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1. Welcome Hello, I’m Andrew Kefford, First Assistant Secretary in Australia’s Department of Immigration and Border

Protection.

The Department—including its operational arm, the Australian Border Force — has a clear mission: To

protect Australia’s border and to manage the movement of people and goods across it.

We contribute to the achievement of three principal outcomes for the Australian Government:

• a strong economy

• strong national security, and

• a prosperous and cohesive society.

With this in mind, we are embarking on the most significant reform to the Australian immigration system in

more than 30 years. We are modernising our visa system – making it more user friendly and efficient by

drawing on the latest innovations and technology.

Following extensive market consultation, we have released a Request for Expression of Interest for market

providers to work collaboratively with us to design, implement and operate a Global Digital Platform that

will underpin Australia’s new visa business.

There are three key points I want to emphasise at the outset:

1. Firstly, this transformational reform of Australia’s visa business is intended to strengthen Australia’s

economic competitiveness, maintain our strong national security and foster Australia’s prosperous and

cohesive multicultural society

2. Secondly - while Bundle 1 includes a major ICT component, we are approaching the reform task a

business-led transformation of how Australia’s visa services are delivered around the world,

underpinned by a global digital platform

3. Thirdly, we are genuinely seeking a partnership approach to design, implement and run Australia’s

visa business. As part of this partnership, we are keen to explore commercial value added services

that will assist in attracting people to Australia – including by assisting to minimise the user charge for

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visa applicants.

In the remainder of this briefing I will provide some background on the Department’s visa service delivery

business and our vision for reform, as well as what we have learned through market consultation so far.

I will also give a deeper overview of the objectives, scope and requirements of Bundle 1, including the

commercial model and potential for value-added services. Finally, I will outline the broader approach to

market process for Bundle 1, and how we will evaluate potential providers.

There will time for questions and the end, and we will also be conducting individual question and answer

sessions later for providers who have registered.

Firstly however, I’d like to emphasise how serious the Department about running a fair and competitive

procurement process, in line with our probity objectives. Our probity advisor, Shane O’Keeffe will outline

what this means in more detail.

1

Topics for today's briefing

Welcome

Context: Overview of Australia's visa service delivery business

Target state vision for reform

Recap of feedback from the Market Consultation Process

Bundle 1: The Global Digital Platform (GDP) business

a) GDP objectives to support reform

b) Bundle scope and requirements

c) Emerging view of the commercial model

Approach to market from now – July 2018

How the Department will evaluate providers

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2. Probity Notice

• Shane/ Michael from McGrathNicol to provide probity overview

2

Probity NoticeProbity Advisor, Shane O’Keeffe, McGrathNicol

This procurement will be undertaken in accordance with the Australian Government's Commonwealth Procurement Rules

Our probity objectives are: 1. To ensure conformity of the process2. To provide accountability3. To ensure that the interests of Respondents are protected by an equitable process4. To ensure that all responses will be assessed fairly against the same criteria5. To preserve the confidence of the public and Respondents in Australian Government

processes

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3. Overview of Australia’s visa service delivery business

• Australia’s visa business is a 24/7 global operation that facilitates the flow of millions of tourists,

international students and migrants to Australia every year

• The environment in which the Department operates is becoming increasingly complex as demand

continues to grow; a trend which is projected to continue in the years to come

• Last year we delivered visa products to around 9 million visa applicants, with applications forecast

to increase to about 13 million per annum by 2027

• As well as volume growth, global mega-trends are significantly changing the nature of our visa

business. For example:

o growth from countries with different risk profiles then we’ve had the past

o increasing global competition to attract tourists, international students, and skilled

migrants, and

o high expectations from clients demanding an efficient and digital experience

• Against this background, the Department is currently constrained by aging business processes

and IT systems:

o approximately 25% of applications are lodged on paper, and most decisions are made

manually

2

Overview of Australia's visa service delivery businessThe Department processes ~9m visas p.a, in an increasingly complex and fast-moving environment

The Department is modernising delivery of visa products to ~9m

visa applicants each year

Visa service delivery costs several

hundred million dollars a year

Volumes of visa applications are

forecast to increase to ~13m p.a. by

2026-27

~25% of lodgements

paper-based and over 50% of

decisions are manual

~20% of services delivered by

market providers through user-pays

arrangements

$

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o This drives high service delivery costs totalling several hundred millions dollars a year, and

places pressure on the Department to deliver more with limited resources

• These factors underpin the case for change that led to Government launching Immigration Reform

o Through Immigration Reform, we are looking to revolutionise how we work with industry,

and explore more innovative models to address the challenges of our current business

state

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4. Target state vision for Immigration Reform

• The Department has set a bold and ambitious vision for reform, which requires leveraging the best

that industry has to offer

• As well as transforming and modernising how visa services are delivered, we are looking to

expand into additional value-added services that will strengthen Australia’s global attractiveness

and competitiveness and assist in achieving financial outcomes for Government

• We will create a seamless and modern client experience that will help attract tourists,

international students and migrants to Australia, as well as meeting our international obligations

o We will also offer premium services for high-value applicants, such as skilled migrants

• Receiving and processing applications will become exclusively digital over the Global Digital

