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Changing Ir Transformation Market Brief

Inland Revenue, New Zealand's tax collection agency, is undergoing a large-scale transformation to modernize its systems and processes. The transformation aims to make it easier for citizens to pay taxes and receive benefits by simplifying processes, improving digital services, and increasing data sharing across government agencies. This will allow Inland Revenue to better serve customers, implement policy changes more quickly, and reduce compliance costs for citizens and businesses. The transformation is a complex, multi-year effort that will involve working with outside service providers to help deliver a more efficient, integrated and customer-centric Inland Revenue for the future.

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Juha Saarinen
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© © All Rights Reserved
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100% found this document useful (1 vote)
2K views19 pages

Changing Ir Transformation Market Brief

Inland Revenue, New Zealand's tax collection agency, is undergoing a large-scale transformation to modernize its systems and processes. The transformation aims to make it easier for citizens to pay taxes and receive benefits by simplifying processes, improving digital services, and increasing data sharing across government agencies. This will allow Inland Revenue to better serve customers, implement policy changes more quickly, and reduce compliance costs for citizens and businesses. The transformation is a complex, multi-year effort that will involve working with outside service providers to help deliver a more efficient, integrated and customer-centric Inland Revenue for the future.

Uploaded by

Juha Saarinen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 19

1 August 2013

Transformation Market Brief


21 August, 2013
Reference Number: 2013050
Changing Inland
Revenue
2 August 2013
2. Inland Revenue business context 8
1. Transformation overview 5
3. Procurement approach 16
Contents
Important Notice:
Please note this document is for general information purposes only.
While care has been taken in preparing this document, no responsibility
is accepted by Inland Revenue for any error or omission.
The information provided in this document is subject to change. No
representation is made as to the nature, scope or extent of any
procurement process or outcomes, or whether any procurement will
proceed.


3 August 2013
Inland Revenue change
certainty for New Zealanders
Inland Revenue is changing. Over the past twenty years our
role has expanded from solely administering tax revenue to
also administering a portfolio of major social policies.
Now we are transforming to respond further to changing
customer expectations, the Governments Better Public
Services approach, and to meet the future needs of all New
Zealanders. This transformation requires long-term planning
and a range of specialist expertise.
Making it easy for New Zealanders
Inland Revenues aim is to make it as easy as possible for
New Zealanders to file and pay their taxes on time, receive
their correct entitlements, and cut the costs of
compliance. To do that, Inland Revenue needs to simplify its
processes and systems, build partnerships across
government to provide integrated services, and improve our
understanding of business and customer needs.
Our tax and social policy system must be readily accessible
for all from individuals and small businesses to large
companies. It must be straightforward and certain to deal
with, flexible enough to accommodate changing needs, and
able to help achieve Better Public Services results for New
Zealanders.
Technology alone wont achieve this modernisation. It is
more than just replacing a 20-year old computer system.
Transformation means a shift in how Inland Revenue works,
including changes to policies, processes, platforms and
service delivery.
Inland Revenues transformation will radically improve how
business, customers and third parties work with us, and
make a huge contribution to achieving Better Public Services
and the all-of-government Information & Communications
Technology (ICT) strategy.
Inland Revenue plays a part in delivering a better public
service which is about ensuring that we have a 21st century
public sector that is capable of responding to New
Zealanders increasing use of technology to communicate,
interact and transact with government.





Naomi Ferguson
Commissioner of
Inland Revenue
4 August 2013
Its about delivering IR for the future
Inland Revenues transformation will happen in a number of
distinct stages across several years. We will need skills and
capabilities across many areas (e.g. project management,
change management, strategy and business analysis,
business process reengineering, solution architecture and
design, software development etc.). While we have some of
these capabilities, we will need to work with service
providers in many areas over the duration of Inland
Revenues transformation.
This is a large and complex programme that will run through
a number of stages over a period of years. We will be
looking for providers with the appropriate skills, track record
and expertise to support us at various stages on the journey.

