process recommended by the Ministry of Business, Innovation and Employment for use in complex procurements. During CD, I nland Revenue may engage in discussions with the shortlisted service providers on proposed approaches and contractual documents, prior to a Request for Proposa l stage.


Through CD, Inland Revenue aims to:

• collaborate with a shortlist of service providers to create a shared vision and common understanding of proposed approaches;

• refine the scope and requirements of the Transformation Programme and assess feasibi lity and alignment with the Programme's objectives;

• develop and agree in principle a commercial framework, including indicative costs and associated contractual documents; and

• examine cu ltural f it and the suitability of shortlisted service providers to enter into a relat ionsh ip with I nland Revenue.

The CD process may include a series of briefing sessions, interviews and service provider presentations covering key aspects of the Programme and proposed contractual documents. I nland Revenue may also conduct site visits to the premises of service providers or nominated client reference sites.

Inland Revenue intends to send an invitation to t he shortlisted service providers from the EOI stage to participate in the CD stage on 20 December 2013 . CD will commence in mid-January 2014 and is intended to run until the end of March 2014. Service providers who accept an invitation to the CD stage may be required to :

• mobilise key personnel or teams to participate in the CD process;

• engage in discussions on technical, commercial and legal aspects;

• prepare and present relevant information during the CD process;

• make available information requested by Inland Revenue for the purposes of the CD stage including additional referee detai ls; and

• agree to terms and conditions for the CD stage.

Request for Proposal {RFP}: During the RFP stage, Inland Revenue intends to formally request proposa ls from shortlisted service providers and ask that they outline their proposa ls in terms of scope, quality, t ime, cost, benefits, and risks, and on the terms of contractual documents developed in t he CD stage.

The expected outcome of the RFP stage is to identify a service provider(s) to progress to the Negotiation stage.

Negotiation: In th is stage, Inland Revenue will seek to reach a final agreement on contractual terms, conditions and specifications with a service provider(s) identified in the RFP stage. Actual contract execution will be subject to necessary approvals, including at t he Ministerial level. It will only be following any contract execution that Inland Revenue is bound (on the terms of the agreement) to a service provider(s).

Set out in Appendix C are some minimum contract terms which I nland Revenue will be reflecting in any agreement it enters into with any service providers in relation to the Transformation Programme. Appendix C does not contain an exhaustive list, and the wording in Appendix C does not represent the actual contract wording.


11. Expression of Interest process

This section provides Participants with details of the EOI process including instructions for responding to this EOI, submission and evaluation of responses, and notification of outcomes. It also includes information regarding indicative timeframes and communication protocols.

The table below outl ines the timeline for the EOI process. Participants should note that these timeframes are indicative only and as such, may be subject to change by Inland Revenue.

I

Activity Date

Rele<!lse this EOI document 3 Oct 2013

Closing di!!te for questions/clarification 1 Nov 2013

EOI response closing date 13 Nov 2013

Evaluation of EOI responses 14 Nov 2013 - 20 Dec 2013

Participants notified of out come 20 Dec 2013

Debriefs (where requested) for unsuccessful Participants From 13 Jan 2014

11.1 Responding to this EOI

Communication with Inland Revenue

All enquiries regarding this EOI must be directed in writing via email to Rob Sansom ('Contact Officer') at [email protected] with " Re: 2013050 Business Transformation Services" in the subject line of the email.

Any request for additional information, clarifications or questions in relation to this EOI must be submitted to the Contact Officer no later than 4pm (NZDT) 1 November 2013. All communications in relation to th is EOI are subject to the terms and conditions of th is EOI referred to in section 14.

Communication regarding this EOI will only be accepted in writing v ia email to the above address. Any Participant breaching this requirement may be excluded from this EOI process and future stages of the procurement process.

Where appropriate in Inland Revenue's opin ion, requests for clarification, along with any response given, may be shared on the Government Electronic Tenders Service (GETS) website www.gets.govt.nz

EOI Rules

By submitting a response to this EOI Participants will be deemed to have accepted the EOI Rules (as defined in clause 1 section 14). The EOI Rules will apply to, and throughout, this EOI.


11.2 Submission of responses

Responses must be submitted via email to [email protected] no later than 4pm (NZDT) 13 November 2013 . Inland Revenue reserves the right, in its sole discretion, to either consider or reject late responses.

I n submitting a response, Participants must adhere to the following general instructions:

• all EOI response documents must quote the Inland Revenue reference for t his EOI " 2013050 EOI Business Transformation Services" ;

• responses m ust be submitted in accordance with sections 11.1 (Responding to th is EOI), this section 11.2 (Submission of responses) and section 14 (Terms and conditions of this EOI);

• responses m ust address all of the requirements listed in section 12 (Statement of requ irements). Responses should clearly reference t he relevant requ irement number (e.g. "KR-1.1");

• when providing a response, Participants must clearly state all assumptions made in their response, what t hose assumptions are in relation to, and any potential impact of t hose assumptions;

• responses including all appendices and attachments should be provided in PDF fi le format;

• responses greater than lOMB in size should be broken into sequentially numbered emails of l OMB or less;

• responses should be dear and concise and must not include sales or marketing literature which is general in nature; and

• as a guide, Participants shou ld seek to limit responses to each individual key requirement (i.e . KR-1.1 to KR- 5.5) to one single sided A4 page. Note that questions KR-2.9a- KR-2.9i are considered separate requirements.

When providing references, Participants are asked to on ly provide details of referees with availabi lity for reference checks between the periods of 4 - 10 December 2013.

Inland Revenue intends to send an email confirmation to Participants acknowledging their response. I f Participants do not receive an acknowledgement, it is their sole responsibility to seek confirmation t hat I nland Revenue received their response .

Formatting r equirements for EOI responses

Responses submitted to this EOI must include the items listed below in the order prescribed. Responses that deviate from this structure and/ or do not include any of the items listed below may not be considered.

II Items

1 Cover letter (optional)

2 Executive summary (optional)

3 Organisat ion Information requirements

Completed rate card

Section 12.1

Attachment 1, Schedule 1


4 Compliance requirements

Completed Tax Check Form(s)

5 Minimum capability and experience requirements

6 Key requirements

Completed curriculum vitae for key personnel proposed for lead roles

Completed risk assessment

Section 12.2

Attachment 2

Section 12.3

Section 12.4



Please note that Inland Revenue will treat the 'soft copy' of the response as the publ ic record for the purposes of the Publ ic Records Act 2005.

11.3 Consortium responses

If Inland Revenue were to select a consortium as a service provider, Inland Revenue's expectation is that it would contract with one legal entity (which is of substance) representing the consortium. Any consortium submitting an EOI response should note that Inland Revenue is seeking information and responses in respect of one or more of the following elements of a consortium (as applicable and appropriate):

• the legal entity representing the consortium for the purposes of this EOI ("Consortium Representative") ;

• the organ isations making up the consortium (each a " Consortium Member") ;

• the consortium as a group comprising the sum of its Consortium Members ("Consortium"); and

• the legal entity that the Consortium proposes wou ld contract with Inland Revenue on behalf of the Consortium ("Consortium Entity" ).

11.4 Evaluation of responses

The evaluation process consists of two steps. The first step assesses the organisation information requirements (section 12.1), compl iance requ irements (section 12.2), and min imum capability and experience requ irement (section 12.3).

Responses must meet these requirements to Inland Revenue's satisfaction in order to progress to the second step of the evaluation process. The second step of the evaluation process involves scoring responses against set evaluation criteria in respect of the key requirements (section 12.4 ) .

