Contract Document
For the provision of a Second Class Mail Service
Between
The Department for Work and Pensions
and
UK Mail Ltd
TABLE OF CONTENTS
Section 1 – Form of Agreement
3
Section 2 – Call off Contract and Additional DWP Schedules
6
Schedule 7 – Environmental Requirements
9
Schedule 8 – Equality and Diversity
12
Schedule 9 – Prevention of Fraud
18
Schedule 10 – Recruitment through Jobcentres
20
Schedule 11 – Baseline Personnel Security Standards
21
Section 3 – Requirements and Delivery
23
Section 4 – Schedule of Items for Pricing
43
Section 5 - Administration Instructions
48
Appendix A – Confidentiality Undertaking
50
SECTION 1 – FORM OF AGREEMENT
Document 3 – Section 1
Department for Work & Pensions (DWP) Second Class
Mail Service
FORM OF AGREEMENT
This Agreement is made between
The SECRETARY OF STATE FOR WORK AND PENSIONS of Caxton House, Tothill
Street, London. SW1H 9DA] ("the Authority") and
UK Mail ltd
with registered number 00965783
UK Mail Limited
Express House
Wolseley Drive
Heartlands
Birmingham
having their main or registered office at:
464 Berkshire Avenue
Slough
Berkshire
SL1 4PL
B8 2SQ
("the Contractor")
together referred to as (“the Parties”).
Whereas:
The Contractor has agreed to provide an Second Class Mail Service (the Services) in
accordance with the Call-Off Terms and Conditions agreed with Buying Solutions for
Lot 1 of the “Postal Services Framework Agreement’ and the Authority’s additional
Terms and Conditions included at Schedule 2.
It is agreed that:
1.1
This Form of Agreement (Section 1) together with the attached Sections 2 to 5
(inclusive) are the documents which will be incorporated in the Call-Off
contract.
For:
The Contractor
For:
By:
By:
Full Name:
Full Name:
of:
Title:
Position:
The Authority
Date:
Date:
SECTION 2 – STANDARD CONDITIONS
Document 3 – Section 2
Department for Work & Pensions (DWP) Second Class
Mail Service
CALL OF CONTRACT & ADDITIONAL DWP
SCHEDULES
The ‘Order Form and Call-Off Terms’ to the ‘Second Class Mail Services
Framework’ is attached below including references to where the information required
to populate it can be found within the attached Documentation.
In addition to the Terms and Conditions agreed within as part of Lot 1 of the Buying
Solutions Postal Framework RM782 the Authority’s following Standard Terms and
Conditions shall also apply to this service.
Call Off Terms SCHEDULE 2
The Framework Agreement Call-Off Terms and Conditions currently state:
2 Principles of Security
2.2 The Supplier shall be responsible for the effective performance of the ISMS and
shall at all times provide a level of security which:
DWP Standard Terms and Conditions require the additional line below to also be
incorporated:

Complies with the ‘Authority’s Security Policy for Supplier’s of Services’
(This policy is detailed within Appendix 1 to Section 3(Specification) of this
document).
Schedule 7 - Environmental Requirements
The Framework Agreement Call-Off Terms and Conditions currently state:
24 ENVIRONMENTAL REQUIREMENTS
Sustainable Development
24.2 The Authority will review the Contractor’s Sustainable Development Policy
Statement and Sustainable Development Plan when submitted by the
Contractor in accordance with the Authority’s Sustainable Development
Requirements (below) and at least annually thereafter.
24.3 Sustainable Procurement Risk Assessment Methodology (SPRAM) is a tool
used by the Authority to identify and mitigate any potential risks to sustainability
in contracts. The process requires that each Contract be assessed for its
potential social, economic and environmental risks, throughout the various
stages of its lifetime. Where risks are identified, appropriate mitigation action is
required to reduce or eliminate the risk to sustainability. The Authority may at
times require input from the Contractor in order to ensure that this process is
given the required levels of consideration.
DWP SUSTAINABLE DEVELOPMENT REQUIREMENTS
This schedule sets out the Sustainable Development Requirements which are
applicable to the provision of the Services.
1
General
1.1
The Contractor acknowledges that the Authority must at all times be seen to
be actively promoting Sustainable Development.
1.2
In the performance of the Contract, the Contractor shall and shall use
reasonable endeavours to procure that its subcontractors assist and
cooperate with the Authority where possible in satisfying this duty, by fully
complying with the requirements of this Schedule.
2
Compliance
2.1
The Contractor shall produce a Sustainable Development Policy Statement
and Sustainable Development Plan in accordance with DWP guidance and
clauses 2.2 and 2.3 of this Schedule, within 6 (six) months of the contract start
date.
2.2
In the performance of the Contract the Contractor shall prepare a Sustainable
Development Policy Statement giving:
2.3
a)
full assurance of waste disposal by a registered waste collector
in accordance with current government regulations;
b)
full assurance of the observation of Waste Electrical and
Electronic Equipment (WEEE) regulations;
In the performance of the Contract, the Contractor shall prepare a Sustainable
Development Plan, in accordance with DWP guidance which as a minimum
includes:
a)
details of how they will minimise waste produced and how
recycling will be promoted within their business;
b)
details of how they will minimise energy consumption within their
business;
c)
details of consideration of how they will minimise transport use
and details of how the use of public transport will be promoted
within their business, both to staff and customers where
appropriate;
d)
details of a baseline assessment of their current position in
terms of waste minimisation, recycling and energy consumption
(energy consumption only required if current energy usage is
available);
e)
annual estimates of the progress of their Sustainable
Development actions in accordance with DWP guidance;
f)
details of how staff awareness of Sustainability will be increased
in line with their Sustainable Development Plan.
Schedule 8 - Diversity and Equality
Diversity and Equality
The Authority will review the Contractor’s Diversity and Equality Delivery Plan when
originally submitted by the Contractor in accordance with the Authority’s Diversity
and Equality Requirements Schedule (below) and at least annually thereafter.
The Authority can request full policy/procedure documents at any time throughout
the Contract.
DIVERSITY AND EQUALITY REQUIREMENTS
This Schedule sets out the diversity and equality requirements which are applicable to
the provision of the Contract.
1.
General
1.1
The Contractor acknowledges that the Authority has a ‘duty to promote’
equality and must at all times be seen to be actively promoting equality of
opportunity for and good relations between all persons irrespective of their
race, gender, gender reassignment, disability, age, sexual orientation or
religion/belief.
1.2
In performance of the Contract, the Contractor shall, and shall use reasonable
endeavours to procure that its sub-contractors, assist and cooperate with the
Authority in satisfying Equality duties by fully complying with the requirements
of this Schedule.
2.
Compliance
2.1
The Contractor acknowledges the provisions of all Equality Legislation set out
in Section D (Statutory Obligations and Regulations) (This is captured
elsewhere within the Call-off agreement but is also attached below).
2.2
The Contractor shall produce a Diversity and Equality Delivery Plan in
accordance with paragraph 2.5 and 2.6 (and sub paragraphs) of this
Schedule, within six (6) months of the Contract start date.
2.3
The Contractor will provide workforce monitoring data in accordance with
paragraph 3 (and sub paragraphs) of this Schedule, within six (6) months of
the Contract start date.
2.4
The Authority will consider and agree the submissions made by the
Contractor when complying with paragraph 2 (and sub paragraphs of
paragraph 2) and paragraph 3 (and sub paragraphs of paragraph 3) of this
Schedule. Any issues will be raised with the Contractor by the Contract
Manager acting on behalf of the Authority. Once submissions are agreed by
the Authority the Contractor will formally review, revise and resubmit on an
annual basis. Diversity and equality aspects will also be discussed jointly by
the Authority and the Contractor as an ongoing item at Contract review
meetings.
2.5
In performance of the Contract, the Contractor shall prepare the Diversity and
Equality Delivery Plan which as a minimum includes:
a)
An overview of Contractor policy/policies and procedures for
preventing unlawful discrimination and promoting equality of
opportunity in respect of:
i)
Race
ii)
Gender
iii)
Gender reassignment
iv)
Disability
v)
Age
vi)
Sexual orientation
vii)
Religion/Belief
Full policy documents must be made available to the Authority on
request
b)
An overview of Contractor policy/policies and procedures
covering:
i)
Harassment
ii)
Bullying
iii)
Victimisation
iv)
Recruitment procedures
v)
Staff training and development
Full policy documents must be made available to the Authority on
request
2.6
c)
Details of the way in which the above policy/policies and
procedures are, or will be (and by when), communicated within
the Contractors organisation
d)
Details of what general diversity and equality related training has
been, or will be delivered (and by when), to Contractors staff
e)
Details of what structure is already in place, or will be in place
(and by when) and what resources are, or will be (and by when),
directed towards diversity and equality within the Contractors
organisation
f)
Details of any diversity and equality cases and tribunals
(including volumes and outcomes)
In performance of the Contract, the Contractor shall provide evidence, as
required below, within the Diversity and Equality Delivery Plan as detailed at
paragraph 2.2 of this Schedule:
a)
Where a contractor is delivering services to customers on behalf
of the Authority or Services to the Authority’s staff, it must
provide written evidence that:
i)
Equality Impact Assessments have been carried out prior to the
Services being delivered and will be carried out in the event of
any changes to the Services, in accordance with Equality
Legislation (as detailed in Section D (Statutory Obligations and
Regulations). Equality Impact Assessments should be carried
out in conjunction with the Authority so Contractors must consult
with the Authority prior to completion.
ii)
they are making reasonable adjustments, as required by the
Disability Discrimination Act 1995 to make those services
accessible to disabled people and that in the case of Information
Technology services, those services are in accordance with the
Authority’s standards.
iii)
all of its employees who are involved have had appropriate
training so that they understand the duties required by Equality
Legislation, and where Services are being delivered on behalf of
the Authority, the Contractor shall provide evidence that its
employees understand the duties not to discriminate and to
promote equality, in accordance with Equality Legislation (as
detailed in Section D (Statutory Obligations and Regulations).
3.
Monitoring and reporting
3.1
The Contractor shall provide workforce monitoring data as detailed in
paragraph 3.2 of this Schedule, within six (6) months of the Contract start
date. A template for data collected in paragraph 3.2 will be provided by the
Authority. Completed templates must then be included within the Diversity and
Equality Delivery Plan as well as evidence relating to paragraphs 3.3 and 3.4
of this Schedule.
Contractors are required to provide workforce monitoring data relating to the
workforce involved in delivery of this Contract to the Authority. Data relating to
the wider Contractor workforce would however be well received by the
Authority. Contractors are required to submit percentage figures only in
response to 3.2(a), 3.2(b) and 3.2(c).
3.2
The Contractor will provide information detailing:
a)
the proportion of its employees and to the extent reasonably
possible, the employees of its sub-contractors who are:
i)
ii)
iii)
female; and/or
disabled
prefer not to state gender and/or disability
b)
the proportion of its employees and to the extent reasonably
possible, the employees of its sub-contractors who in terms of
ethnicity are:
White
i)
white British;
ii)
white Irish;
iii)
of any other white background
Mixed
iv)
white and black Caribbean;
v)
white and black African;
vi)
white and Asian;
vii)
of any other mixed background
Asian or Asian British
viii)
Indian;
ix)
Pakistani;
x)
Bangladeshi;
xi)
of any other Asian background
Black or Black British
xii)
Caribbean;
