Procurement of Travel Management Services for the Australian Government

Transcription

1 Procurement of Travel Management Services for Australian Government Consultation Paper December 2013 This document provides information seeks feedback from prospective tenderers on a proposed upcoming tender process for travel management services for Australian Government. This document is not a notice or orwise a part of any tender process for travel management services, which is yet to be determined or commence. Important Notice: The information in this document is indicative only Department of Finance (Finance) reserves right, in its absolute discretion, to change any aspect of this strategy at any time. Finance makes no representation does not warrant that: - any information contained in this document is accurate, current or complete; - any feedback given or comments made by prospective tenderers in response to this document will be used or orwise acted upon or taken into account; or - a future tender process will be undertaken at a particular time, in a particular manner, or at all. Nothing in this document or arising from this document gives rise to or is intended to give rise to: - a contract; or - any obligation on part of Australian Government, or expectation on part of any recipient of this document, in connection with any subsequent tender process. Where appropriate, Finance may incorporate feedback into any subsequent tender documentation, or orwise use it to inform proposed approach to market. Finance does not guarantee that any or all feedback will be incorporated in any subsequent approach to market. Finance also reserves right to respond, or not respond, to specific questions or submissions at its own discretion. Information contained in any future request for tender material will supersede information contained in this document. Page 1 of 13

2 Introduction The whole of Australian Government travel arrangements are coordinated procurements, established by Finance that service diverse travel needs of approximately 150 Australian Government departments agencies ( Government agencies ). Prior to introduction of whole of government travel arrangements, re was no consistent approach to travel procurement across Government agencies. A Scoping Study ( Study ) into travel arrangements noted decentralised approach to travel procurement, with no overarching coordination strategic management, had resulted in a fragmented approach with inconsistent practices, duplication of effort different pricing levels across Government agencies. In response to findings of Study, Finance established implemented whole of Australian Government travel arrangements, with objectives to: - reduce cost of supply to Government agencies; - continue to meet business needs of Government agencies; - contribute to a competitive viable industry; - establish fair, equitable transparent processes; - optimise savings through cost reductions, improved efficiencies promotion of behavioural change. Phase 1 of travel arrangements came into effect on 1 July 2010, with establishment of a panel of five (5) Travel Management Companies (TMCs) to provide travel management services, pricing arrangements with four (4) domestic twelve (12) international airlines (Airlines). Phase 2 of travel arrangements improved efficiencies furr, through appointment of a single travel card provider, a sole accommodation program manager, a panel of two car rental providers. These arrangements came into effect on 2 July Furr information on current arrangements can be found at: Both phases of travel arrangements have provided bottom line savings to budget, improved contractual efficiencies, increased transparency provided greater value for money in purchasing of travel services. Whilst current travel arrangements are a significant improvement on decentralised approach prior to 1 July 2010, re is scope for furr improvements. This paper sets out potential strategy for renewal of travel management services ( Services ). It is intended that Services will include integration with service providers under Phase 2 travel arrangements, to extent that Services: - allow travellers travel bookers to directly access inventory of accommodation program manager car rental service providers; - use whole of government travel card arrangement for travel expenses, where payment occurs automatically; - provide comprehensive (third level) data for all charges incurred. Page 2 of 13

3 Travel Management Services Requirements Finance intends to approach market in second quarter of 2014 calendar year to establish new travel management service contracts for Australian Government. The objectives for travel management services arrangement include: - continuing to maximise value for money for Commonwealth; - creating a sustainable business model for travel industry; - increasing use of technology to streamline interaction between Government agencies, travel services providers users of Government travel related services; - contributing to transparency of travel expenditure through provision of accurate timely travel data. Within context of objectives for this project, key elements of new travel management services are: - for individuals a service that is accessible, easy to use, allows travellers to easily manage ir travel (air, accommodation car rental) requirements; - for Government agencies a solution that promotes administrative efficiency, with minimal implementation effort, reduces cost supports effective reporting travel expense management across diverse system, policy operational environments; - for Finance an arrangement where service providers are fully accountable for services y provide to Australian Government. Finance expects eventual Travel Service Provider(s) (TSP) will contribute to se objectives by: - developing a strategic partnership with Finance to provide exceptional levels of service to Government agencies, where issues are quickly identified resolved; - representing Australian Government s interests when dealing with relevant parties in delivering Services to Australian Government; - acting reasonably at all times to ensure success of arrangement, including minimising risk for Government agencies; - maintaining open effective communication with Finance as manager of arrangement with Government agencies as recipients of Services; - providing transparent fee arrangements, including reflecting any discount or or reduction linked to Services; - recognising need for delivering consistent high quality products services across Government agencies, allowing tailoring where appropriate to suit specific needs of Government agencies; - actively contributing supporting innovation in service delivery; - actively managing an integrated supply chain to deliver seamless services, data reporting; - driving efficiencies in service delivery to support value for money to Australian Government; - providing services consistent with Australian Government s travel policies, including any individual guidelines of Government agencies in respect of travel (which may include policies that restrict use of certain fares). Page 3 of 13

4 Key features of new arrangement are likely to include: a. a whole of government arrangement, managed by Finance, consisting of a panel of one, or more, TSP( s) delivering consistent high quality products services across Government agencies, tailored to requirements of approximately 150 Government agencies where required; i. TSP( s) must have capacity to deliver Services to Government agencies. This involves accurate timely processing of approximately 700, 000 domestic 65,000 international bookings per annum, management of approximately 100,000 traveller profiles; b. clear contractual arrangements will be established so that service providers are accountable for delivering Services to highest possible stards. This includes having appropriate contractual (or or) mechanisms in place with ( potentially between) parties ( including those contracted under Phase 2) delivering Services to Finance Government Agencies; c. a one stop shop that meets Government agencies travel needs, with an online booking tool or system ( OBT ) as preferred booking channel for domestic international travel. That is, travel bookings amendments (pre- post-ticketing) can be made online for air, accommodation car rental; d. to extent possible, direct contact with travel service provider (i.e. consultant assisted travel bookings) would be used: for VIP services; in emergencies; where OBT is unable to perform function; or when access to OBT is restricted ( e. g. due to geographical location) ; e. Services ( OBT consultant support) would need to be available 24/7 (except for OBT scheduled maintenance requirements) also accessible through mobile devices (e.g. smart phones, tablets); f. transparent pricing that reflects cost efficiencies from booking online compared to less efficient potentially more expensive booking methods, but only to extent that OBT has requisite functionality (e.g. making changes pre- post-ticketing, booking of international travel) ; g. provision of comprehensive pre-defined agencies for reporting purposes; h. TSP contract will be for four years, with two extension options first extension data that does not require extensive manual intervention by Finance or Government option of two years second extension option of one year. Attachment A provides an overview of Australian Government travel profile. Attachment B sets out high level functions travel management service requirements. Attachment C sets out an overview of current travel management service processes. Attachment D provides a schematic of proposed travel management services model. Page 4 of 13

5 Indicative Timeline activities The following table sets out a high level indicative timeline activities in order to deliver project. Start-up RFT Process Implementation (Now Feb 2014) (Mar Oct 2014) (Nov 2014 Apr 2015) - Appointment of resources - Consultation with agency suppliers - Draft RFT documents - Establish due diligence data room - Issue RFT - Evaluate bids (including testing of solutions) - Negotiate execute - Develop change management plan - Finalise Transition Plan - Implement new arrangement - Agency communication - Services commence Page 5 of 13

6 Industry Consultation Finance welcomes any relevant feedback on its intended approach. In particular Finance would like feedback on following: A. The current average online adoption rate (for booking domestic travel) across Australian Government is approximately 60%. The adoption rate has been gradual (from an approximate average of 14% prior to introduction of whole of government travel arrangements). The rate also differs across Government agencies, ranging from approximately 10% to over 95%. The introduction of OBT has proven successful in simplifying travel bookings; delivering efficiencies; reducing cost; influencing traveller behaviour. Finance is now considering extending use of OBT to booking of international travel. Finance is also looking at ways to increase OBT adoption across Australian Government to furr influence traveller behaviour, reduce cost deliver greater efficiencies. Ideally, OBT should be preferred mechanism for booking domestic international travel (including management of pre- post-ticketing changes). Consultant assisted travel bookings would be used: for VIP services; in emergencies; where OBT is unable to perform a function; or when access to OBT is restricted (e.g. due to geographical location). Is online booking functionality currently readily available to allow Australian Government to manage its domestic international travel bookings as described above? If so, can OBT also perform pre- post-ticketing changes? Is your organisation able to provide this system? Describe any integration (including information) requirements associated lead time that you consider are necessary for provision of Service including rollout of OBT to Government agencies. Is greater focus on an OBT most effective approach to influencing traveller behaviour? What or measures could/would need to be taken in conjunction with OBT being preferred channel for booking travel? B. The Government agencies have a broad range of travel requirements, including, but not limited to: simple point to point ; multi-leg domestic international bookings; charter flights; small large group travel; excess baggage requirements; long stay accommodation;, special needs (disabled elderly passengers, unaccompanied minors, freight); VIP services. Considering proposed strategy for OBT as preferred travel booking channel, are re any limitations to using OBT to meet Australian Government travel requirements? C. The OBT will need to provide Australian Government travellers travel bookers with access to inventory of Australian Government contracted: airlines; accommodation program manager; car rental service providers; non-contracted airlines. The online booking tool will also need to support processing of payment to se service providers, using whole of government travel card arrangement. Describe any integration (including information) requirements associated lead time necessary for travel management service provider(s) to integrate ir systems with Australian Government contracted airlines, accommodation program manager, car rental travel card service providers. Page 6 of 13

7 Some service providers (e.g. accommodation program manager, car rental providers) distribute ir inventory through channels or than global distribution systems. What are likely challenges for travel service provider(s) to integrate ir systems with such service providers? Is your organisation able to implement this integration? D. Finance is considering incorporating a pre-trip approval requirement as part of OBT where pre-trip approval function would be made available to those Government agencies that choose to take up that functionality. The decision to pursue inclusion of pre-trip requirement, as part of OBT, remains with Finance. At this stage, Finance intends to assess this during RFT process, based on wher proposed solution by prospective tenderers: meets business needs of Government agencies; is efficient seamless to implement (including interfacing with Government agencies systems (e.g. with a HR system); incurs additional cost (if any). Is pre-trip approval functionality currently readily available? Are you able to provide it? What level of customisation or configuration would be necessary to achieve above requirement? How would a pre-trip approval system accommodate airline ticketing conditions such as instant ticketing? How would a pre-trip approval system accommodate a bundled or consolidated booking which includes air sector(s), accommodation car rental segments? Can a pre-trip approval system facilitate or aid post-trip cost acquittal reconciliation (i.e. an end-to-end solution)? E. Finance expects to routinely receive comprehensive data from TSP(s), in a consistent format (as defined by Finance) with little need for manual intervention (including cleansing editing) by Finance. Finance is also considering portability of data, particularly in relation to traveller profile data. What do you consider to be system limitations in relation to providing uniform, pre-defined formatted data? Is your organisation able to meet this requirement? What level of customisation or configuration would be necessary to achieve above requirement? How do you currently manage profile data? How do you ensure security of data, including profile data? How do you ensure portability of profile data between suppliers providing Services to Australian Government? How do you make this data available to Australian Government, including h over at expiry of contract? F. The key objectives for travel service arrangements are to: optimise savings through cost reductions; improve efficiencies; promote behavioural change. What travel related services or products do you consider may contribute to se objectives? Which of se services do you consider would need to form part of core services as opposed to optional services? Are se services or products currently readily available? Are you able to provide m? Page 7 of 13

8 G. Finance is considering appropriate number of service providers for Services. Considering volume diversity of Australian Government s travel, proposed strategy, do you consider that a single provider has capacity to manage deliver services described at Attachment B? Is your organisation able to perform this role? What are benefits (including in relation to pricing) risks of a single service provider as opposed to a panel of service providers? Describe any set up (including information) requirements associated lead time that you consider are necessary for service provider(s) to transition to new arrangement deliver services. Submitting your comments Comments on paper can be directed to: - traveltender@finance.gov.au - Procurement Coordinator Blog The closing date for providing feedback on this consultation paper is 10:00am 31 January Feedback comments should not be more than 30 pages in length, including attachments. Where appropriate, Finance may incorporate feedback into any subsequent tender documentation, or orwise use it to inform proposed approach to market. Finance does not guarantee that any or all feedback will be incorporated in any subsequent approach to market. Finance also reserves right to respond or not to specific questions at its own discretion. Finance encourages organisations to respond to this consultation paper. However, organisations that do not respond to this consultation paper will not be excluded for that reason from any subsequent approach to market. Finance will not pay for any information requested nor is it liable for any costs incurred by respondents. Organisations are directed not to approach Government agencies in relation to this consultation paper or upcoming approach to market. Finance asks that correspondence occurs through address or Procurement Coordinator Blog (details set out above). Page 8 of 13

9 Attachment A Overview of Australian Government s travel profile Air Travel (1) Spend ($): Volume (sectors): Bookings: Domestic: $265 million 1,200, ,000 International: $150 million 195,000 65,000 Total: $415 million 1,395, , Air travel spend volume is for financial year. Air travel spend is Airline spend GST included. International Air travel includes Trans Tasman. Air travel volume is number of one way sectors. Top City Pairs (by volume) (2) Domestic: Canberra - Sydney Canberra - Melbourne Canberra - Brisbane Sydney - Melbourne Sydney - Brisbane Brisbane Townsville Adelaide Canberra Melbourne Brisbane Adelaide Melbourne International: Sydney Los Angeles Sydney Singapore Brisbane Honiara Sydney Bangkok Sydney Dallas/Fort Worth Sydney Dubai Sydney London Sydney Hong Kong Sydney Jakarta Perth - Sydney Page 9 of 13 Brisbane Port Moresby 2. Top City Pairs is number of sectors between cities. Domestic is originating from both cities. General Profile: approximately 150 Government agencies approximately 100,000 travellers The Australian Government has office locations in all Australian capital cities a large number of regional areas. Most travel originates from Canberra, Sydney, Melbourne Brisbane. The Australian Government s travel requirements are wide-ranging. In addition to stard domestic international booking services, y can include (but are not limited to) services such as: VIP bookings Group travel Conference bookings Charter flights Passport / Visa applications Travellers requiring assistance Excess Baggage small freight Limousine transfer services / Local transportation services Specialised travel booking services (transport of dangerous goods, transport of prisoners, witnesses /or asylum seekers, secure h delivery, freight, unaccompanied baggage, disabled support services)

10 Attachment B High level functions travel management service requirements. Function Profile Management Online Travel Management Customer Support Training Inventory Management Payment Systems Integration Services store traveller information to facilitate travel bookings store agency profile information to facilitate agency travel policy expense reconciliation (e.g. booking references, cost centre structure) central or travel booker self registration (online offline) agency creation maintenance of traveller profiles (online) TSP creation maintenance of traveller profiles (offline) password set up maintenance real time or passive data-feeds from HR, financial or card management systems air, hotel car rental inventory research (domestic international) air, hotel car rental (delegate) approval air, hotel car rental bookings (including use of supplier credits) ability to book special requirements (eg group travel bulk booking) air, hotel car rental booking amendments cancellations ability to prioritise presentation of air fares, hotel car rental rates ability to book ancillary services such as rail ferry ability to manage additional baggage/freight 24/7 access through various mediums including smart phones tablets provision of comprehensive itinerary that consolidates all aspects of travel (air, hotel, car) air, hotel car rental inventory research (in tool) help support air, hotel car rental booking (in tool) help support offline air, hotel car rental amendments cancellations 24/7 offline traveller support including travel booking for VIP emergency bookings or due to deficiency or unavailability of online travel management tool feedback/complaints (in tool) connectivity to Commonwealth contracted air, hotel car rental providers ticket fulfilment (where applicable) air, hotel car rental booking confirmation based on whole of government travel card arrangement for travel expenses, where payment occurs automatically in background (virtual card card in h) manage air, hotel car rental refunds due to agencies assist agency travel expense reconciliation with provision of enhanced data feed integration with Government agencies system including, Financial, HR or Card Management systems integration with /connectivity to Commonwealth contracted air, travel card, hotel car rental providers systems Page 10 of 13

11 Function Information Management Contractual Relationship Services provision of timely, accurate complete transactional data data to include specific information in format that aligns with Commonwealth s reporting requirements travel data ( traveller profile information) owned by Commonwealth travel data ( traveller profile information) stored hled in a secure environment in Australia. strategic partnership with Finance as contract manager Government agencies are recipient of travel services acting reasonably to ensure success of service delivery representing Commonwealth s interests open communication with Finance with Government agencies Page 11 of 13

12 Attachment C Overview of current travel management service processes. Page 12 of 13

13 Attachment D - Proposed travel management service model Page 13 of 13