REQUEST FOR QUOTATION PROJECT TITLE:
NorthernNet business case and SLA
REFERENCE NUMBER: ISSUED BY: DATE OF ISSUE: CONTACT DETAILS:
NN0410 Iain Bennett 15/4/2010 Iain Bennett Sector Leader, Digital & Creative Industries Northwest Regional Development Agency Renaissance House Centre Park Warrington WA1 1QN
QUOTATION RETURN DATE:
Telephone Number: 01925 400341 Email Address: iain.bennett@nwda.co.uk 5pm, Wednesday 5th May 2010
DOCUMENTATION REQUIRED:
We require 2 hard copies and an electronic version of your submission, emailed to iain.bennett@nwda.co.uk
TERMS AND CONDITIONS OF CONTRACT
The Northwest Development Agency’s Standard Terms and Conditions of Contract for Services shall apply.
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PROJECT DETAILS 1
EXECUTIVE SUMMARY
NWDA, on behalf of the NorthernNet Executive Management Board (EMB), seeks to procure a suitable supplier to conduct an analysis of the current and planned programme of NorthernNet (www.northernnet.co.uk) activity, leading to a report that contains a business model which sets out an operating structure that brings together the three current contracts within a single operating model that contains a transparent, commercially attractive and potentially viable offer to the target businesses. The contractor will be further asked to consider how this operating model could form the basis for a Special Purpose Vehicle to manage the network and services on a commercially sustainable basis at the end of public funding. Background The three Northern Way Regional Development Agencies, NWDA, Yorkshire Forward and One Northeast share a strategic objective to demonstrate the benefit and impact of the development of MediaCityUK and of BBC’s Move North across the North of England. BBC intends to procure more than 50% of its output outside London by 2013, and new orders from departments based at MediaCityUK are estimated to be £37m per annum from 2012. The Northern Way RDAs and their respective cluster organisations are working together to strengthen supply chain linkages between existing clusters of digital, creative and ICT businesses to capitalise on this opportunity and other increases in demand anticipated from investment in the sector at MediaCityUK and across the North. In 2007, Northern Way partners commissioned ADIT North (http://www.aditnorth.org.uk/) to procure and manage via third party contractors a high speed ‘next generation’ fibre-optic telecommunications network to connect strategic Digital and Creative Industries (DCI) sites across the North of England. The resulting network, NorthernNet, offers highperformance (100Mbps, upgradeable to 1Gbps), reliable, symmetric links. The aims of this network are to: • help to overcome some of the information asymmetries that beset a sector characterised by the polarisation between very large (often multinational) distributors and small and ‘micro’ producers (over 50% of DCI SMEs in the Northwest employ four people or fewer) by providing SME independent production companies, digital content and technology businesses with access to buyers and new markets; • support the raising of creative, technical and commercial skill levels across the relevant sectors in order to prepare regionally-based suppliers (and emerging talent) to trade on a more commercial basis and within new markets;
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provide a platform for innovation – supporting and stimulating collaboration within and across the spectrum of media, digital content and technology sectors and with other high growth, knowledge based industry sectors; provide micro and small enterprises with access to technology and capital equipment whose cost would otherwise present a barrier to market entry.
To stimulate the use of NorthernNet, and to demonstrate the value of next generation networks, Northern Way has funded the initial set-up of a number of “Media Access Bureaux” (MABs) at strategic sites across the three Northern Regions (up to 20 initially). Each Media Access Bureau is a public access point to the NorthernNet network equipped with a range of industry-standard equipment which includes: storage facilities, accessible at high-speed by all workstations within the Bureau; an Ingest system to allow digital content to be transferred from the customer’s format onto the local storage facilities; editing facilities from a range of leading manufacturers and to support a range of formats; media transfer facilities, designed to transfer large files securely across the network; presentation & conferencing facilities; and video conferencing facilities. In addition to access via the Media Access Bureaux, tenant companies based at MAB sites will be able to connect via the Local Area Network (LAN), and medium sized and larger businesses will be able to lease their own Ethernet links into the network from a range of commercial providers. An associated Northern Way-funded Innovation project, managed by Vision + Media, a private sector organisation for DCI for the Northwest, promotes use of the network, adoption of ICT to improve business processes and drive down transaction costs across the supply chain, and linkages to other high growth sectors. 2. AIMS AND OBJECTIVES The Primary Objective of the procurement is to conduct an analysis of the current and planned programme of NorthernNet activity, leading to a report that contains a business model which sets out an operating structure that will establish the combined operation of the three existing contracts that make up the network and services. Secondary Objectives of the procurement will be to inform and support the development of: • Clear, coherent SLAs for all NorthernNet users and service providers; • Clear protocols for communication between delivery partners and other key stakeholders; • The fundamental principles and Terms of Reference for a NorthernNet Special Purpose Vehicle (SPV) to manage the network and services on a commercially sustainable basis at the end of current public funding agreements (NB: this does not include drafting of legal (memoranda/articles of association) RFQ Northern Net 2010-04-15
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Detailed plan for establishing and running the NorthernNet SPV.