The table below summarises the statement of requirements for this EOI, and gives an indication of how information provided by Participants for each of the requirements will be assessed during the evaluation process.


Section

Organisation information requirements

(section 12.1 }

Compliance requirements (section 12.2}

Minimum capability and experience requirement (section 12.3}

Key requirements (section 12.4 }

Requirement Assessment of response

Evaluation process - step 1

01-1: Organisation details

01-2: Primary contact details

01-3: Consortia

01-4 : I nsurance

01-5: Rate card

01-6: Subcontractors

CR-1: Declaration

CR-2: Financials

MC-1: Transformation programme experience and innovation

Not scored but noted: Full and current organisation details must be supplied.

Not scored but must be to IR's satisfaction: The information provided in this section will be used to gain understanding of the operational stability and suitability of the service providers .

Pass/ Fail : Service providers must meet these minimum requirements. Failure to do so will exclude their response from being further evaluated.

Evaluation process- step 2

KR-1: Transformation capability

KR-2: Transformation programme experience and innovation

KR-3: Organisational skills, expertise and innovation

KR-4: Key personnel

KR-5: Additional considerations

Evaluated: These requirements will be eva luated accord ing to specific criteria outlined in section 12.4.

Inland Revenue reserves t he right not t o consider a response, or take a response forward to the second step of the evaluation process, if in relation to the first step:

• the information requested in the statement of requirements sections is not provided or is, in I nland Revenue's opinion, incomplete or inaccurate; and/ or

• having reviewed the information provided in response to the organisation information requirements and the compl iance requ irements sections, I nland Revenue determines ( in its sole discretion) that it would not be suitable or appropriate to further consider the Participant as a potential service provider .

Pag e 133 October 2013 Ref : 20 13050

Inland Revenue will not take a response forward to the second step of the evaluation process if a Participant's response is ' no' to the minimum capability and experience requirement.

11.5 Notification of Outcome

Inland Revenue currently intends to advise each Participant of the outcome of its response via email on 20 December 2013 .

Successful Participants will be formally invited to participate in the Competitive Dialogue stage and will be provided with a pack of information that wi ll provide an overview of the approach, activities and t iming.

For unsuccessful Participants the notification of outcome will include instructions on how debriefs may be arranged. Debriefs may be in the form of an email, phone call or meeting depending on the circumstances and available resources.


\ .....

~

Part F: Statement of requirements

Page l35 October 2013 Ref : 2013050

12. Statement of requirements

Inland Revenue's Transformation Programme is a large and complex journey that will run across a number of stages over several years. This section details the requirements that Participants must address when submitting a response to this EOI.

Section


Organisation information requirement s (section 12.1)

Compliance requirements (sect ion 12.2)

Minimum capability and exper ience requ irement (section 12.3)


Key requirements (section 12.4)

Assessment of response

Not scored but noted

Not scored but must be to IR's satisfaction

Pass/ Fail

Evaluated

Evaluation criteria for the key requirements, including weightings, are provided in section 13 (Evaluation criteria) to assist Participants in developing their response .

Through addressing the requ irements, Participants will need to demonstrate their understanding of, and their capability, capacity and experience to support the staged delivery of the Transformation Programme.

Only responses that are taken past the first step will be evaluated and scored against the evaluation criteria, outlined in section 13 (Evaluation criteria).

If any information requested in section 12.1 is not directly applicable to a Participant , t he Participant shou ld either provide equiva lent information wh ich is applicable to their individual circumstances, or provide a br ief explanation as to why t he information requested is not applicable.

Participants must also ensure t hat any information provided in their response, in relation to sections 12. 1-12.4, is current, complete and accurate.


12.1 01: Organisation information requirements

Participants must respond to the 'Organisation information requirements' detailed below.

01-1.1

01-1.2

01-1.3

Description

Organisation details

Each response must include the following details regarding the organisation:

a. full legal name of the organisation;

b. t rading name of the organisation (if different from 'a');

c. registered New Zealand GST number (if applicable);

d. full street address of the main place of business In New Zealand (or overseas if the organisation does not have a place of business In New Zealand);

e. full postal address (if different from 'd');

f. registered office {if different from ' d'); and

g . provide an overview of your organisation Including ; current size and presence in New Zealand, Australia and globally; and, the number of employees for each of these locations.

A Consortium should provide the above details in respect of the Consortium Representative, the Consortium Entity and each Consortium Member, with each being identified as either the Consortium Representative, Consortium Entity or a Consortium Member.

Primary contact details

Each response should specify a 'primary contact', being an individua l (or ind ividua ls) who holds the authority with in the organisation to negotiate contractua l terms without further reference to others in the organisation (or Consortium). Details shou ld include:

a. full name;

b. title;

c. office phone number;

d. mobile phone number; and

e. email address.

A Consortium should provide the above details in respect of the Consortium Representative.

Consortia

Where a Consortium response is submitted, the following additional information must be included in the response :

a. the legal relationship between all Consortium Members (including any proposed lega l relationships which have not yet been established);

b. the actual or proposed legal name of the Consortium Entity that may enter into any contract with Inland Revenue; and

c. the Consortium Members past experience working together.


01-1.4

01-1.5

01-1.6

Description

Insurance

Each response should provide deta ils of any insurance held and amount of cover, including Public Liability, Professional Indemnity and Property Damage.

A Consortium should provide the above details in respect of the Consortium Entity and each Consortium Member.

Rate card

Each response should include standard daily rates (NZ$ and exclusive of GST) by completing Attachment 1 -Schedule 1.

A Consortium should provide the above details In respect of the Consortium Entity.

Note that the rate card is for information purposes only and will not be evaluated.

Subcontractors

Where known at the t ime of responding to this EOI, provide the fu ll legal name of any subcontractors that you may use, or which you propose t o use, on the Transformation Programme.

A Consortium should provide the above details in respect of the Consortium Entity.

12.2 CR: Compliance requirements

Participants must respond t o t he ' Compliance requ irements' detailed below.

CR-1 .1

Description

Declarations

Confirm whether or not any of the following apply to your company/ organisation, or any of Its directors (or equivalent), any of its senior officers (e.g . CFO) and any key personnel proposed in response to KR-4.3 in section 12.4 below, and if any do apply, please provide full details:

a. a state of bankruptcy, insolvency, administration, statutory management, liquidation, winding up, or receivership, or similar Insolvency process;

b. is/ are subject to legal proceedings, or any government or regulatory investigation or inquiry;

c. has been convicted of a criminal offence related to business or professional conduct; or

d . has outstanding tax obligations, including obligations related to the payment of taxes (Participants are required to complete an IR822 Tax-check form (see Attachment 2))

A Consortium should prov ide the above details (including the Tax-check form IR822) In respect of the Consortium Representative, Consortium Entity and each Consortium Member with each being identified as either the Consortium Representative, Consortium Entity or a Consortium Member.


CR-1.2

Description

Financials

Provide an overview of you r organisation's financials for the past three years (or if the organisation has operated for less than three years, an overview of the organisation 's financials for such period as the organisation has been operating). Include company revenue and company net income for New Zealand, Australia and global operations .

A Consortium should provide the above detail in respect of Consortium Representative, Consortium Entity and each Consortium Member with each being identified as either the Consortium Representative, Consortium Entity or a Consortium Member.

