Resource Manager Service for provision of ICT contractors CPO

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1 Resource Manager Service for provision of ICT contractors CPO Whole-of-government procurement arrangement Briefing for suppliers QGCPO Department of Housing and Public Works

2 Key messages Consultation process Why resource manager model? Who is covered? Vendor neutrality Probity advisor Review current state What is the Resource Manager Service? Benefits to suppliers What happens to my rates? Complaints management Data request Next steps

3 Consultation process Extensive consultation with ICT industry identified a number of different models that are in use, including: Master vendor model utilising a government owned talent pool Managed Service Provider (MSP) model Government agreed a substantially revised model with industry which is now being implemented Consultation and ongoing support from Joint Government/Industry ICT Contractor Advisory Group (JAG) consisting of executive members from AIIA, ACS, Software Queensland and ITCRA

4 Why Resource Manager model? Managed Service Programs (MSP) evolving over 15 years Vendor neutral MSP is a new methodology to gain traction globally over last 7 years Its success is in creating benefits for all parties the organisation MSP downstream suppliers Focus is on competition and performance QGCPO chose a vendor neutral competitive bid model for the Resource Manager Service Resource Manager Service is made up of 3 entities

5 Who is covered? ICT contractor services Contingent, tenured basis to fill and/or backfill roles (skill set critical) Customer relationship to contractor is generally supervisory in nature Contractor is generally engaged under GITC Module 7 ICT Personnel Recruitment Services Example: Individual ICT contractor resource engaged for a defined tenure (e.g. 3 months Project Officer)

6 Who is not covered? ICT contracting services Statement of Work where focus is on outcomes and supplier accountability for prescribed deliverables against milestones Supplier is responsible for defining and managing resources required for delivery of the outcome Generally engaged under GITC Module 8 ICT Contracting Services Example: Supplier engaged through a Statement of Work to provide a managed service arrangement for a Data Centre ICT consultancy services As above Statement of Work with a recommendation Engaged under Module 9 ICT Consultancy Services

7 ICT direct contractors Contract renewals and new engagements will be issued through the Resource Manager Service Implementation is as agreed with ICT industry During discovery phase recruitment suppliers, direct contractors, Statement of Work (SOW) and consultancy services will be differentiated The program will address any inconsistencies over time QG implementing risk mitigation strategies over time

8 ICT direct contractors All current GITC accredited suppliers will be eligible to participate in Resource Manager Can elect to have additional roles released and recruitment activity tracked If you only want to supply for the current role then no other roles will be released to you All suppliers will be measured against the same performance criteria

9 Vendor neutrality Resource Manager Service is made up of 3 entities working together All recruitment suppliers will be treated the same All recruitment suppliers can participate as a supplier Talent 2 has been contracted by QG to provide Managed Service professionals to deliver the Resource Manager Service The Resource Manager operates separately to Talent2 Recruitment Resource Manager located in QGCPO offices using QG computers Resource Manager will maintain confidentiality of information Resource Manager is not permitted to directly supply ICT contractor resources to QG Severe penalties apply for a breach of vendor neutrality

10 Probity advisor In support of vendor neutrality a probity advisor from the Australian Government Solicitor has been appointed AGS will have full access to all information, processes and procedures pertaining to the Resource Manager Service Will review vendor neutrality processes and controls and conduct periodic audits of the VMS Will advise on complaints around probity issues Independent point of view

11 Review current state Current state analysis conducted QGCPO conducted a review of the procurement process for ICT contractors Growth of IT services within government increasing need for ICT contractors Need for a streamlined process across whole of government Findings Decentralised recruitment. Each agency has their own process Inter-agency competition driving up rates Poor performers in one agency able to secure work in another No performance management of suppliers No reporting available

12 Review current state

13 Review current state Out of approximately 200 active suppliers: 1 supplier currently supply between 91 to 100 contractors 1 supplier currently supply between 71 to 80 contactors 1 supplier currently supply between 61 to 70 contractors 1 supplier currently supply between 51 to 60 contactors 2 suppliers currently supply between 41 to 50 contactors 3 suppliers currently supply between 21 to 30 contactors 12 suppliers currently supply between 11 to 20 contactors 12 suppliers currently supply between 6 to 10 contactors 36 suppliers currently supply between 3 to 5 contactors 141 suppliers currently supply between 1 to 2 contactors

14 What is the Resource Manager Service? Standardised engagement processes (role descriptions, contracts, procedures and protocols) End-to-end process improvement for both government and industry VMS enables processes and provides improved visibility at both the agency and whole-of-government levels Enhanced measurement and reporting Shared by all stakeholders (QG, suppliers, contractors, etc.) Information compartmentalised and secure Centralised and dedicated resourcing approach Focused on contractor administration, commercial and data/analysis activities Clarifies accountabilities and ownership

15 Future state process overview

16 Role of the VMS The Vendor Management System (VMS) Fieldglass drives: Transparency Auditable / reportable Simultaneous distribution to suppliers Date & time stamped Competitive bid process Secure admin rights of users Suppliers managed on quantifiable performance metrics QGCPO approves supplier base

17 Benefits to suppliers Recruitment process: Fair, competitive bid model requisition sent to all suppliers, supplying that particular agency, at the same time Standardised role descriptions utilising the SFIA framework Prompt feedback Assistance arranging interviews Ease of tracking submitted candidates through VMS Forecasted supply demands communicated proactively through forums Suppliers able to effectively talent pool Potential for payrolling opportunities Standardisation on the use of GITC contract MO7 vs MO8

18 Benefits to suppliers Increased opportunity, reduced costs: Access to new opportunities Performance / reward model High performing suppliers receive higher volumes of roles Reduced account management costs no sales, consultants can focus on sourcing contractors Reduced operating costs through simpler invoicing process One point of contact for all invoice queries

19 Performance management Suppliers will be measured against KPIs Suppliers will be ranked according to performance against KPIs Suppliers will be able to view their performance in the VMS Increased market share is based on performance, no supplier will be given an advantage vendor neutrality

20 Supplier management

21 Sample performance metrics

22 Supplier optimisation Business Intelligence Analyse program, order & vendor performance data Benchmark against statistically validated KPIs Compare with best-in-class optimal ranges Scorecard and rank suppliers Optimise by location, skill set & performance. Right number of suppliers? Right mix of suppliers? Right suppliers? Response levels Submittals per order Quality of submittals Probability of success Skill set coverage Geographic coverage Industry focus Supplier type Response levels Rates Quality Compliance

23 What happens to my rates? The model will deliver a more consistent approach to contractor rates Currently the same skill set can vary by up to $800 per day Establish a range for each job category across the whole of government Ensure that rates are in line with skill set required Compare rates paid by QG to ensure it aligns with ICT industry Obtain the best value, highest performing ICT contractor for each role

24 Complaint management process Process covers the following types of complaints: Operational complaints about the Resource Manager or its staff Operational complaints about suppliers or its staff Operational complaints about departmental hiring manager or staff Complaints about Resource Manager Service or actions of QGCPO or staff Complaints in relation to the performance of suppliers or departments using the arrangement Complaints received under the State Procurement Policy provisions concerning the procurement activities of government agencies

25 Complaint management process Key contacts: Resource manager Supplier Relationship Manager QGCPO Arrangement Manager Joint Government/Industry ICT Contractor Advisory Group (JAG) AIIA ACS Software Queensland ITCRA

26 Data request Advantages of supplying data: Assist Resource Manager validate the ICT contractor population Clear understanding of the contractor profile across QG Information has been collected from each of the government agencies Ability to compare rates paid by agencies for ICT contractors currently engaged QG is looking for transparency across the whole-of-government for ICT contractor spend. Allow Resource Manager to configure VMS to include all requirements Disadvantages of not supplying data: RM unable to build an informed contractor population profile Suppliers will be required to provide this data if they choose to participate in Resource Manager Service

27 Next steps 1 Communication 2 Downstream Supplier Agreement FAQs and a Resource Manager Service overview document including a copy of this presentation will be made available online Ongoing communication updates will also be posted here throughout the implementation Being drafted by Crown Law Completed draft expected mid May 2012 Parallel Confidential Review: - Joint Government/Industry ICT Contractor Advisory Group - Internal review departmental PAC members Feedback and issues will be looked at collectively

28 Next steps 3 Supplier contract issued A new supplier agreement will be issued to all GITC suppliers by QGCPO. Once the contract is signed, the supplier is eligible to participate in the program 4 Training 5 Go live Suppliers who have signed the agreement will be invited to training sessions which will provide detailed information on the new processes and use of the VMS Proposed to go-live 1 July 2012 From this time, all new and renewed roles will be managed by the Resource Manager Service.

29 Recap key messages Consultation process Why resource manager model? Who is covered? Vendor neutrality Probity advisor Review current state What is the Resource Manager Service? Benefits to suppliers What happens to my rates? Complaints management Data request Next steps

30 Thank you Follow links to whole-of-government arrangements

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