xiii)
African;
xiv) of any other Black background
Chinese or other ethnic group
xv)
Chinese;
xvi) of any other ethnic group
Prefer not to state
xvii) Prefer not to state ethnicity
For the avoidance of doubt, the seventeen (17) percentage figures
submitted under categories i) to xvii) of this paragraph 3.2(b) (in each
case in respect of the Contractors employees and each subcontractors
employees) should total one hundred percent (100%).
c)
the proportion of its sub-contractors that are:
i)
small to medium sized enterprises (meaning enterprises with
less than two hundred and fifty (250) employees and a
maximum annual turnover of forty (40) million pounds).
ii)
ethnic minority enterprises (in each case meaning an enterprise
fifty one percent (51%) or more of which is owned by members
of one (1) or more ethnic minority groups, or, if there are few
owners, where at least fifty percent (50%) of the owners are
members of one (1) or more ethnic minority groups). For this
purpose, ethnic minority groups means ethnic groups other than
White as referred to at paragraph 3.2(b) of this Schedule.
iii)
black ethnic minority enterprises (in each case meaning an
enterprise fifty one percent (51%) or more of which is owned by
members of the Black or Black British ethnic group, or, if there
are few owners, where at least fifty percent (50%) of the owners
are members of the Black or Black British ethnic group). For this
purpose, the Black or Black British ethnic group has the
meaning referred to at categories xii) to xiv) in paragraph 3.2(b)
of this Schedule.
For the avoidance of doubt, any given sub-contractor may fall into one
(1), two (2) or all of the categories i) to iii) listed in paragraph 3.2(c) of
this Schedule, depending on its composition.
3.3
The Contractor will compare its figures, in all categories listed in paragraphs
3.2(a), 3.2(b) and 3.2(c) of this Schedule, and provide (where possible)
comparisons against any official national/regional statistics that are publicly
available.
3.4
The Contractor will provide evidence of what activities it is undertaking, or
plans to undertake, in order to try to improve (where possible and appropriate)
its current position in the categories detailed in paragraphs 3.2(a), 3.2(b) and
3.2(c) of this Schedule.
3.5
The Contractor will ensure at all times that it complies with the requirements
of the Data Protection Act 1998 in the collection and reporting of the
information to the Authority.
D.
STATUTORY OBLIGATIONS AND REGULATIONS
D2
Discrimination
D2.1 The Contractor shall not unlawfully discriminate either directly or indirectly on
such grounds as age, disability, gender reassignment, marriage and civil
partnerships, pregnancy and maternity, race, religion or belief, sex or sexual
orientation and without prejudice to the generality of the foregoing the
Contractor shall not unlawfully discriminate within the meaning and scope of
the Equality Act 2010 or other relevant or equivalent legislation, or any
statutory modification or re-enactment thereof.
D2.2 The Contractor shall take all reasonable steps to secure the observance of
clause D2.1 by all Staff.
Schedule 9 - Prevention of Fraud
Prevention of Fraud
A8.1 The Authority places the utmost importance on the need to prevent fraud and
irregularity in the delivery of this Contract. Contractors and sub-contractors
are required to:
a)
Have an established system that enables Contractor and subcontractor staff to report inappropriate behaviour by colleagues
in respect of contract performance claims;
b)
Ensure that Contractor or sub-contractors performance
management systems do not encourage individual staff to make
false claims regarding achievement of contract performance
targets;
c)
Ensure a segregation of duties within the Contractor’s or subcontractors operation between those employees directly
involved in delivering the service/goods performance and those
reporting achievement of contract performance to the Authority;
d)
Ensure that an audit system is implemented to provide periodic
checks, as a minimum at [six] monthly intervals, to ensure
effective and accurate recording and reporting of contract
performance.
A8.2 The Contractor shall use its best endeavours to safeguard the Authority's
funding of the Contract against fraud generally and, in particular, fraud on the
part of the Contractor's directors, employees or sub-contractors. The
Contractor shall pay the utmost regard to safeguarding public funds against
misleading claims for payment and shall notify the Authority immediately if it
has reason to suspect that any serious irregularity or fraud has occurred or is
occurring. For the avoidance of doubt, the Authority accepts and agrees that
the provisions of this Schedule 9 shall not apply to the Contractor’s use of
Royal Mail to perform the Services whether wholly or in part
A8.3 If the Contractor, its Staff or its sub-contractors commits Fraud in relation to
this or any other contract with the Crown (including the Authority) the Authority
may:
a)
terminate the Contract and recover from the Contractor the
amount of any loss suffered by the Authority resulting from the
termination, including the cost reasonably incurred by the
Authority of making other arrangements for the supply of the
Services and any additional expenditure incurred by the
Authority throughout the remainder of the Contract Period; or
b)
recover in full from the Contractor any other loss sustained by
the Authority in consequence of any breach of this clause.
A8.4 Any act of fraud committed by the Contractor or its sub-contractors (whether
under this Contract or any other contract with any other Contracting Authority)
shall entitle the Authority to terminate this Contract, and any other contract the
Authority has with the Contractor, by serving written notice on the Contractor.
A8.5 If the Authority finds that the Contractor has deliberately submitted false
claims for Contract payments with the knowledge of its senior officers the
Authority will be entitled to terminate this Contract, or any other contract the
Authority has with the Contractor, with immediate effect.
Schedule 10 - Recruitment Through Jobcentres
Recruitment Through Jobcentre Plus
5.1
One of the key objectives of the Department for Work and Pensions is to
move people from welfare into work. Jobcentre Plus – an Agency of the
Department – has a Great Britain-wide network of public offices that provide
job broking services for unemployed people. The Contractor is therefore
required to notify Jobcentre Plus when recruiting staff for any entry-level job
vacancies located within Great Britain, which may arise from the delivery of
their contract to the Authority.
5.2
The Contractor is also encouraged to notify Jobcentre Plus of any other
vacancies that may arise. The Contractor may in addition use other
recruitment methods.
Schedule 11 Baseline Personnel Security Standard
11.1
The Contractor shall comply with the Staff Vetting Procedures in respect of all
persons employed or engaged in the provision of the Services. The Contractor
confirms that all persons employed or engaged by the Contractor shall have
complied with the Staff Vetting Procedures prior to commencing the Services
and accessing the Premises. For the avoidance of doubt, the Authority accepts
and agrees that the provisions of this variation shall not apply to the
Contractor’s use of Royal Mail to perform the Services whether wholly or in
part.
11.2 Additional Definition – “Staff Vetting Procedures” means the Authority’s
procedures for the vetting of personnel and as advised to the Contractor by the
Authority.
11.3 [Additional Definition – “Premises” means the location where the Services are to
be supplied as set out in the “Requirements and Delivery” Section.]
11.4 [Additional Definition – “Services” means the services set out in the
“Requirements and Delivery Section).]
11.5 The following Declaration shall be completed upon contract award and a revised
copy forwarded to the Authority, annually each January subject to any Contract
extensions being awarded.
HMG BASELINE PERSONNEL SECURITY STANDARD
CONTRACTOR’S DECLARATION
Contract/Framework
Agreement Title:
Contract/Framework
Agreement Reference No
1. Review Period:
From:
To:
2. Number of Staff
Contractors Staff
Sub-contractors
Staff
(a) Number of staff granted access to DWP Assets
for the first time in the review period under the terms
of the above Contract/Framework Agreement
Number
(b) Number of the above staff in respect of whom the
HMG Baseline Security Standard checks have been
fully completed
(c) Number of the above staff in respect of whom the
HMG Baseline Security Standard checks are not yet
completed (where specifically authorised)
I hereby warrant that during the review period shown above, all staff employed by this
organisation and by approved sub-contractors who have been granted access to
Department for Work and Pensions (DWP) Assets (defined as premises, systems,
information or data) for the first time under the terms of the above Contract/Framework
Agreement Number, have been assessed for their suitability to do so in accordance with
the requirements of the HMG Baseline Personnel Security Standard, except as indicated
at 2(c) above.
Name:
Job Title:
On behalf of (organisation):
Signature:
Date:
Important: The Contractor should note that a false declaration above may be considered to be a
fundamental breach of contractual obligations and under certain circumstances may constitute
criminal negligence.
Document 3 – Section 3
Department for Work & Pensions (DWP) Second Class
Mail Service
Requirements and Delivery
4 – SC
1. The Authority
1.1 The Department for Work and Pensions (DWP) is responsible for welfare and
pension policy and is a key player in tackling child poverty. It is the biggest public
service delivery department in the UK and serves over 20 million customers
DWP delivers the majority of its customer services through two operational
organisations.
These are