3. CRITICAL ISSUES The EMB intends that the three contracts that together constitute the NorthernNet programme should now be “unbundled” and examined with a clearer commercial focus on addressing key issues including (but not limited to) the following: A. Product Analysis • NorthernNet currently comprises a range of elements. What is the core offer to businesses? o A “fat pipe” across the North o A series of high speed connections to the world o A number of editing suites o Video conferencing facilities o A package of services/applications o A database of businesses across the North o A programme of networking events and collaborative showcases • Which of these elements do businesses actually need / want? What is missing? • Are all the elements of the current offer the best they could be? • Is the current technical specification fit-for-purpose? • What is the strategy for the further technical / technological development of NorthernNet and how is this aligned to the business plan? B. • • • • • •
Market Analysis What else is currently already available in the market? What is the core audience / market for NorthernNet? How is this segmented and what are the various needs / wants of these market segments? How much will businesses pay for the core offer / each element? Based upon a clear definition of products and market, what are realistic sales forecasts? Is the current sales model right for the core offer / each element?
C. Operations and Management • Is the operational model for providing and supporting the service fit-forpurpose? How could it be improved? • Are the current Service Level Agreements fit-for-purpose? How could these be improved? • How should the technical support infrastructure be organised and managed? • Do Media Access Bureaux have the capacity to deliver? • What should be the objectives of the NorthernNet SPV? What is it intended to achieve? • What skills are required now and in the future to develop and manage the NorthernNet network and services on a sustainable basis?
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D. Financial Model • Is there a workable commercial business model to be drawn from the current elements of the project? If not, which elements should be discarded, enhanced, or provided by others? • What business model would you implement? • Can the project operate without public sector funding and, if so, over what time scale can that transformation take place? E. Marketing and Sales • What marketing approach would you take? • What sales strategy would you implement? 4. METHODOLOGY Bidders are invited to submit their own proposals for how the project is to be undertaken, however methodology is expected to include: • Desk research: o review of existing NorthernNet research, plans and other documentation, which includes but is not limited to original business cases for funding, independent market demand and innovation analysis, technical analysis and infrastructure/ equipment procurement, business modelling etc.; o broader review and analysis of relevant market/technical literature • Primary research o Consultation with NorthernNet management and delivery partners o Consultation with Media Access Bureau hosts o Consultation with wider industry and stakeholders A detailed project plan will be agreed at inception of the project. 5. OUTPUTS The primary output of the project will be a report addressing the issues listed in section 3 above and including an assessment of: • NorthernNet Technology and specification • Capacity of MABs and other delivery partners to deliver • Service Level Agreements with suppliers • Service Level Agreements with MABs • Service Level Agreement with clients • Is the offer to business clear? • Is the offer to businesses deliverable? • What would be a minimum requirement? • What would it take to implement that? • What offers best case for commercial sustainability? • Is this the same case as offering greatest innovation? The report will also contain:
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a business model for current and future operation of NorthernNet, including a detailed set of financial projections; An updated risk register.
The contractor will be required to provide electronic copies and 10 hard copies of all outputs and supporting documentation. The contractor will also be required to deliver at least two presentations (interim and final) to the EMB. These will be primarily for use by the EMB, but may also be shared more widely at the discretion of the EMB (including project management/delivery staff, sub-contractors, potential bidders for elements of service delivery and the SPV). 7. PROJECT MANAGEMENT The Project will be managed on behalf of NWDA by Iain Bennett, Sector Leader, Digital and Creative Industries. The overall direction and review of the project will be the responsibility of the NorthernNet Executive Management Board (EMB), which comprises representatives of the 3 RDAs, Northwest Vision and Media, and Adit North. Any subcontractors to be used must be stated your bid and cannot be changed without the prior written permission of the Agency. 8.
