ITS 2573 PREQUALIFICATION SCHEME

Guidelines for Customers This document provides guidelines to assist Customers purchase from the NSW Government ITS 2573 Operational Telecommunications Equipment, Infrastructure and Services Prequalification Scheme.

Version: 1.1 Issued: January 2017

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Table of Contents

Table of Contents ii

1 Document Scope 1

2 Scheme Overview 1

2.1 Who can use the ITS2573 Prequalification Scheme? 1

2.2 Scheme Structure 1

2.3 Prescribed Terms and Conditions 2

3 Supplier Engagement Process 3

3.1 Define Need 3

3.2 Select Supplier 4

3.2.1 How to Assess Risk? 5

3.2.2 How to Determine Contract Value 5

3.2.3 Numbers of Suppliers to Quote 6

3.2.4 Conducting the RFQ Process 7

3.3 Engage with Supplier 7

3.4 Measure Performance 8

4 Scheme Background 9

5 Definitions 10

6 Appendix 1 11

7 Appendix 2 12

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1 Document Scope

This guide has been developed to assist Customers use the NSW Government ITS 2573

Prequalification Scheme. This document is not designed to be exhaustive and should be

read in conjunction with existing agency-specific and NSW Government procurement

policies and procedures.

The ITS 2573 Prequalification Scheme Guidelines for Customers does not cover procurement

planning, funding approval, needs analysis, specification writing, preparation of tender /

quotation documents, opening or closing invitations to quote, evaluation of proposals, post

implementation review and ongoing contract management.

2 Scheme Overview

2.1 Who can use the ITS2573 Prequalification Scheme?

The ITS 2573 Prequalification Scheme is available for use by NSW Government agencies and

other Eligible Customers (see Appendix 1, Step 1) from 1 May 2013. The Scheme Manager

manages the ITS2573 Scheme an ongoing basis.

2.2 Scheme Structure

The ITS 2573 Scheme offers two (2) Supplier lists according to contract value and risk:

• Registered Supplier List: Suppliers on this list are registered to supply low risk contracts

valued up to $150,000 each in their categories

• Prequalified Supplier List: Suppliers on this list are approved to supply higher risk

contracts or contracts valued above $150,000 each in their categories

Prequalified Suppliers are automatically included in the Registered Supplier list.

Table 1 below identifies the categories and sub-categories available from the ITS2573

Scheme. Detailed descriptions of each sub-category are linked in Appendix 1, Step 1.

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Table 1: ITS2573 Categories and Sub-Categories

Category Description Sub-category

(A) Equipment

Radio communications and link equipment used for the provision of voice and data services.

Network Equipment Link Equipment Power Equipment Terminal Equipment

(B) Infrastructure

Infrastructure & equipment required to support radio communications and linking network equipment for Category A.

Poles/Towers Ancillary Tower infrastructure Security/Safety Systems and devices Fibre Infrastructure Communications Buildings

(C) Services

All services required to develop, plan, design and install, manage and maintain network Equipment (A) and Infrastructure (B).

Construction Services Design Services (Including IT architecture) Project Management Services Maintenance Services Strategic Telco Services

2.3 Prescribed Terms and Conditions

Due to the differing nature of risk and spend value associated with the Registered Suppliers

and Pre-qualified Suppliers, different Master Supply Agreements (MSAs) apply for each

Supplier List as demonstrated in Table 3 below. Links to the MSAs are available on the

eQuote website and in Appendix 1, Step 3.

Table 2: Prescribed Terms & Conditions for Registered and Prequalified Suppliers

Supplier List Contract Type Prescribed Terms and Conditions

Registered Supplier List

For low risk contracts valued up to $150,000 each

Master Supply Agreement for Registered Suppliers

Prequalified Supplier List

For contracts valued over $150,000 each or higher risk contracts

Master Supply Agreement for Prequalified Suppliers

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3 Supplier Engagement Process

The Supplier Engagement Process described in the high-level process map in Chart 1 below

has been designed to assist you in effectively engaging Scheme Suppliers. Each step of the

process is elaborated further in this section.

Chart 1: ITS 2573 Supplier Engagement Process

3.1 Define Need

The first step to using a Supplier under ITS 2573 is to define your business needs. As with any

procurement, you must follow your internal procurement processes and legislative

obligations in forming your sourcing requirements and obtain funding.

During this step, you may engage the Scheme Manager using the Needs Assessment Survey

(linked in Appendix 1, Step 1) to obtain assistance to:

• Determine if the requirement can be fulfilled through the ITS 2573 Prequalification

Scheme (as opposed to other state contracts)

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• Gain information on cost, market or current technology based on past or current

Scheme usage

• Explore collaboration opportunities with other Customers to engage with Scheme

Suppliers

• Explore collaboration opportunities with the Telco Authority and/or other Customers

that can fulfil the requirements without engaging Suppliers.