Platform

o However, there are a small number of specialised visas (for example visas for diplomats or

refugees) where processing will be managed directly by the Department

• Assessments and determinations of applications will become more automated and efficient,

allowing the effort of Departmental staff to be directed toward higher value, sovereign functions

including complex decision making

• And finally, managing compliance with visa conditions will be more proactive and driven by

client behavioural analytics, for example by giving clients nudges and self-serve options

3

Target state vision for the visa businessAmbitious transformation of client experience and business model

SER

VIC

E D

ELIV

ERY

Acquire clients and provide support

Receive and process applications

Manage compliance with visa conditions (excluding enforcement)

Assess against criteria and decide visa applications

Global footprint of locations

• Geographical and product based client service standards• Increasingly digital interaction with large residual paper

based and in person interactions

• Differentiated services including premium options• Seamless experience with 24/7 global access to visa

services supported by active client acquisition function

• ~25% of lodgements paper-based• Some use of Service Delivery Partners to collect

applications

• Digital lodgement for all applications capturing more digital data (e.g. biometrics)

• Pre-population and validation of information

• Less than 50% of decision-making is automated• Large and growing volumes of visa applications, which

require manual processing and decision making

• Efficient, streamlined service for low risk applicants• Specialist resources focussed on complex decisions• Aspiration of 90%+ of processing done automatically

• Reliant on human interaction • Limited self-service options

• Increased voluntary compliance and self-service• Reduced volume of compliance and enforcement cases

• 60+ offices • Varied procedures and processing times

• Flexible, consolidated global decision 'hubs' • Lean 'spokes' aligned to local knowledge and need

CURRENT STATE TARGET STATE VISION

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5. Recap of feedback from the Market Consultation Process

• I want to emphasise that the Department is serious about pursuing a collaborative approach to

designing its new visa model

o The market has already played valuable role in shaping our vision for reform and the path

that we will need to follow to get there

o We are returning to market through this REOI to continue to refine our proposed approach

before we reach the Request for Tender stage

• Earlier this year the Department undertook an extensive Market Consultation Process, including

briefings in Canberra, Sydney, Bengaluru, Singapore and San Francisco. This round of industry

briefings is following a similar pattern.

• Going into this process our objective was to test key hypotheses around what the future visa

business could be like, and the role that industry could, and would be willing to play

o Overall, the market supported the Department’s approach, and provided deeper insight on

the ambiguities and design decisions that we need to further explore through this REOI

4

Recap of feedback from the Market Consultation ProcessEngagement with over 100 providers has shaped and confirmed our approach

Strong market interest and capability in all visa functions• Does not vary by product or geography

Support for a fully user pays model for Bundle 1• Understanding dependencies and trade-offs, e.g. asset ownership

Strengthened interest in commercialisation opportunities

Co-design is the right approach to defining the future state• Integrated solutions and innovation can be tested interactively

Extent of Market

Delivery

Bundling

CommercialModels

ApproachTo

Market

MARKET MODEL MARKET CONSULTATION PROCESS FEEDBACK

Bundles are the right size to be commercially attractive• Clarifying scope between bundles critical to commercial certainty

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• Firstly, the Market Consultation Process tested our hypothesis that the market would be interested and capable of delivering all relevant visa processing functions

o The market agreed, and importantly in relation to Bundle 1, providers told us that their

capability to deliver didn’t vary by visa product or geography

o This has confirmed our scoping of Bundle 1 as global digital platform for all visa products,

with delivery over the global digital platform to commence with higher volume, less

complex short-term visa products.

• Feedback from the market also supported the Department’s proposed bundling approach, which

I’ll outline in further detail later in this briefing

o The market affirmed that bundles are properly sized to be commercially attractive, and

aligned with market capabilities

o What we also learnt from the engaging the market is that tightly clarifying the lines of

scope between bundles will be essential to giving providers commercial certainty

o In response to this feedback this briefing, and Part 3 of the REOI documents, provide

further detail on the specific scope of Bundle 1

o Detailed bundle requirements will also be continually developed and refined over the

coming phases of collaborative design and procurement

• The third dimension of the market model that was tested is the commercial model, which was a

major focal point in our discussions with providers

o Providers supported the idea of a user pays model - where the successful provider will

fund the development and operation of the Global Digital Platform and recoup costs

through user charges and value added commercial opportunities.

o Our desire is for the user charges to be as low as possible to maintain Australia’s

competitiveness in the global market for tourist, students and skilled migrants,.

o Indeed, what was really highlighted by talking to industry, is that there is significant room to

explore commercialisation opportunities, which is a priority for us to progress in this REOI

o Further detail on the Bundle 1 commercial model is discussed later this briefings, and can

also be found in Part 3 of the REOI documents

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• Finally, the market supported our proposed approach utilising Scenario Based Design and

Evaluation and Co-Design to accelerate innovation and achieve mutual outcomes for design and

procurement

• On behalf of the Department, I’d like to thank all providers who engaged with us through the

Market Consultation Process for their contribution

o I encourage all other providers to read the Market Consultation Paper, which can be found

on our website, for a summary of what was discussed

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6. Bundling of products, geographies and functions