This Market Brief sets out:
Transformation overview: an overview of Inland
Revenues transformation specifically outlining the
vision, case for change, goals, desired outcomes, and
benefits for New Zealand
Inland Revenue business context: our current business
model and a high-level view of the technology
environment
Procurement process: a proposed four-stage
procurement process, which also describes the objectives
of each stage. The first stage of this process will be to
invite the market to respond to an Expression of Interest
(EOI) which will be issued on 03 October 2013.

We want service providers involved in the design and
transformation of Inland Revenue and its services for
the future.


Naomi Ferguson




Commissioner of Inland Revenue


Introduction
There will be
opportunities for
service
providers with
the right skills
and experiences
to help us build
and deliver our
transformation


5 August 2013
1. Transformation
overview
Vision
Inland Revenues vision is to be a world-class revenue
organisation, recognised for service and excellence. Inland
Revenue works with customers and other organisations to
make compliance easy and to give New Zealanders
confidence that everyone pays and receives the right
amount.
Inland Revenues transformation aims to deliver this vision.
It also incorporates and aligns with the Governments Better
Public Services (BPS), and enables Inland Revenue to take
a leading role in the broader government services
transformation.
The case for change
Inland Revenue needs to deliver existing services faster and
more cost-effectively, and to implement changes in tax and
social policies more rapidly.
Technology improvements have raised customer
expectations about service levels and quality of interactions.
Customers expect high levels of cross-agency data sharing
and a seamless and secure online experience with
government, similar to the experience they get with other
businesses.
As customer volume and expectations grow, Inland
Revenues operating model needs to have the right
capabilities to achieve our strategic vision and be aligned
with the all-of-government Information Communication
Technology (ICT) strategy.
In the last twenty years Inland Revenues role has
expanded from solely the administration of tax revenue to
also administering a wide portfolio of major social policy
functions (Working for Families, Student Loans, Child
Support, and KiwiSaver).
This addition of social policy products and services to
technology built for tax products has resulted in complexity.
Inland Revenues ability to provide a growing portfolio of
services and products has become increasingly cost and
time prohibitive. Transformation is required to meet the
expectations of customers, respond faster to Government
policy changes and deliver Better Public Services.
Transformation
Our transformation
will radically
improve how
people and
business interact
with us, and make
a huge contribution
to achieving better
public services
6 August 2013
Changing
Inland
Revenue

Transformation goals
Inland Revenues transformation will build the
capabilities required to deliver the goals set out in IR
for the future, our strategic vision for Inland Revenue:
Efficient self-management options for
customers that provide speed and certainty
A broader approach to compliance based on
smarter use of information and a wider range of
interventions
A range of different working relationships with
other organisations, including strategic
partnerships across Government to deliver some
services
Less transactional work and less direct contact
with customers
Excellence in complex technical work
More automation and streamlined information
flows
Greater use of commercial IT products in our
systems and services
A healthy culture which our people value and
thrive in.
Desired outcomes
To enable Inland Revenue to become a world-class revenue organisation, fundamental
transformation of our operating model is required across the following areas:
Customer: simple, clear and integrated delivery of services to customers across channels
and products. Smarter use of data and intelligence to enable earlier interventions by
Inland Revenue and greater self-management by customers
Information: increased information and intelligence sharing with other agencies while
protecting privacy, to enable increased cross-agency collaboration and better public
service
Process: customer-centric, seamless and streamlined processes including more
automation, greater standardisation and better monitoring. Processes will optimise the use
of technology as part of the all-of-government ICT strategy.
Policy: improved ability to respond to and implement policy changes and requirements in
a timely manner
People: Inland Revenue people will have the broad capabilities needed to deliver business
objectives and meet customer expectations. Our people will be adept in re-using common
processes, services and applications, and be comfortable working across organisational
and sector boundaries
Platform: a technology platform that is flexible, scalable and reliable. Inland Revenues
technology approach will mark it as a leader within government and create a secure
foundation for on-demand data sharing and collaboration across agencies and with third
parties.
Transformation
7 August 2013
Changing
Inland
Revenue