The Pension, Disability and Carers Service is an executive agency of
the Department for Work and Pensions. It provides its customers with
pensions, benefits and retirement information – for example, State
Pension and Pension Credit. It also provides financial support for
customers claiming disability benefits and their carers – for example,
Disability Living Allowance and Carer’s Allowance.

Jobcentre Plus is an executive agency of the Department for Work and
Pensions. It provides services that support people of working age move
from welfare into work, and helps employers to fill their vacancies.
Jobcentre Plus administers the majority of working age benefits for
example Jobseeker’s Allowance and Employment and Support
Allowance.
1.2
The Northern Ireland Social Security Agency (NISSA) is responsible for the
provision of welfare and benefits administration to 1.7 million customers that
reside within Northern Ireland.
1.3
The Service Personnel and Veterans Agency (SPVA) is an Executive
Agency of the Ministry of Defence. The Agency’s main customers are current
Service Personnel and Veterans together with the single Services and the
Ministry of Defence Centre policy makers. SPVA provides a diverse range of
services to it’s customers which include: the delivery of pay and allowances in
a Joint Personnel Administration environment; administration of the Armed
Forces Pension Schemes, the War Pensions Scheme and the Armed Forces
Compensation Scheme in accordance with relevant legislation, departmental
policy and contemporary medical and scientific understanding; administrative
support for casualties and the repatriation of compassionate cases through the
Joint Casualty and Compassionate Centre.
.
1.4
Her Majesty’s Revenue and Customs (HMRC)
is the government
department responsible collecting and administering direct and indirect taxes,
some tax credits and other benefits including Child Benefit. It was formed from
the merger of the former Inland Revenue and HM Customs and Excise.
1.5
As the awarding contracting body any and all references to “the Authority” within
this document pertain to the Department for Work and Pensions unless otherwise
stated.
2. High Level requirement
2.1 This contract is for the provision of a Mail service that covers the collection,
sortation, transportation and delivery of the Authority’s mail second class mail,
produced predominantly by two bulk mail print centres and one other site.
2.2 The two print centres are operated by Hewlett Packard Enterprise Services Ltd
(HPES) and are based in Washington and Norcross.
2.3 All first class mail, priority mail and courier output is not included and falls outside
the scope of this exercise.
2.4 After collection, mail shall be sorted where necessary by the supplier to support
onward delivery to the addressee. Please see para 5.9 below for indicative
volumes of pre-sorted and unsorted mail.
2.5 The Authority may wish to introduce the Service at any of the Authority’s other
1100 UK sites with estimated daily volumes ranging between 10 -1000 items per
day per location. It is estimated that on average the split between written and
typed face addressing is in the region of 50/50, with all mail being unsorted. This
may vary site by site.
2.6 Installation of the service at additional sites shall be by agreement between the
Authority and the Supplier but shall comply with the following criteria for those
Authority sites on pre –existing Supplier routes.
250 mailing items per day of collection
80% of items collected to have a type faced address block in and OCR compatible
font.
2.7 For sites located in areas which are not being currently serviced within the existing
UK Mail collection routes further discussions between the Authority and the
Supplier will take place.
3. General
3.1
The Supplier shall not be responsible for the processing and delivery of any
residual DWP Mail in the incumbent supplier’s mail network on the
commencement of this contract.
3.2
The Authority shall have a robust process in place for the correct handling and
production of mail prior to collection by the Supplier.
3.3
The Supplier shall not be responsible for the provision of envelopes necessary for
the operation of this contract, but shall work with the Authority to confirm what
references are required on these envelopes including information to enable the
routing of undeliverable items back to the Authority.
4. Collection of Mail and Volume Information
4.1
The Supplier shall ensure that all collection staff are outfitted in branded workwear/uniform, with appropriate ID cards and use vehicles displaying company
livery.
4.2
The supplier will be expected to build a good working relationship with HPES UK
LTD, or any successor to that contract, and confirm what forecasting criteria
(daily, weekly, monthly) are required in order to access the service.
4.3
The Supplier shall have the capacity to meet both the current collection times at
5.7 below, and to collect mail from the Authority's mail room(s) from any time
between 7:00 to 18:00 Monday to Friday via agreement. The Authority will
endeavour to give 24 hour notice for these additional collections.
4.4
The Supplier may also be required to make collections in addition to the normal
daily collection up to 7pm and there may also be a requirement to make ad-hoc
collections on Saturdays from 8.00 to 12.00. The Authority will endeavour to give
24 hour notice for these additional collections. Any such collections shall attract
no additional charges.
4.5
The Supplier will not normally be required to collect on public bank holidays.
4.6
The Authority will give the Supplier sufficient notice should any Authority
collection point not require a collection on any day(s) other than those detailed in
5.5 above.
The exact times of collection shall be confirmed between each of the Authority’s
collection points and the Supplier at the time of contract commencement, but
details of the current collection times are detailed below:
4.7
These times are indicative and may be subject to change:
SDC 4, HP Durham House, Washington, Tyne And Wear, NE38 7RP (06:00
and 16.00)
Clarke House, Norcross Lane, Norcross, Thornton, Cleveleys FY5 3TA (16:00)
CRU , Durham House, Town Centre, Washington NE38 7SF. (10:30)


4.8
The Volume of mail to be used as the baseline within this specification is the
March 2010 – April 2011 financial year. The figures below are made up of 7
months actual production figures and 5 months forecasts.
4.9
Site Address
SDC 4
Clarke House,
HP Durham House, Norcross Lane,
Norcross, Thornton,
Washington,
Cleveleys,
Tyne
and
Wear,
FY5 3TA
NE38 7RP
CRU
Durham House
Town Centre
Washington
NE38 7SF
Pre-sorted
Unsorted
Pre-sorted
Unsorted
Pre-sorted
Unsorted
DWP – Core
3,769,757
3,657,842
1,256,586
1,219,281
nil
2,459,290
DWP – PDCS
12,216,767
508,317
14,931,605
1,524,950
nil
nil
DWP - JCP
21,030,648
26,202
14,020,432
17,468
nil
nil
NISSA
1,050,927
31,145
1,576,391
46,717
nil
nil
HMRC
3,793,458
nil
nil
nil
nil
nil
SPVA
nil
nil
nil
213,408
nil
nil
Total
41,861,557
4,223,506
31,785,014
3,021,824
Nil
2,459,290
Format
Letter less than 100g
Letter less than 100g
Letter less than 100g
The volume above is all typed face addressing.
The volume for the coming years mail (April 11 to March 12) is set to fluctuate with
additional workstreams of production switched from first class to second class. The
pattern for this expected increase is detailed below and shall be all pre-sorted.
Site Address
SDC 4
HP Durham
Washington,
Clarke House, Norcross
House, Lane, Norcross,
Thornton Cleveleys,
Tyne and Wear, NE38 FY5 3TA
7RP
DWP - JCP
894,703
25,592,922
Format
Letter less than 100g
Letter less than 100g
4.10
The above volumes shall be treated as indicative only. The Authority does not
guarantee any volumes and cannot be held accountable for any future
fluctuations.
4.11
The Authority may incur volume fluctuations that have been previously
experienced but cannot be accurately forecasted e.g. Cold Weather Payments.
The supplier will be expected to deal with such fluctuations within 24 hours of
notification by the Authority or the Authority’s representative HPES UK LTD, or
any successor to that contract.
4.12
Both the number and location of collection points may change as the Authority
continues to review its structure and supporting processes, this may in the future
require collection from additional Authority sites. The Supplier shall be flexible in
order to meet any potential future changes.
4.13
The Authority’s site will, for each collection, correctly complete a Postal Manifest
to enable accurate billing. This shall include as a minimum