• In this section I will talk about Bundle 1 in more detail, and what the Department most wants to see

in provider responses

o This will further outline our objectives for the Global Digital Platform and Australia’s future

visa business, including the underpinning commercial model

• Firstly though, it’s important to understand Bundle 1’s place in the context of the Department’s

overall bundling strategy

• The Department plans to approach the market to deliver up to 8 bundles relating to the visa

business, shown in yellow:

o Across the top are visa product types, with purple columns representing temporary visa

products and green columns representing longer-term visa products

o The grey boxes down the left hand side represent groups of visa processing functions

allocated to each bundles, and

o The darker blue rows indicate sovereign functions that the Department will retain, including

core and enterprise capabilities

6

Bundling of products, geographies and functionsEight bundles across front and back end visa processing functions

Global Digital Platformfor longer-term visa products

• Online services for clients, market providers and DIBP staff

• Workflow, assessment & decision rules

Potential to extend shorter-term visa product platform or build separate platform

Manual decisions retained by DIBP

Core and enterprise capabilities retained by DIBPIncluding Identity Management, Intelligence, Border Risk Assessment, Status Resolution and Enforcement

Global Digital Platformfor shorter-term visa products



Client services, data collection and verification

Objective assessments

Client services, digital data collection and verification

Auto-determinations

Core & enterprise capabilities

Subjective assessments

1

Shorter-term visa product non-healthglobal subjective assessment bundle

4

Onshore5

Specialist data collection and verification bundle 7

Longer-term visa product non-healthglobal subjective assessment bundle

8

Manual decisions

Security assessments

Offshore6

Onshore2Offshore3

Shorter-term visa productonshore & offshore health bundles

Onshore and offshore client services bundles

Visa

Pro

cess

ing

Func

tions

Visa Products

Longer-term visa productonshore & offshore health bundles

Key:

Delivered by market

Digital function

Retained by DIBP

Longer-term, lower-volume,more-complex visa products

Shorter-term, higher-volume,less-complex visa products

Current human function

Shorter-term, higher-volume, less-complex products

Longer-term, lower-volume, more-complex products

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• Bundle 1 towards the bottom of the page is the subject of this REOI. It includes the design, build

and operation of a digital business solution and supporting systems, collectively known as the

Global Digital Platform

• Bundle 2 and 3 are for health assessments for all visa products and are geographically split

between onshore (in Australia) and offshore

• Bundle 4 and 8 will deliver subjective assessment functions globally (such as character or

genuineness assessments), with a split between shorter- and longer-term validity visa products

• Bundles 5, 6 and 7 will provide client services, data collection and verification where it is not

practicable for the global digital platform to do so

o For example this could include where in-field effort is required to collect or verify data

o Bundles 5 and 6 also include human-delivered premium offerings

• A detailed description of each bundle can be found in the Market Consultation Paper and the REOI

documents

• Our intention is that the first stage of implementation will encompass higher-volume and lower-

complexity temporary visa products

o This is to both accelerate early achievement of key objectives and de-risk the early

implementation phases of the programme

• As a result, over the coming months we are also moving forward with procurement processes for

Bundles 2, 3, and 4 as they relate to temporary visa products

o Pending further Government decisions – in part based on the information we will glean

from this REOI process - our current intention is to issue Request for Tenders to

shortlisted providers for Bundles 1 to 4 in July 2018

• Providers can bid for as many bundles as they are capable of delivering

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• Before we go on, I want to stress that in relation to Bundle 1 –we expect the successful provider to

deliver a global digital platform that is capable of handling all visa products. We expect delivery to

commence with less complex, shorter term visa products.

o The Department has retained the option to confirm at a later stage whether longer-term,

more complex visa products will be delivered over the global digital platform, but to be

clear, that is our preferred approach

• I also want to be very clear that while Bundle 1 is underpinned by the Global Digital Platform, we

are looking for the market to help us transform Australia’s visa business.

o We are seeking as part of this transformation to develop a solution that will enhance

Australia’s attractiveness in the global competition for tourists, international students, and

migrants, including by providing value-added connections for visa applicants to other

government and commercial information and services

7

Bundle 1: the Global Digital Platform and businessThe digital business platform, initially for higher-volume lower-complexity temporary visas

Manual decisions retained by DIBP

Core and enterprise capabilities retained by DIBPIncluding Identity Management, Intelligence, Border Risk Assessment, Status Resolution and Enforcement

Global Digital Platformfor shorter-term visa products



Client services, data collection and verification

Objective assessments

Client services, digital data collection and verification

Auto-determinations

Core & enterprise capabilities

Subjective assessments

1

Shorter-term visa product non-healthglobal subjective assessment bundle

4

Onshore5

Specialist data collection and verification bundle 7

Longer-term visa product non-healthglobal subjective assessment bundle

8

Manual decisions

Security assessments

Offshore6

Onshore2Offshore3

Shorter-term visa productonshore & offshore health bundles

Onshore and offshore client services bundles

Visa

Pro

cess

ing

Func

tions

Visa Products

Longer-term visa productonshore & offshore health bundles

Key:

Delivered by market

Digital function

Retained by DIBP

Longer-term, lower-volume,more-complex visa products

Shorter-term, higher-volume,less-complex visa products

Current human function

Global Digital Platformfor longer-term visa products

•Online services for clients, market providers and DIBP staff•Workflow, assessment & decision rules