(continued)
Benefits for New Zealand
In line with Governments Better Public Services objectives, the broad benefit areas of
transformation are improving customer experience across government, increasing net
revenue collection and disbursements, and reducing costs. Elements of these include:
Improve customer experience: provide certainty to customers that they have met
obligations, significantly simplify customer requirements, and improve customers
experience with Inland Revenue and government
Economic benefits to New Zealand: reduce customer compliance costs associated with
meeting tax and social policy obligations by reducing the time businesses and other
customers spend on tax compliance
Improve revenue system integrity: encourage voluntary compliance through simpler
systems; reduce fraud associated with filing incorrect tax information, not filing required
obligations, or obtaining social entitlements fraudulently
Reduce time to implement policy initiatives: greater speed and less cost in
introducing and implementing policy changes within Inland Revenue
Financial benefits to the Crown: increasing Crown revenue through increased
compliance, improved accuracy of tax assessments, reduced numbers of customers in
debt, and productivity savings for Inland Revenue
Reduce risk of operational failure: reduce risk of a technology or process-failure
limiting Inland Revenues ability to collect obligations or disburse entitlements.
Timeframe
Inland Revenues transformation will be significant in scale and complexity. We are taking a
considered and staged approach to delivering the changes required, and expect that our
transformation programme will be designed, executed and implemented in multiple stages
over a number of years.
Transformation
8 August 2013
2. Inland Revenue
business context
Inland Revenue contributes to the economic and social
wellbeing of New Zealand. Our role is to provide high-quality
tax and social policy services to the Government and all New
Zealanders.
As New Zealands principal revenue agency, Inland Revenue
collects approximately 80% of core Crown revenue (or
approximately $49 billion) and reaches more New Zealanders
than any other agency.
Inland Revenue also plays an important role in administering
a number of income-related social policy products, including:
Working for Families Tax Credits: in 2011-12 Inland
Revenue distributed $2.67 billion in entitlements to
support 194,000 working families. The programme is
administered jointly with the Ministry of Social
Development
Child Support: in 2011-12 Inland Revenue collected
$426 million in child support payments from 180,000
paying parents and distributed $216 million* to 182,000
custodial parents
KiwiSaver: Inland Revenue administers the
superannuation savings scheme by collecting contributions
from wage and salary earners and transferring them to
scheme providers for investment. In 2011-12, Inland
Revenue transferred $2.2 billion of contributions from
almost two million KiwiSaver members, and managed
government contributions of $1 billion
Student Loan Scheme: Inland Revenue jointly
administers this programme with the Ministries of
Education and Social Development (StudyLink). In 2010-
11, Inland Revenue collected $768 million in repayments
from 701,000 borrowers
Paid Parental Leave: Inland Revenue makes payments
for the Ministry of Business, Innovation and Employment
to parents who take leave from their job or business to
care for a child. During 2011-12, $157 million was paid to
25,000 applicants.