4.14
Date of mailing
Account number details
Volume of items by format
Volume of items by pre-sorted and unsorted
Signature field for Authority representative who has prepared the
manifest
The Supplier shall be responsible for providing sufficient supplies of consumables
and stationery including postal manifest books, trays, crates, yorks and racks,
etc, at each of the Authority's sites in order to enable daily collections to be
effected. These shall be distinctive, so as to avoid them being inadvertently
confused with those used by other suppliers, and will be supplied free of charge,
as and when ordered by the Authority, and in the volumes requested.
4.15
The Authority requires a separate account for each of its collection points to
support the collection of management information.
4.16
The Supplier shall be responsible at all times after collection from the Authority's
premises for the safe and secure handling, accurate sortation and handling up to
the point of delivery to the addressee.
5.
Sorting of Mail
5.1
The vast majority of mail will be mailsorted prior to collection using the MS70
sortation software. This is a new product introduced by Royal Mail in Sept 2010
that mirrors the current Royal Mail network of mail centres across the UK.
5.2
The Supplier shall provide an off-site sorting and despatching service to the
Authority for all unsorted items.
5.3
The Supplier shall, following collection count and sort (unsorted consignments)
into the same, or equivalent, Mailsort criterion as the per MS70 standard.
5.4
While MS70 is the preferred method of sortation the Authority may request that
MS120, or equivalent, is used in its place and the Supplier’s service shall be able
to accommodate either product and any sortation products introduced into the
marketplace through discussion with the Authority. Where efficiency savings are
achieved as a result of such changes, the Supplier shall pass such cost savings
onto the Authority.
5.5
The Mail produced by the two print centres is currently produced with Customer
Bar Code (CBC) applied on the mail item. All mail is produced with Optical
Character Recognition (OCR) compatible fonts.
5.6
The Supplier shall be aware that any feasibility/ pilot exercises undertaken in view
of rolling out the services across the Authority’s estate across the UK may include
handwritten items. The percentage split between handwritten and typeface items
will be determined as/ when any feasibility exercise begins but is currently
estimated to be a 50/50 split. The Supplier shall handle collcted handwritten
items ensuring they conform to unsorted timescales of 4 working days including
day of collection. For example items collected on a Monday shall be received on
Thursday by the recipient.
6. Delivery Requirements and Service Levels
6.1 The term “addressee” in terms of this Contract will include any and all residential
and business addresses within UK borders including all of Northern Ireland.
6.2 For the purpose of this Contract the delivery period is deemed the period from the
date and time the Mail is collected by the Supplier from the Authority's site/s until
its receipt by the addressee.
6.3 All pre sorted mail shall be delivered to the addressee within three working days.
For clarity this includes the day of collection. For example pre sorted items
collected on the Monday shall be received by the addressee on the Wednesday.
6.4 All unsorted mail will be delivered to the addressee within four working days. For
clarity this also includes the day of collection. For example unsorted items
collected on the Monday shall be received by the addressee on the Thursday.
6.5 The Supplier shall follow a robust processes and assurance to verify the accuracy
of the delivery times to the addressees in line with the service levels described in
7.3 and 7.4 above. This can be by test letter processes or independent verification.
The results of such exercises shall be shared with the Authority and any failures to
achieve delivery times will result in the Supplier submitting proposals as to how
they intend to improve their performance. Such verification is required once every
twelve months as a minimum.
6.6
The Authority may, from time to time, issue its own test letters to verify the
accuracy of the delivery times. The results of such exercises will be shared with
the Supplier and any failures to achieve delivery times shall result in the Supplier
submitting proposals as to how they intend to improve their performance.
6.7
The Supplier shall note that while the main volume of mail is of letter format
smaller volumes of large letter/ packet items may enter the workstream. The
Supplier shall be required to deal with these items as exceptions and ensure their
onward delivery to the addressee and submit proposals as to how this process
will operate.
6.8
Due to the Authority’s Mail production methods limited volumes of mail items
can get into the unsorted workstream. The Supplier will be required to deal with
these items and ensure they are despatched appropriately for onwards delivery.
8 Undeliverable Mail
8.1
If the Supplier collects Mail that it cannot process or deliver because of incorrect
addressing, labelling or packaging. The supplier shall open and return Mail, to the
respective Authority Site as defined by the envelope contents within 5 working
days of it being collected. The items are not to be returned to the collection
points. The Supplier shall also notify the receiving site of the reason for the return.
8.2
If the above process cannot be followed for individual cases the Supplier shall
contact the Authority to request guidance on handling items for which the owning
office cannot be identified. No destruction of items shall take place without prior
instruction from the Authority.
8.3
Estimated monthly volumes of Undeliverable Mail that cannot be processed
equates to two thousand items per month.
9 Implementation
9.1
The Supplier shall create and actively progress in conjunction with the Authority a
robust implementation plan to include:



Production of training materials and communications for the Authority’s post
room/mail production staff regarding the processes that need to be
followed prior to the collection of mail by the Supplier
Delivery of training materials and communications to the Authority’s post
room/mail production staff in readiness for go live
Delivery of all consumables/equipment needed to deliver the service in
readiness for go live