Potential to extend shorter-term visa product platform or build separate platform

Shorter-term, higher-volume, less-complex products

Longer-term, lower-volume, more-complex products

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7. Objectives for Bundle 1

• As you prepare your response to this REOI, we strongly encourage you to continually refer back to

our core objectives and how they link to our Government’s priorities of a strong economy, strong

national security and a prosperous and cohesive community

o At each stage of the procurement process the Department will be examining how well

proposed solutions meet these objectives

1. Firstly Bundle 1 must further strengthen decision and assessment quality and consistency:

• Visa processing must ensure the integrity of Australia’s visa and migration programs and protect

Australia’s borders

• While our Visa Processing Officers have and will continue to make sound assessments and

decisions, we believe there are opportunities for further improvements through automated

processing, and improvements to the way data is collected and used in assessments and decision

making

7

Reform objectives for Bundle 1Modernised and efficient services with greater flexibility for Government

Further strengthen decision and assessment quality and consistency

Facilitate of the simplification of Australia's Visa framework

Improve user experience for clients (including through value added services),Departmental staff and market providers

Maintain Australia's international competitiveness and attractiveness whilst improving financial outcomes of the Visa business for Government

Implement the new delivery arrangements as fast as possible with minimum delivery risk

Provide flexibility to implement future Visa policy changes quickly and efficiently

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• In line with the 90% automation target set by the Department, most straightforward and common

assessments should be fully automated in a highly codified and consistent manner (following

business rules determined by the Department).

o Importantly, this will also direct our officers’ effort away from lower-value work and towards

higher-value complex decision making

• The Global Digital Platform should also collect information for applications in way that maximises

its usability, automatically verifies wherever possible and supports effective decision making

2. The second objective for Bundle 1 is improving the user experience for clients, Departmental staff and market providers:

• In today’s digital world all users of the Global Digital Platform will have increasingly high

expectations for fast, seamless and digital interactions

• Based on the depth of digital capabilities that we know exists in the market, the Department has

high expectations in relation to this objective

• We expect as a baseline that solutions will include an intuitive end-to-end digital experience,

engaging interfaces, and seamless access across platforms and device

• However, improving the user experience does not just mean digitising what we do today

• We also expect providers to incorporate additional value-added services, by providing links for visa

applicants to other Government and commercial services and information, such as connections to

travel bookings, licencing authorities, or settlement services

• We’re also particularly interested for providers to highlight the capabilities and strengths of their

solution, in terms of:

o maximising self-service capabilities to further reduce unnecessary processing effort, and

o Client behavioural analytics, such automated notification of potential breaches of

conditions

3. The third objective for Bundle 1 is to maintain Australia’s international competitiveness while improving financial outcomes of the visa business for Government:

• This objective is all about managing the trade-off between growing volumes, increasing risk and

constrained resources

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• To achieve Government’s priorities, Bundle 1 needs:

o to deliver financial savings through increased efficiency and a reduction in downstream

work

o to provide substantial commercial opportunities and shared value, and

o to keep the price and service quality of an Australian visa globally competitive

• This means ensuring the total cost to client, including Government taxation and provider service

charges are competitive against Australia’s global peers

• Later in this briefing I will discuss in more detail how the Department is thinking about structuring

the Bundle 1 commercial model to achieve this, including the potential for value-added services

4. The fourth objective is to build the new business as fast as possible and with minimum delivery risk:

• The Department is seeking an experienced and collaborative delivery partner able to support a

transformation of this scale and with certainty on time, cost and outcomes

• We expect providers to bring existing technologies that can be rapidly adapted and deployed, as

well as a global talent pool to support design and build of the new business

• We also expect providers to bring best-practice delivery approaches that are suited to a

Governmental context

o For example, we would propose mobilising multidisciplinary teams with our current state

business and technology experts working side-by-side with you in an iterative and

collaborative manner

• Based on their previous delivery experience, providers should outline in Response Form 3 how

they would propose to design, implement and operate the Global Digital Platform

o Just as importantly, we want to hear what you believe it will take to make these

approaches work, for example the necessary governance structures or capabilities

required

• Providers should also note that throughout this process, and in particular during co-design, the

Department will be looking at providers’ ability to work effectively and collaboratively alongside us

5. This is also relevant to the fifth objective for the bundle, enabling simplification of Australia’s visa framework:

• Currently Government is in the consultation stages of a process to simplify Australia’s visa

framework

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o While this is not expected to substantially alter the functional components Bundle 1 is

required to support, it may require us to implement any policy changes

• Agility and collaboration will again be key, and we would be interested in hearing comparable case

studies where providers have incorporated policy change in the context of a broader

transformation

• We also want to be able to leverage the successful provider as a strategic partner to advise on the

implications and costs attached to different policy scenarios

6. The sixth objective for Bundle 1 is to provide flexibility to implement future visa policy changes:

• During the implementation phase and across the overall lifecycle of the platform, the Government

needs to be able to change policy settings quickly and affordably

o Providers should outline how their proposed solution would enable this, such as modularity

and flexibility in business and technical solution architecture

• In preparing your responses and in future procurement phases, I again encourage providers to be

guided by these objectives

o Please clearly identify in Response Forms 2 and 3 where you believe an element of your

proposed solution will strengthen realisation of these objectives

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7. GDP Scope and requirements

