Request for Proposal - Greater Sudbury · Request for Proposal For: ... Envelope Sizing—the envelopes for outgoing mail are to be a ... integration within the SAP system so as to

Request for Proposal

For:

Greater Sudbury Utilities

Utility Invoice Generation System

July 18, 2008

Greater Sudbury Utilities Utility Invoice Generation System RFP

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i. Statement of Confidentiality

This document is the property of Greater Sudbury Utilities. Recipients of this document agree to keep its contents in confidence other than for the purpose of managing and developing the Utility Invoice Generation System described herein. Any other disclosure must be prior agreed to in writing.

ii. Contact Information

For your convenience, all questions or inquiries regarding this RFP or clarification of its content should be directed to the following individual:

Mr. Greg Field Supervisor, Customer Service

Mailing Address:

Greater Sudbury Utilities 500 Regent Street Sudbury, Ontario

P3E 4P1 Canada

Tel: (705) 675-0501 Fax: (705) 671-1413

Email: [email protected]

Questions should be received by noon Thursday July 24, 2008. Responses will be forwarded to all proponents who have indicated that they intend to respond by Friday July 25, 2008. Proponents should indicate their “Intent to Respond” via email by 4:30pm Wednesday July 23, 2008.


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Table of Contents

Overview .......................................................................................................................... 5

Requirements .................................................................................................................. 7

Timeline and Milestones ................................................................................................. 9

Invoice Generation System .......................................................................................... 11

Collection Notice Production ....................................................................................... 11

Development ................................................................................................................. 12

Full Production .............................................................................................................. 13

Offset Printing ............................................................................................................... 14

Electronic File Transfer ................................................................................................ 15

Proposal Requirements ................................................................................................ 16

Limitation ....................................................................................................................... 18

Appendix A – SAP Press Release ................................................................................ 19

Appendix B – GSU Sample Invoice .............................................................................. 20

Appendix C – Artwork for Invoice Sheet, Outer & Reply Envelopes ......................... 21

Appendix D – Daily Audit Report format ..................................................................... 25

Appendix F – Sample Statement of Mailing ................................................................ 26

Appendix G – Pricing .................................................................................................... 27


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Overview

Greater Sudbury Utilities (“GSU”) is in the process of implementing SAP for Utilities, in cooperation with London Hydro and Cambridge Hydro. This co-operative is referred to as CODAC “Cooperative Of Distributors Advocating Change”. See Appendix A for the SAP press release. GSU’s target ‘live’ date for the SAP system is April 1, 2009. Full production of invoices will not start until GSU is ‘live’ with the SAP system, however the invoice generation system must be operational for November 19, 2008 for SAP system testing and development. GSU is requesting proposals for the provision of Print Services for the design, set up, laser imaging, printing, sorting and mailing of Utility invoices. GSU serves approximately 70,000 customers, providing invoices daily, based on a bi-monthly invoicing schedule for an annual production of approximately 420,000 invoices and approximately 100,000 dunning letters. GSU’s current Customer Invoice is a multi-page 8.5 x 11 inch sheet document with a 3.25-inch wide return stub across the bottom portion of the invoice. The basic document is preprinted on the front with the available data laser printed onto the front and back, with the option of multiple pages. GSU accepts direct payment of accounts, or the APA system, as a method for customers to pay their accounts at any branch of a financial institution. Therefore their invoice format must be a standardized MICR encoded invoice that conforms to current Canadian Payments Association Standards. GSU offers electronic bill delivery and payment thru the Canada Post epost product. The proponent is required to interface directly with epost on behalf of GSU. GSU requires the interested supplier of invoice printing services to be knowledgeable of Canadian Payments Association Standards and to be able to deal directly with our banker (Toronto Dominion Bank) regarding any standard format questions and tests. The successful company will supply, print and mail combined hydro, water and wastewater invoices and associated envelopes and brochures. It is desirable for GSU to contract with a single vendor that can provide services for the combined utilities so that all the program objectives and requirements can be achieved consistently and efficiently.