12.3 MC: Minimum capability and experience requirement

Participants must confirm whether they meet the minimum capability and experience requirements listed below. Participants must also ensure t hat the minimum capabi lity and experience requ irements are demonstrated in their response t o section 12.4 Key requirements .

Description

MC-1 Transformation programme experience and innovation

Confirm (Yes/No) that your organisation has:

Led or managed the overall design and implementation of a $100 million (NZD) or greater, excluding any applicable taxes, major t ransformation prog ramme for a national- level tax organisation (includ ing distributions and payments); AfiJl

Led or managed the overall design and implementation for delivery of a transformation programme for national- level social policy e.g . child support, student loans .

For a Consortium, the minimum capability and experience requirements must be met by either or both the Consortium Entity and/ or a Consortium Member.


12.4 KR: Key requirements

Responses taken past the first step will be evaluated and scored against the key requirements evaluation criteria outlined throughout this section, and summarised in section 13 (Evaluation criteria) .

Where a consortium is respond ing to the key requirements below, and unless otherwise indicated, the relevant experience, capability, description or other information shou ld be provided in respect of the Consortium, but the response to each key requirement should clearly identify the contribution of each Consortium Member. Refer to the definitions of "Consortium" and "Consortium Member" in section 11.3 in this context.

KR-1: Transformation capability

The table below summarises the evaluation criteria for transformation capability requirements.

Evaluation criteria Reference Weighting

Transformation capability

Demonstrated experience delivering services and solutions across the transformation capability areas.

Demonstrated expertise, approache.s and insights in each of the transformation capability areas.

Demonstrated methodology and experience in each of the delivery roles (as deta iled on pages 23-25 ).

KR-1 30%

Demonstrate your organisation's experience in the transformation capability areas by addressing the requirements below. Participants should describe their relevant experience, approaches and insights in delivering services and solutions across each of the transformation capability areas and describe the delivery roles that were provided .

Participants must respond to the transformation capability requirements detailed below.

KR-1.1

Requirement

Legacy migration

Describe your organisation's experience undertaking a legacy platform migration and/or modernisation. In your response, describe the approach taken during transition to support platform co-existence.

Describe your organisation's experience performing application consolidation that Involves rationalising and decommissioning of applications to remove system function duplication promoting simplification and reuse.


KR-1.2

KR-1.3

KR-1.4

KR- 1.5

KR-1.6

KR-1.7

Requirement

Revenue collections and disbursement

Describe your organisation's experience defining common business services and processes to simplify the revenue collection and disbursement processes across different products. In particular, make reference to any B2C or B2B system integration used to streamline and make the transaction scalable and repeatable.

Describe your organisation's experience integrating a secure online payment facility into an organ isation which enables customers to submit payment from various authoritative financial sources (e.g. debit and credit card, EFT, PayPal, etc. ).

Descri be you r organisation's experience designing and implementing solutions that improve the accuracy and t imeliness of revenue collection.

828 integration

Describe you r organisat ion's experience designing and Implementing an online real-time mechanism to enable communication w ith business partners. Specifically describe how your design certified that the quality of information provided to the organisation was valid before being provided to other areas of the business.

Customer relationship management

Describe your organ isation's experience defining and developing a solution to create a single customer view that can be utilised to understand the products, services and transactions that they have with the organisation.

Describe your organisation's experience tailoring the user experience and services to specific customer segments through customer engagement.

Describe your organisation's experience implementing a solution to facilitate the definition, planning, execution, management and reporting of campaigns targeted at various product and customer segments.

Information management

Describe your organisation's experience establishing an Information management capability including the appropriate governance frameworks. The capability should have enabled t he management of structured and unstructured Informat ion to support searching of all informat ion across t he organisation. This will facilitate the t ransformation of the organisation in to an intelligence-led enterprise.

Information sharing

Describe your organisation's experience delivering a solution to provide access to structured and unstructured information both within the organisation and to external parties. In your response, make reference to how the solution supports both the transactional and the intelligence needs of relevant parties while complying with the security, confidentiality and privacy law requirements of the organisation.

Document and records management

Describe your organisation's experience implementing a document and records management capability that enables an organisation to manage its records (classification, retrieval, retention and disposal ) throughout it s lifecycle. In your response provide your relevant experience in adhering to Industry standards and legislat ion (such as the Public Records Act, Official Information Act, etc).


KR-1.8

KR-1.9

Requirement

Pr oduct design

Describe your organisation's experience analysing and implementing changes to rationa lise and simplify financia l products from both a customer and internal perspective.

Policy delivery

Describe your organisation's experience developing and implementing policy delivery capabilities (system, process and people) that enables an organisation to assess the proposed impact of a changed or new policy on both themselves and their customers.

In your response make reference to the methods adopted for Implementing and assessing the effort of new policy change.

KR-1.10 Service-orientated architecture

Describe your organisation's experience gu iding and assisting a client to move to service-orientated architecture i.e. An organisation that leverages (provides and consumes) a common set of business services across internal and external organisation boundaries. This w ill include specific examples of how the Service Orientated Architecture delivered on the reuse of the common services.

KR-1.1 1 Business process re-engineering

Describe your organisation's experience re-engineering business processes associated with managing customer transactions including customer enquiries and the collection and disbursement of money.

Describe your experience reducing process variation across business units to increase and drive process standardisation .

Describe your organisation's experience performing analysis to identify core and noncore transactions in a revenue department.

KR-1.12 Business inte lligence and analytics

Descr ibe you r organisation's experience delivering business intelligence and ana lytics solutions, making specific reference to how the solution:

enables monitoring and measurement of product performance and support for product/policy modifications;

is leveraged to support continuous improvement;

enables forecasting of demand peaks and t roughs to assist in workforce planning;

enables fraud analytics;

enables segmentation of customers based on internal and external data; and

enables data to be utilised to better understand and predict the behaviour and risk profile of customers (customer profiling) and business partners.


Requirement

KR- 1.13 Business activity monitoring

Describe your organisation's experience implementing solutions to monitor and measure operational performance across both internal and external service functions.

Describe your organisation's experience implementing solutions that leverage data analytics to view the performance of all customer- facing services.

Describe your organisation's experience implementing solut ions that leverage and Integrate analytics into an organisation's performance management framework to track, report and manage internal performance against established service levels.

KR-1.14 Workflow

Describe you r organisation's experience implementing a workflow solution that manages the lifecycle of mu lt iple revenue management processes and multiple products and services.

Describe your organisation's experience in implementing skill based routing across organisational boundaries (in the context of joined-up public services across different agencies and integration with third parties).

KR-1.15 Master data management

Describe your organisation's approach to the management of enterprise wide master data. In your response outline your approach to data governance, particularly in relation to the management of data quality issues.

KR-1.16 Receipting

Describe your organisation's experience implementing a payment receipting solution to facilitate the collection and allocation against multiple obligations.

KR-1.17 Security strategy

Describe your organisation's experience defining the security and privacy strategy for an organisation to understand security threats and motives and the appropriate risk profile associated with organisational processes, systems and Information.

KR-1.18 Knowledge management

Describe you r organisation's experience delivering knowledge management solutions. I n your response make reference to solutions that supply individuals w ith timely, context sensitive and secure access to technical, procedural and customer knowledge. This Includes access to real-time and offline help and governance associated with the classification, retrieval and archiving of information.

KR- 1.19 Case management

Describe your organisation's experience designing and Implementing solutions that enable a collaborative approach to case management.