• In this next section, I will step through the scope and requirements for the Global Digital Platform –

including how those objectives will be realised at an service delivery level

• The Global Digital Platform will have a critical role in the processing of each of the millions of visa

applications that the Department receives each year

• In simpler cases it will handle the majority of the processing pathway, interacting primarily with

clients and the Department

• In more complex cases, the platform will deliver some processing steps as well as managing the

end to end workflow, with other providers and the Department also having a role

• As background to the requirements detailed in Part 3 of the REOI, I’ll outline what each of those

processing pathways may look like

• Firstly let’s begin with a simple client pathway

• The Global Digital Platform will be responsible for end to end workflow management across the

future visa business

o This includes managing an end-to-end automated process from first-contact to post-

decision for 90% of visa applications

o In addition, for more complex or higher risk applications processing work will be

undertaken by Bundle 1, the Department and other market providers

8

Scope and requirements for the Global Digital PlatformDeliver an end-to-end digital business for simple cohorts, with interfaces to the Department

Assessment Compliance management

Clientservices

Data collection and verification Decision-making


Digital data collection and verification

DIBP identity anchoring, security assessment

and risk tiering


Nudges towards self-resolution, ongoing

revalidation and engagement


Digital client services

Global Digital PlatformWorkflow management

Key Retained DIBP Org.GDP scope Other Bundle scope


Client notification and provision of information

for reviews


Automatic digital simple subjective assessments


Auto-determinations

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o In both instances, automatically managing the workflow of the visa business is an

important responsibility of the Global Digital Platform

• Given the potential for complexity, workflows will need to be highly sophisticated and able to

dynamically direct traffic

o This will include providing transparency on the cost, time and quality drivers of each step

in the visa service delivery process.

• The Global Digital Platform will be also fully responsible for digital client services throughout the

applicant journey

o The Department expects that the bulk of simple applications will be acquired, translated,

paid for and have enquiries handled digitally through the Global Digital Platform

o Responses should also outline a seamless and entirely digital experience that is able to

differentiate services based on client analytics and segmentation

• For digital data collection and verification, the Global Digital Platform will collect the initial

applicant information and dynamically verify and validate it in real-time

o This may continue throughout the assessment phase if the results of assessments indicate

that additional information is required

o The information required will be determined by business rules set by the Department,

including rules based on the visa product and risk tier of an application

o This can also involve providing clients with an opportunity to see and respond to any

adverse information to be used in assessing their application

o Managing interactions seamlessly and in a way that avoids re-work will be important to

achieving objectives of improved client experience, financial outcomes and decision-

quality

• The Department will retain the capability to undertake identity matching and anchoring based

on biometrics collected digitally by the Global Digital Platform

• Where biometrics cannot be digitally collected by the Global Digital Platform, the platform will need

to refer clients to our existing in-person biometrics collection service provider network

• Departmental systems will also provide Bundle 1 with the outcomes of risk tiering and/or requests

for further information to be collected and verified

• Next is Assessments, which is where over half of the manual effort attached to running the visa

business is directed towards today. o The objective and subjective assessments required for each application vary based on a

number of factors including risk tier and the visa product o The Global Digital Platform will be responsible for automatically processing the simplest

forms of assessment for some cohorts

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o These will only be assessments suitable for automated rules-based processing – most

likely to be largely objective or declaratory in nature o For example, the Global Digital Platform may automate health assessments for low-risk

applicants who’ve declared that they have no relevant health circumstances

• Automating the majority of these assessment is important to our objective of improving the

financial outcomes of the visa business

• It is also important for providers to note that the assessment against particular visa criteria informs

but does not determine the decision to grant or refuse a visa application

• Based on the outcomes of relevant assessments, the Global Digital Platform will apply business

rules to make automated determinations on whether or not to grant a visa wherever possible o The platform will also need to ensure that the applicant is notified of the outcome and,

where required, reasoning for the decision • Next, service delivery plays a limited role in compliance management:

o The Global Digital Platform will generate automated ‘nudges’ to re-engage clients and

encourage them to self-resolve their current or potential compliance issues

o The Global Digital Platform will need to provide and seamlessly link to these self-service

options

• By using behavioural insights and self-service options the Department intends to significantly

reduce compliance or enforcement which is both costly and undesirable

• To recap - the key value drivers of our objectives, particularly for simple cohorts, are:

o enhanced digital capabilities,

o automated processing and assessments, and

o modernised client behavioural and segmentation analytics

• Next, I’ll discuss more complex cohorts, which represent a smaller portion, but are an important

set of applications for the achievement of our objectives

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• The Department will retain responsibility for identity anchoring, risk tiering and security assessments

• The Global Digital Platform will remain responsible for digital client services, data collection and verification, client notification and compliance functions

• The platform will also remain responsible for workflow management, but as you will soon see, the

workflow becomes increasingly important for complex applications

o The platform must manage seamless handovers between providers to ensure a proper

flow of information, and dynamically sequence work to optimise for efficiency and

assessment integrity

• Bundles 5-7 will provide in-person client services including data collection and verification

o This will also include in-person premium service offerings such as assisted completion of a

visa application

• Bundles 5-7 continue to provide services throughout the assessment process – for example if on-

the-ground investigation is required to verify the legitimacy of an applicant’s business.

