Postal Services Frameworks Project 

Briefing Note – May 2005

Background

The purpose of this briefing note is to provide an overview of the aims, deliverables, timelines of a project being led by OGC buying solutions in collaboration with OGC and a number of Government Departments to provide a suite of Postal Services frameworks in the lead-up to full market deregulation of the UK letters market on 1st January 2006.  

Frameworks will be awarded on a pan-governmental basis (Central Civil Government and wider Public Sector) although it is anticipated that their use will be ‘on merit’ based on value for money gains and quality of service provided. 

It is estimated that the UK Government (including wider Public Sector) spends around £650m annually on Postal Services.

Initial research has demonstrated that savings ranging from 9% to 30% are achievable,  depending upon the types of services used and volume profile of business.   There are no plans to mandate the use of the frameworks and departments will be free to pursue their own arrangements should they wish to do so.
The project encompasses the work required to establish the framework contracts, and the procurement will follow standard OGC methods.  The project recognises the need to make provision for contract management of frameworks in a ‘live state’ environment and whilst OGC buying solution will offer these frameworks as part of their current s-cat portfolio it is envisaged that other buying agencies and if desired,  regional procurement consortia will be able to self -brand the frameworks for local use.

Project Objectives

The key objectives of the project can be summarised as:

•	To provide a suite of OJEU and OGC Gateway compliant frameworks for Postal Services in the lead-up to full market deregulation on 1st January 2006;
•	To realise savings through economies of scale, including procurement process efficiencies, by adopting a joined-up collaborative approach to market;
•	To foster competition in a previously monopolistic market;
•	To improve market intelligence and buy-side capability;

Scope

The project has identified the following areas as being in scope;

•	Standard Tariff Mailings 
•	Secure Mail
•	International Mailings
•	Mailsort
•	Walksort
•	Cleanmail
•	Barcoded/CBC
•	Packetpost
•	Selectapost
•	Business Response
•	PO Box
•	Mail consolidation

Areas identified which are specifically being treated as out of scope include:

•	Post Room activities;
•	Post Room furniture;
•	Courier and Freight activites;
•	Inter-office mailings via planned service (courier)

Requirements gathering

The Project Team, working in conjunction with OGC Customer Account Managers and Procurement Development Directors are now actively engaging with customers across Central Civil Government, Health, Education and Local Authorities in order to determine requirements.  

Requirements will be gathered through a combination of face to face meetings, telephone, and email surveys.  The requirements gathering phase will directly inform the service specification that will be issued to the market during the procurement phase.

It is anticipated that the majority of high-level requirements gathering will be completed by August 2005.

The Postal Services Forum

OGC buying solutions chairs the Postal Services Forum (PSF).  The forum has been established to provide a focal point across Government to discuss commercial and performance matters in the filed of Postal Services.  If you would like to learn more about the work of the PSF or wish to attend then please contact Bruce Thomson at OGC buying solutions on 0151672 2340 or via email at bruce.Thomson@ogcbs.gsi.gov.uk

Further information:

For further information regarding this project please contact one of the following project team members who will be happy to answer your enquiry.

Alyson Gibson		Customer Engagement		alyson.Gibson@hmrc.gsi.gov.uk
Peter Gollop 		Product Manager		peter.gollop@dwp.gsi.gov.uk
Tina Smith		Market Intelligence		tina.smith@ogc.gsi.gov.uik
Bruce Thomson		Procurement			bruce.Thomson@ogcbs.gsi.gov.uk
Paul Ridgeon		Procurement			paul.ridgeon@ogcbs.gsi.gov.uk
Wayne Augur		Project Management		wayne.augur@ogc.gsi.gov.ukj