Requirement

KR-1.20 Channe l strategy

Describe your organisation's experience creating a channel strategy that includes:

seamless customer experience between organisational functions and across d ifferent channels;

integration of products and services from different organisational functions; and

a framework or approach for determining whether existing channels should be optimised or new channels created, and subsequently what products and services shou ld be offered w ith in each channel.

KR-1 .21 Leveraging organisational services

Describe you r organisat ion's experience facilitating and consequently leveraging a set of services provided by a state owned enterprise (or more specifically, external government departments) .

KR-1.22 Identity management

Describe your organisation's experience implementing a solution that introduced the capabilities required to manage internal and external user identit ies to faci litate authentication and authorisation requirements.

KR-1.23 Onli ne presence and usability

Describe your organisation's experience reviewing and redesigning an organisation's external online self-service capability to provide improved customer experience.

Describe your organisation's experience implementing web content management capability.

KR-1.24 Corresponden ce generation

Describe your organisation's experience developing a collection of communication management capabilities that promote and enable the organisation to produce and distribute correspondence across multiple channels.

KR-1 .25 Continuous improvement

Describe your organisation's experience establishing and enabling systems, processes and cult ure of continuous improvement. I n your response out line your experience developing an approach to business change that considers all inputs (e.g. customer Insights, complaints, policy development) and manages t he design, development and Implementation of business change/improvement on an ongoing basis.

KR-1.26 Scalable infrastructure

Describe your organisation's experience implementing or leveraging Platform as a Service {PaaS) to deliver solutions underpinned by sca lable infrastructure.

KR-1.27 Business rules management

Describe your organisation's experience deploying a solution that enables business rules to be amended without having to specify/ make changes to core applications and where the changes to business rules are applied across channels consistently.

KR-1.28 Perfor mance management

Describe your organisation's experience defining a performance management framework that deta ils KPis across the organisation to assist in the measurement and continuous improvement of end-to-end processes, people and systems.


KR-2: Tra n sformation programme experience and innovation

The table below summarises the evaluation criteria for transformation programme experience and innovation requirements.


Transformation programme experience and innovation

Depth of experience and insight in design ing and implementing the staged delivery of a major t ransformation prog ramme for a nationa l- level tax organisation (including distributions and payments).

KR-2 30%

Demonstrated insight and innovation.

Provide one case study that demonstrates you r o rganisation's recent design and implementation experience for the staged delivery of a major t ransformation programme for a national-level tax organisation (including distributions and payments) . The cl ient's transformation programme must be $100 m i llion (NZD) or greater, excluding any applicable taxes , in value. For a Consortium, the case study must be in respect of the experience of either or both the Consortium Entity and/ or a Consortium Member.

Participants must respond to the transformation programme experience and innovation requirements detailed below.

KR-2.1

KR-2.2

KR-2.3

KR-2.4

KR-2.5

KR-2.6

KR-2.7

KR-2.8

Requirement

Provide the name, locat ion and overview of the cl ient's organisation. Provide the contact name, role wit hin the organisation, telephone number and email address of cl ient referee for the case study.

Descr ibe the client's transformation programme including programme cost, objectives, desired outcomes, organ isational functions in scope, customers and impacted number of employees and users.

I dentify at what stage during the cl ient's transformation programme your organisation was engaged and describe your organisation's scope of services provided, delivery roles and solut ions and outcomes delivered to t he cl ient.

Describe how your organisat ion supported the client in achieving its long-term vision and strategic direction and how the services and solutions delivered by your organisation helped the cl ient deliver a specific government mandate.

Where t he transformation programme was part of a portfolio of work within the client's organisat ion, describe how your organisation worked wit hin t he portfolio of work and detail how your organisation managed the impact of Internal and external dependencies outside of its control.

Describe how your organisation helped the client prepare for and manage the business transformation in relation to organisational and workforce change management.

Describe t he overall client programme governance and your organisation's roles and responsibilities within the governance framework.

Describe what you consider to be the top five (5) risks and issues identified and managed as part of your engagement with this client. Outline your approach to managing these r isks.

P age 145 October 2013 Ref : 2013050

KR-2.9

Requirement

Based on your organisation's experience and delivery with this client, describe:

a. the key challenges your organisation faced and how you worked with the client to overcome these challenges to successfully deliver the desired outcomes and benefits;

b. how the business benefits and outcomes were measured and monitored;

c. the mechanisms used to drive business adoption and benefit realisation;

d . your approach to facilitating transfer of knowledge to your client;

e. your approach to managing third parties and subcontractors, including local market participants where appropriate;

f. the processes and procedures for ensuring the quality of deliverables and outputs;

g . how your organisation assessed the success or otherwise of the contribution it made to the client's change programme and overall business success;

h . the innovation delivered in the implementation of this transformation to both the client and its customers; and

I. the key insights gained and lessons learned from your experience with this client and how these may be applied to Inland Revenue's Transformation Programme.


KR-3: Organisational skills, expertise and innovation

The table below summarises the evaluation criteria for the organisational skills, expertise and innovation requirements .


Organisational skills, expertise and innovation KR-3 20%

Breadth and depth of organisational capability, experience and innovation in national- level tax (including d istributions and payments) and social policy environments.

Experience implementing or supporting current IR key applications.

Participants must respond to the organisational skills, expertise and innovation requirements detailed below.

Requirement

KR-3.1 Describe your organisation's capability and experience in nat ional-level tax (including dist ributions and payments) and social policy e.g. child support, student loans.

KR-3.2

KR-3 .3

Identify all major transformation programme engagements, in terms of scale, complexity and timeframes that your organisation is delivering in New Zealand, Australia and/ or globally.

Identify whether these engagements will have an impact on your organisation 's capacity to deliver Inland Revenue's Transformation Programme.

Describe your organisation's skills and experience in the key applications outlined in Appendix A - Current -state technology infrastructure.


KR-4: Key personnel

The table below summarises the evaluation criteria for the key personnel requirements.


Key personnel KR-4 15% Depth of business transformation experience and expertise of proposed key personnel.

Experience of proposed account management team and suitability of proposed relationship engagement approach.

Participants must respond to the key personnel requ irements detailed below.

KR-4.1

KR-4.2

KR-4.3

KR-4.4

Requirement

Identify your organisation's proposed account management team that will be assigned to Inland Revenue and provide an overview of their roles and responsibilities, relevant qua lifications and experience.

Provide a proposed relationship engagement approach.

Provide curriculum vitae and availability in New Zealand for key personnel proposed for lead roles. Key personnel must:

a. have relevant delivery experience; and

b. have delivered similar services, solutions and outcomes on transformation programmes of comparable or greater scale and complexity to Inland Revenue's Transformation Programme.

Complete Attachment 1 - Schedule 2

Describe how you would mobilise and reta in the r ight team if awarded any contract considering that they may be currently utilised on other key, sim ilar projects.


KR-5: Additional considerations

The table below summarises the evaluation criteria for additional considerations requirements.


Additional considerations


KR-5 5%

Overall quality, consistency and completeness of the response.

Participants must respond to the addit ional considerations requ irements detai led below.

KR-5.1

KR-5.2

KR-5.3

KR-5 .4

KR-5.5

Requirement

Describe your organisation's experience delivering change within the New Zea land legislative environment.

Describe how your organisation could help Inland Revenue meet the Government's Better Public Services objectives, with a particular focus on how you intend to deliver, or have previously delivered, on cross Government initiatives.