o The Global Digital Platform may need to direct applications to these providers and must

enable them to receive and provide information as required

9

Scope and requirements for the Global Digital PlatformEnd-to-end digital business for complex cohorts, with interfaces to the Department and other bundles

Assessment Compliance management

Clientservices

Data collection and verification Decision-making

Bundles 5-7 Human-delivered client services

Bundle 4Complex subjective

assessments

Bundles 2-3Health assessment

Key Retained DIBP Org.GDP scope Other Bundle scope

DIBP identity anchoring, security assessment

and risk tiering

DIBP retained manual decision-makingGlobal Digital Platform

Digital data collection and verification

Global Digital PlatformNudges towards self-resolution, ongoing

revalidation and engagement

Global Digital PlatformDigital client services

Global Digital PlatformWorkflow management

Global Digital PlatformClient notification and

provision of information for reviews

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• Where information can be digitally requested and verified, and is not inextricably linked to an

assessment being undertaken by another bundle, the Global Digital Platform will remain

responsible

• In relation to health, where assessment requires processing and analysis of information beyond a

declaratory statement from the applicant, Bundles 2 and 3 will be responsible

o The Global Digital Platform will need to handle the client services to facilitate health

assessments such as scheduling and collection of responses

• For more complex client cohorts, Bundle 4 will be responsible for delivering subjective

assessments, which may be delivered both manually and digitally

o The Department expects Bundle 4 solutions to leverage machine learning and robotic

process automation technologies to incrementally increase the proportion of assessments

that can be automated over time

• In these more complex cases where decisions cannot be automated, the Global Digital Platform

will refer these applications, along with supporting information to the Department for decision

• What should be evident in both of these overlays is further emphasis that the Global Digital

Platform is not simply a digital or technological solution

• Particularly through its role in workflow management, it will be the backbone of the future visa

business and play an important business and technology role in each of the millions of applications

the Department receives each year

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8. Commercial Model

• You would understand by now that the market partnerships the Department is looking to establish

are of a scale and nature rarely seen before at this level of Government, certainly in Australia

• Reflecting this, there are two major things that the Department is seeking market input on at this

paper based stage of the process:

o Firstly – we are very interested in understanding more about the commercial opportunities

that exist within the scope of Bundle 1

We want input from providers on the nature of opportunities they see, what we can

do to unlock these, and options to value share

o Secondly – through market engagement we learned the market broadly supports a user

pays model, and now we want to explore how this would work in detail

Specifically, we want to ensure that we can keep user charges at the lowest level

possible to maintain Australia’s competitiveness

• This slide shows the range of dimensions to the Bundle 1 commercial model, which we

understand are inextricably linked

o In your responses, we ask providers to outline their holistic proposed model, and be clear

on dependencies and trade-offs

10

Dimensions Intrinsic to objectives Where are seeking market input

Commercialisation Opportunities

• What opportunities exist?• How do we unlock these?• How do we share value?

User Pays & Cost Base

Bundle 1 implementation and run fully funded through user charges

• How do we calculate and review charges?• How do we calculate investment in the platform?• Can we apply differentiated service charges?

Performance Management

• What will performance be measured against?• How and when should we review?• How could we reward and incentive providers?

Asset Ownership The Department retains ownership for of all visa data

• Options for shared platform ownership?• E.g. licensing or buy-back

Risk-Sharing• What sorts of risks do we share?• What is the impact to the user pays model?

Contract Term• What is the impact of a shorter/long term?• Are there renegotiation break points?

Emerging view of the commercial modelStrong interest in providers responding with options and trade-offs, within mandated requirements

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• There are some elements that we believe are intrinsic to achieving Bundle 1 objectives and will

expect to see in all provider solutions

o This includes a user pays model, where the successful provider funds the implementation

and operation of the Global Digital Platform, and

o The Department’s continued ownership over all data related to the visa business.

• However, against each dimension there are a number of areas where we are looking for input from

the market and very open to innovative commercial models being proposed

• Firstly, the Department is committed to exploring the full extent of commercialisation opportunities that may exist

o While the Department requires that the Bundle 1 provider fund the Global Digital Platform,

we are also keen to see user charges kept at the lowest level possible in order to maintain

Australia’s global competitiveness

o We believe that this will be achieved through unlocking additional commercialisation

opportunities and sharing value between clients, Government and providers

o The Department is highly open to exploring commercial opportunities within the scope of

Bundle 1, provided that these don’t adversely impact on security, privacy or Government’s

reputation

o This could include additional value-added services for applicants, such as financial

products or connections to Australian accommodation and employment services

o In your responses we challenge the market to come forward with ambitious and innovative

opportunities for unlocking value in connection to Bundle 1

o In addition it would be particularly valuable for you to outline what you believe it will take to

pursue these and how we can share the value captured

• The second dimension is user pays.

o As I just mentioned the Department would like to see user charges attached directly to

visas kept as low as possible, including through benefits to be realised from the additional

user-paid value-added services

o This is an area we are particularly interested in exploring in more detail through the REOI

o For example, we’d like to understand further how the market would propose to manage

volume shifts – such as plans to allocate both downside and upside risk

o Additionally we want to hear the market’s thoughts on whether differentiated charges for

particular client segments should be part of the future business

• In addition, to make sure the charging framework is sustainable, we are also seeking market input

on how to calculate or measure the provider investment to be recouped

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o For example, for both implementation and run of the platform we can see options around

fixed cost, capped fee or shared-value calculation of investment

• This slide shows the Global Digital Platform will collect a single payment from applicants:

o A portion of the payment is retained by the Global Digital Platform provider to recoup its

costs, whereas other parts may go on to the providers of other bundles;

o The Visa Application Charge will continue to be remitted to the Commonwealth

Consolidated Revenue Fund through the Department.