3.2 Select Supplier

Once you have defined your need and are ready to engage a Supplier from the Scheme,

select one, more or all Suppliers from the list of Scheme Suppliers in eQuote and either get a

quote or invite Suppliers to a Request for Quotation (RFQ) depending on the risk, contract

value and internal procurement guidelines. You may request the Scheme Manager to assist

with the RFQ process by sending an e-mail to ITS2573@finance.nsw.gov.au with the subject

“Support for RFQ”.

The process to “select set of Suppliers to engage” requires an assessment of risk, contract

value and number of Suppliers to quote according to ITS 2573 Purchasing Guidelines (see

Appendix 2). This process is summarised in Chart 2 below.

Chart 2 : How to Select a Set of Suppliers to Engage

The ITS 2573 Supplier List is available in the NSW Government’s eQuote system. It is important

to engage Suppliers using the contract Order Form from the Scheme so protections in the

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Master Supply Agreement are activated (E.g.: warranties, liabilities). An Order Form may be

issued with a Purchase Order (PO) number generated from your agency’s ERP system.

3.2.1 How to Assess Risk?

Risk Assessment is the first step of the process to select a set of Suppliers to engage. A ‘Risk

Assessment Guide’ (linked in Appendix 1, Step 2) has been developed to assist you in

determining whether the scope of the contract is high or low risk. Pre-qualified Suppliers

should be engaged for high-risk sourcing activities, while the contract value should be

examined for low risk sourcing activities before engaging a set of Suppliers.

Note: The Risk Assessment Guide is a guide only. It has been developed to assist you

in selecting the most appropriate Supplier agreement considering value and risk

profile of individual contracts under ITS 2573. It does not replace existing agency-

specific or NSW Government policies, procedures or guidelines relating to

identification, mitigation or management of project risks.

3.2.2 How to Determine Contract Value

Contract value is the total price of the whole-of-life requirement inclusive of GST and

cannot be split into lower-price components. The contract value must be the estimated

total price over the proposed term of the contract and is not a price per annum. For the

purposes of determining the most appropriate set of Suppliers to engage, you should

consider the following scenarios when estimating the contract value:

• A contract with a Supplier may result in the need for related “follow-on” contracts. The

cumulative price of the first contract and any potential “follow-on” contracts may

exceed $150,000.

• The agreed scope of works may change during the term of the contract, resulting in an

increase in contract price to greater than $150,000.

You should also anticipate the potential for these scenarios prior to selecting the most

appropriate Supplier list and seeking initial proposals.

Only where the sourcing activity is assessed as a low risk sourcing activity and there is no

potential for the total contract value to exceed $150,000, you may engage Suppliers from

the Registered Supplier List using the Master Supply Agreement (MSA) for Registered

Suppliers. However, where there is potential for the contract value to exceed $150,000, you

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should engage Suppliers from the Pre-qualified Supplier List using the MSA for Pre-qualified

Suppliers.

3.2.3 Numbers of Suppliers to Quote

Refer to Appendix 2: ITS 2573 Purchasing Guidelines for the recommended minimum

number of suppliers to invite for a Request for Quotation (RFQ), once you have determined

whether to engage Suppliers from the Pre-qualified Supplier List or the Registered Supplier

List. It is recommended that at least three Suppliers are invited for quotes when the contract

value exceeds $30,000 because it will increase competition and lower prices for your

agency.

Agencies are responsible for selecting a sufficient number of suitable Suppliers to ensure

probity, fairness and value in keeping with section 149 of the Public Sector Employment and

Management Act 2002.

The NSW Government’s eQuote system should be utilised to issue a RFQ for most sourcing

activities where one or more Suppliers are invited to bid for your requirements. You may

engage a Supplier directly for procuring low-risk, small contract value (recommended to be

under $30,000), single sourced, equipment, infrastructure or services.

You may use your own discretion when selecting Suppliers to invite for proposals and are

not obliged to seek quotations from every eligible Scheme Supplier within a category or

sub-category. To assist in identifying the number of Suppliers to quote, you should follow

your own agency’s procurement guidelines. As part of the due diligence process, you may

conduct the following preliminary investigations:

• Review Supplier Profile on eQuote (including performance scores from other

Agencies)

• Check company website

• Contact referees for supporting information about Supplier performance

• Contact the Supplier for an informal discussion about the requirement

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3.2.4 Conducting the RFQ Process

You should use the eQuote system to conduct RFQs under the ITS 2573 Prequalification

Scheme. Please refer to https://www.procurepoint.nsw.gov.au/buying/nswbuy-

buyers/equote for more information on eQuote.