Last year
about 1.1 million
individual customers
filed annual tax returns
over 400,000
companies filed annual
returns
about 200,000
employers filed over
2.1 million
employer monthly
schedules during the
year
640,000 payers
filed 3.1 million
GST returns
Source: Inland Revenue
Annual Report 2012
* The balance goes to the Crown to offset sole parent benefits paid to custodial
parents by the Ministry of Social Development.
Context
9 August 2013
Inland Revenues organisational structure
As at 30 June 2012, Inland Revenue employed 5,301 (full-
time equivalent) staff across New Zealand. Inland Revenue is
organised into nine business groups:
Policy and Strategy is responsible for developing tax and
related policy, forecasting & analysis, strategic planning
and drafting tax law
Office of the Chief Tax Counsel provides technical
advice and services on correct interpretation and
application of taxation law through public and taxpayer
rulings, disputes resolution and escalations and advice
Service Delivery manages services that collect revenue,
disburse payments and provide information to customers.
Service Delivery works with customers and other
organisations to make compliance easy and give New
Zealanders confidence that people pay and receive the
right amount
Information, Intelligence & Communications
manages and integrates Inland Revenues corporate and
customer information, research, evaluation and
intelligence, and a range of communications and
stakeholder services
Change is responsible for the design and delivery of
Inland Revenues Investment Portfolio. Change brings
together project and programme management, portfolio
support, service design and enterprise architecture
capability
Corporate Integrity & Assurance provides independent
advice and assurance on integrity of the tax system
matters and Inland Revenues governance. The group
manages corporate legal, procurement, and risk and
assurance services, and has involvement in the
Christchurch rebuild
Performance, Facilities & Finance provide financial,
accounting, planning and reporting services, and manages
Inland Revenues property and facilities
Technology Strategy & Operations leads Inland
Revenues Information and Communication Technology
(ICT) strategy and provides ICT operations and services to
support business performance
People & Culture provides HR advice, tools and
resources to build leadership, help shape organisational
culture, and ensure Inland Revenue has the right people
with the right skills in the right jobs.
Context
10 August 2013
Current state



Overview
This section provides a high-level description of Inland
Revenues current business and technology environment
including our service delivery model, business
capabilities, application environment and technology
infrastructure.
Inland Revenues service delivery model
The Inland Revenue service delivery model below is a
conceptual representation of existing customer
segments, channels, services and products.
Inland Revenue Current State
Service Delivery Model
Business Capabilities
Application Environment
Technology Infrastructure
Inland Revenues current state service delivery model
Context
Products
Tax
Customers
Channels
Services
Individuals and Families Business Customers Third Parties
Internet eMail Paper Face-to-Face Fax Telephony 3
rd
Party
Information Interaction Transaction Confirmation
Entitlements Facilitated Payments Other Products
Individual
Business
GST
FBT
Employer Superannuation
Contribution Tax
Retirement Scheme
Contribution Tax
Working for Families
Tax Credits
Paid Parental Leave
KiwiSaver
Child Support
ACC Earners Levy
Student Loans
Cheque Duty
Gaming Machine Duty
Environmental Restoration
PAYE Subsidy
11 August 2013
Current state

Business
capabilities
Business capabilities
Business capabilities describe the functional abilities
required to achieve business goals and objectives, and
deliver services and products.
The business reference model diagram below represents
a high-level view of Inland Revenues business
capabilities, grouped into five areas:
Outcome improvement: providing enterprise
services that enable improved operations, outcomes
and delivery
Deliver services: delivering services to customers
Compliance and integrity: identifying, preventing,
and responding to non-compliance
External environment: understanding the
environment, defining and managing responses
required
Support: providing organisational services to
support the enterprise.

Inland Revenue business reference model
Inland Revenue Current State
Service Delivery Model
Business Capabilities
Application Environment
Technology Infrastructure
Context
Business Capabilities
Outcome
Improvement
Deliver Services
External
Environment
Support
Compliance &
Integrity
Technology Capabilities
Application Infrastructure
Infrastructure Services
Manage
Information &
Intelligence
Manage Culture &
Change
Design Change
Strategy
Investment &
Planning
Managing Policy &
Legislation
Manage Work
Products, Channels
& Services
Plan & Manage
Work Activity
Manage
Transactions &
Accounts
Manage Customer
Relationships
Interpret
Legislation
Assure Compliance
Assess Compliance
Risk & Response
Influence Society
Environment
Insight
Manage External
Parties &
Partnerships
Manage Corporate
Assets & Functions
Manage Finances
Manage Human
Resources
Manage Business
Systems &
Technology
12 August 2013
Current state