Confirmation of references needed on envelopes (to enable the return of
undeliverable mail) back to the Authority taking into account printing lead in
times
Ensuring all The Supplier staff (that will be involved in the delivery of the
service) are aware of the Authority’s requirements for the service and will
be ready for go live.
Achievement of the contract commencement date of the 01 April 2011
9.2
The above list is not exhaustive and the implementation plan shall capture
everything that is considered integral to the successful implementation of the
Supplier’s proposal by the Contract commencement date.
10
Customer Care and Training
10.1 The Supplier shall provide training to the Authority’s post room/mail production
staff as part of the implementation process, and then as and when required in
any aspect of the service, that they may request from time to time. This training
shall be provided free of charge.
10.2 The Supplier shall provide during working hours, Monday to Friday 07:00 20:00pm) and a Saturday 06:00 - 16:00, a customer helpdesk telephone service
for all enquiries raised by the Authority regarding this Service. In particular cooperating with the user and the Authority in the event of a Service Failure. In
addition the Customer General Manager and Client Director will also be available
by phone within the time frames stated above to assist the Authority and their
mailing operations.
10.3 As soon as the Supplier becomes aware, it shall record and investigate all
reported Service Failures and provide feedback on its findings, including
corrective actions required and trends observed, to the Authority within 24 hours
by telephone/e-mail.
10.4 If required to do so the Supplier shall, in the event of a Service Failure, provide
from within senior management, an escalation contact point within 1 hour of
notification. It shall be the responsibility of this contact to pursue the investigation
of the Service Failure to the satisfaction of the Authority and shall be required to
provide progress updates to the Authority on request.
10.5 As soon as the Supplier becomes aware (if outside Normal Working Hours, no
longer than 1 working day later), it shall report to the Authority on any issue or
event that has had, is having, or is likely to have an impact on the Service. This
report shall be via a written statement issued to the Authority and shall include
details of the event or issue, the nature of impact on the Service and advice on
actions required by either Party in order to avail positive opportunities or
avoid/minimise negative effects.
10.6 The Supplier shall use all methods they have available for such communications,
which may include as an example a web site, e-mail notification, and follow up
telephone calls etc.
10.7 The Supplier shall have stringent procedures in place to resolve ‘customer
complaints’, including the acknowledgement of complaints within 24 hours, their
resolution within 48 hours of notification, or details of mitigation for the complaint
not being dealt with within 48 hours from notification. The Supplier shall keep the
Authority informed of progress of their investigation and resolution at regular
intervals if the complaint is taking longer than 48 hours to resolve. Monthly
Management Information including complaints will be provided to the Authority,
as per sections 14.8 and 22 below.
10.8 The Supplier shall have a robust escalation process to deal with disputes
between the Authority and the Supplier. This shall include acknowledgement of
the escalated dispute from a senior management contact within 24 hours. It shall
then be the responsibility of this contact to investigate the dispute to the
satisfaction of the Authority and provide a written response within 7 calendar
days.
11
Contract Period
11.1 The Authority will award a 1 year contract with the option to extend initially to year
2 and again to years 3 and 4 (1+1+1+1), subject to satisfactory performance,
changing business requirements, and value for money considerations.
12
Pricing
12.1 Pricing shall be as per the prices submitted during the eAuction. The Supplier
shall not increase its prices during the first year of the Contract. After this an
annual price review may be conducted, prior to any agreement to review the
Contract price, but must never be higher than framework Direct Award pricing.
12.2 The Supplier shall support the Authority’s requirement to maximise its
contribution to government efficiency targets and live within budget allocations, by
reporting to the Authority on any market changes or process changes it has made
over the Contract period that have led to a reduction in its cost base for this
Service. The Supplier shall share these savings with the Authority. The
mechanism for how this is to be shared is to be agreed as part of the
implementation stage of the new contract.
12.3 Price increases will be in accordance with the pricing mechanism contained
within the terms and conditions of the Framework Agreement.
12.4 All prices and rates for this service shall be quoted exclusive of VAT. VAT will be
chargeable at the prevailing rate and itemised separately on all invoices.
12.5 Please refer to Schedule 12 – Pricing Schedule for full pricing details.
13
Accounts / Invoicing
13.1 The Supplier shall accept payment by BACS transfer, and shall work with the
Authority to support any other method of payment process it introduces (including
Government Procurement Card) at no additional cost to the Authority.
13.2 The Supplier shall present monthly invoices in electronic format to the specified
contact point identified in the implementation period, including a breakdown on
size, volumes etc of pre-sorted/ sorted mail in support of the charges levied.
13.3 The Supplier shall also submit SAP enabled invoices ie “feeder files” in the format
specified by the Authority. Please see “Feeder File Instructions “ document
embedded below.
13.4 The Authority shall pay the Supplier within 30 days of receipt of a correct monthly
invoice.
13.5 Billing must be enabled to a local level with the Supplier being able to sort and bill
accurately to each cost centre. These accounts will link to the Authority’s identifier
in order to facilitate capture of high level MI, so that the Authority can obtain both
an overview and detailed view of all volumes and traffic.
13.6 Invoices must specify VAT and non VAT elements.
13.7 All invoices payable against the contract shall be referenced with all appropriate
Contract references and appropriate Purchase Order number. Separate invoices
for each of the Authority’s accounts shall be sent each month to the agreed
contact name and by the agreed date.
13.8 The Supplier shall resolve all disputed invoices within 7 days of the Authority
advising that there is a dispute with an invoice. Both Parties shall provide any
supporting evidence that is needed to resolve the dispute.
14
Contract Management
14.1 A Supplier’s representative shall be available to provide support to the Authority
on operational and financial queries during working hours. The Authority may
make ad hoc requests for management information and support for Freedom of
Information requests, Parliamentary Questions or Ministerial responses, all of
which shall be provided at no additional cost. The Supplier shall note that such
responses are often required within 24 hours or less.
14.2 Robust business continuity arrangements must be in place along with a system to
forewarn the Authority of any potential issues that may affect delivery times.
14.3 Management information shall be supplied on a monthly basis detailing as a
minimum the areas listed in section 22 below.
14.4 The Supplier shall appoint a National Account Manager (Supplier’s
Representative) with a Deputy Contract Manager. The names and contact details
of the persons who will be allocated as the account handlers shall be provided.
The Authority reserves the right to request an alternative The Supplier
Representative and Contract Manager if they are dissatisfied with the ones
appointed to the Contract by the Supplier.
14.5 The dedicated Account Manager tasks shall include, but not be limited to :







Acting as an escalation point for queries, advice and issues
Identification of opportunities for improvements
Trend analysis
Preparation for Contract review meetings
Fulfilling requests for information from the Authority
Savings analysis
Preparation of proposals
Information security
14.6 The Account Manager shall at all times liase closely with the Authority’s key
personnel.
14.7 The Supplier shall provide details of their regional offices, including the address,
telephone, fax and e-mail details, contact names and advise which Authority site
will be serviced by each regional office (by postcode) if applicable.
14.8 The Supplier shall ensure that all their regional offices are fully briefed on the
nature and details of the contract.
14.9 The National Account Manager and/ or Deputy Contract Manager shall attend
monthly or weekly (if appropriate) performance review meetings, as requested by
the Authority, during the implementation period for the new Contract.
14.10 After Contract commencement the Supplier shall attend regular (quarterly or
more frequently if appropriate) performance review meetings with the Authority to
review the progress of the agreement, discuss the management information and
to review any problems that have arisen in the preceding months.
14.11 The Supplier shall commit to produce a “Continuous Improvement Plan” to be
reviewed at these quarterly review meetings. The plan shall identify areas for
improvement, actions required to enable the improvements, progress made
against these actions and benefits achieved since the last review.
14.12 By the end of the first working week of each month, the Supplier shall submit a
written report on Contract Operations via e-mail to the Authority's Representative.
This monthly report shall detail the following in addition to the management
Information described in 22 below :
A detailed overview of incidents which have caused a Service Failure.

Sustainability performance

Business continuity issues

Details of future events impacting on the Service.

Suggestions for improving value for money and/or service quality for the
Authority

Helpdesk queries/investigations and Supplier responses including any trends
observed.

Details of instances where the Authority has requested an escalation contact
point to deal with a specific incident and a management summary of the action
taken to resolve the matter.

Review of areas of concern or weakness in the Service provided, together with
and trends observed, reasons for failures and actions taken (or to be taken) to
remove the concern or weakness. This shall include both the operations of the
Authority and the Supplier.

Key Supplier achievements during the period.

Actual performance versus agreed SLA

Analysis of customer complaints ( if any)
14.13 Strategic performance review meetings shall take place to manage the contract.
14.14 The Supplier shall attend Strategic review meetings every six months throughout
the Contract period. The meeting shall be attended by the Account Manager
and other key Supplier staff as appropriate along with a minute taker from the
Supplier who will take and issue a record of the discussion.
14.15 The Supplier shall bear all their costs associated with attendance at these
meetings, which may be held at either the Authority’s or the Supplier’s premises
upon agreement.
14.16 The most current up to date management information relating to the previous two
quarters shall be supplied to the Authority at least 5 working days before any
meeting.
14.17 Strategic meetings shall include, but not be restricted to the following topics:










15
Overall performance against key performance indicators
Volume and expenditure trends
Compliance and satisfaction levels
Sustainability strategy and performance
Business Continuity issues and updates
Demand management and trend analysis
Proposals for improvements on any area of the contract
Review of market conditions/ intelligence
Financial stability
Review of risk assessment
Any security issues and review of Security Plan
Contingency
15.1 The Supplier shall have robust Business Continuity and Disaster Recovery Plans
in accordance with ‘SCHEDULE 5’ of the ‘CALL OFF TERMS’.
15.2 This shall be in relation, but not confined to, the management of industrial action
at its own operation, if appropriate, that of its sub-contractors and also industrial
action within the operations of any link within the supply chain.
15.3 There shall be provision for the maintenance of the Service in the event of fuel
shortages, vehicle breakdown, machinery breakdown and pandemic illness etc.
transport infrastructure disruption and Supplier staff absences.
15.4 There shall also be provision to ensure business continuity in the event of a
catastrophic event (e.g. demolition of their building due to a fire etc.)
15.5 Due to prior assessment to get on the framework, business continuity plans will
be requested from the successful supplier within the Implementation period.
These will be supplied 5 working days after contract award.
16
Administration
16.1 All correspondence regarding contractual issues shall be appropriately
referenced and sent to the Authority as appropriate.
16.2 The Supplier shall ensure that the The Supplier Representative is accessible to
the at all times during Normal Working Hours (Mon – Frid 8:00 to 18:00) in order
to discuss routine operational matters. All contractual matters will be dealt with
directly by the The Supplier and the Authority’s Representative.
16.3 As part of the service offering the Supplier will be required to work with the
Authority and HPES UK LTD, or any successor to that contract, to provide the
Authority with ongoing assurance that production volumes and collected volumes
are reconciled within a 1.5% tolerance level. This will be conducted at the
contract start for 4 weeks with additional test intervals agreed within the
Implementation period for the remainder of the contract duration. Where
tolerance levels are exceeded the Supplier shall provide evidence supporting why
the issue has arisen and support the Authority to bring the service back into
tolerance and take proactive steps to reduce this tolerance level.
17
Health & Safety
17.1 The Supplier shall have a formal Risk Assessment and Method Statement that is
used on all Authority sites, and will provide the names/s of Nominated person/s
responsible for implementing, monitoring and updating its Health and Safety
Policy.
18
Data Security
18.1 The Supplier shall comply, and be able to demonstrate compliance, with the
Authority’s Security policies and standards, and shall submit a data security plan
to be reviewed at the strategic review meetings.
19
Management of Sub-contractors
19.1 If the Supplier sub-contracts any element of this Contract, it must notify to the
Authority which elements are sub-contracted and must provide evidence to the
Authority that it has a robust subcontractor management and selection policies
and procedures in place.
19.2 It is the Supplier’s responsibility to monitor compliance of any sub-contractors and
provide assurance to the Authority as regards to the delivery of the Services,
including accurate management information and accurate invoicing.
20
Sustainability
20.1 The Supplier shall have a sustainability policy that highlights what actions it takes
(on an going basis) to minimise the environmental impact of its operations and its
commitment to meeting the Authority’s sustainability targets, in line with the
Authority’s Sustainable Development Requirements Schedule.
20.2 The Supplier shall demonstrate continuous progress in the implementation of
their sustainable strategy by sharing evidence of their progress in, as a minimum
the following areas:Resources



Energy
Water
Timber
Substances, Materials or By-products



Toxic/Hazardous substances
Waste creation
Emissions
Transport
20.3 In addition the Supplier shall demonstrate progress in the promotion of ethical
practice in the following social and socio-economic areas:


Equality and Diversity
Labour standards
Support of Supported Factory’s or Businesses, SME or BME
20.4 This information will be requested 6 monthly and discussed during the 6 monthly
strategic review meetings.
21
Terms and Conditions
21.1 The Terms and Conditions that govern this Call-Off arrangement will be based on
those agreed between the Supplier and the Buying Solutions Framework
Agreement RM782/L1 Postal Collection and delivery to addressee. However,
these will also be supplemented by Authority’s Additional Terms contained within
Document 3 –
22
Management Information
The Supplier shall provide accurate Monthly MI covering all facets of the Service
offering. This shall be sent via email and in excel format on the seventh working
day after calendar month end and shall include the following as a minimum:
Volume and expenditure of contract including pre- sorted mail collected for each
site/account
Volume and expenditure of contract including unsorted mail collected for each
site/account
The above shall be provided on both a cumulative and month by month basis.
Performance against target delivery timescales for pre-sorted mail.
Performance against target delivery timescales for unsorted mail.
Volume and expenditure of Large Letter items
Volume and expenditure of Packet format items
Volume and expenditure of International Mail items
Undeliverable mail




the number returned
the timescales for return
the reasons for return.
Costs for Undeliverable handling
Results from recent test letter exercises including:



the number issued
the number returned
timescales for delivery to the addressee compared to the Service Delivery SLA
in paras 7.3 and 7.4
Customer complaints




Number of complaints received
Number of complaints resolved within the agreed timescales/ number
unresolved
Classification of complaints by type (to be agreed with the Authority) with
associated numbers
Customer complaints log with summary of corrective actions and progress
status
Management Information must also include a report of “actual performance” against the
agreed SLA and associated Service Credits received.
The list above is not exhaustive, and may be varied by the Authority, at no extra cost.
The Supplier shall also share the Royal Mail Wholesale reports received on a monthly
basis which reflect a true indication of the service provided.
23
Risk Management
23.1
The Supplier shall have in place robust processes in place to identify, classify
and mitigate/ eliminate risks.
23.2
High level risks shall be shared with the Authority during the course of the
review meetings or at the request of the Authority.
23.3
The Supplier shall assess their processes to identify any potential risk linked to
potential abuse and misuse of the Contract by subcontractor, Authority staff or
any third party.
24 Financial Stability Reporting
24.1
The Supplier shall provide a report every twelve months, providing assurance of
its continued financial stability.
24.2
The Supplier shall grant full visibility to the Authority of any financial difficulties
they may be encountering during the life of the Contract, including any corrective
actions undertaken to rectify the situation.
24.3
The Authority reserve the right to request ad-hoc information and statements as
required.
24.4
The Supplier shall provide its official accounts at the end of each financial year.
HEDULE OF PRICES AND RATES
25 AUTHORITY RESPONSIBILITIES REGARDING THE PREPARATION OF MAIL
25.1 Sorted Mail shall be presented in sealed, labeled standard Royal Mail grey
trays/ bags, retained in Pallys or Red UK Mail Rigid Stackable containers
(RSCs). There is no requirement for any mailing facility to segregate or
conduct a sortation exercise, unless a late collection is required when
Scotland and Northern Ireland would need to be identified in separate Pallys/
cages.
25.2 Unsorted Mail shall be presented in Royal Mail grey trays with the exception
of CRU work which is to be presented in UK mail supplied red “tubs” with a
label containing the account information for billing and item tracking purposes.
25.3 UK Mail shall provide label printers and consumables free of charge and
support any new mailing locations in the same manner. Each and every mail
tray/ bag is allocated a unique reference (consignment number) by the
“Consignor” system and this is printed in a barcode format and included as the
label.
25.4 The Authority shall provide the Supplier with volume forecasts on a 7 day and
monthly forecasting schedule.
Document 3 – Section 4
Department for Work & Pensions (DWP) Second Class
Mail Service
PRICING SCHEDULE
SCHEDULE 12 - PRICING SCHEDULE
1.
GENERAL
1.1
All prices in this Contract shall be:

In Sterling (£)

Net (exclusive of VAT) – VAT will be chargeable at the prevailing rate and
itemised separately on all invoices

Be inclusive of all costs to serve (delivery, ordering, billing etc) the
requirement in full

Include all costs relevant to the establishment and the provision of ongoing services