Key benefits of getting quotes from Suppliers using eQuote are:

• Simplified process for going to RFQ that is auditable and records all relevant information

• Access to entire range of ITS 2573 Scheme Suppliers

• Select set of Suppliers with relevant capabilities to invite to RFQ

• Increased competitiveness so you can get better value for money

• Increased transparency and fairness in the Supplier Engagement Process

• Improved knowledge management and document management

The eQuote Guide (linked in Appendix 1, Step 2) has been developed to assist you in

creating RFQs in the eQuote System for the ITS 2573 Prequalification Scheme.

It is expected that templates for standard sourcing activities will be developed over time in

eQuote and standard RFQs could be cloned for standard sourcing activities. The RFQ

Pricing Template (in eQuote) provides structured pricing bids for products and services from

Scheme Suppliers. You may use this template at your own discretion.

As the procurer, you will lead the RFQ process in eQuote to evaluate RFQ responses and

select Suppliers to fulfil your sourcing requirements according to your agency’s

procurement guidelines. However, you may request the Scheme Manager for assistance

on a case-by-case basis, by sending an e-mail to ITS2573@finance.nsw.gov.au with the

subject “Support for RFQ”.

3.3 Engage with Supplier

Once you have evaluated RFQ responses against appropriate assessment criteria, selected

an appropriate Supplier, and agreed their scope of work, you need to execute the right

ITS2573 Master Supply Agreement (MSA) to engage them.

To execute the right MSA, please take the following steps:

1. Complete the appropriate ITS 2573 Order Form (in eQuote):

• Order Form for Pre-qualified Suppliers

• Order Form for Registered Suppliers

2. Issue a purchase order (PO) with a special condition that states “under the terms and

conditions of the ITS2573 agreement” and attach the Order Form

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Completing these steps ensures that the MSA with the Supplier is executed, enabling your

agency to obtain the relevant warranties and protection against liabilities.

3.4 Measure Performance

In order to ensure that NSW Government agencies can continue to get the maximum value

from the ITS2573 Scheme, it is important that Suppliers’ performance is measured. A simple

tool, Supplier Performance Survey (linked in Appendix 1, Step 4) has been created to give

you the opportunity to provide feedback about engaged Scheme Suppliers. This will

incentivise Suppliers on the Scheme provide the level of service that you need.

By completing the performance survey, you have the opportunity to promote Suppliers that

provide high quality of goods and services or identify performance issues you may have

encountered with a Supplier.

It is recommended that you complete a performance survey for each engaged Supplier at

the completion of an engagement. Alternatively, you may choose to provide a

consolidated performance survey for a Supplier for all engagements in a review period.

The Scheme Manager will issue reminders quarterly with a link to the performance survey.

Performance surveys should be completed on a quarterly basis for engaged Suppliers

where:

• The total contract value of supply is more than $150,000 (including GST)

• The sourcing activity was evaluated to be higher risk

• The engaged Supplier’s performance could be improved through feedback

Performance surveys should be completed annually for all engaged Suppliers.

In addition, the Scheme Manager may request you to complete performance surveys on

an ad hoc basis, and might contact you for clarification on feedback you have provided.

Information gathered through the performance survey process will be consolidated

quarterly and used to rate Suppliers; these ratings will be available in eQuote. In addition,

the Scheme Manager will provide consolidated feedback to Suppliers during performance

review sessions that will be held at least annually.

The results of feedback collected through this process may be used to assess the ongoing

suitability of different Suppliers for the ITS 2573 Prequalification Scheme.

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4 Scheme Background

The NSW Telco Authority has established the ITS 2573 Operational Telecommunications

Equipment, Infrastructure and Services Prequalification Scheme as part of the NSW

Government’s procurement and Telco Authority reforms, which aim to simplify contracts

and tenders and improve opportunities for small to medium enterprises (SMEs) to do

business with the NSW Government.

NSW Telco Authority administers the ITS 2573 Prequalification Scheme on behalf of the

Contract Authority. The ITS 2573 Scheme is available for use by NSW Government agencies

and other Eligible Customers from 1 May 2013.

The objectives of the ITS 2573 Scheme include:

• Simplified access for NSW Government Customers and industry Suppliers

• Management of performance of Suppliers over time to promote better outcomes for

Customers through more informed decision making

• Increased competitiveness so Customers can get better value for money

• To allow access to a range of Suppliers matching the right Supplier to the right job

• To ensure the Scheme can evolve over time to keep pace with evolving technology

and market trends

An ITS 2573 Scheme Committee has been established to monitor the Scheme over time,

including monitoring Scheme Strategy, performance, benefits, Supplier performance,

Supplier intakes, and phase-out of non-performing Suppliers. Membership of the Scheme

Committee comprises members from NSW Telco Authority and NSW Government Agencies.

The Scheme is managed on an ongoing basis by the Scheme Manager and governed by

the Scheme Committee. The Scheme Manager can be contacted via e-mail at

ITS2573@finance.nsw.gov.au.