• The next dimension I’ll talk about is performance management: o We want to understand how the market thinks we should manage the successful Bundle 1

provider over time

o For example, what performance measures are appropriate, how will they be reviewed and

what sort of rewards or incentives providers are interested in

o We are looking to create incentives for good performance whilst maintaining the

competitiveness of Australia’s visa business, and limiting charges passed on to clients

• Next we have asset ownership:

11

How applicant payments will be managed through the GDPCollected as a single charge to be distributed between the Department and providers as required

VAC

GDP charge

Other charges

Fees for optional value-add services

Passed on

Other providers

Retained

Passed on

Passed on

APPLICANT

COMMONWEALTH CONSOLIDATED REVENUE FUND

SINGLE APPLICANTPAYMENT

GLOBAL DIGITAL PLATFORM

(GDP) PROVIDER

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o As the REOI outlines, the Department will retain ownership of all data relating to the visa

business

o Beyond this we are open to exploring different models, in a way that:

appropriately manages risk,

ensures the Department can step in if needed, and

enables providers to rapidly deploy their proposed solutions

o For example, providers may want primary ownership of the platform, at least until costs are

recouped and we would be interested in options to structure this

o This could include a licensing arrangement and/or option for the Department to buy-back

the asset after their investment is recouped

• The sixth dimension is Risk-Sharing: o The Department completely understands that an ambition of this scale likely comes with

an expectation of an appropriate balancing of risk

o To structure the risk and return arrangements we want to understand what risks the

market is most interested in, and how they can be shared

o For example, in relation to risks around shifts in application volumes we’d like to

understand what the potential impact to user charges could be

• The final dimension is contract term: o Going back to the idea that a commercial model is a series of choices and trade-offs, we’re

want to understand what term is most attractive to the market

o For example, a co-investment of this nature typically has a term of 7 to 10 years

o We’d like the market to tell us what the trade-off are in setting the terms at either end of

this range (or beyond it)

• I hope that this more detailed section of the briefing has provided you with further information on

what we are looking for in a Bundle 1 provider

o This is not just about digitising what we today, but just as importantly about establishing an

innovative commercial model that creates new opportunities for Government, our clients,

and providers.

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9. Approach to Market

• In this section I will provide a summary of our broader approach to market for Bundle 1

• With the release of this REOI the Department has kicked off a nine month procurement process for

Bundle 1

o This process will include three major phases of activity, during which we will take

increasingly interactive approaches to engaging industry

• Through this process the Department’s overarching objectives are:

o to gather information to be used to inform Government decisions

o to meaningfully test the proposed solutions and capabilities of providers, including their

ability to be a long-term commercial partner to the Department

o to collaborate with providers to progressively refine detailed requirements, and

• to shortlist providers for a potential subsequent RFT process in July 2018 (pending

Government approval)

• Competitive procurement for Bundle 1 begins with this paper-based stage of the REOI, which

was released on Friday September 22 and will close for submissions on Friday October 27

12

Approach to market from now to July 2018We will collaboratively engage successful providers in Scenario Design and Evaluation and Co-design

PAPERREOI

22 SEPT – 27 OCT 2017

• Test critical design ambiguities

• Clarify objectives and scope

• Inputs for Government decision making

• Shortlist for scenarios

SCENARIO DESIGN AND EVALUATION

DEC 2017 – JAN 2018

• Further refine ambiguities

• Target highest value requirements

• Opportunity for innovative responses

• Shortlist with greater confidence

CO-DESIGN RFT

FEB 2018 – JUNE 2018 JULY 2018(potential separate tender)

• Proving ground for agile delivery

• De-risk implementation

• Inform meaningful RFT requirements

• Accelerate early value for Government

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• The specific objectives for this phase are:

o to test remaining design ambiguities and understand potential solutions in more depth

– which is why input on areas like the commercial model is so important

o to clarify bundle objectives and scope, and give providers greater commercial certainty

moving forward

o to get inputs to support Government decision making, in particular in relation to pricing

which is asked for in Response Form 4B, and

o to shortlist providers for participation in Scenario Design and Evaluation

• By late November 2017 the Department plans to have selected providers for a two month

phase of Scenario Design and Evaluation

• Through interactive solution-based workshops with providers, this phase will have an even

greater focus on exploring the future visa business solution that providers are proposing

• The objectives for that phase are:

o to further progress design and inform Bundle 1 business, technical and commercial

requirements in even greater detail

o to test providers’ ability to deliver against the requirements that matter the most to the

Department, with greater confidence in providers’ real-world capabilities

o to provide an opportunity for providers to demonstrate innovative approaches,

including commercialisation opportunities and value-added services, and

o to shortlist providers to collaborate with the Department in Co-design.