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Specific services required include:

• the proponent will receive via FTP file transfer a data file containing information of individuals who are to be invoiced for Hydro, Water and Waste Water usage. The files will be delivered to the proponent based on a predefined schedule.

• the proponent uses the data contained in the files to produce the invoices employing prescribed forms in a format approved by GSU.

• the proponent will print the invoices, outer envelopes and reply envelopes and place the items into the postal delivery system with first class postage.

• the proponent will host individual PDF’s with a filename convention and a lookup datafile to be returned to GSU and used for bill retrieval within SAP.

• the proponent will generate epost pdf bills along with the xml interface file as required by epost. epost subscribers are identified within the data file.

The documents will comply with the following specifications:

Paper Specification —the invoice specification is 24lb white offset with micro-perforation on 8 1/2” x 11” sheets with a MICR print line.

Printing Specifications — The lower part of the documents will include a Canadian Banking Standard compliant perforated portion for payment to allow for the MICR encoding.

Laser Imaging: a combination of single or multiple sheets printed two sided at 600 dpi black within any given package.

Envelope Sizing—the envelopes for outgoing mail are to be a standard #10 24lb white wove window envelope, and the envelopes for return mail are to be a standard #9 BRE.

The turnaround time, from file receipt to placement in the postal delivery system, shall be a maximum of one (1) business day from approval of the Audit Report.

The proponent shall notify the GSU electronically, daily, of the file names, record count for each extracted file and provide proof of mailing. The proponent shall have sufficient management and quality control procedures in place to ensure all required invoices are printed and mailed, including a full audit trail capacity.


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Requirements

Requirements for GSU

1. Have meeting(s) with the proponent to define and analyze project requirements

2. Transmission of data file to vendor

3. Approve the proponent developed artwork for the invoice sheet, outer envelope and return envelope

4. Submit a PO stating quantity and description to purchase and produce the stock for the Invoice forms, outer envelopes and return envelopes. This is to be purchased and stored for daily usage

5. The GSU will be the primary contact for any data formatting and quality issues arising from the data generated

6. The GSU is to supply the record layouts for each file and inform the proponent of any proposed changes

7. The GSU is to supply the data files with a predetermined naming convention

8. The GSU will forward all data files to the proponent before a predetermined time for production of the invoices

9. The GSU will run a test phase with the proponent and review all Invoices

10. The GSU will supply written approval of the test phase or required changes

11. The GSU will ensure that adequate postage funds are maintained in their Canada Post account for the daily mailing of the Invoices


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Requirements for the Proponent

1. Document a Statement of Work detailing the GSU Invoice requirements to be approved by the GSU before System Development is initiated

2. Setup a SFTP site to receive & send files as required

3. Develop artwork for invoice sheet, outer envelope and return envelope for GSU approval

4. Offset print the required stock for the 8 ½” x 11” invoice forms with laser ready perforation, the required #10 outer envelopes and #9 BRE envelopes based on the requisition supplied by GSU

5. Review all test data files supplied for quality and integrity issues based on the requirements supplied from GSU. All issues are to be documented in written form and sent to GSU for resolution

6. Sort supplied data files for consolidation into 3 envelop sizes, based on “Window Address” being identical

#10 (1-5 invoices)

9 ½ X 12 Grey (6-50 invoices)

Jiffy pak (50 plus)

7. Upon development completion of the Invoice System initiate test production based on files supplied by the GSU for system approval

8. Upon receiving written system approval from the GSU, initiate the Invoice Generation system for production

9. Automatically transfer the production files from the FTP site and process to print files for the invoices

10. Produce the associated individual PDF view files with the lookup data file for integration within the SAP system so as to facilitate invoice look-up within the SAP system.

