Awarded to Silxo

Start date: Thursday 1 October 2020
Value: £5,000,000
Company size: SME
Highways England Company Limited

ITIP0047 Technology Maintenance Supplier Payment Service

9 Incomplete applications

5 SME, 4 large

6 Completed applications

4 SME, 2 large

Important dates

Published
Wednesday 5 August 2020
Deadline for asking questions
Wednesday 12 August 2020 at 11:59pm GMT
Closing date for applications
Wednesday 19 August 2020 at 11:59pm GMT

Overview

Summary of the work
A service that will connect us with our fourth line repair specialists, support their onboarding and consolidating monthly costs into a single invoice and processing payments back to these suppliers upon receipt of funds.
Latest start date
Wednesday 16 September 2020
Expected contract length
18 months
Location
No specific location, for example they can work remotely
Organisation the work is for
Highways England Company Limited
Budget range
Up to £5m total spend (including throughput).

About the work

Why the work is being done
As asset managers for England's strategic road network we must ensure that appropriate maintenance is carried out which require the right materials to be available to our engineers. Our Technology Maintenance Supplier Manager will provide us with access to our supply chain SMEs to facilitate the repair of returned equipment to meet the required churn of stock from our National Technology and Logistics Centre (NTLC) near Derby.
Problem to be solved
We need to put in place and maintain suitable access to a range of specialist technology repair providers and consolidate monthly activity into a single invoice.

The service will be responsible for invoicing Highways England for work completed by suppliers and making payments to suppliers upon receipt of funds.
Who the users are and what they need to do
As a Service Manager I need to be able to onboard a specialist supplier, agree commercial terms and transact with them through an intermediatry who consolidates all works into a single view and payment request and be sure that all suppliers will be paid.
Early market engagement
Any work that’s already been done
This is a new requirement which is being set up to provide a payment managed service for an existing specialist supply chain. The supply chain currently consists of ten specialist suppliers with a combined monthly spend of approximately £250k
Existing team
You will work with our Service Manager (Logistics) as part of our IT Design and Integration Services Group. This area of our group directly supports the maintenance of our technology services delivered to the roadside.
Current phase
Live

Work setup

Address where the work will take place
This work can be entirely remote from your own business location.
Working arrangements
This work can be aligned to your current ways of working with regular catch up meetings, mostly via MS Teams.
Security clearance
All team members should have baseline security checks in place and any additional checks required for processing of financial transactions.

Additional information

Additional terms and conditions

Skills and experience

Buyers will use the essential and nice-to-have skills and experience to help them evaluate suppliers’ technical competence.

Essential skills and experience
  • Able to work with and onboard small and medium businesses as repair suppliers
  • Able to track and assure supplier work volumes and costs
  • Able to consolidate monthly supplier returns into a single, detailed invoice
  • Able to process onward payments to supplier in a timely manner following payment from us
Nice-to-have skills and experience
Knowledge of repair supply chains for operational equipment

How suppliers will be evaluated

All suppliers will be asked to provide a written proposal.

How many suppliers to evaluate
3
Proposal criteria
  • Onboarding of new suppliers including; Items in scope for supplier; Payment terms;
  • Management of suppliers including; Tracking of supplier activity each month; Reporting on performance; Assurance of applications for payment
  • Finance/Payment services including; Processing of supplier payment applications; Provision of consolidated application for payment to us; Processing of payments back to suppliers on receipt of funds from us
  • Delivery of the service for a transparent cost based either on a fixed fee or percentage or value approach to achieve best value
Cultural fit criteria
  • Place safety of ourselves, our workforce and our customers as number one priority
  • Take ownership of work tasks with limited supervision
  • Considers new and innovative ways of working
  • Acts with integrity in delivering the service
Payment approach
Capped time and materials
Additional assessment methods
  • Case study
  • Work history
  • Reference
  • Presentation
Evaluation weighting

Technical competence

35%

Cultural fit

5%

Price

60%

Questions asked by suppliers

1. Please advise current payment terms with suppliers?
We currently utilise our standard payments terms of 30 days from invoice.
2. Please share example terms agreed with current suppliers?
We have answered a similar question which specifically referred to supplier payment terms. We assume this question is covered by that. If it is not covered, can you advise what example terms are being referred to?
3. Do you have a preference on VMS?
In order for us to answer this question please can the question be resubmitted with clarity as to what is meant by a "VMS".
4. Please provide details of your invoicing process and any portal infrastructure used for this?
Invoices should be created in a digital format and emailed to Highways England for processing. At present there is no specific in-house system in use for the specialist supply chain.
5. What is the average duration of an engagement?
Most of the specialist suppliers have worked with us since 2017 and we expect this to continue under this contract.
6. Please let us know what resource screening is required – apart from BPSS?
Baseline security checks are appropriate for this contract.
7. Does the scope include processing of expenses? Would it be possible for this to be capped if included – if not, can we propose a charging mechanism?
No. Invoices will purely be for repairs completed. It will not cover expenses.
8. Does the work involve building any new system to onboard and manage payments for the repair specialist suppliers ? Or is it just onboarding and managing payments for the repair specialist suppliers ?
We do not need an in-house or specific system built for this work it can simply use your own current solution/platform to manage and make payments.
9. Our understanding is that it is already a "live" service. Please let us know what level of transition support will be provided if the service will be migrated from the existing service to a new one setup by the successful bidder.
The current service looks quite different to this new service. The details of each specialist supplier, their terms and rates will be provided for transition onto your solution, our Service Manager will support you in undertaking this initial work and dealing with any supplier queries.
10. Do you already have a vendor management system for your suppliers providing the services detailed here to submit a monthly record of time and materials spent as well any fixed price rate card items? If not, do you have any firm plans to have one available in time for this payment service?
Our corporate VMS is based on Oracle however this won't be in use for this service as it is expected that you will utilise your own solution as we will have this single contract within our VMS and the provider of the service will have the onward agreements within theirs.
11. In the question, "Able to work with and onboard small and medium businesses as repair suppliers". Are you only interested in receiving response from organisations that have worked with Repair Suppliers in the past?
No, we are interested in hearing from any business who can provide a suitable payment service. Our context is the need to pay repairers but this is still a case of dealing with standard invoices.
12. Can the delivery team be nearshore (for example, Romania, Moldova, Bulgaria) with travel as and when required, along with key individuals who are permanently located in the UK?
At this moment the team could be nearshore however we would need to have further information as to precisely what operations would be conducted in each location and we would need this to be reviewed by relevant internal legal and data teams. Any nearshore implications will therefore be covered at the next stage / pre-call off award in more detail, as required.
13. We were a bit confused by two statements that don't align with each other in the commercial approach for this opportunity – could you please clarify this for us and confirm what your preferred approach is?
1) Payment approach – Capped time and materials
2) Evaluation criteria number 4 – Delivery of the service for a transparent cost based either on a fixed fee or percentage or value approach to achieve best value.
The payment approach is capped time and materials however we are looking for ways of managing costs to achieve best value in line with the capped time and materials construct, we will make this clear as part of the technical submission stage, as required.
14. Would the existing contracts between you and the repair suppliers be novated to the final selected supplier ? or the selected supplier has to get into fresh contracts with each of the repair suppliers ?
The selected supplier would not need to set up contracts with the repair providers.
15. Could you please provide us with a draft, non-confidential list of standard T&Cs that you have with your existing suppliers who will be paid via this service?
We anticipate managing this at the second stage / pre-call, as required.