• In the Scenarios phase, providers will be given around 15 to 20 business, technical and

commercial scenarios to respond to, such as:

o how their proposed solution would support modification of an existing visa product, or

o a high level strategy to develop a specific commercialisation opportunity.

• The nature of these scenarios will be such that the Department does not expect and is not

asking for off the shelf product demonstrations

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o What is important to us is that we get a better view of providers overall proposed

solution for Bundle 1 – in particular the extent to which it addresses reform value

drivers and objectives

• In similar processes undertaken by Australian Federal Government responses have included

oral presentations, wireframe demonstrations and/or case studies

• Providers will have the chance to present their responses at two rounds of full day workshops

– the first in mid-December 2017 and the second in mid-January 2018

• Based on scenario workshops, we intend to shortlist providers for participation in a five month

period of co-design between February – June 2018

• The objectives of co-design are:

o to create a proving ground for the Department to collaborate with providers, applying

agile and iterative ways of working,

o to de-risk subsequent implementation of Bundle 1 by building the capabilities and

momentum for implementation

o to further refine Bundle 1 business, technical and commercial requirements ahead of a

potential RFT process, and

o to accelerate early value for Government by delivering working solution

demonstrations, such as prototypes, that can be leveraged in implementation.

• The Department’s selected approach to co-design is framed around end-to-end client

journeys, with separate streams of work for each provider

o For example, one provider may focus on a client applying a study visa whereas the

other providers will work on a visitor visa journey

• Over five months of co-design provider and Departmental experts will work side-by-side to

design the end-to-end journey and deliver working demonstrations

o These demonstrations could include design documents, working prototypes, and/or

detail modelling of the commercial model underpinning the journey

• As co-design is underway the Department will also be taking inputs and working in parallel on

refining Bundle 1 business, technical and commercial requirements

o Pending Government approval these requirements may form the basis of a Bundle 1

RFT, planned to be released in July 2018

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• Providers should note that co-design will be non-evaluative. However, it will be a powerful

opportunity for us to explore how effectively we work together

o This is intended to be a key evaluation criteria of the proposed subsequent RFT

process

• To recognised the Department’s commitment to partnering with the market, and the value we

expect providers to bring, the Department will make equal payments of up to $1 million

Australian for provider included in co-design

• Further information on this approach to market can be found in Part 4 of the REOI documents

o Providers should note that to be eligible to progress in this REOI process they will

need to agree to the commercial terms for Scenario Based Evaluation and Co-design

outlined in Attachment H

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10. Approach to Market

• At each stage, the Department will be looking first and foremost at the strength of providers’ proposed

visa business solution in relation to our Bundle 1 objectives

• Given the transformative nature of this reform, this will not be just a test of capabilities

• We will be looking for providers to bring an integrated end to end business for future visa services that

integrates business, technology and commercial solutions

• As you complete Response Form 2 we ask you to be explicit in outlining how your solution helps

achieve reform objectives, including how it will continually improve over time

• Secondly we will be evaluating providers proposed delivery approach, in particular your ability to

deliver quickly and with minimum risk

o This will include looking at the extent to which pre-existing solutions can be rapidly

deployed, and providers’ delivery track record

13

How the Department will evaluate providersLooking for an integrated business, technical and commercial solution that achieves reform objectives

An end to end business for visa services (including business process and systems) that delivers

objectives for Immigration Reform

Ability of providers to work with the

Department and deliver a flexible new business quickly

and with minimum risk

Maintaining Australia's competitiveness whilst generating value for

providers and Government

PROPOSED SOLUTION

DELIVERY APPROACH

COMMERCIAL MODEL

Minimal financial, security,

reputational and corporate risk

RISK

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o It also includes ability to work with the Department, and as mentioned before, providers

will have a chance to demonstrate this first hand during co-design

o This is the focus of Response Form 3, where providers have the chance to also include

case studies of comparable experiences and relevant CV’s

• Thirdly, we will be evaluating based on proposed commercial models and the extent to which

solutions will generate value for Government, providers and applicants, whilst maintaining

Australia’s global competitiveness

o Commercialisation opportunities identified and developed by providers during the

procurement process will be significantly valuable here

• Finally, we will evaluate based on providers ability to be a long-term commercial partner, and

whether you have the right structures in place to minimise risk

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Thank you and close out

• Thank you for attending this briefing.

• In closing I would like to remind you of our three key messages in relation to reform and the

Bundle 1 procurement:

o Firstly, this reform is driven by our commitment to strengthening Australia’s economic

competitiveness, maintaining our strong national security and fostering Australia’s

cohesive multicultural society

o Secondly, while Bundle 1 is underpinned by a major ICT component, the Department is

not just procuring an ICT solution. We are looking for a provider to partner with us to

deliver a transformed visa business model.

o And thirdly, we are genuinely seeking a partnership with the successful provider, which

will include additional commercialisation opportunities in addition to core visa processing,

such as value-added services.

• We now have some time for question and answer if anyone from the floor would like to raise a

question

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