11. Produce an Audit Report for each file based on GSU’s requirements and email back to GSU contact person

12. Laser image the invoices on the 8 ½” x 11” perforated sheets with static and variable information on the front and back side in a bilingual format

13. Prepare and mail a single invoice form with a #9 return envelope into a #10 windowed envelope, for each invoice record dataset supplied in the data file from the GSU within 1 business day of receiving the file using OMR intelligent insertion for multiple page sets

14. Send a copy of the Statement of Mailing to the GSU contact person upon depositing the Invoices with Canada Post as an email attachment in a PDF viewable format


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Timeline and Milestones

Activity Start Date

RFP Release date July 18, 2008

RFP “Intent to Respond” email notification deadline July 23, 2008

RFP Question submission deadline Noon, July 24, 2008

RFP Question responses emailed to proponents July 25, 2008

RFP Response deadline Noon, August 15, 2008

RFP Evaluation Week of August 18, 2008

Successful proponent announced August 22, 2008

GSU provide record layout and sample invoice and data for evaluation for the Statement of Work

TBD

Agreement to Commence Project TBD

Initial Meeting to define and analyze project requirements TBD

GSU to provide file naming convention and test files TBD

Successful proponent to make proposed Artwork for Invoices and Envelope TBD

Statement of Work document submitted for approval by the GSU TBD

Supply Envelope proofs to the GSU for approval TBD

Supply Invoice stock proofs to the GSU for approval TBD

Successful proponent submits revised Statement of Work document to the GSU for final approval

TBD

GSU approves artwork for envelopes or submit changes TBD

GSU approves artwork for invoices or submit changes TBD

Legal Agreement signed by the proponent TBD

Legal Agreement signed by the GSU TBD

Receive complete datasets files for reviewing and program development and testing

TBD

Start Programming for: • Audit Reporting • Electronic Data transfer • Invoice Form Design • Bar charts showing usage • epost • Dataset merging to produce variable print image files • Consolidation (multiple invoices inserted in same envelope based on like

window address) • Data Integrity (barcodes for intelligent inserters) • Proof set extraction to produce predetermined test set for the Invoices

for data merging and imaging approval

TBD

Successful proponent supplies revised Envelope proofs to the GSU for approval

TBD

Successful proponent supplies revised Invoice stock proofs to the GSU for approval

TBD

GSU supplies requisition for invoices and envelope stock TBD


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Place order for Notice Perforated Letter stock based on quantity requested TBD

Place order for envelopes based on quantity requested TBD

Receive Envelopes into Inventory TBD

Receive Invoice Stock into Inventory TBD

Submit Laser Imaged Data proofs to the GSU for review and approval process

TBD

Invoice Generation Programming Approved by the GSU TBD

Lock system and move from Development Environment to Production Environment.

Nov 19, 2008 Fully

Operational Print Services required for

Wipro testing & development of

SAP system


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Invoice Generation System

The GSU invoices will be printed on the front of an 8 ½” x 11” – 24lb offset, white perforated stock. All invoices are variable duplex (2 sided) imaged in black toner. Each data record set will receive one invoice. A flag will be supplied to indicate invoice consolidation to a mail address based on the following records matching. Consolidation will be across the file. If another invoice dataset location is between the two expected consolidated invoice dataset records then all records will be treated as individual locations. These exact match invoices are to be consolidated within one envelope to a maximum of 5 invoices for the #10 outer mailing envelope, 6-50 invoices for the 9 ½ X 12 grey envelopes, plus 50 for the jiffy paks. This logic will continue until a new name and address are found in the data file. To ensure proper handling of match invoices, OMR bars will be added for intelligent insertion processing. The GSU will FTP the files on a business day basis and upon completion of the transferring of files they will send a termination file releasing the proponent’s automatic system to pickup the files and start the data processing functions.

Collection Notice Production

The GSU will supply a print ready file in pdf format on an as required basis. The proponent will image the collection notices onto 20lb white bond and insert into the #10 outer envelopes used for the invoice production.


