PRE-QUALIFICATION QUESTIONNAIRE CORE COUNTER SERVICE

PRE-QUALIFICATION QUESTIONNAIRE

CORE COUNTER SERVICE TRANSACTIONS

1 April 2013 to 31 March 2020 (Plus an option to extend for up to three years)

CONTRACT REFERENCE: PS/11/25

PayPoint PLC 1 The Boulevard

Shire Park WELWYN GARDEN CITY

AL7 1EL

RESTRICTED - COMMERCIAL IN CONFIDENCE

Core Counter Services Transactions Pre-Qualification Questionnaire

RESTRICTED - COMMERCIAL IN CONFIDENCE Page 2 of 53

CONTENTS:

PART A – EXECUTIVE SUMMARY ......................................................................... 3

PayPoint Credentials ................................................................................................ 3 The PayPoint Solution .............................................................................................. 5 PART B – GENERAL INFORMATION ..................................................................... 6

1. Candidate Details ......................................................................................... 6 2. Main Contact Details .................................................................................... 7 3. Legal Status ................................................................................................. 8 4. Companies Act Registration ......................................................................... 9 5. Health and Safety ....................................................................................... 11

6. Candidate Type .......................................................................................... 12 7. Equal Opportunities .................................................................................... 13 8. Environmental Policy .................................................................................. 13 9. Management Structure ............................................................................... 13

10. Ownership Structure ................................................................................... 14 11. Ethical Employment .................................................................................... 15

PART C – CONTRACTUAL MATTERS ................................................................. 16 1. Contract Termination .................................................................................. 16 2. Material Litigation ....................................................................................... 16

3. Liquidated Damages/Service Credits ......................................................... 17

PART D – TECHNICAL OR PROFESSIONAL ABILITY ........................................ 18 Experience and Contract Examples .................................................................... 18

PART E – ADDITIONAL SPECIFIC QUESTIONS ................................................. 22 1. Services ...................................................................................................... 22 2. Scale .......................................................................................................... 27 3. Migration ..................................................................................................... 30

4. Collaborative Working ................................................................................ 32 5. Staffing ....................................................................................................... 34

6. Risk Management....................................................................................... 37 7. Business Continuity and Disaster Recovery ............................................... 39

8. Data Security System - Breaches ............................................................... 40 9. Data Security System - Organisational Breaches ....................................... 40

PART F - DECLARATION OF GOOD STANDING ................................................. 41

PART G – DECLARATION ..................................................................................... 45 APPENDIX A – SMALL MEDIUM ENTERPRISES ................................................ 47

APPENDIX B – FINANCIAL SITUATION ............................................................... 48 APPENDIX C – CONSORTIUM AND SUB-CONTRACTING ARRANGEMENTS .. 52



PART A – EXECUTIVE SUMMARY

PayPoint is pleased to respond to this Pre-Qualification Questionnaire, and believes it is well placed to deliver a solution that significantly reduces the Agency‟s costs, as well as delivering a high quality national solution able to handle large transaction volumes with accuracy and efficiency.

PayPoint Credentials PayPoint plc is a FTSE 250 quoted company on the London Stock Exchange with a current market capitalisation approaching £400million. The company was founded in 1996 and since then has developed one of the most popular payment networks in the UK with over 6 million regular weekly customers, serviced through over 23,500 convenient local retail outlets. The PayPoint network is primarily used for prepayment of energy and mobile phone top ups and the payment of utility bills. In the year ended September 2011, nearly XXXXXX - This has been redacted under FOIA Section 43 Commercial Interests payments were collected to a value of XXXXXX - This has been redacted under FOIA Section 43

Commercial Interests on behalf of over XXXXXX - This has been redacted under FOIA

Section 43 Commercial Interests billing organisations. PayPoint‟s billing clients are a „who‟s who?‟ of the British service industry including all of the leading energy, water and telecoms companies including British Gas, BT, nPower, E.On, EdF Energy, Scottish Power, Scottish and Southern, Thames Water, Orange, Vodafone, O2, T-Mobile, Three and Virgin Media. PayPoint is also very strong in public sector payment systems with long term contracts with the BBC and many local authorities. Customers are able to pay for a wide variety of services, including:

Electricity and gas

Mobile top up

Telephone: cable and calling cards

Other bills: water, mail order

Housing rents and Council Tax

TV Licences

Insurance and savings

Transport ticketing

Debts, rentals and loan repayments

E-money, prepaid cards and e-vouchers

Charitable donations and school meal cards

Court and other fines

PayCash internet cash payments The blue chip nature of the client-base means that PayPoint services have to be supplied to payment industry best standards. PayPoint is accredited to the ISO



27001 security standard and is subject to regular audits by clients. In 2004, PayPoint was awarded the Queens Award for Innovation. The PayPoint network has been developed to offer clients:- XXXXXX - This section has been redacted under FOIA Sections 41 Information Provided in Confidence and 43 Commercial Interests



The PayPoint Solution PayPoint will be pleased to provide a detailed outline solution in the next phase of this procurement process and will refine this further as requirements become clearer. XXXXXX - This paragraph has been redacted under FOIA Sections 41 Information Provided in Confidence and 43 Commercial Interests



PART B – GENERAL INFORMATION

1. Candidate Details

Full name, address and website of the Candidate:

Company Name

PayPoint PLC

Address

1 The Boulevard Shire Park

Town / City

Welwyn Garden City

Postcode

AL7 1EL

Country

UK

Website

www.paypoint.com



2. Main Contact Details

Name

XXXXXX - This has been redacted under FOIA Section 40(2) – Personal Information

Position

Head of Group Service Innovation

Telephone Numbers


Fax Number


E-mail




3. Legal Status

Please tick one box:

Sole Trader

Partnership

Public Limited Company

Private Limited Company

Other (please state)

VAT Registration Number

801671455 (PayPoint Network Ltd)



4. Companies Act Registration

Date of formation

15 June 1998

Place of formation

England

Date of registration

Incorporated as Leadhold Ltd 15th June 1998

Changed to PayPoint Ltd 4th August 1998

Registered as PayPoint PLC 14th September 2004

Registration number

3581541

Certificates enclosed

Yes Enclosed as:

PP – Cert of Inc – Leadhold Ltd.pdf

PP – Cert of Inc – Leadhold Ltd name change to PayPoint Ltd.pdf

PP – Cert of Inc – PayPoint reregistration of private company as public company.pdf

Registered Office

1 The Boulevard Shire Park WELWYN GARDEN CITY AL7 1EL

Brief Description of the Candidate‟s primary business and main products and services.

The PayPoint Group is a leading international provider of customer-focused convenient payment services. It works within the utility, telecoms, media, financial, transport, retail, e-commerce and public sectors, delivering high quality services through a unique combination of local shops, the internet and mobile telephones.



The UK retail business provides services across a wide network of retailers (over 23,500), comprising both independent and major multiple retailers located throughout the country.

Brief history of the Candidate‟s organisation, no more than 400 words, including details of any parent and associated companies and any changes of ownership over the last 5 years including details of significant pending developments, changes in financial structure or ownership, prospective take-over bids, buy-outs and closures etc. which are currently in the public domain.

PayPoint was founded in 1996 as a retail payment network provider, principally offering prepayment services to the national gas and electricity suppliers with a core network of 7,332 retail agents XXXXXX - This has been

redacted under FOIA Section 43 Commercial Interests Over time, the network has expanded to its current 23,500 sites (25,000 terminals), and embraced new technology with direct EPOS connectivity to major retailers. The client list has grown year on year, and now comprises a comprehensive list of all the major nationwide bill issuers, ranging from the initial narrow utility prepayment suppliers to include, telecoms, local authorities, media, transport. Over XXXXXX - This has been redacted under FOIA Section