Never be higher than the Buying Solution Postal Framework Agreement

Inclusive of the 0.25% Buying Solutions administrative fee.
2.
INVOICING
2.1
Invoices shall be detailed with volumes, unit price and broken-down by account.
2.2
All invoices payable against the contract shall be referenced with all appropriate
Contract references. Separate invoices for each of the Authority accounts shall
be sent each month to the agreed contract name and by the agreed date.
2.3
Billing must be enabled to a local level with the Supplier being able to sort and
bill accurately to each cost centre. These accounts will link to the Authority’s
identifier in order to facilitate capture of high level MI, so that the Authority can
obtain both an overview and detailed view of all volumes and expenditure.
2.4
The authority shall pay the Supplier within 30 days of receipt of a correct
monthly invoice.
2.5
The Supplier shall resolve all disputed invoices within 7 days of the Authority
advising that there is a dispute with an invoice. Both Parties will provide and
supporting evidence that is needed to resolve the dispute.
2.6
The Authority does not guarantee and volume of business under this Contract.
3.
SETTING UP COSTS
3.1
The Authority shall not pay for any implementation, setting up or development
costs.
4.
PRICE VARIATIONS
4.1
The contract prices contained within this schedule have been derived from the
Entry Bid Validation Form based around the current Royal Mail Wholesale
pricing structure and the Supplier’s handling fees and are fixed for the first year
of the contract.
4.2
After this, an annual price review shall be conducted in a similar way.
Notification of the Royal Mail Access Fees will be required prior to any
agreement to review the Contract price for the next 12 months after the initial
contract period.
For example :E-Auction bid of 10 pence + Access price of 14.162 pence per item = a total unit
price of 24.162 pence per item.
After the Royal Mail Wholesale figures of 16.162 pence per item are published,
this then becomes
E-Auction bid of 10 pence per item + Access price of 16.162 pence per item = a
total unit price of 26.162 pence per item. This would then be the contract price
that applies.
4.3
Price reviews will be in accordance with the pricing mechanism contained within
the terms and conditions of the Framework Agreement for the handling fee
element of the contract only.
4.4
The Supplier shall support the Authority’s requirement to maximise its
contribution to government efficiency targets and live within budget allocations,
by reporting to the Authority on any market changes or process changes it has
made over the Contract period that have led to a reduction in its cost base for
this service. The Supplier shall share these savings with the Authority.
5.
VAT
5.1
The prices and rates set out in Table(s) above are exclusive of VAT. VAT will be
chargeable at the prevailing rate and itemised separately on all invoices.
6.
Contract Prices
6.1
Fixed prices as agreed below shall apply to all contract volumes for the period from 01
April 2010 up to 31 March 2011.
Service –
Presorted MS 120 / 70 OCR –
Letter less than 100g
Unsorted
OCR -Letter less than 100g
Handwritten
Presorted MS120 / 70 OCR –
Letter less than 100g
Handwritten
UKM
Handling
Fee per
item
Royal Mail
Wholesale Access
Fee -per item
Total Fixed Price per item
Unsorted MS120 / 70 OCR –
Letter less than 100g
International Mail items
Letter less than 100g
Large Letter items
Unsorted
Packet size items
Unsorted
Undeliverables
Document 3 – Section 5
Department for Work & Pensions (DWP) Second Class
Mail Service
ADMINISTRATION INSTRUCTIONS
1. AUTHORITY'S AUTHORISATION
1.1. The following person is the Authority's Representative and is authorised to
act on behalf of the Secretary of State for Work and Pensions on all matters
relating to the Contract.
Title
Authority’s Representative
Name
Address
Telephone Number
Email
1.2. The Authority's Representative may approve deputy Authority's
Representatives to exercise on his / her behalf such powers as are contained
in this Contract.
2. CONTRACTOR'S AUTHORISATION.
2.1. The following person is the Contractor's Representative and is authorised to
act on behalf of the Contractor on all matters relating to the Contract.
Title
Contractor’s Representative
Name
[DN – To be Completed]
Address
[DN – To be Completed]
Telephone Number
[DN – To be Completed]
Email
[DN – To be Completed]
2.2. The following person is the Contractor's contract manager and is authorised
to act on behalf of the Contractor on all matters relating to the Contract: Title
Contract Manager
Name
Address
Telephone Number
Quarry House, Quarry Hill, Leeds, LS2 7UA
Email
3. PAYMENT INFORMATION
3.1. All invoices payable in compliance with Condition 12 ‘Payment and Contract
Price’ of the Call-Off Contract must be identified with all appropriate Contract
references and titles and shall be sent for the attention of [the Authority's
Representative] at the following address: Name:
Address:
Quarry House, Quarry Hill, Leeds, LS2 7UA
Telephone:
Fax:
0113 2324253
E-mail:
4. CORRESPONDENCE INFORMATION
4.1. All correspondence sent from the Supplier’s Representative to the Authority's
Representative shall be sent to the following address in compliance with
Condition 42.2 ‘Notices’ of the Call-Off Contract.
Name:
Address:
Quarry House, Quarry Hill, Leeds, LS2 7UA
Telephone:
Fax:
0113 2324253
E-mail:
4.2. All correspondence addressed to the Authority's Representative shall be
sequentially numbered.
4.3. All correspondence sent from the Authority's Representative to the
Contractor's Representative shall be sent to the following address in
compliance with Condition 42.2 ‘Notices’ of the Call-Off Contract.
Name:
[DN – To be Completed]
Address:
[DN – To be Completed]
Telephone:
[DN – To be Completed]
Fax:
[DN – To be Completed]
E-mail:
[DN – To be Completed]
APPENDIX A – CONFIDENTIALITY UNDERTAKING
In connection with a contract between
UK Mail Ltd
and the Secretary of State for Work and Pensions for the provision of [insert as
appropriate]. To be signed by persons employed in providing the Services before being
given access to Government information.
I am employed by
and I have been informed that I may be required to work for my employer in providing Services
to the Secretary of State for Work and Pensions.
I understand that information in the possession of the Secretary of State for Work and
Pensions, or obtained from the Secretary of State for Work and Pensions must be treated as
confidential.
To be completed by
Staff on award of
contract
I hereby give a formal undertaking, as a solemn promise to my employer and to the
Department, that:
1.
I will not communicate any of that information, or any other knowledge I acquire
about the Department in the course of my work, to anyone who is not authorised
to receive it in connection with that work.
2.
I will not make use of any of that information or knowledge for any purpose apart
from that work.
I acknowledge that this applies to all information that is not already a matter of public
knowledge and that it applies to both written and oral information.
I also acknowledge that this undertaking will continue to apply at all times in the future, even
when the work has finished and when I have left my employment.
I have also been informed that I will be bound by the provisions of the Official Secrets Acts
1911 to 1989; and the Social Security Administration Act 1992, section 123. I am aware that
under those provisions it is a criminal offence [e.g. in the case of the Social Security
Administration Act], to disclose personal information that has been given to the Department for
social security purposes. I am aware that serious consequences may follow any breach of
those provisions.
SIGNED:
Surname:
Forenames:
Date of Signature:
Contractor's Name:
Contract Reference No: