Publishing date (December 2015) CROWN COPYRIGHT 2015
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1 December 2015
2 For more information on anything covered in this guide, please contact the Travel Centre of Expertise (CoE) at the details below: Travel CoE New Zealand Government Procurement Ministry of Business, Innovation and Employment PO Box 1473 Wellington We want to ensure this guide concisely provides agencies with all the information they require in order to use the Travel Management Services All-of-Government (AoG) contract. If you have any feedback around how we could improve this guide please send it to the Travel CoE. Publishing date (December 2015) CROWN COPYRIGHT 2015 This work is licensed under the Creative Commons Attribution-Non-commercial-Share Alike 3.0 New Zealand Licence. In essence, you are free to copy, distribute and adapt the work non-commercially, as long as you attribute the work to The Crown and abide by the other licence terms. To view a copy of this licence, visit Please note that no departmental or governmental emblem, logo or Coat of Arms may be used in any way that infringes any provision of the Flags, Emblems, and Names Protection Act Attribution to The Crown should be in written form and not by reproduction of any such emblem, logo or Coat of Arms.
3 Contents Introduction... 4 Context... 4 About New Zealand Government Procurement (NZGP)... 4 About All-of-Government contracts... 4 Collaborative contracts... 4 About the Travel Management Services Buyer s Guide... 5 Travel Centre of Expertise... 5 Eligibility... 5 Resources... 5 insource... 5 Glossary of terms... 5 Travel Management Services contract information... 6 Contract at a glance... 6 Travel Management Services panel of suppliers AoG Travel Pricing Model Benefits of the incentive-free model How the model works when using a TMS Supplier Purchasing options Participating in All-of-Government contracts Contractual relationships Roles and responsibilities Transitioning to this contract How do I join? How do I buy? How do I manage the supplier relationship? Schools Information Other contracts All-of-Government contracts NEW ZEALAND GOVERNMENT PROCUREMENT 3 TRAVEL MANAGEMENT SERVICES BUYER S GUIDE
4 Introduction Context The goods and services provided by our suppliers are often critical to the public and the country s economic and social well-being. On average 37 cents in every dollar spent by a government agency is with a supplier. Effective procurement helps government agencies deliver better public services while realising value for money. The Ministry of Business, Innovation and Employment (MBIE) influences and shapes public service provision through the Procurement Functional Leadership (PFL) programme. MBIE s focus is on raising standards, improving capability and reducing duplication in government procurement through a collaborative, centre-led approach. About New Zealand Government Procurement (NZGP) NZGP delivers on MBIE s PFL objectives to shape procurement excellence and deliver value for New Zealand. The following objectives drive our programme of work: Lift performance, add value and maximise results; Create an environment where New Zealand businesses can succeed; Unlock cost savings and value for money; and Assisting the Canterbury rebuild We lead a range of initiatives aimed at building procurement capability and fostering collaboration across the New Zealand Public Sector. About All-of-Government contracts We have established All-of-Government (AoG) contracts to take the hassle out of procuring common goods and services, so government agencies can focus on achieving strategically important business outcomes. AoG contracts harness the collective purchasing power of government by establishing single supply agreements for the supply of selected common goods and services. AoG contracts account for about 2% of government spend with third party suppliers and are designed to improve engagement with government suppliers. They also go some way to standardise procurement engagement with government, reduce transaction costs and improve overall service quality for government and suppliers alike. They deliver high quality products and services to government and value for money for the New Zealand taxpayer. Collaborative contracts Collaborative contracts allow eligible agencies to purchase goods and services collectively. Each collaborative contract has a lead agency responsible for the procurement process and the resulting collaborative contract. In addition to the All-of-Government contracts lead by NZGP, the following two types of collaborative contracts are also available to Eligible Agencies: Open Syndicated (OS) contracts Common capability (CC) contract The Collaborative Contracts Register lists all established collaborative contracts. For more information, procurement@mbie.govt. For a full list of existing AoG contracts visit the Other contracts section of this guide. NEW ZEALAND GOVERNMENT PROCUREMENT 4 TRAVEL MANAGEMENT SERVICES BUYER S GUIDE
5 About the Travel Management Services Buyer s Guide This guide is designed to provide government agencies with the information they need to buy from the All-of- Government (AoG) Travel Management Services contract for the supply of a suite of travel management services. It provides an overview of: The key features, benefits and scope of the Travel Management Services contract The Panel suppliers and contractual relationships amongst all parties How to join, buy from, and transition to this contract Travel Centre of Expertise The AoG Travel Management Services contract is part of a suite of three AoG Travel contracts, which also includes Air Travel and Rental Vehicles. The Travel Centre of Expertise (CoE) manages the development, negotiation, supplier performance, and ongoing contract management of all three Travel contracts Air Travel, Travel Management Services and Rental Vehicles within New Zealand Government Procurement. The CoE is there to help you assess the benefits the Travel contracts can deliver for your agency, both at implementation phase and throughout the life of the contracts. This could include general advice relating to the contracts, assistance with analysis of the benefits your agency can achieve through the contracts as well as additional value that can be achieved through best practice purchasing. Get in touch with the Travel Centre of Expertise: travel.coe@mbie.govt.nz David Pauley, Senior Procurement Analyst (04) Eligibility or Rachel Cairns, Procurement Analyst (04) Agencies within the State Sector, as well as Local Authorities, and State funded Schools (together, the New Zealand Public Sector) are eligible to buy from AoG contracts. For more information, or to assess your eligibility to join AoG, please visit our website or coe@mbie.govt.nz Resources Visit for more information including further guides, tools and templates. insource insource is a secure, web-based library of the most up-to-date and commercially sensitive information on AoG contracts including current supplier contact details, pricing, calculators and other contract management tools. If you would like access to insource or want to register additional users for your agency or school, please visit the Registration page or contact coe@mbie.govt.nz for more information. Glossary of terms For explanations of common procurement words and expressions please refer to the NZGP Jargon Buster. NEW ZEALAND GOVERNMENT PROCUREMENT 5 TRAVEL MANAGEMENT SERVICES BUYER S GUIDE
6 Travel Management Services contract information Contract at a glance The contract offers agencies a choice through a panel of five nationwide travel management suppliers. The services are designed to meet agencies business travel requirements. The pricing model and structure are designed to complement the other AoG travel contracts, be transparent, and flexible enough to enable agencies to achieve best value. Panel suppliers Scope Out of scope Additional services Features & Benefits The panel includes the following suppliers as listed in Travel Management Services Panel of Suppliers section of this guide. Atlantic & Pacific Business Travel Limited Flight Centre (NZ) Ltd trading as FCm Travel Solutions Executive Travel Ltd trading as HRG NZ House of Travel (Wellington) Ltd trading as Orbit Corporate Travel Air New Zealand Limited trading as Tandem Travel The contract includes a comprehensive range of services for managing business travel, including: booking and managing: o all travel; air travel, rental vehicles, accommodation, taxis, shuttles, trains, ferry, and conference & meeting venues o domestic and international o travel for individuals or groups 24/7 access to travel consultants self-service online booking tools account management and training reporting travel policy and cost reduction expertise flexible billing solutions visas, passports, foreign exchange handling duty of care management of traveller profiles and memberships Leisure and personally-paid travel Agencies and suppliers may agree to the provision of additional services (beyond the contract scope) such as: customised integration between agency and supplier systems (e.g. HR or financial systems) coordination of conferences or events management of school trips, both domestic and international other agency specific requirements In addition to the benefits of the AoG travel pricing model, the advantages of the Travel Management Services contract include: Choice of five experienced nationwide suppliers. Flexible service and price options tailored to varied agency requirements. NEW ZEALAND GOVERNMENT PROCUREMENT 6 TRAVEL MANAGEMENT SERVICES BUYER S GUIDE
7 Customisable online booking tools paired with reduced travel booking charges. Specialised travel consultants available 24/7/365 providing assistance when it s needed. Payment and billing solutions spanning self-managed to full consolidation to fit your needs and budget. A standard suite of reports, optional bespoke reporting and online reporting systems, to help you analyse travel spend. Duty-of-care related services to support traveller safety. Account management aligned to your agency s profile. Cost reduction expertise to help reduce travel spend over time. Service Profile options Each supplier offers agencies a comprehensive range of services. As agency requirements of suppliers are diverse, the CoE and suppliers have packaged their services into three options. Agencies joining the contract identify their requirements and engage with suppliers to establish their travel management requirements (their profile ) and the service option that will best fulfil these. The agency profiles and aligned servicing options are categorised as Light, Medium, or High Touch. The agency and supplier may also agree some Additional Services to supplement the Light, Medium, or High Touch options. An indicative assessment of agency profiles is: Light touch Medium touch High touch Light Touch agencies tend to: Medium Touch agencies tend to: High Touch agencies tend to: Structure Self-manage travel policy Receive standard reporting Contact their account manager infrequently Require little or no training Have little or no nonstandard travel Simple or selfmanaged payment Have a low need of the supplier s time Require some help managing travel policy Receive mostly standard reporting Contact their account manager regularly Require training occasionally Have little or some non-standard travel Moderate payment requirements Have a moderate need of the supplier s time Have the supplier manage travel policy Require customised reporting Contact their account manager often Require training more often Have ongoing nonstandard travel Detailed payment requirements Have a higher need of the supplier s time Full details of the services included in each profile are included in each supplier contract on insource. Structure of charges Each supplier offers three ways of structuring the charges for the provision of services: NEW ZEALAND GOVERNMENT PROCUREMENT 7 TRAVEL MANAGEMENT SERVICES BUYER S GUIDE
8 Transaction Fee Pricing A fee is charged for each service used (e.g. booking travel, change an existing booking). The fees for each service are specified in the contracts for each profile. Management Fee Pricing Agency and supplier agree a single management fee covering provision of all services provided. The fee is typically defined as a percentage of the agency s complete travel spend and is charged periodically (e.g. monthly or quarterly). Hybrid Fee Pricing: Agency and supplier agree to a management fee covering a defined number or type of services (e.g. reporting and invoicing) and transaction fee pricing for the remainder of the services. The earlier AoG travel pricing model section explains how savings arise through the pricing model adopted across all AoG travel contracts. Agencies considering the Travel Management Services contract will likely realise savings in two ways: Savings 1. Travel management services charges may be lower than the agency s existing prices. 2. Contract suppliers will return any incentive payments received (commissions and similar) to the agency. These types of savings will vary and may depend on the extent to which: Contract commencement 24 June The AoG TMS charges are lower than the agency s pre-existing charges for travel management. Occasionally agencies find their pre-existing charges appear lower than the contract s charges. This may occur as the existing supplier derives a portion of its income from incentive payments, which may be unseen to the agency, so that travel management services are at least partially subsidised through the price of flights, accommodation, rental vehicles etc. 2. The current travel management arrangement removes and/or returns to the agency all commissions and incentive payments. First term end date 24 June 2015 Current term end date 24 June 2017 Renewals Two rights of renewal of two years each the first right of renewal has been exercised. Administration fee There is no AoG administration fee for the Travel Management Services contract Terms & Conditions Refer to the Memorandum of Understanding on insource or by contacting the Travel Centre of Expertise. NEW ZEALAND GOVERNMENT PROCUREMENT 8 TRAVEL MANAGEMENT SERVICES BUYER S GUIDE
9 Service Expectations The supplier contracts include several performance standards that define the minimum standards by which services are to be performed, such as: response time for booking requests resolution timeframe for issues online booking tool availability accuracy and timeliness of billing and reporting supplier system security. All commercially sensitive information, including pricing, contractual documents, along with an introduction to each supplier can be found on the Travel Management Services insource page. NEW ZEALAND GOVERNMENT PROCUREMENT 9 TRAVEL MANAGEMENT SERVICES BUYER S GUIDE
10 Travel Management Services panel of suppliers The five suppliers are specialist providers of travel management services. Each has links to reputable national or international travel firms. Suppliers APX FCm HRG Orbit Tandem Travel Atlantic & Pacific Business Travel Limited Flight Centre (NZ) Ltd trading as FCm Travel Solutions Executive Travel Ltd trading as HRG NZ House of Travel (Wellington) Ltd trading as Orbit Corporate Travel Air New Zealand Limited trading as Tandem Travel Details of each of these suppliers, a needs analysis, price and non-price attributes, and additional tools and guidance for direct comparison of services offered across suppliers can be found in insource or by contacting the Travel Centre of Expertise. NEW ZEALAND GOVERNMENT PROCUREMENT 10 TRAVEL MANAGEMENT SERVICES BUYER S GUIDE
11 Agency travel expenditure AoG Travel Pricing Model The three AoG travel contracts: Air Travel, Rental Vehicles and Travel Management Services (TMS) follow a pricing model commonly recognised as best practice. The fundamental characteristic of the model is that it removes commissions and similar types of incentive payments from travel purchased by government agencies. This is different from the way the travel industry typically operates. Travel suppliers such as airlines, hotels, and rental vehicle suppliers generally pay commissions or similar incentive payments to parties that sell their travel. This means travel agents, travel websites, and providers of travel management services usually derive some or all of their income through these incentive payments. This incentive model is suitable for leisure travel but is not optimal for organisations with significant travel expenditure. Businesses and governments seeking to optimise their procurement, typically adopt the incentive-free model (the industry often refers to this as Net-Net or non-commissionable ). Benefits of the incentive-free model The three AoG travel contracts follow the incentive-free model to deliver several benefits to agencies. Savings: savings in addition to removing the cost of incentive payments. Transparency: make the cost of travel and travel management services clear. Integration: removing financial interdependence means the contracts fit together easily. Optimised purchasing: removes incentives for TMS suppliers to sell a particular travel service due to its earning potential. How the model works when using a TMS Supplier The AoG contracts for Air Travel and Rental Vehicles provide substantial discounts and remove incentive payments. If your agency books travel through a TMS Supplier, they are required to report and return any incentive payments they receive from other suppliers (i.e. non-aog Visual Representation of the AoG Travel Pricing Model suppliers) to the agency. Allowing for the removal of incentive payment income, supplier charges have been agreed through the TMS contract to meet the cost of delivering the services while providing agencies with value for money. Upon transitioning to the AoG contracts, agencies usually change their price agreements with hotels and other frequently used suppliers to remove incentive payments and reduce the price accordingly, creating further savings. TMS charges Commissions Rental Vehicles Commissions Accommodation & other non-aog travel Commissions AoG TMS charges AoG Savings AoG Rental Vehicles Incentive-free savings Accommodation & other Incentive-free non-aog travel Incentive-free savings savings AoG Savings Air Travel AoG Air Travel Standard Travel Industry Practise AoG Travel Pricing Model NEW ZEALAND GOVERNMENT PROCUREMENT 11 TRAVEL MANAGEMENT SERVICES BUYER S GUIDE
12 Purchasing options Some agencies may consider purchasing travel direct with airlines, hotels, and rental vehicle and similar suppliers. Purchasing direct can reduce the cost associated with transacting travel. However, it is worth noting that agencies will use more resources self-servicing, than they would if using a TMS supplier. The table below provides an overview of the two booking options available to an agency when purchasing business travel under the AoG travel contracts. Further information on purchasing direct and/or combining it with travel management is provided in our guide: Managing Travel Travel Management Services Supplier vs booking direct under the Resources section on insource. AoG travel agreements offering Other Travel Management Services Air Travel Discounted airfares on five airlines (domestic/international) Rental Vehicles Discounted rental rates and services through four vehicle suppliers (domestic) No AoG agreement in place For example, accommodation, trains, ferries, coach Option 1 Use a TMS supplier Agency purchases travel through a TMS supplier TMS supplier provides coordinated management of the agency's travel purchasing, reporting, payment, duty of care, access to preferential accommodation rates etc. Option 2 Purchase direct Agency purchases travel direct from airlines, rental vehicle and accommodation suppliers TMS supplier is not involved in travel purchased direct Agency can purchase AoG discounted flights from: 1) Air New Zealand (via its DCP and AoG Service Centre) 2) Lufthansa(via its call centre) Qantas, Emirates, Singapore Airlines cannot be purchased directly Agency may purchase AoG discounted rental vehicles: 1) Direct from Avis, Europcar, Hertz, Thrifty 2) Through Air New Zealand's DCP for Avis, Hertz Agency will selfmanage accommodation and other types of travel purchase NEW ZEALAND GOVERNMENT PROCUREMENT 12 TRAVEL MANAGEMENT SERVICES BUYER S GUIDE
13 Participating in All-of-Government contracts Contractual relationships The below diagram demonstrates the contractual relationships between MBIE, Participating Agencies and Suppliers. MBIE Supplier(s) Service Supplement Participating Agency The table below provides a brief overview of the contractual documents between each of the three parties; these documents can be found on the contract s insource page. Document Services Agreement Non-Disclosure Agreement (NDA) Memorandum of Understanding (MoU) Letter of Accession (LoA) Service Supplement Definition Signed between MBIE and each supplier when the contractual relationship is formed Signed between MBIE and eligible agencies to allow access to AoG contracts and commercially sensitive information. coe@mbie.govt.nz to request the NDA for AoG contracts. Note: eligible agencies only need to sign a NDA once to gain access to information across all AoG contracts. Sets out the relationship between the CoE and participating agencies. It highlights the obligations of each party and the key points in the contract as they relate to participating agencies. Signed by eligible agencies to confirm agreement to the MoU. By signing the LoA eligible agencies join the contract as a participating agency. Agreement between the agency and supplier documenting service specifics such as agency profile, structure of charges, invoicing terms, any agreed additional services and/or reporting. Each supplier holds a copy of the Service Supplement and will assist the agency/school in completing it. NEW ZEALAND GOVERNMENT PROCUREMENT 13 TRAVEL MANAGEMENT SERVICES BUYER S GUIDE
14 Roles and responsibilities Role Participating Agency Responsibilities Contract User Participating Agencies maintain day to day operational relationships with their individual panel Suppliers. This includes: fulfilling obligations set out in the contract and applicable service supplement managing the operational relationship with the supplier notifying supplier of any policy, security clearances and probity checks required as necessary to provide the services to that agency. Ministry of Business Innovation & Employment (MBIE) Centre of Expertise (CoE) within New Zealand Government Procurement (NZGP) Contract Owner MBIE negotiates and enters into all AoG contracts on behalf of the Crown, as part of the Procurement Functional Leader programme (PFL). Contract Manager The CoE within NZGP is responsible for managing the AoG contracts, specific responsibilities include: assisting agencies in joining the contract aiding agencies in supplier selection (if sought) monitoring the supplier s performance against Service Level Agreements managing strategic relationship with supplier on-going development of the category strategy managing all other changes to the AoG contract receiving supplier s notice of technology advances and developments resolving disputes escalated by either the supplier or the participating agency. Supplier Supplier of Services Responsibilities of each supplier under the AoG Travel Management Services Agreement include: provide services to participating agencies provide planning and advice to the agency in relation to transition to, and implementation of, the contract provide reporting provide account management to participating agency provide contract management to the CoE. NEW ZEALAND GOVERNMENT PROCUREMENT 14 TRAVEL MANAGEMENT SERVICES BUYER S GUIDE
15 Transitioning to this contract It s important that eligible agencies consider any existing contracts when assessing the suitability of the Travel Management Services contract for their business needs. Below are some common scenarios for government agencies transitioning onto this contract and supporting information to assist in the transition. You can contact the Travel Centre of Expertise for more information or support around transitioning. Scenario one Government agency/school has an existing contractual arrangement (i.e. outside of the Travel Management Services contract) for services with a supplier on the Travel Management Services contract panel. The agency can join the contract and either: 1. Continue using the current supplier. NB: This option doesn t preclude the agency from changing to another supplier from the Travel Management Services contract panel at a later stage. 2. Review some or all of the panel suppliers using the guides and information available on insource, and choose to use any one of the panel suppliers. NB: If changing suppliers, review the exit or termination requirements of the current supplier agreement and exit the agreement accordingly. Follow the joining process on insource to select a supplier and join the contract. Scenario two Government agency/school has an existing contractual arrangement (i.e. outside of the Travel Management Services contract) for services with supplier(s) NOT on the Travel Management Services contract panel. The agency can join the contract and review some or all of the panel suppliers using the guides and information available on insource, and choose to use any one of the panel suppliers. Agencies should review the exit or termination requirements of the current supplier agreement and exit the agreement accordingly. Follow the joining process on insource to select a supplier and join the contract. Scenario three Government agency/school has joined the contract and wishes to change from one travel management supplier to another. The agency should review some, or all, of the panel of suppliers using the guides and information available on insource, and choose to use any one of the panel suppliers. Agencies should notify the current supplier of their intent to change suppliers by providing 60 days written notice (a requirement under the Travel Management Services contract). NEW ZEALAND GOVERNMENT PROCUREMENT 15 TRAVEL MANAGEMENT SERVICES BUYER S GUIDE
16 How do I join? Note: if you ve already joined any other AoG contract, start at the third step below Log into insource. Check eligibility Agencies within the State Sector, as well as Local Authorities, and State funded Schools (together, the New Zealand Public Sector) are eligible to buy from AoG contracts, Common Capability contracts and Open Syndicated contracts (Collaborative Contracts). For more information about eligibility or to find out if your agency is eligible to join AoG contracts, visit the NZGP website or coe@mbie.govt.nz Sign a Non-Disclosure Agreement (NDA) Agencies who have not yet signed up to an AoG contract must sign and return a NDA before they can access confidential contract information relating to AoG contracts. coe@mbie.govt.nz to request a NDA or to confirm your agency has already signed one. Log into insource Once NZGP has the signed NDA, the agency will be issued with a log-in to insource; the secure online library that hosts all of the confidential information, tools and guidance (including pricing and other commercial details) relating to the contract. If you re having trouble accessing insource, insource@mbie.govt.nz. Assess your business requirements against the contract offering Agencies need to consider any existing contracts when assessing the suitability of the Travel Management Services contract for their business needs. See the Transition section of this guide for more information. Using the information, tools and guidance available in insource, agencies can then identify how the contract can best meet their business needs. Read the Memorandum of Understanding (MoU) Each AoG contract has a related MoU, which sets out the relationship between the CoE and participating agencies. It highlights the obligations of each party and the key points in the contract as they relate to participating agencies. Sign a Letter of Accession (LoA) By signing a LoA, agencies agree to the terms and conditions of the MoU and the related AoG contract. This allows agencies to purchase through the contract. NB: Agencies will need to sign a separate LoA every time they seek to access another AoG contract as a participating agency, including when contracts expire and new solutions are put in place. The Travel CoE is here to help agencies work through what the contract offers and how to maximise the benefits available. Contact the Travel Centre of Expertise for more information or support around joining the contract. NEW ZEALAND GOVERNMENT PROCUREMENT 16 TRAVEL MANAGEMENT SERVICES BUYER S GUIDE
17 How do I buy? When reviewing the Travel Management Services contract and selecting a supplier it is important to first understand your travel requirements and objectives. Information is available on insource to guide you through this process, the CoE are also available to provide support on the decision making process. Assess agency/school s needs Identifying and prioritising your agency s travel management requirements is an important foundation to the supplier selection process. It will facilitate simple yet effective supplier engagement and selection. Considerations may include: Aspects of the current arrangement that work well and aspects that could be better. Which aspects are critical success factors that must work as intended Whether your agency has any requirements that are likely to be unique. What objectives, if any, your agency has in relation to travel. The following tools are being developed to assist you with this step: Agency requirements analysis guide (coming soon) Comparison between Travel Management Services and purchasing travel direct (coming soon) Review the panel of suppliers Become familiar with the panel of suppliers, particularly their services, profile and charges structures, and service standards. Consider how these will align with the identified agency needs. See the following tools on insource to assist with this step: Supplier Overview Supplier price comparison guide (coming soon) Non-price attributes and service standards guide (coming soon) Engage suppliers Engaging with some or all of the suppliers prior to selection is highly recommended. Speaking with supplier(s) allows you to; communicate your needs and critical success factors, learn more about their services, solutions, and how they can meet your needs, get to know their staff, view their online booking tool and sample reporting. Engagement might include: Phone call useful to gain further information Discussion in person meet key contacts Brief presentation - Supplier presents solutions to meet agency needs NEW ZEALAND GOVERNMENT PROCUREMENT 17 TRAVEL MANAGEMENT SERVICES BUYER S GUIDE