43 Commercial Interests bill issuers now work with PayPoint. Whilst the core terminal business has expanded in a controlled, customer and client focused manner, additional products have been developed and implemented, including retailer debit and credit card payments, ATMs, and other retail services. Retail payments are now available in the UK, Ireland and Romania. PayPoint PLC was created as a result of the company‟s successful flotation in September 2004. The Group has also made acquisitions alongside the original retail model, expanding the product range into complementary areas which are now being integrated to allow the synergies across the various markets to be realised. These include:



PayPoint.net. An Internet Payment Service Provider that was formed from the acquisitions of Metacharge (November 2006) and SECpay (February 2007). www.paypoint.net

PayByPhone. A mobile phone based parking solution providing innovative parking services in North America, UK and France (formerly Verrus, and currently being rebranded as PayByPhone). www.paybyphone.com

Collect Plus. A joint venture with Yodel offering parcel drop off and collection from PayPoint retailers. www.collectplus.co.uk

XXXXXX - This has been redacted under FOIA Sections 41 Information Provided in Confidence and 43 Commercial Interests

5. Health and Safety

Does the Candidate have a documented Health and Safety policy? If „yes‟, please enclose a copy.

Yes

A copy of PayPoint‟s policy is included as PP Health and Safety Policy.pdf



6. Candidate Type

Please indicate by ticking the appropriate box what type of Candidate you are.

please √ (one box)

Type A Candidate

A Candidate able to provide the requirements (as stated in Part A) itself.

Type B Candidate

A Candidate bidding in the role of prime contractor and intends to use subcontractors to provide some services

Type C Candidate

The Candidate is bidding as a consortium.

If you have ticked (b) or (c) above please indicate in Appendix C (by inserting the relevant company / organisation name) the composition of the consortium and / or any supply chain, indicating which member (which may include the Candidate solely or together with other providers) will be responsible for the elements of the requirement.



7. Equal Opportunities

Does the Candidate have a documented equal opportunities and / or race relations policy? If „yes‟, please enclose a copy.

Yes

A copy of PayPoint‟s policy is included as PP Diversity and Equality Policy.pdf

8. Environmental Policy

Does the Candidate have a documented environmental policy? e.g. ISO14001 If „yes‟, please enclose a copy.

Yes A copy of PayPoint‟s policy is included as PP Environmental Policy.pdf

9. Management Structure

If a Candidate is proposing a consortium / sub-contracting arrangement please provide details of how this relationship will be structured at Appendix C.

Not applicable



10. Ownership Structure

Please provide a one-page chart illustrating the ownership structure of the Candidate including

relations to any parent or other group or holding companies.

Ownership Structure enclosed (please √)

PayPoint PLC is listed on the London Stock Exchange (Pay.L). The Company is the sole owner of the following subsidiaries:

UK operations are undertaken by PayPoint Network Ltd and PayPoint Collections Ltd, with operational functions clearly split between network provision and the secure movement of money.



11. Ethical Employment

DVLA requires all contractors, consortiums, sub-contractors and suppliers to ensure that all elements sourced or manufactured under this contract or all and any employment derived from this contract is undertaken to high ethical standards. Evidence that contractors, consortiums, sub-contractors or suppliers have reviewed and evidenced that high ethical standards are being met may be requested by DVLA. Ethical employment acknowledges diversity by ensuring that everyone has equal access to jobs, regardless of factors such as race, cultural origin, sex, age and disability.

Supplier to confirm that they will comply with these statements above. Yes



PART C – CONTRACTUAL MATTERS

Please answer the following questions regarding contracts. If the answer to any of the questions is „Yes‟, please provide a full explanatory statement below.

1. Contract Termination

Has the Candidate or any of its key supply chain members (substantial subcontractors or key consortium members) (please refer to Part A Section 11) ever had a contract for the same or similar services terminated under the terms of the contract in the last three years?

Contract terminated

No

If you have answered „Yes‟ please include an explanatory statement:

Not applicable

2. Material Litigation

Please provide a statement of any material pending or threatened litigation or other legal proceedings against the Candidate and / or any of its key supply chain members (substantial subcontractors or key consortium members) in relation to a contract for the same or similar services where not otherwise reported and / or where the claim is of a value in excess of 20% of the anticipated contract value.