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5 Definitions

Contract Authority means the NSW Government Department of Finance and Services or

any other specified body on behalf of NSW Government Agencies.

Customer or Customer Agency means any Eligible Customer listed on

https://www.procurepoint.nsw.gov.au/before-you-buy/buyer-eligibility-and-registration

eQuote means the online dynamic sourcing facility accessed via the NSW Government

eTendering website for Customers to issue RFQs under a selection of NSW Government

arrangements for goods and services. Customers may access eQuote by contacting their

own eTendering administrator. Where Customers do not have an eTendering administrator,

they may contact the Department’s Client Support Centre on 1800nswbuy

ITS 2573 Prequalification Scheme or ITS2573 Scheme or ITS 2573 Panel or Panel, means a

panel of prequalified and registered service providers to assist NSW Government agencies

and other eligible customers in engaging Operational Telecommunications Equipment,

Infrastructure, and Services suppliers.

ITS 2573 Scheme Committee or Scheme Committee or ITS 2573 Panel Committee or Panel

Committee means the entity appointed by NSW Telco Authority to make recommendations

regarding membership to the ITS 2573 Scheme and to review ongoing performance of the

ITS 2573 Scheme.

ITS 2573 Scheme Manager or Scheme Manager or ITS 2573 Panel Manager or Panel

Manager means the entity appointed to manage the ITS 2573 Scheme on an ongoing basis.

ITS 2573 Scheme Supplier or Scheme Supplier or ITS 2573 Panel Supplier or Panel Supplier or

Supplier means a supplier that has submitted a response to the ITS 2573 Scheme RFT and

been granted admission to the ITS 2573 Scheme.

Pre-qualified Supplier means a supplier who is eligible to supply higher risk contracts or

contracts valued above $150,000 each.

Registered Supplier means a supplier who is eligible to supply low risk contracts valued up to

$150,000 each.

RFQ means Request for Quotation.

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6 Appendix 1

Process Step Key Steps ITS2573 Tools & Supporting Documents

1. Define Need • Follow internal procurement process to form sourcing requirements and obtain funding

• Assess if need requires ITS 2573 Scheme goods and services

• May engage Scheme Manager to discuss requirements by completing the Needs Assessment Survey

Tools: • Needs Assessment

Survey References: • Eligible Customers List • Scheme

Categorisations

2. Select Supplier • Use the Risk Assessment Guide to determine contract risk

• Use Pre-qualified Supplier List if contract value could exceed $150,000 or contract is higher risk

• Use Registered Supplier List if contract value could not exceed $150,000 and contract is low risk

• Use ITS 2573 Purchasing Guidelines (see Appendix 2) in conjunction with your agency procurement practices to select number of Suppliers to quote

• Use eQuote to issue RFQ • Use RFQ Pricing Template (in eQuote) to obtain

structured pricing bids from Scheme Suppliers • Evaluate RFQ responses

Tools: • Risk Assessment Guide • eQuote Guide • RFQ Pricing Template

(in eQuote) References: • eQuote Website • ITS 2573 Supplier List (in

eQuote)

3. Engage with Supplier

• Select appropriate Supplier, and agree their scope of work

• Complete appropriate ITS 2573 Order Form: o Order Form for Pre-qualified Suppliers o Order Form for Registered Suppliers

• Issue PO with a special condition that states “under terms and conditions of ITS2573” and attach the Order Form

Tools (in eQuote): • Order Form for

Pre-qualified Suppliers • Order Form for

Registered Suppliers

References (in eQuote): • MSA for Pre-qualified

Suppliers • MSA for Registered

Suppliers

4. Measure Performance

• Provide feedback on the Supplier’s performance using the Supplier Performance Survey

Tools: Supplier Performance

Survey

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7 Appendix 2

Estimated total contract value

Contract risk Recommended minimum number of quotations

Supplier List

< $ 30,000 Low 1 Registered Supplier List

< $ 30,000 High 1 Pre-qualified Supplier List

$ 30,000 - $ 150,000 Low 3 Registered Supplier List

$ 30,000 - $ 150,000 High 3 Pre-qualified Supplier List

> $ 150,0003 Low 3+ Pre-qualified Supplier List

> $ 150,0003 High 3+ Pre-qualified Supplier List

1. All Guidelines should be applied in conjunction with your agency procurement practices

2. Price and non-price factors including company capacity and capability should be assessed for

each engagement. Agencies shall ensure probity and value in keeping with Section 149 of the

Public Sector Employment and Management Act 2002

3. For transactions over $ 150,000 we recommend the use of a formal tender process. A formal

tender differs from a quote and would usually contain items such as a statement of work or a

specification and criterion by which to evaluate these against in order to choose a vendor

to award the work to.