18 Select a supplier Using the insight gained through your research of and engagement with the panel of suppliers you can now select a supplier and agree on: light, medium or high touch profile any Additional Services required transactional, management, or hybrid fee pricing transition and implementation plan invoicing terms, payment methods and dates nominated personnel such as account manager, travel consultant(s) reporting required and frequency any unique servicing requirements Once agreed, you need to complete the LoA & Service Supplement to formalise your decision. Transition to the supplier Agency and supplier follow the implementation plan. How do I manage the supplier relationship? Participating agencies continue to be responsible for managing their relationship with the supplier relationships from both a strategic and operational perspective. When agreeing the Service Supplement with your selected supplier you should also agree the frequency of your supplier meetings. This may be determined by your agency touch profile (light, medium and high touch profiles have different service levels). Meetings with your supplier are an opportunity to discuss your travel objectives, service levels and how you are tracking toward agreed goals such as cost saving, buyer behaviour/compliance with travel policy, accuracy of agreed reporting, invoicing, etc. Reporting Participating agencies will need to consider what kind of reporting they require from suppliers (e.g. monthly spend, accuracy of invoicing, timeliness of payment etc.) and ensure all reporting requirements are captured in the service supplement with the supplier, before they order or purchase any products and/or services. Performance reporting The CoE monitors the overall performance of suppliers against the contracted Service Level Agreements, with reporting available to agencies, usually on a quarterly basis. Purchase order and invoice (bill) Participating agencies use a variety of methods to book and manage travel through their supplier. Most agencies use an online booking tool (OBT) to book domestic and some simple international travel. TMS suppliers offer consolidated invoicing which provides the greatest benefit to participating agencies due to decreased administration required by the agency. Payment Payment of invoices is due the 20 th of the month following the month the invoice was received. Payment is made directly to the supplier by the agency. AoG contract rates are negotiated on the understanding that government agencies pay in full, on time. NEW ZEALAND GOVERNMENT PROCUREMENT 18 TRAVEL MANAGEMENT SERVICES BUYER S GUIDE
19 Resolve disputes The supplier and agency must do their best to resolve disputes. Agencies are encouraged to contact the Travel Centre of Expertise to discuss any issues. The following table shows the formal escalation process for disputes in an AoG agreement. Timeframe The day the dispute arises If not resolved within 10 business days If not resolved within another 10 business days If not resolved within a further 10 business days Escalation Both parties attempt to resolve the dispute Agency and supplier escalate to their respective senior representative Agency escalates to Travel CoE who will communicate with supplier's senior representative Agency escalates to MBIE s manager for collaborative procurement and supplier escalates to the General Manager/Director Schools Information Many schools use the Travel Management Services contract to meet their travel management needs. Things for schools to consider include: School trips School trips such as cultural exchanges, sport trips, and educational travel may involve school employees along with students and parents. Schools may use their travel management supplier to coordinate the travel of both staff and non-staff. The scope of this contract covers managing your schools travel. This means the management of travel which is not paid for by the school through your travel management supplier is optional and can be decided on a trip by trip basis. Specialist AoG assistance for schools Jan Barnett National School Contracts Account Manager DDI Mobile NEW ZEALAND GOVERNMENT PROCUREMENT 19 TRAVEL MANAGEMENT SERVICES BUYER S GUIDE
20 Other contracts All-of-Government contracts Advertising Media Advertising Services Air Travel Design Services Electricity External Legal Services External Recruitment Services IT Hardware Mobile Voice and Data Services Office Supplies Print Devices Rental Vehicles Reticulated Gas Risk Financing and Insurance Intermediary Services Vehicles Baseline discounts on the placement of advertising in media Client, creative, production and media planning & buying services Domestic and International flights Client, design and production services including provider sourcing Supply of electricity and associated services All external legal service excluding Barristers Sole & Queen s Counsel, core Crown legal matters, patent attorneys and overseas firms Supply of primary recruitment for permanent, temporary and contractor placements A growing range of products including desktops, laptops, tablets and thin client devices Access to provider s mobile network, mobile voice, text & data services and mobile hardware Broad office product categories including: Print and Toner Cartridge, Photocopier Paper, Cafeteria supplies, Health and Hygiene, Data Storage Media, General Stationery and Computer Accessories Single and multi-function print devices Latest model vehicles and competitive insurance rates for the domestic market Time-of-Use (TOU) and non-tou supply in the North Island The supply of risk financing and insurance intermediary services including specialist advice and competitive solutions Passenger and light commercial vehicles The Collaborative Contracts Register lists all established collaborative contracts. For more information, procurement@mbie.govt. NEW ZEALAND GOVERNMENT PROCUREMENT 20 TRAVEL MANAGEMENT SERVICES BUYER S GUIDE
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