Application
environment
Application environment
The current application environment consists of a
combination of enterprise packages from major service
providers, technology platforms and bespoke solutions.
These systems and solutions have often been
implemented at speed to meet new demands and, as a
result, are less cohesive.
The conceptual application architecture for Inland
Revenue is described in the diagram below. It seeks to
illustrate our current application landscape, and the
complexity of the environment.
Conceptual application architecture
Inland Revenue Current State
Service Delivery Model
Business Capabilities
Application Environment
Technology Infrastructure
Context
Return Filing
Families &
Individuals
Workspace
Account
Information
Employer Filing
Forms, Returns &
Calculators
Secure email
Online Services
User Interface
Call Recording
Voice Management
Natural Language
Speech Recognition
Virtual Hold
Voice Biometrics
Voice Services
Financial
Management
Payroll & Human
Resources
Management
Paid Parental
Leave
Corporate Services
Returns Imaging
Payments Imaging
Data Entry
Input Services
Access Control
Identity Access
Management
Account
Management
Security
Services
Enterprise Data
Warehouse
Revenue
Forecasting
Knowledge
Management
Services
Policy Automation
Business
Rules Services
Central
Administration
System
KiwiSaver
Services
Environmental
Restoration
Income
Equalisation
Duties
Levies &
Duties Services
Print Format
Output Services FIRST Revenue & Social Policy Applications
Client Registration
Returns & Policy
Payment
Processing
Tax Agent
Management
Correspondence
Client & Revenue
Accounting
Issuing
Returns
Generation
Debt & Returns
Management
Crown Revenue
Statements &
Notices
Letters
Document
Repository
Case System
Case Management
4
1
2 3
5
6 7 8
9
10 11
12
13 August 2013
Current state

Application
environment
(continued)
The 12 application groups represented in the previous
diagram are:
1. FIRST: Central to Inland Revenues current state
application architecture is FIRST (Future Inland
Revenue Systems and Technology). FIRST is an
integrated and generic tax processing engine which
is function (rather than modular or services)
based.
The FIRST system is a complex mainframe system
built on Unisys COBOL 74. It has been developed
and extended over the last 20 years.
FIRST comprises 40 tax types, tens of millions of
lines of custom-developed and closely-coupled
code with in excess of 180 system interfaces.
The core processing of the FIRST system has been
extended more widely than its original purpose to
incorporate social policy initiatives added over
time.
The high-level view of the functionality embedded
within FIRST is:
Client registration
Returns generation
Returns processing
Returns management
Pro-active actions
Payments processing
Refunds and payments distribution
Customer accounting
Revenue accounting
Financial reporting
Revenue forecasting
Debt management
Document management
Inbound correspondence management
Outbound correspondence management
Issuing of outbound notices and statements
Case data and associated correspondence
archiving and retrieval.
Core platform (FIRST) consists
of approximately
6,000 programs and
50 million lines
of code
In 2012 there were over
1 million registered
e-services customers.
A 30% increase from 2011
Over 5.5 million
online transactions
per day
Over 8 million
payments (62% electronic)
and over 8 million
tax returns (47%
electronic) processed per year
Over 16 million
self-help service enquires
Context
14 August 2013
Current state

Application
environment
(continued)
2. Online services: as well as managing the static
content for the public-facing Inland Revenue web
sites, online applications provide significant
functionality for customer interaction and
calculation.
3. Voice services: voice applications support the call
centre environments (e.g. virtual hold, voice
biometrics).
4. Corporate services: corporate applications
provide business functions that support the
efficient and effective running of the organisation.
5. Output services: output applications support
output to the customer (e.g. statements).
6. Levies and duties services: levies and duties
applications support the minor duties and certain
Inland Revenue scheme details (Environmental
Restoration Account).
7. KiwiSaver services: KiwiSaver applications
support Inland Revenue product functionality
outside FIRST.
8. Business rules services: business rules
applications deliver business rules for enterprise
processes that support business operations,
calculations, definitions and policies.
9. Case management services: case management
applications support the processing of work items
until an agreed outcome or contract is reached.
10. Knowledge management services: knowledge
management applications cover the organisational
enquiry and knowledge management functions.
11. Security services: security applications manage
user access to Inland Revenue system and
applications. They provide both user authentication
(who you are) and authorisation (what you can
access).
12. Input services: input applications support input
from the customer (e.g. tax returns).
Context
15 August 2013
Current state