Describe the legacy your organisation would like to leave in New Zealand through participating in Inland Revenue's Transformation Programme. Where applicable, provide examples of where your organisation has left a positive legacy, e.g. helping to establish cross Government integration, single customer view, enhanced local market capability or other objectives similar in nature to Better Public Services Result Areas 9 and 10.

Based on your experience, identify and describe any risks your organisation has Ident ified relating t o Inland Revenue's Transformat ion Programme at the time of submitting your EOI response and how you would m itigate t hose r isks.

Complete Attachment 1 - Schedule 3

Describe innovative solutions that your organisation has delivered that may be applicable in the tax and social policy domain.


13. Evaluation criteria

Responses taken past the first step will be evaluated and scored against the ' Key requirements' evaluation criteria outlined below.


Transformation capability

Demonstrated experience delivering services and solutions across the transformation capability areas.

Demonstrated expertise, app roaches and insights in each of the transformation capability areas.

Demonstrated methodology and exper ience in each of the delivery roles (as detailed on pages 23- 25).

Transformation programme experience and innovation

Depth of experience and insight in designing and implementing the staged delivery of a major transformation programme for a national-level tax organisation ( includ ing distributions and payments).


Organisational skills, expertise and innovation

Breadth and depth of organisationa l capability, experience and innovation in national-level tax (including distributions and payments) and socia l policy environments.

Experience implementing or supporting current IR key applications.

Key personnel

Depth of business t ransformation exper ience and expertise of proposed key personnel.

Experience of proposed account management team and suitability of proposed relationship engagement approach.

Additional considerations


Overall qua lity, consistency and completeness of the response.

KR-1

KR-2

KR-3

KR-4

KR-5

30%

30%

20%

15%

5%

P age ISO October 2013 Ref : 2013050

Part G: Terms and conditions

......-page 151

October 2013 Ref : 2013050

14. Terms and conditions of this EOI

Definitions

• BT Procure m e nt Process means the procurement process in respect of Inland Revenue's transformation programme, as described in section 10;

• Co mpe titive Dialogue means the competitive dialogue stage of the BT Procu rement Process, as described in section 10.4;

• Cons ortium means, in respect of a consortium submitting a Response, the consortium as a group comprising the sum of its Consortium Members;

• Cons ortium Entity means, in respect of a consortium submitting a Response, the lega l entity that the consortium proposes wou ld contract with Inland Revenue if Inland Revenue were to select the consortium as a service provider(s);

• Conso rtium Member means, in respect of a consortium submitting a Response, the organisations making up the consortium;

• Co ns ortium Re presentative means, in respect of a consortium submitting a Response, t he legal entity representing the consortium for the purposes of this EOI and t he EOI Process;

• EOI Process means the EOI process described in section 11;

• EOI Rules has the meaning given to that term in paragraph 1 of this section 14;

• GETS has the meaning given to that term in paragraph 8 of th is section 14;

• IR Engage m e nt has the meaning given to that term in paragraph 7 of this section 14;

• IR Informa tion has the meaning given to that term in paragraph 7 of this section 14;

• OIA means the Official I nformation Act 1982;

• Participant has t he meaning given to t hat term in paragraphs 1 and 3 of this section 14;

• Participant Information has the meaning given to that term in paragraph 7 of th is section 14; and

• Response has the meaning g iven to that term in paragraph 1 of this section 14.

Acceptance of EOI Rules

1. Each person or entity (Participant) that submits a response to this EOI (Response) acknowledges and agrees that it is bound by:

(a) the terms and conditions set out in this section 14; and

(b) the other rules and requ irements set out in this EOI,

(collectively EOI Rules ).

2. Each Participant's agreement to be bound by the EOI Rules is in consideration for Inland Revenue provid ing the Participant with the opportunity to respond to th is


EOI (this obligation and the obligation in paragraph 12 of this section being Inland Revenue's sole obligations in connection with this EOI and the EOI Process).

3. In this section 14 a reference to a "Participant" is, in relation to a Consortium, a

reference to the Consortium Members, the Consortium Entity and the Consortium Representative, except in relation to paragraphs 22 and 26 of this section 14, where the reference to a "Participant" is a reference to the Consortium Representative.

4. A Consortium Representative warrants and represents that it is duly authorised to bind to the EOI Rules each Consortium Member of the Consortium it represents.

5. Without limiting any other right or remedy of Inland Revenue, Inland Revenue reserves the right to refuse to allow a Participant to participate (or participate any further) in the EOI Process or any subsequent stage of the BT Procurement

Process if Inland Revenue determines (at its sole discretion) that the Participant has failed to comply with any of the EOI Rules. Inland Revenue will be entitled to exercise such right at any time.

Status of EOI

6. Neither this EOI nor the EOI Process constitutes an offer by Inland Revenue to acquire goods or services from, negotiate with, or enter into any substantive agreement with, any Participant . The request for, and receipt of, Responses to t his EOI does not create or imply any obligation on Inland Revenue to contract for any goods or services included in any Response.

7. Except as expressly provided in paragraphs 2 and 12 of this section 14, and regard less of whether or not a Participant is selected to progress to a subsequent stage in the BT Procurement Process, Inland Revenue will have no legal, equ itable, contractual or other obligation whatsoever (including any implied obligation or duty, including as to fa irness, good faith or otherwise) to any Participant, and Participants will have no rights enforceable aga inst Inland Revenue, in relation to :

(a) this EOI or the EOI Process;

(b) any Response, or any other information, documentation or material received from a Participant, whether in a written form, verbally or otherwise (Participant Information); or

(c) any documentation, information or material provided to any Participant by, on behalf of, or at the direction of, Inland Revenue in connection with this EOI or the EOI Process (IR Informatio n); or

(d ) any discussions, correspondence or other engagement between Inland Revenue and any Participant at any stage of the EOI Process (IR Engage me nt).

8. If there is any conflict or inconsistency between any of:

(a) the terms and cond itions set out in this section 14 ;


(b) any other section or provision of this EOI; and

(c) the terms and conditions of use contained in the Government Electronic Tenders Service website at www.gets.govt.nz (GETS),

the order of priority for the purposes of determining which will prevail will be the order in which they appear above.

9. Inland Revenue makes no representations and gives no warranties in or in relation to this EOI or the EOI Process.

10. Any verbal communications between Inland Revenue and any Participant at any stage of the EOI Process, and any terms or conditions conta ined in a Response or in any Participant Information, will not be binding on Inland Revenue.

11. Participants must not include in their Response, or in any Participant Information, any terms or conditions that impose, or purport to impose, any obligation or duty on Inland Revenue.

Confidentiality

12. Each Participant may identify certain parts of its Response as being commercially sensitive by marking those parts "Commercial in Confidence" . It will not be acceptable for a Participant to mark its entire Response as such. Subject to its legal obligations (including under the OIA) and its obligations to the New Zealand Government (including Parliament and the Crown), I nland Revenue will not provide such commercially sensitive information to any person other than to its personnel, advisers and contractors who are involved in the EOI, the EOI Process and/ or the BT Procurement Process. Nothing in this paragraph 12, or otherwise, will prohibit the use of such commercially sensitive information for the purposes of considering, analysing and evaluating Responses, and for any other purpose related to this EOI, the EOI Process or the BT Procurement Process. By submitting a response to this EOI, each Participant agrees to such use.

13. All information contained in this EOI and any IR Information is provided for the sole purpose of allowing each Participant to prepare a response, and may not be used by a Participant (or anyone else) in any other context without the written authority of Inland Revenue.

Statutory obligations

14. Inland Revenue is subject to a wide range of statutory obligations, including under the OIA. Each Participant acknowledges and agrees that Inland Revenue has the unfettered right to carry out its statutory obligations and functions in accordance with all relevant legislation, including the OIA, notwithstanding the EOI Process.

Collection of information

15. Each Participant authorises Inland Revenue to collect any information from the Participant and relevant third parties (such as referees) and to use that information as part of its analysis of the Participant's Response and as provided in


these EOI Rules, as if it was Participant Information. Each Participant acknowledges that Inland Revenue may carry out further investigations and due diligence in respect of Participants (and persons or entities associated with Participants) both in connection with the EOI Process and subsequent stages of the BT Procurement Process, including in relation to financial status, history of compliance with applicable laws and any other matter that Inland Revenue determines (at its sole discretion) is appropriate. Inland Revenue reserves the right to refuse to allow a Participant to participate (or participate any further) in the EOI Process or in any subsequent stage of the BT Procurement Process if Inland Revenue is not satisfied (in its sole discretion) with the outcome of such investigations or due diligence.

Intellectual property

16. Intellectual Property in a Participant's Response and in any Participant Information will not pass to Inland Revenue. However, by submitting a Response, each Participant grants to Inland Revenue (and to its personnel, advisers and contractors who are involved in the EOI, EOI Process and/or the BT Procurement Process) a non-exclusive, irrevocable and perpetual licence to use, copy and modify all intellectual property rights (including, without limitation, any copyright and design rights) in its Response and in any Participant Information, for the purposes of considering, analysing and evaluating Responses, and for any other purpose related to this EOI, the EOI Process and the BT Procurement Process.

17. Each Participant warrants and represents that the provision of its Response and any Participant Information to Inland Revenue, and Inland Revenue's possession, use, copying , modification and/or disclosure of it, will not breach any third party intellectual property rights or any third party rights in confidential information.

Ownership of IR Information

18. This EOI and any I R Information is the property of Inland Revenue (or its licensors) and copyright and all other intellectual property r ights in th is EOI and any IR Information are owned by, and will rema in at all times vested in, I nland Revenue (or its licensors, as applicable).

19. Inland Revenue may request the immediate return of any IR Information (including tangible forms of IR Engagement) supplied by Inland Revenue to any Participant, and any copies made of such IR Information, at any time. Each Participant must comply with any such request within the timeframes reasonably required by Inland Revenue.

Completeness and accuracy of information

20. Each Participant warrants that all information provided in, or in relation to, its Response and any Participant Information is complete and accurate in all materia l respects.

21. Inland Revenue may rely upon all statements made by a Participant in its Response, in any Participant Information and/ or in any IR Engagement.

P age ISS October 2013 Ref: 2013050

22. Inland Revenue has no obligation to check any Response, Participant Information or IR Engagement for errors, omissions or inaccuracies. Without limiting paragraph 20 of this section 14, each Participant must notify Inland Revenue immediately upon becoming aware of any errors, omissions or inaccuracies in its Response or in any Participant Information.

23. Each Participant acknowledges and agrees that Inland Revenue:

(a) makes no representations and gives no warranties as to the accuracy or completeness of this EOI, IR Information or IR Engagement; and

(b) will have no liability on account of errors or omissions in this EOI, or in any IR I nformation or I R Engagement.

Responsibilities of Participant

24. Each Participant will :

(a) examine this EOI, any IR Information, and any other information made available by Inland Revenue to the Participant;

(b) identify and obtain any additional information it may require to meet the requirements of this EOI;

(c) consider the need to obtain and, if appropriate, obtain independent advice (including legal and accounting advice) before submitting a Response; and

(d) consider all the risks, contingencies, impacts and other circumstances having an effect on its Response.

Cost of responding

25. All costs incurred by a Participant in connection with:

(a) preparing and submitting a Response and any Participant Information; and

(b) any aspect of the EOI Process and/or IR Engagement,

are the sole responsibility of the Participant.

Notice

26. Inland Revenue will post any general notice (to all Participants) relating to this EOI or the EOI Process on GETS (and posting will be deemed to have satisfied any obligation that Inland Revenue has ( if any) to provide such notice).

Exclusion of liability

27. Each Participant acknowledges and agrees that, t o the maximum extent permitted by law, the Crown (including, without limitation, Ministers and Inland Revenue) and Inland Revenue's officers, employees, contractors, subcontractors, agents and advisors (and anyone else acting on behalf of, or at the direction of, Inland Revenue) will not be directly or indirectly liable (in contract, tort or otherwise) to any person or entity for any damages, loss or cost arising from or in connection with :

(a) this EOI;


(b) any IR Information or IR Engagement, or any information not given to any Participant;

(c) any aspect of the EOI Process or any IR Engagement;

(d) the accuracy or completeness of, or any error in, any statements or data within this EOI or any IR Information, or provided in the course of the EOI Process or in any IR Engagement;

(e) the preparation and submission of any Response or Participant Information;

(f) any investigations of or by any Participant, including reference checks or due diligence; or

(g) the suspension, cancellation or amendment of any aspect of the EOI Process,

or as a result of the participation by any Participant in the EOI, the EOI Process and/or the BT Procurement Process.

28. By submitting a Response, each Participant waives any rights it may have to make a claim against the Crown or Inland Revenue, or their respective officers, employees, contractors, subcontractors, agents or advisors arising out of, or in connection with, this EOI, the EOI Process or the BT Procurement Process.

Rights reserved by Inland Revenue 29. Notwithstanding any other provision in this EOI, Inland Revenue reserves, in its

sole discretion, the right to :

(a) reject all or any of the Responses;

(b) reject or not consider further any Participant Information;

(c) seek further details or clarification from, at its discretion, all Participants or any Participant about any aspect of any Response or any Participant Information;

(d) amend or extend any date in the EOI Process or any subsequent stage of the BT Procurement Process for any reason;

(e) amend, suspend (in whole or in part) or cancel any aspect of th is EOI, any IR I nformation, the EOI Process, or any I R Engagement;

(f) exercise its own discretion and judgement when considering, analysing and evaluating any requirement, matter or criteria set out in, and/or addressed in, any Response or Participant Information;

(g) waive any irregularities or formalities in the EOI Process;

(h) reissue this EOI and/or re-invite Responses;

(i) take into account any other relevant information when considering, analysing or evaluating any Response, and to make enquiries of any person or entity to assist it in the evaluation process;

(j ) have discussions with all or any Participants at any time;


(k ) suspend and/ or terminate the participation of any Participant in the EOI Process at any time;

(I) enter (or not enter) into any contract with any Participant;

(m ) select or allow (or not select or allow) any Participant, or no Participant, to participate in any Competitive Dialogue process or other stage of the BT Procurement Process; or

(n) elect not to proceed with any subsequent stage in the BT Procurement Process (either at all or in the manner described in this EOI) .

Governing Jaw

30. This EOI, the EOI Process, any I R Engagement and the BT Procurement Process is governed by New Zealand law and each Participant submits to the exclusive jurisdiction of the New Zealand courts in relation to all matters relating to, or arising out of, th is EOI, the EOI Process, any I R Engagement and the BT Procurement Process.

31. Each Participant acknowledges and agrees that it must comply with all applicable laws (whether in New Zealand or overseas), including all laws relating to the payment of tax and tax obligations.

Probity

32. Each Participant must immediately disclose to Inland Revenue, in its Response to this EOI, in any Participant Information, and on a continuing basis throughout the EOI Process, any actual, potential or perceived conflict of interest in relation to any matter covered by th is EOI, as soon as the Participant becomes aware of the conflict. If a conflict of interest arises and in Inland Revenue's opinion has not been, or cannot be, appropriately managed by the Participant, Inland Revenue may (in its sole discretion) terminate the participation of the Participant in the EOI Process and/ or any subsequent stage of the BT Procurement Process.

33. Each Participant must not, directly or indirectly, provide any form of personal inducement or reward, approach, lobby, threaten or otherwise attempt to influence or obtain improper assistance from any employee, officer, contractor or representative of Inland Revenue or any other person who is directly or indirectly involved in the EOI Process.

34. The EOI Process is intended to promote fair competit ion between Participants. Participants must not engage in collusive, deceptive, anti-competit ive, improper conduct, or unethical behaviour, whether in breach of t he Commerce Act 1986 and/or the Fair Trading Act 1986 or otherwise, in t he preparation of their Responses, or in any IR Engagement during or following t he EOI Process. If any Participant engages in such conduct, I nland Revenue may (in its sole discretion ) terminate the participation of the Participant in the EOI Process. For the avoidance of doubt, this does not preclude Responses from consortia where their conduct is not anti-competitive and is compliant with all applicable laws ( in New Zealand and overseas) .

Page ISS October 2013 Ref: 2013050

35. Inland Revenue may require Participants to supply Inland Revenue with statutory declarations and other documents, and such evidence as Inland Revenue sees fit, t hroughout the EOI Process in pursuing its probity requirements or objectives for the EOI Process or the BT Procurement Process.

Tax Compliance and Criminal Checks

36. I n recogn ition of the unique requirements of doing business with Inland Revenue, a Participant and/ or any of its personnel , officers, agents and/ or contractors may be required to undergo a tax compliance and/ or criminal check. Participation in the EOI Process by a Participant authorises Inland Revenue to undertake such tax compliance and/or criminal checks. This requirement includes any subcontractors (and their personnel, officers, agents and/or contractors) nominated by the Participant in its Response. I nland Revenue reserves the right to refuse to allow a Participant to participate (or participate any further) in the EOI Process or in any subsequent stage of the BT Procurement Process if Inland Revenue is not satisfied ( in its sole discretion) with the outcome of any checks.

Currency

37. All monetary amounts set out in this EOI are stated in New Zealand dollars.

References to Inland Revenue

38. A reference in this EOI to "Inland Revenue" or "IR" is a reference to Her Majesty the Queen in right of New Zealand acting by and through the Commissioner of I nland Revenue or her or his authorised delegate.


Part H: Appendices

\ .....

Page 160 October 2013 Ref : 2013050

The table below lists the appendices that have been referred to in the body of this EOI document, to assist Participants in providing a response .

Appendix Title

A Current-state technology infrastructure

B Conceptual application architecture

C Some minimum contract terms


Appendix A - Current-state technology infrastructure

Technology channel

Governance

Security, Identity and Access Management

Access Channels

Operational Applications

Channel description

This tier spans all of the layers to manage the policy and accountabilit ies provided by the Technology Strategy and Operat ions Business Group who are responsible for the development, delivery, and improvement of Inland Revenue's ICT systems

Th is tier spans all of the layers to manage the confidentiality, integrity and availability of Inland Revenue assets wit hin and at t he bounds of In land Revenue's information environment boundaries

External Identity and Access Management (XIAMS) supports authentication of customer access to online and porta l services

Encompass digital and non-digita l channel technologies, which enable I nland Revenue to interact wit h customers

Enable Inland Revenue to effectively interact (communicate and t ransact) with customers across channels and touch-points, and enables business activities to deliver I nland Revenue service outcomes to customers

Key applications

N/A

RSA Access Manager, MS Active Directory, Oracle Identity Manager (OIM), Access Control - Identity and access management system (lAMS), Online access and control system (OLACS)

FIRST: Online and batch security software

Voice, Paper, Web, B2B, P2P, I nteractive Voice Response (IVR)

Secure mail, Revenue and Social Policy Systems, I nland Revenue Portals, KiwiSaver, Xpress Client, Letters, Statements and Notices, Voice

P age 16 2 October 2013 Ref: 2013050

Technology channel

Enterprise Applications

Data

Integration

Channel description

Support both operational and business application services, which largely support internal Inland Revenue end users

This layer does not directly contribute to the operational delivery of customer-facing services

Encompasses information system (IS) services for access, storage, and management of data that supports higher-level services

Encompasses IS services for the interconnection of all of the other tiers. Integration of these tiers provides Inland Revenue, external organisations, and users with information to assist in the execution of services across the landscape

Key applications

Campaign Manager, Workflow and Error Resolution , Case Management, Risk Management, Oracle Business Intelligence Enterprise Edition (OBIEE), Hyperion Interactive Reporting, Oracle Scorecard and Strategy Management, SAS Enterprise Miner, SAS Text Miner, Policy Rules Automation, Intranet, File Shares, FMIS, Human Resource Management Information System (HRMIS) and Payroll, Service Desk

FIRST, Enterprise Data Warehouse, Levy Systems, Voice, Corporate Services, Case Management

Middleware Messaging: JMS, Web services, eWay, WebSphere, MQ, JBoss web services, OFM Enterprise Grid Messaging, MS SQL

ClearPath: Call-in Adapter {CIA), Call-out adapter {COA)

Integrated support: FTP, Secure Copy, Oracle SOA, Oracle Service Bus, Oracle B2B Integration, Oracle Web Services Manager, JCAPS, SAP Netweaver, Transformation-XSL T

Orchestration: Business Process Management and Notation {BPMN), Business Process Execution Language {BPEL), Business Process Execution Language for Web Services {BPEL4WS)


Technology channel

Infrastructure

Channel description

"Commodity" services needed to support IS Services. Infrastructu re Services provides the foundational funct ionality for end users to access information and IS Services within server- and client-side environments

Key applications

Mainframe: Un isys Clea rPath , Java processor

Midrange: ESX Server, vSphere, x86-VMware, Linux, Windows, SPARC- Sun/ Solaris, Dell-Blade, Rackmount

Guest VMs : Windows Server, SLES, RH EL, Solaris x86, Netware

Desktop/ Laptop: Windows, VMWare, Thick and Th in Client

Storage :

Online: Disc (EMC DMX/VMax)

Near- line: Disc (EMC D/ D)

Offline: Tape (StorageTek)

Telephony: Genesis Platform, Vodafone 3G Mobile, VOIP

Networks: WAN/ LAN - DMZ Globa l, One.Govt , TCP/ IP (Cisco)

Languages: COBOL74, ALGOL, UNC, Visua l Basic, JAVA


Appendix B - Conceptual application architecture

Inland Revenue's current application environment consists of a combination of enterprise packages from major service providers, technology platforms and bespoke solutions. These systems and solutions have been implemented progressively and at speed to meet new demands and, as a result, are not fully integrated.

Online Services

eFile (Progress, JAVA]

Fam ilies and individuals workspace

[JAVA]

Look at account informat on (JAVA]

Returns imaging [Exigen]

Account management (JAVA]

irFile Xpress client [Visual [JAVA] Basic]

Forms, returns and calculators Call recording [Verint Virtual hold

[PERLjJAVA (Spring Portlet), Cocoon]

ULTRA] (Genesys)

Genesys voice voice biometrics Secure email [JAVA] management [IVR (Multiple] and CTI]

FIRST- Revenue and Social Policy Applications (UNISYS Clearpath COBOL74/ ALGOL/ LINC]

Client registration

Returns and payment processing

Tax agent management

Knowledge Management

Services

Enterprise data warehouse [Orad e

Hyperion, OBIEE]

Revenue forecasting [SAS]

COrrespondence

Client and revenue accounting

Issuing

Business Rules Services

Policy automation [Oracle OPAl

Case Management

eCase (Audit) [Oracle- Siebel and

Seibel analytics]

Returns generat on

Oebt and returns management

Crown revenue

Transcripts and evdence

(Summation]

Figure 81 : Conceptua l application architecture diagram

Corporate Services

Financial m anagement [SAP]

Payroll/Human Resources

management [SAP]

Paid parental leave [SAP]

Output Services

Letters online [xPr-ess on]

Customer noticing [xPr-ess on]

Enterprise document storage repository [IBM

- websphere]

I ncome equalisation [Progress GUI ]

Duties [Java]

Note: The purpose of this diagram is to show the main application systems that support business processes. Not all Inland Revenue applications are shown. Informat ion shown in square brackets indicates major technologies relating to the application.


The current appl ication environment consists of 13 application groups, which are summarised below:

• FIRST: central to Inland Revenue's current-state appl ication architecture is FIRST { Future Inland Revenue Systems and Technology). FIRST is an integrated and generic tax-processing engine that is function-based (rather than modular or service-based).

The FIRST system is a complex mainframe system built on Unisys COBOL 74. It has been developed and extended over the last 20 years. FIRST comprises 40 "tax types", tens of millions of lines of custom-developed and closely coupled code with over 180 system interfaces.

The core processes of FI RST have been extended signif icantly beyond their original purpose to incorporate social policy initiatives, which have been added over t ime. The high-level v iew of the functionality embedded with in FIRST is :

• client registration;

• returns generation, processing and management;

• pro-active actions;

• payments processing;

• refunds and payments distribution ;

• client accounting;

• revenue accounting, financial reporting and forecasting;

• debt management;

• inbound and outbound correspondence management; and

• issuing of notices and statements.

• Online services: as well as managing the static content for the public-facing I nland Revenue web sites, online applications provide significant functiona lity for customer interaction and calcu lation (e.g. myiR);

• Voice services: voice applications support the call centre environments (e.g . v irtual hold, voice biometrics);

• Corporate services: corporate applications provide business functions that support the efficient and effective running of the organ isation (e.g. Human Resource Management, payroll);

• Output services: output applications support output t o the customer (e.g. notices, statements);

• Levies and duties services: levies and duties applications support the m inor duties and certain Inland Revenue scheme details (e.g. envi ronmental restoration account );

• KiwiSaver services: KiwiSaver applications support Inland Revenue product functional ity outside FIRST;

• Business rules services: business rules applications deliver business rules for enterprise processes that support business operations, calculations, definitions and policies;


• Case management se.-vices: case management applications support the work flow and information to support compliance case management;

• Knowle dge management se.-vices: knowledge management applications cover the organisational enquiry and knowledge management functions;

• Security se.-vices: security applications manage user access to Inland Revenue system and applications. They provide both user authentication (who you are) and authorisation (what you can access);

• Input services: input applications support information input from the customer (e.g . tax returns); and

• Litigation services: information systems (IS) that support a consistent and well organised defence of tax assessment.


Appendix C - Some minimum contract terms

Set out below are some principles behind some minimum contract terms which Inland Revenue will be reflecting in any agreement it enters into with any service providers. Please note this is not an exhaustive list and the wording below does not represent the actual contract wording:

Legal principle

Secrecy certificates

Tax compliance and criminal checks

Payment of taxes

Net fees {no gross up)

Confidentiality

No overseas data transfer

Description

All service provider personnel (Including those of its subcontractors) engaged on I nland Revenue work will be required to sign a Certificate of Secrecy in the form specified by I nland Revenue. Original signed versions will be required to be provided to I nland Revenue .

Inland Revenue may conduct, at any time, tax compliance checks and crimina l checks in respect of a service provider, its subcontractors, and their respective personnel. A service provider will be required to obtain all necessary consents for such checks to be carried out. Inland Revenue may terminate an agreement with immediate effect or may require the removal of relevant personnel/subcontractors if Inland Revenue (in its sole discretion) is not satisfied with the result of any such check.

A service provider will be required to meet (and to have met) all tax obligations, and comply (and have complied) with all tax laws, in New Zealand (and overseas). Inland Revenue may terminate any agreement if the service provider breaches this obligation.

Inland Revenue will pay fees net of any taxes (except New Zealand goods and services tax), duties etc that Inland Revenue is required by law to deduct. Inland Revenue will not be required to gross up on account of any deductions.

A service provider will be required to keep all I nland Revenue-related information confidential and will only be permitted to use it solely for, and will not be permitted to disclose it otherwise than Is necessary for the purpose of, complying with its obligations under an agreement with I nland Revenue. A service provider will also be required to maintain adequate and effective security measures to safeguard such information.

A service provider will not be permitted, without the written consent of Inland Revenue, to transfer any Inland Revenue-related information outside of New Zealand or make such information available to anyone outside New Zealand.


legal principle

Non-exclusive appointment

No minimum level of business

Co-operation

Compliance with laws

Subcontractors

OIA and other disclosures

Description

A service provider's appointment under any agreement will be on a non-exclusive basis. Inland Revenue may appoint third parties to provide services or deliverables similar to or identical with any services or deliverables that may be provided by a service provider, or Inland Revenue may provide such services or deliverables itself.

Inland Revenue does not guarantee any m inimum level of business by entering into any agreement with a service provider.

In providing services or deliverables, a service provider will be required to co-operate with Inland Revenue's other providers to ensure a seamless and efficient delivery of all services and deliverables to Inland Revenue.

A service provider will be required to comply with all applicable laws in New Zealand (and overseas).

A service provider will not be permitted to subcontract any of its obligations under an agreement with Inland Revenue, to any person, without first obtaining Inland Revenue's written consent, and will be required to obtain Inland Revenue's prior written consent to the replacement of any subcontractor. A service provider will remain liable to Inland Revenue for all acts or omissions of each of its subcontractors (and their personnel) as if they were the acts or omissions of the service provider.

A service provider acknowledges that Inland Revenue is subject to the Official Information Act 1982 (OIA) and other d isclosure requ irements. A service provider will be required to provide Inland Revenue w ith documents or other information that In land Revenue is requ ired to provide or disclose under the OIA or otherwise (including for questions ra ised in Parliament or in any Select Committee).


Part 1:

Attachments


The table below lists the attachments to this EOI, including response schedules and returnable forms (Attachments 1 and 2) that Participants must complete for their response to meet the requirements of this EOI.

Supplementary information has also been provided (see Attachments 3 and 4) for Participants to use in developing a response to this EOI.

Attachment name

1 EOI response schedules

2 IR822 Tax Check Non-Individuals

3 Target Operating Model (TOM)

4 High-level future state customer personas and scenarios

Pagel71 October 2013 Ref: 2013050

Documents

Expression of Interest (EOI) - classic.ird.govt.nz · Greg James Deputy Commissioner Change Inland Revenue is changing to make it faster and easier for all New Zealanders to deal