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Development

The data will be supplied in an SAP standard data file format.

The file will be delivered to a SFTP site on a daily basis automatically by the nightly billing run.

The proponent will monitor for this file to be ‘dropped’ and process the file through the composition and pdf phase, for audit by GSU before printing.

The consolidation process will assign a start value to each new package record at the front of the record. Each following record with an identical match for the name and address information will be assigned a match value. Using these values will allow the print process system to consolidate the records and assign the appropriate OMR intelligent insertion barcode requirements.

The proponent will develop the print image system to process the Invoices to the variable specifications and to the layouts in Appendix B, to produce the variable print image files. This invoice generation system will also allow for French and Special characters based on the characters supplied in the data file. In addition the proponent will develop an audit process system to accumulate both supplied information and calculated information into an Audit Report format as detailed in Appendix D.

Upon completion of this system, the proponent will process the files supplied from the GSU and produce both a PDF image and a hardcopy printout. These will be reviewed by the proponent coordinator for verification and quality requirements before being sent to GSU. Upon the proponent verification, the PDF file will be sent to the GSU for approval.

The GSU representatives must submit approval or required changes in written format. All required changes would be reviewed and implemented as part of the Statement of Work.

The following individuals at the GSU are approved to submit written approval during the development process:

Name Title Phone Number and email address

Greg Field Supervisor, Customer Service Phone # 705-675-0501 [email protected]

Laura Dinnes Business Analyst, Customer Service

Phone # 705-675-7536 2276 [email protected]


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Full Production

Upon written final approval from the GSU representative, the proponent will transfer the Utility Invoice Generation System to the production environment and activate for full production.

Once activated, the proponent will scan the SFTP site for files and automatically process them upon receipt. Once the files are on the production server, the files will be processed through the Invoice Generation system to produce print files and obtain audit information.

Upon completion of the process, the Audit Report will be generated and sent via email to [email protected] and [email protected]. The GSU representative will review the values indicated on the Audit report and will confirm approval to proceed or a request to halt the process. This process will be followed for a minimum of 30 days from the first production run. After 30 days, the GSU may request (via written format) that the proponent is to proceed with daily production if the supplied Trailer record count and the proponent processed record count match as verified on the Audit Report. As such the GSU would no longer be required to approve the individual reports. The proponent would be required to inform the GSU if the counts do not match and halt all production functions until a resolution is agreed to between the GSU and the proponent.

Should a request to halt be received, the proponent coordinator will contact the representative at the GSU to discuss the issue and work on a resolution process.

When the approval to proceed is received, the proponent coordinator will release the Variable Imaging production dockets to the laser-imaging department to have the invoices produced. Upon completion of the laser imaging the coordinator will review the invoices to verify that the quality standards have been maintained. Once verified, the coordinator will release Insertion production dockets for Intelligent OMR barcoded insertion to the lettershop department to have the invoices inserted and prepared for first class mailing.

Upon completion of the insertion process, the Statement of Mailing (see Appendix F for a sample) will be produced detailing the packages to be mailed. A copy of the report is to be converted to a PDF viewable image and emailed to [email protected] and [email protected] each day.

On the last business day of each month, the proponent will accumulate the information from the audit and produce an invoice for the GSU.

Every 3 months an operational review meeting will be held between the GSU and the proponent to review the daily production of the invoices and future requirements.


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Offset Printing

The requirement is to produce the GSU Invoices on white offset printed, perforated stock to be inserted into a windowed outer envelope along with a reply envelope. The GSU will supply a requisition indicating final quantities which will allow for the production of the invoices, pre-production development stock, and post development parallel system testing stock for a one week period while allowing for appropriate production contingency factors.

The Summary invoice sheet to be used is 8 ½” x 11”, to be produced 1 up on 60lb #2 offset, white long grain with a laser approved microperforation at 3 ½” from the bottom of the sheet. These sheets will be offset printed on the front only. The back of the invoice sheet will only be laser imaged fully in black. The offset colours on the front of the invoice sheet are PMS 201 (logo) and Black MICR.

The Detail invoice sheet to be used is 8 ½” x 11”, to be produced 1 up on 20lb white bond (based on the proponent floor stock). These sheets will not be offset printed on either side but will be laser imaged fully in black.

The outer envelope stock will be a #10 (4 1/8” x 9 ½”) special window envelope using 24lb white wove stock. The offset colours on the envelope are PMS 201 (logo) and Black.

The reply envelope stock will be a #9 (4” x 9”) closed face (non-windowed) printed in black on the face of the envelope using 24lb grey wove stock. The offset colours on the envelope are PMS 201 (logo) and Black.

All marketing inserts will be based on the individual requirements and will be estimated at the time of the request.


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Electronic File Transfer

To ensure timely transfer of data files, a SFTP login will be made to transfer files into the proponent.

All associated files are to be placed on the SFTP site.

The GSU will supply data in flat file format to the proponent FTP site on a scheduled basis based on business days only. No files will be placed on the site on weekends or statutory holidays without prior written notification to and confirmation from the proponent.


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Proposal Requirements

Experience and Qualifications of the Proponent

It is important that the work be undertaken by a proponent who can demonstrate specific knowledge of, and experience in performing similar work for projects of comparable nature, size, and scope. In particular, the proponent should demonstrate the following in its proposal:

1. Necessary skills, experience and expertise in the design and delivery of the proposed total solution, and, based on these skills, experience and expertise, how they will ensure that the proposed goods and services are appropriate

� State the ability to insert single or multiple pages into a single envelope

� Describe the assignment of a unique ID to each package and end of process system which will track every package to completion to ensure integrity with associated reporting capabilities

� Provide a list of equipment used for each production run process and show full redundancy for each process

� Provide an equipment list at the location of the project work to be done

2. Provide two (2) references for the purpose of evaluating the proponent’s experience and track record of success in invoice and statement production projects completed within the last two years.

� The identity of the reference client organization

� A contact name and title, address and telephone number

3. Provide a list of key staff that the proponent would propose to use for this work together with their professional qualifications, related project experience and an indication of their duties and responsibilities on this particular project.

4. Describe how the proponent intends to allocate resources to the project to ensure that there is no conflict in scheduling resources for other clients

� Provide a detailed description of how the proponent intends to achieve the goals and objectives of the project.

i. The deliverables/outcomes that will be provided as part of the project

ii. A summary of the risks/problems/issues associated with the work and how they will be mitigated

iii. An explanation of existing quality control standards

iv. A listing of any relevant certifications (i.e. ISO 9002)

� Provide a detailed work plan indicating the project method, schedule, Gantt chart, tasks and deliverables

i. Provide an estimated overall timeline of the project, including an indication of how soon you could commence work

5. Identify whether or not the proponent intends to assign any part of the project to a third party.


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6. The proponent is to identify the composition software to be used and indicate whether the composition software is SAP certified.

7. Describe environmental management systems and certifications.

8. Advise of your current monthly production capacity capabilities, your current production monthly volume and how this would affect your current capacity.

9. Provide your job tracking capabilities both during all touch points of production (file receipt, laser printing, insertion, electronic statement of mailing) as well as post production verifying the above details while including number of jams, number of reprints, number of hand insertions in the event GSU should request such information.


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Limitation

GSU has formulated the procedures set out in the RFP to ensure that it receives proposals through an open, competitive process, and that proponents receive fair and equitable treatment in the solicitation, receipt and evaluation of their proposals.

This solicitation does not commit GSU or any of its representatives to award a contract, or pay any costs incurred in preparing a proposal. GSU reserves the right to accept or reject any or all proposals received, to negotiate with all qualified sources, or to cancel in part or in its entirety the solicitation when it is in GSU’s best interest.