Technology
infrastructure
Technology infrastructure
Currently Inland Revenue operates a mixed
information technology model, combining internally
owned and supported services with managed services
and leasing via third-party providers.
The current technology infrastructure evolved over
time in response to business needs, organisational
priorities, and project delivery timeframes. This has
resulted in significant complexity within the
technology environment and operating model.
Locations
Inland Revenues infrastructure spans 28 sites across
New Zealand, including:
National office: Asteron Centre at 55 Featherston
Street, Wellington is the home of Inland Revenues
head office
Inland Revenue offices: these offices run
networking and desktop infrastructure with
connectivity back to data centres for desktop and
application resources
Data centres: technical infrastructure is provided
through four main data centres. There is a broad
mix of capabilities provided from these locations
including Mainframe, Enterprise Compute (x86,
SPARC and Virtualisation), online, nearline and
offline storage, LAN and WAN services. This
infrastructure provides the foundation for a number
of platform environments and end user applications
Operations delivery and contact centres: two
centres (in Hamilton and Wellington) providing
critical telephony and resource management
support for Inland Revenue services and products.
Key infrastructure facts:
Approximately 1,920
back-end infrastructure
assets
Oracle/Linux
environment (Server OS,
RDBMS, Data Warehouse,
Middleware and Integration)
De-centralised location,
management and
operation of infrastructure
Over 7,000 desktop
clients used by staff for access
to Inland Revenue systems
Inland Revenue Current State
Service Delivery Model
Business Capabilities
Application Environment
Technology Infrastructure
Context
16 August 2013
Procurement
3. Procurement approach
Introduction
Transformations of the scale Inland Revenue is proposing
require specialist expertise, and weve recognised that we
dont have all of the necessary capability or capacity
internally to successfully implement a programme of change
on this scale.
Objectives
Our initial approach to the market will be to invite responses
to an Expression of Interest for transformation service
provider(s) to work with Inland Revenue to design the stages
of the transformation.
The objectives of the proposed procurement approach is to:
communicate with potential service provider(s) the scope
of services required for this engagement
identify and engage transformation service
provider(s) with the capability and capacity to work with
Inland Revenue to undertake high-level design in relation
to the programme and to lead or manage any detailed
design, build and implementation phases
achieve high-quality of delivery by ensuring that
contract(s) is/are awarded to the service provider(s) who
can meet the requirements specified by Inland Revenue in
line with quality expectations
achieve a cost-effective outcome by agreeing
commercial arrangement(s) with the selected service
provider(s) that appropriately addresses quality, time,
cost, benefits and risk.
Scope
Inland Revenues transformation will be separated into a
number of stages and delivered over several years.
To mitigate some of the risks of a large-scale transformation
programme, it is currently envisaged that each stage will
consist of a number of smaller, discrete projects.
The scope of the transformation will likely evolve over time
and will be subject to on-going Ministerial approval.
Over the course of the programme, we expect to identify
additional opportunities that require specialist expertise from
the market, and will develop procurement approaches for
those depending on the nature of goods and services
required.

Procurement
Principles

1. Plan and manage
for great results
2. Be fair to all
service providers
3. Get the right
service provider
4. Get the best deal
for everyone
5. Play by the rules
Source: NZ Ministry of
Business, Innovation and
Employment (Oct 2012)
17 August 2013
Procurement
Approach
Inland Revenue procurement is guided by the Governments procurement principles which
form the foundation of good procurement practice. These principles are underpinned by
the Government Rules of Sourcing and together provide a broad procurement framework
aimed at delivering better public services for New Zealand.
For this initial procurement Inland Revenue proposes a four-stage competitive
procurement process to identify preferred transformation service provider(s).
Key objectives and outcomes associated with each stage are outlined below.