TIMESCALES
Request for Quotation Issued by Thurs 15th April Quotations Received by Weds 5th May Preferred Supplier selected by Thurs 13th May Supplier contracted by Thurs 20th May Phase 1: Initial research phase to be concluded by Thurs 10th June Phase 2: First draft of report by Thurs 24th June Phase 3: Meeting with contractors to discuss final report by Thurs 1st July Phase 4: Final report by Thurs 8th July 9. FORMAT AND ASSESSMENT OF PROPOSAL Your proposal should be structured as follows: 1. 2.
Introduction Response to each of the evaluation criteria listed below (not more than 10 pages in total): Financial proposal: Your financial proposal needs to contain:
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Breakdown of project management and professional time required, by team member and daily rate which should be for an 8 hour working day, during a normal working week (Monday to Friday)., and grouped by project stage if applicable
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Other costs All costs should be quoted exclusive of VAT
Travel and subsistence costs will be charged separately, and be limited to the following; Business mileage will be reimbursed at a rate of £0.40 per mile • Business mileage will be reimbursed at a rate of £0.40 per mile • Accommodation: Any requirement for accommodation must be agreed with the Agency prior to occurrence, otherwise the Agency reserves the right not to reimburse the successful tenderer. Accommodation will be reimbursed by the Agency upon production of an authenticated VAT receipt. Accommodation costs must be kept to a minimum through the use of budget hotels (e.g. travel lodges), where available. Accommodation will be on a bed and breakfast basis and will be refunded up to a maximum of £70 per night. • Meals: Lunch will not be provided by the Agency or reimbursed to the successful tenderer. When residing in a hotel the cost of a reasonable breakfast (if not booked on a bed and breakfast basis) and/or evening meal taken in the hotel will be met. Costs including light meals and beverages will be reimbursed, up to a maximum of £18 per day whether the meals are purchased at the hotel or out of the hotel. Reimbursement is subject to provision of supporting receipts. • No other expenses will be reimbursed. • The Contractor shall be responsible for making its own travel and accommodation arrangements. Evaluation Criteria The evaluation criteria described below will be used to inform the final decision as to which supplier will be awarded the contract. Each criteria within this RFQ will be weighted as follows: EVALUATION CRITERIA WEIGHTING Previous experience in conducting research in this field (40%) 1. Brief outline of similar work carried out, including examples of recommendations given on similar 10% evaluations, and evidence of their successful implementation 2. Knowledge and experience of the project team, including CVs of key personnel proposed to deliver the 10% contract, demonstrating expertise and experience of work of a similar nature. 3. Expertise in the digital and creative sector 4. Understanding of relevant technological issues
10% 10%
Clarity of definition in terms of work required to fulfil the aims and objectives contained herein. (20%) 5. Detailed Methodology of how you propose to meet the 10% required objectives and outcomes (including feasibility of work programme and ability to deliver to specified RFQ Northern Net 2010-04-15
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timeframes); 6. Work plan and staffing (including a full schedule and milestone delivery for Phase 1, 2 & 3, and indicative requirements for Phase 4) Quality of proposal (20%) 7. Design relevance and quality - does the proposal answer all the requirements set out in the brief at an appropriate level, responding particularly to needs of Digital & Creative SMEs? 8. Does the proposal show creativity and innovation relevant to the project? Costs and Subsequent Value for Money (20%) 8. Financial proposals (including detailed costings for Phases 1 - 4). Does the Financial Proposal represent good value for money? Are any value added items offered as part of the package?
10%
10% 10%
20%
Scoring Mechanism The following scoring methodology will be adopted in scoring the responses to the information requested within this Request for Quote (RFQ).
Scoring methodology
Score
Unacceptable - Supplier does not meet the minimum requirement as specified or has not responded to the specific criteria. Reservations - Suppliers response partially meets the minimum specified requirements and hence there are reservations Fully Meets - Suppliers response fully meets the minimum requirement as specified Usefully Exceeds - Supplier response usefully exceeds the minimum specified requirement and offers improved value for money (VFM)
0
RFQ Northern Net 2010-04-15
0.5
0.9
1.0
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