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Appendix A – SAP Press Release

May 2008 Press release.PDF

File attached separately


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Appendix B – GSU Sample Invoice

All Invoices will have a Sequential package number assigned and imaged above the name and address block to show through the window of the envelope. This number will be captured by camera to facilitate “End of Process” processing.

Sample Regular Bill.pdf

File attached separately Sample epost bill.pdf File attached separately Note: epost bills require two hyperlinks, one associated with the logo: https://www.greatersudburyutilities.com/ Will point to our SAP Customer Self Service website upon going live with the SAP system. The second hyperlink is associated with the red “Billing Inserts” at the top right corner of the bill. This link brings you to the current bill inserts for the year.


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Appendix C – Artwork for Invoice Sheet, Outer & Reply Envelopes

Statement Sheet

Not to size : Back of sheet is not offset printed.


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Outer Envelope (OME)

Not to size.


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Reply Envelope (BRE) – Front

Not to size.


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Reply Envelope (BRE) - Back

Not to size.


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Appendix D – Daily Audit Report format

The following is a sample Audit Trail Report. One report will be produced for each File supplied on a daily basis for approval by GSU. These reports are to be sent via SFTP in a PDF format.

Sample Audit.PDF

Notification of Final Mail Date will be supplied on the Statement of Mailing. The monthly invoice is to detail the pricing based on package size and component costs within an excel spreadsheet and is to be summarized on the monthly invoice. The excel spreadsheet and final invoice are to be sent to: Greg Field Supervisor, Customer Service Greater Sudbury Utilities 500 Regent Street Sudbury Ontario P3E 4P1


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Appendix F – Sample Statement of Mailing

Sample SOM.pdf


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Appendix G – Pricing

PRICING for Invoice and Notice Production for a 5 year contract term.

The proponent must clearly indicate in its proposal specific services and products which are additional or optional and which are excluded from the pricing provided below.

Service Description 5-Year

Contract Term

One time development charge for invoice design (Based on a finalized and approved statement of work for invoice design and composition to print image)

Future programming hourly rate

Inventory control of Bills & Envelopes (per 1,000) (Storage cost of inventory)

Cost of: #10 Outer Envelope (OME) with customer window (Based on an order of 420,000)

Cost of: 9 X 12 Outer Envelope (OME) with customer window (Based on an order of 5,000)

Cost of: Business Reply Envelope (BRE) (Based on an order of 420,000)

Cost of: Sheet Stock 11” (Offset printed summary page) (Based on an order of 420,000)

Cost of: Sheet Stock 11” (Detail page – 20lb white)

Transmission & Data Processing

Receive & format print image file (Sort and process for invoice consolidation to a single address, produce audit report and format to print image files).

Imaging (per 1,000) 8 ½ X 11

Fold and insert with BRE

Each additional insert – Generic

Each additional insert – selective (may require programming)

Insertion charge for oversize packages


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Jiffy bag for insertion of packages exceeding the 9 X 12 OME (50 plus sheets)

Delivery to Canada Post

One time development charge for Electronic Bill pdf (invoice retrieval & epost) (Based on an approved statement of work for invoice design and composition to print image)

Cost to produce pdf invoice images for CIS retrieval and maintain for one year plus current. (i.e. Jan 2010, purge 2008)

CIS retrieval system monthly maintenance charge

Cost to produce invoice images for epost with XML data

Cost to download Invoice images to CD-ROM before purge

Cost to manually pull a printed bill from mailing

Collection Notices - One time setup and development charge

Collection Notices – Transmission & data processing

Collection Notices – Receive print image file and prepare for imaging

Collection Notices – Imaging (per 1,000) 8 ½ X 11 Simplex

Collection Notices – Inserted into OME with BRE (prepare for 1st class mailing)

Documents

Request for Proposal - Greater Sudbury · Request for Proposal For: ... Envelope Sizing—the envelopes for outgoing mail are to be a ... integration within the SAP system so as to