Timeframe
Each stage of the Procurement Process will inform the next, and each stage may take
several months. Typically, the overall process may last a year or more in total. Inland
Revenue will initiate the procurement process on 03 October 2013 by inviting the market
to respond to an EOI.






To select a short
list of service
providers with the
capability and
capacity required
to meet IRs
requirements
(including some
minimum legal
requirements,
terms and
conditions)
To develop and
agree on a
commercial
framework,
including indicative
costs and
associated
contractual
documents
To examine
cultural fit and
suitability for
strategic
relationships with
Inland Revenue
To select the
preferred service
provider(s) to
further negotiate
with, and seek
service provider
commitment to
pricing and
contractual
documents
To evaluate value
for money offer(s)
To finalise the
contractual
documents for the
engagement of the
service provider(s)
O
b
j
e
c
t
i
v
e
s
Competitive
Dialogue
Negotiation
Expression of
Interest
Request for
Proposal
Procurement Process
Stage Estimated duration
Expression of Interest 3 months
Competitive Dialogue 2-4 months
Request for Proposal & Negotiation 2-3 months
18 August 2013
Expression of Interest (EOI)
The EOI stage aims to verify whether potential
service provider(s) have the capability and capacity
required to meet Inland Revenues needs.
An expected outcome of the EOI stage is a shortlist
of service providers to be invited to participate in the
Competitive Dialogue stage.
Competitive Dialogue (CD)
The CD stage is a process used in large or complex
programmes. Potential service providers have on-
going discussions with the contracting authority and
develop alternative proposals in response to the
objectives outlined by the contracting authority, prior
to the submission of final proposals.
A CD process generally consists of a series of
discussion rounds during which all aspects of the
proposed contract are discussed. This enables the
contracting authority to identify and mitigate risk,
whilst simultaneously encouraging innovation,
maintaining competitive pressure and allowing the
contracting authority to leverage the expertise of the
market with regard to solution design, feasibility and
fit-for-purpose.
A typical CD approach may involve:
discussion of all aspects of the proposed contract
with potential service providers
testing the feasibility and costs associated with
different solutions or designs early in the
procurement process
collaborating with potential service providers to
ensure a shared vision and adequate
understanding of how a proposed solution or
design is achieved
assessing the willingness of potential service
providers to enter into a contractual commitment
maintaining competition to encourage potential
service providers to exert their best efforts to
reach a solution in a drive to win the contract
assessing the compatibility of participating service
providers in relation to work processes and
culture.

Proposed
procurement
stages
Procurement
19 August 2013
Request for Proposal (RFP)
During the RFP stage, Inland Revenue aims to formally
request proposals from the shortlisted service
providers and ask that they outline their proposals in
terms of time, quality, cost, benefits, and risks based
on contractual documents developed in the CD stage.
The expected outcome of the RFP stage is to identify
the service provider(s) to progress into the
Negotiation stage.
Negotiation
In this stage Inland Revenue will seek to reach a final
agreement on contractual terms, conditions and
specifications with the preferred service provider(s)
identified in the previous Request for Proposal stage.
Contractual issues normally expected to be addressed
during a negotiation stage are expected to have been
addressed earlier during CD and RFP stages.
The outcome of the Negotiation stage is expected to
be the engagement of the transformation service
provider(s) to undertake the first stage of work. All
required contractual documentation between Inland
Revenue and the selected service provider(s) is
expected to be approved and signed at this stage.
However, any contract execution will be subject to
necessary approvals first being obtained, including at
the Ministerial level.
Further Information
Further information about Changing Inland Revenue
will be made available at:
www.ird.govt.nz/aboutir/reports/business-
transformation/.
Potential service providers are encouraged to review
all other publicly-available documents there.
Enquiries
Any enquiries in relation to this information brief must
be directed by email to: futureIR@ird.govt.nz


Proposed
procurement
stages

(continued)
Procurement

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