Inland Revenue

Transformation Programme Sourcing Workstream PROCUREMENT PLAN

Project Sponsor: Greg James

Prepared by: Sourcing Team Date: 28/06/2013 v1.0 FINAL Reference: 2013050

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Transformation Programme

Document Control

File Name Plan_IR TP Procurement Plan_20130823_v1.0

Contact Person

Status FINAL

Document Review History

No Date Change Description Contact

0.8.0 30-May-13 Released to the Sourcing Management Team

1.0.0 06-Jun-13 Released to the Procurement Director

1.0.0 07-Jun-13 Released to the Programme Leadership Team

1.0.1 08-Jun-13 Released to the Procurement Director

1.0.2 11-Jun-13 Released to the Procurement Director

2.0.0 11-Jun-13 Released to the Programme Steering Committee

2.2.1 13-Jun-13 Released to the Procurement Director

4.0.0 25-Jun-13 Released to the Programme Steering Committee

Document Signoff

This Procurement Plan has been approved as follows:

Formal Review Area Name Signature Date

Advisor Ernst & Young Engagement Partner

Advisor Ernst & Young Quality Assurance Partner

Reviewed by Procurement Procurement Manager

Endorsed by Procurement Graham Pomeroy Procurement Director

Endorsed by Enterprise Architecture Jon Frere Chief Architect

Endorsed by Risk & Assurance Vanessa Johnson Group Manager

Endorsed by PLT Members Chair

Approved by PSC Members

Chair

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Transformation Programme

Contents

1. Purpose of this Procurement Plan ...................................................................... 4 2. Transformation Programme Background ............................................................ 6

2.1. Programme Objectives ..................................................................................... 6 2.2. Scope of Procurement .......................................... Error! Bookmark not defined.

3. Procurement Process ......................................................................................... 8 3.1. Indicative Timeline........................................................................................... 9 3.2. Assumptions ................................................................................................. 11 3.3. Market Coverage ........................................................................................... 11

4. Governance and Management Framework........................................................ 12 4.1. Sourcing Team .............................................................................................. 12 4.2. Negotiation Team .......................................................................................... 13

5. Review and Approval Points ............................................................................. 14 5.1. Probity Plan .................................................................................................. 15 5.2. Communications and Engagement Approach (High Level Plan) ............................ 15 5.3. Risk, Issues and Change Management .............................................................. 15

6. Dependencies ................................................................................................... 16 7. Appendix 1: Roles and Responsibilities ............................................................ 18 8. Appendix 2: Procurement Documentation and Deliverables ............................. 21

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Transformation Programme

1. Purpose of this Procurement Plan

The overall objective of the procurement process is to engage a transformation service provider(s) for Inland Revenues (IR) Transformation Programme. The service provider(s) will be responsible for supporting the delivery of the Transformation Programme

This plan supports the Sourcing Strategy1 which has been approved by the Investment Board (IB) and outlines the rationale for the entire approach to engage the service provider(s). In developing this plan the new Government Rules of Sourcing2 and the New Zealand Government Procurement Principles have been considered and, where applicable, additional better practice guidance has been adopted.

The plan is structured as follows:

Background a summary of the Transformation Programme background, requirements, market analysis and scope

Approach the plan to engage the service provider(s), including the procurement process, timelines and assumptions

Governance the framework for the execution of the procurement process and evaluation of supplier responses, including review and approval points

General process information including communication, probity, dependencies and assumptions

Appendices plus supporting information

The procurement process outlined in this plan proposes the most effective and efficient method of securing both a high quality and a cost effective outcome. Specifically, the objectives of the process are expected to (in no particular order):

identify and engage transformation service provider(s) with the capability, capacity and experience to assist with the planning and delivery of Inland Revenues Transformation Programme;

achieve a high quality of delivery by ensuring that a contract is awarded to a service provider(s) who can meet the requirements specified by IR in line with quality expectations; and

achieve a cost effective outcome by agreeing a commercial arrangement with the service provider(s) that adequately addresses quality, time, cost, benefits and risk.

1 The Sourcing Strategy outlines the following key components: Contract Model, Delivery Model, Scope, Requirements and the Procurement Process 2 Government Rules of Sourcing, Rules for planning your procurement, approaching the market and contracting, May 2013, available: http://www.business.govt.nz/procurement

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Transformation Programme

The process, stages and steps are dependent on a number of key decisions, assumptions and milestones being met. It should be noted that the process could change if for example:

feedback during the process indicates that the process will not be supported by the market, or can be amended to better support the agreed objectives;

responses after the Expression of Interest or Request for Proposal, or findings from the Competitive Dialogue, suggest that an amendment to the process is required to achieve the agreed objectives;

resource or time constraints mean that the process requires amendment to align with a new Transformation Programme baseline; or

decisions taken from Ministers on the scope of the Transformation Programme require the process to be amended.

The timescales for the procurement process could change if for example:

internal and ministerial decisions are not received in accordance with the current baseline plan;

critical milestones are not achieved in the sourcing workstream, or in other workstreams where sourcing has a dependency;

the evaluation process for the Expression of Interest and Request for Proposal take longer than scheduled; and

the resources needed to support the process are not in place.

This Procurement Plan will be subject to version control. Where these activities result in a required change to this plan a formal change control process will be undertaken, and ensure the review and approval points detailed in Section 5 are engaged to provide their formal endorsement and approval.

Further details are provided on assumptions and dependencies in Sections 3.2 and 6 respectively.

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Transformation Programme

2. Transformation Programme Background

The Transformation Programme has been established to respond to Government goals to derive better value from public services (including more integrated pan-Government services), internal pressures (such as an ageing information technology system) and environmental drivers centred around IRs customers needs.

The aim of the Transformation Programme is to address these issues and deliver tangible benefits, including the ability to implement policy and legislative changes more quickly, and to provide IR customers with a range of interactive services and information.

IR has completed a transformation blueprint, an associated indicative business case that sets out options for Government, and a detailed plan for the delivery of the Transformation Programme. The Transformation Programme is now building on this work, which will include development of high level design, detailed design and implementation of key initiatives of the Transformation Programme.

The Transformation Programme is subject to specific Government business case approval at determined stages throughout. The Transformation Programme has recently entered into the phase of work named Mobilisation. It is to be delivered over the 2013/14 and 2014/15 financial years, and is designed to deliver the following objectives:

1. agree the preferred option for the delivery of transformation in terms of the overall roadmap, scope, costs, benefits, timing and risks;

2. engage a transformation service provider(s) to assist IR in the planning and delivery for transformation, and contract them to undertake the completion of the technical and bus