Legal proceedings pending

No



If you have answered „Yes‟ please include a Disclosure of legal proceedings (300 words or fewer) Either insert required details or state „None‟

None.

3. Liquidated Damages/Service Credits

Has the Candidate or any of its supply chain members ever suffered deductions for liquidated damages and/or service credits in respect of any contract for the same or similar services within the last two years?

Deductions for liquidated damages and/or service credits

Yes

If you have answered „Yes‟ please include an explanatory statement:

XXXXXX - This has been redacted under FOIA Sections 41 Information Provided in Confidence and 43 Commercial Interests



PART D – TECHNICAL OR PROFESSIONAL ABILITY

Experience and Contract Examples

The potential provider is required to provide details of up to three contracts from either or both of the public or private sector that is relevant to the Authority‟s requirement. Contracts should have been performed during the past three years. (The customer contact identified should be prepared to speak to the purchasing organisation to confirm the accuracy of the information provided below if we wish to contact them). For the avoidance of doubt, experience and contract examples may be provided from a substantial subcontractor or from one of more different members of a consortium, although please answer once only on behalf of the prime contractor or consortium. Please note that whilst up to three contracts should be detailed here, the supplier score for this section will be determined by the best of the three examples. DVLA cannot be counted as a reference provider.

Please note: PayPoint understands the scoring approach to be used; however, the network services operated in the UK‟s multi-client environment apply to all clients making it impossible to relate these elements to one particular reference client. Coverage, operating hours, equality etc. are all described in relation to the entire UK network, and are not specific to individual clients, or the contract examples selected.



Contract 1 XXXXXX - This has been redacted under FOIA Sections 40(2) Personal Information, 41 Information Provided in Confidence and 43 Commercial Interests









PART E – ADDITIONAL SPECIFIC QUESTIONS The examples used to answer all questions in Part E must be drawn from the three contracts listed in Part D above.

1. Services

Please provide case study details of a contract(s) you have undertaken providing:

An understanding of how the Customer facing Services were promoted;

An understanding of how the Services operated, including opening times / days;

and

An understanding of inclusive Customer Service i.e. Various Language Provision,

Disabled Access, etc.; Customer waiting times; Monitoring of Service Levels; and

Handling and accounting for substantial revenue, tokens of payment, personal data

and high value / confidential documents (including storage, transmission and / or

destruction).

Example(s) may be from the Candidate and / or from key consortium members or substantial subcontractors.



Promotion of Customer Facing Services

PayPoint operates nationally, providing the same high quality service to customers throughout the country. All PayPoint sites are clearly branded with a distinctive external sign, supported by a range of internal and window display material, selected to be appropriate to individual outlets. Typically, the minimum merchandising kit comprises the external sign, a large hanging sign above the counter area describing the range of services available, and a simple window sticker.

XXXXXX - This has been redacted under FOIA Section 43 Commercial Interests

Service Availability The PayPoint network is heavily focused on convenience retail, providing excellent services to local consumers over long opening hours and seven day trading. A typical PayPoint outlet is open in excess of XXXXXX - This has been

redacted under FOIA Section 43 Commercial Interests hours per week, with an increasing number open 24 hours per day. The network is far more flexible than banking or other financial service networks, with the long opening hours being particular attractive to consumers. The PayPoint terminal platform is available XXXXXX - This has been redacted under

FOIA Section 43 Commercial Interests and has operated XXXXXX - This has been

redacted under FOIA Section 43 Commercial Interests



The network is fully national, including areas of low population:

PayPoint’s National Network

XXXXXX - This has been redacted under FOIA Section 43 Commercial Interests



A good example of PayPoint retailer‟s customer service can be seen over the Christmas and New Year period, where nearly XXXXXX - This has been redacted

under FOIA Section 43 Commercial Interests the network was open on Christmas Day, and the vast majority of terminals transacted on all other days during the Festive Period. The table below shows this unrivalled coverage:

XXXXXX – Graphic has been redacted under FOIA Section 43 Commercial Interests

When displayed as a chart, it can be seen that (excluding Christmas Day and New Year‟s Day) XXXXXX - This has been redacted under FOIA Section 43

Commercial Interests of all terminals transacted daily. On seven out of these 13 days, there were no alternative bank or Post Office channels available, and PayPoint processed XXXXXX - This has been redacted under FOIA Section 43

Commercial Interests transactions.

XXXXXX – Graphic has been redacted under FOIA Section 43 Commercial Interests

Inclusive Customer Service PayPoint has developed the retail network to ensure a high level of customer inclusion. Retail outlets are selected based on XXXXXX – this has been redacted

under FOIA Section 43 Commercial Interests

By its nature, convenience retailing is local community based, reflecting the demography and language needs of the micro-area surrounding. Welsh language is commonly spoken by retailers in Welsh-speaking areas. Where a client produces local language material, PayPoint distributes this as appropriate. For example, Western Union material, and its PC application supports a range of languages. XXXXXX – this paragraph has been redacted under FOIA Section 43 Commercial Interests

Financial Settlement and Documentation Management PayPoint processes over XXXXXX – this has been redacted under FOIA Section 43

Commercial Interests transactions per week, delivering transactional data either in real-time, or by batch files the following working day to over XXXXXX – this has

been redacted under FOIA Section 43 Commercial Interests clients. During 2011, over XXXXXX – this has been redacted under FOIA Section 43



Commercial Interests was securely handled and settled to clients. XXXXXX – this

has been redacted under FOIA Section 43 Commercial Interests.

Prior to the introduction of smart keys, electricity prepayment was provided through physical magnetic swipe cardboard tokens in £3 and £5 value. Value item stock was issued, and reconciled on behalf of utility clients, with accuracy within agreed service levels at all times. Stock was subsequently removed from the network for destruction once smart technology was introduced. XXXXXX – this paragraph has been redacted under FOIA Section 43 Commercial Interests



2. Scale

Please provide case study details of a contract(s) you have undertaken:

Conducting large volume transactions over a widely dispersed network, meeting

specific turnaround times and accuracy targets; and

Collecting images over a dispersed network for a diverse range of members of the

public.




High Volume Network and Accuracy PayPoint‟s core business is transaction collection, processing and subsequent delivery to its clients across a national dispersed network of over 23,000 sites. The company processed XXXXXX – this has been redacted under FOIA Section 43

Commercial Interests transactions during 2011, demonstrating its ability to handle significant volume to tight service levels. XXXXXX – this has been redacted under

FOIA Section 43 Commercial Interests and settlement coupled with data file accuracy is central to the company‟s operation. Taking the reference clients, and focusing on December 2011 (5 weeks beginning 29 November), PayPoint processed XXXXXX – this has been redacted under FOIA

Section 43 Commercial Interests

A good example of the network‟s ability to cope with peak loading occurred during the first week in February 2012, where extremely cold weather impacted heavily on energy prepayment transaction volumes, with in excess of XXXXXX – this has

been redacted under FOIA Section 43 Commercial Interests payments in 7 days breaking the previous weekly volume record. Despite the adverse weather, the PayPoint network performed robustly, with no loss of retailer opening hours. Data accuracy is essential to PayPoint‟s clients, with many relying on the data provided for customer account updates, XXXXXX – this has been redacted under

FOIA Section 43 Commercial Interests Examples of Service Levels XXXXXX – this has been redacted under FOIA Section 43

Commercial Interests

Image Capture and Data Delivery Image capture has not been a client requirement to date, but PayPoint considers the image, in digital format, to be no different to other forms of digital data which is processed and transmitted across PayPoint‟s robust network. PayPoint has formed a joint venture with Yodel, branded as XXXXXX – this has been redacted under FOIA Section 43 Commercial Interests The PayPoint network has been scaled to ensure no bandwidth constraints, with the central host able to process far in excess of its current transactions volume. During 2011, the host regularly processed XXXXXX – this has been redacted under FOIA Section 43 Commercial Interests with peak loading XXXXXX – this has been redacted under FOIA Section 43 Commercial Interests. Whilst a typical bill payment has minimal bandwidth requirements (and may even be stored at the



terminal for overnight polling), other PayPoint transactions can involve large amounts of important data. For XXXXXX – this has been redacted under FOIA Section 43 Commercial Interests, PayPoint provides bi-directional data services, which include: XXXXXX – this paragraph has been redacted under FOIA Section 43 Commercial Interests PayPoint‟s network resilience is enhanced by the distributed nature of its retailers and the variety of communications channels used to maintain real-time contact with the Data Centres. XXXXXX – this paragraph has been redacted under FOIA Section 43 Commercial Interests



3. Migration

Please provide case study details of a contract(s) you have undertaken providing evidence of successfully managing the migration of business processes for a significant number of users and a range of services. Example(s) may be from the Candidate and / or from key consortium members or substantial subcontractors.

PayPoint works closely with its clients to ensure that service migration is smooth and transparent to the end user. XXXXXX – three paragraphs have been redacted under FOIA Section 43 Commercial Interests The nature of the contract meant that the service launch would be “big bang”, and transaction volumes would increase immediately. Success is evident from transaction levels, where approximately XXXXXX – this has been redacted under FOIA Section 43 Commercial Interests transactions per week were processed prior to the full service launch. Once the PayPoint contract was live, volumes increased to XXXXXX – this has been redacted under FOIA Section 43 Commercial Interests. The full service range was available immediately, including the ability to pay by debit card. This was a major change for PayPoint retailers, as historically cash had been the only means of payment. To support the service launch, and ensure minimal customer confusion, a comprehensive marketing campaign was introduced, XXXXXX – this information has been redacted under FOIA Section 43 Commercial Interests Since migration, volumes have remained consistent, with approximately XXXXXX – this has been redacted under FOIA Section 43 Commercial Interests transactions each month and high customer satisfaction levels. XXXXXX – this has been redacted under FOIA Section 43 Commercial Interests customer complaints are less than XXXXXX – this has been redacted under FOIA Section 43 Commercial Interests Many of these are related to policy rather than direct service issues (eg debit card accepted, but credit card not supported). In April 2008, XXXXXX – this has been redacted under FOIA Section 43 Commercial Interests provided a reference letter for use when responding to potential future clients. Whilst you will clearly seek more up-to-date reference material, this is inserted in full as it specifically addresses independently some of



the case study material requested in this question.

XXXXXX – this letter has been redacted under FOIA Sections 41 Information Provided in Confidence and 43 Commercial Interests



4. Collaborative Working

Please provide case study details of a contract(s) you have undertaken providing evidence of:

Working successfully on a collaborative basis, as measured by client satisfaction,

quotes and / or contract renewal; and

Working with the client to identify and share the benefits of opportunities for

process improvement.


Client Collaboration The XXXXXX – this has been redacted under FOIA Section 43 Commercial Interests example quoted in the previous section demonstrates PayPoint‟s willingness to work collaboratively with its client partners. Contract renewal, together with the reference letter included, demonstrate the client‟s satisfaction very clearly. PayPoint has always sought to build and strengthen relations with its clients, evidenced by the high client and retailer retention rates. This is promoted actively with a large team of account managers working closely with clients. All sectors of the business are supported by dedicated account managers, together with operational support to ensure that on-going client management is optimised. Whilst much of this is routine operational management and reporting, PayPoint offers all clients a monthly account management review where performance is measured, and operational improvements and service enhancements are developed. XXXXXX – this has been redacted under FOIA Section 43 Commercial Interests PayPoint regularly attends supplier forums and conferences to ensure that industry-wide best practices and innovations are understood and included in future development roadmaps – often before a specific client need has been expressed. Process Improvement As part of the PayPoint account management process, service and process improvements are discussed routinely.



XXXXXX – three paragraphs have been redacted under FOIA Section 43 Commercial Interests



5. Staffing

Please provide case study details of a contract(s) you have undertaken providing evidence of:

Please describe your experience of managing and maintaining security clearance,

including Criminal Record Bureau (CRB) or equivalent checks for staff employed on

similar contracts (including customer facing staff);

Positive staff feedback on the quality of diversity / equality, training and skills

policies;

Please describe your experience of communicating a change to your staff that will

have an impact on your customers e.g. Fee Changes;

Successfully managing the transition of significant numbers of staff e.g. as part of a

TUPE or TUPE equivalent transfer(s).


Security Clearance PayPoint provides services to a range of clients with many different requirements for data accuracy, security and confidentiality. In addition to the reference clients listed previously, PayPoint is currently implementing the Department for Work and Pensions (DWP) over the counter “Simple Payment” (originally Simple Money Transmission Service). XXXXXX – this has been redacted under FOIA Section 43 Commercial Interests XXXXXX – this paragraph has been redacted under FOIA Sections 31(1)(a) and 41 Information Provided in Confidence and 43 Commercial Interests Approximately XXXXXX – this has been redacted under FOIA Section 43 Commercial Interests of PayPoint‟s retailers are licensed premises, and the licence will have been granted after a CRB check has been provided by the licensee. To date, no client has needed full CRB checking of all retailers, but PayPoint has systems in place that would allow this requirement to be met. XXXXXX – this has been redacted under FOIA Section 43 Commercial Interests. Obtaining CRB checks at site or user level, together with appropriate checking of head office staff can be undertaken, although PayPoint would wish to understand this requirement in more detail, particularly with respect to appropriate actions where a negative response is received, where this may have no impact on a retailer‟s ability to perform the service.



Staff Feedback on Equality/Diversity PayPoint undertakes regular staff audits, with an annual staff attitude survey addressing all aspects of work life, and encouraging staff to respond confidentially identifying any concerns. Subsequent action plans are developed and communicated to resolve any issues which become apparent. Regular senior management and executive focus groups are held to further ensure that staff feel able to comment on work life issues. Training needs are addressed XXXXXX – this has been redacted under FOIA Section 43 Commercial Interests PayPoint‟s diversity and equality policy has been provided as part of this response. No claims have been made by any member of staff that the company has demonstrated any form of discrimination. Communication of Change With XXXXXX – this has been redacted under FOIA Section 43 Commercial Interests clients and an extensive retail network, price and procedure changes occur very regularly. Many changes are time critical (e.g. national price change with an effective date, new product launches etc.). It is essential that changes are communicated internally to head office staff, field staff and externally to the wide retail network. Changes are communicated in a variety of ways: XXXXXX – this has been redacted under FOIA Section 43 Commercial Interests

Field Staff – PayPoint employs XXXXXX – this has been redacted under FOIA Section 43 Commercial Interests staff across the UK responsible for managing retailers and communicating at local level:

XXXXXX – this has been redacted under FOIA Section 43 Commercial Interests

Retailers: XXXXXX – this has been redacted under FOIA Section 43 Commercial Interests PayPoint terminals are updated daily (or have real-time access to data), so it is not be possible for a retailer to offer transactions or services at incorrect prices, or with incorrect data capture. The terminal logic ensures that all business rules are followed at all times.



Staff Transition/TUPE In acquiring PayByPhone, Metacharge, SECPay and PayStore (Romania) staff transition and cultural change have been essential parts of the implementation and integration processes. PayPoint is proud of its positive organisation culture (demonstrated by length of service of many employees) and has sought to extend the PayPoint way of working into all its subsidiary companies, whilst maintaining any employment undertaking from the previous business owners. Where changes have subsequently been made, these have been in accordance with best practice human resources procedures. Today‟s DVLA contract is with the Post Office, and it is hard to see how a TUPE situation could develop, given that PayPoint would not seek to take over Post Office staff as part of this proposed implementation.



6. Risk Management

Please provide details of any methods or procedures operated by the Candidate that operate to effectively manage risk. Support your answer by referring to at least one example from the contracts listed in Part D.

Risk management is central to PayPoint‟s operations. A dedicated Business Risk Manager and team are responsible for business risk mitigation, and the Board regularly reviews the Group‟s Risk Log. Core business risks are: Financial XXXXXX – two paragraphs have been redacted under FOIA Sections 41 Information Provided in Confidence and 43 Commercial Interests Tight credit assessment leads to a greater quality of retailer, as strong financial businesses tend to be more professionally operated and have greater longevity. Convenience retailing is a hard competitive landscape, and PayPoint typically contracts with the best retailer in any area. Client settlement is also essential to PayPoint‟s business model, with timely, accurate payment to clients at the heart of the financial operation. XXXXXX – this has been redacted under FOIA Section 43 Commercial Interests Technical/Operational As a real-time, on-line service provider, technical and operational risks must be understood and mitigated before they have the opportunity to disrupt service. XXXXXX – this paragraph has been redacted under FOIA Section 43 Commercial Interests The Disaster Recovery and Business Continuity Plans have been provided as requested as part of section seven and it should be clear from the commentary that preparation and planning are seen as key to avoiding business critical service



losses. Both plans are regularly tested, XXXXXX – this has been redacted under FOIA Section 43 Commercial Interests. PayPoint will be pleased to demonstrate this network and service resilience. Reputational PayPoint works for many clients (XXXXXX – this has been redacted under FOIA Section 43 Commercial Interests in UK retail and over XXXXXX – this has been redacted under FOIA Section 43 Commercial Interests in total across the Group). Many of these are well-known household names (telecoms, utilities, financial services etc.). PayPoint works closely with all clients to ensure that their reputations are maintained, and that the PayPoint retail network is well branded, and offers the highest level of customer service at all times. Queuing times and service availability are key metrics to clients, and the network is optimised to ensure expectations are met or exceeded. Regular risk reviews are carried out to ensure that both PayPoint and its clients achieve maximum benefit reputationally.



7. Business Continuity and Disaster Recovery

Does your Organisation have formal plans for Business Continuity (BCP) and Disaster Recovery (DR)?

Yes This is attached as PP Business Continuity Plan.pdf. Note that PayPoint‟s formal plans extend to over 1,000 pages, broken down into individual action plans. The summary document provided shows the key sections covered, and the process for activation. PayPoint will be pleased to provide more information if required, or to demonstrate aspects of the plans as part of a site visit. Please describe your Organisation‟s experience of withstanding disruptions in operations including BCP and DR.

XXXXXX – this section has been redacted under FOIA Sections 31(1)(a) Law Enforcement, 41 Information Provided in Confidence and 43 Commercial Interests



8. Data Security System - Breaches

Please provide details of any event within the last 5 years that could be considered to be a breach by the Candidate of:

Statutory Data Protection and / or Data Security requirements; and / or

Data Protection and / or Data Security requirements of any of the Contracts listed in

Part D.

Where subcontractors are proposed or a consortium approach is proposed, this information should be provided separately in relation to each substantial subcontractor or consortium member. Please add additional copies of this box as required, indicating clearly the subcontractor or member to which each applies.

None

9. Data Security System - Organisational Breaches

Please provide details of any major breaches of the Organisation’s Data Security Systems as described above. Where subcontractors or a consortium approach are proposed, this information should be provided separately in relation to each substantial subcontractor or consortium member. Please add additional copies of this box as required, indicating clearly the member to which each applies.

None



PART F - DECLARATION OF GOOD STANDING

STATEMENT RELATING TO GOOD STANDING — GROUNDS FOR OBLIGATORY EXCLUSION (IN ELIGIBILITY) AND CRITERIA FOR REJECTION OF CANDIDATES in accordance with Regulation 23 of the Public Contracts Regulations 2006 (as amended) If the Candidate proposes subcontracting or comprises a consortium, a separate declaration is to be made by each substantial subcontractor or consortium Member.

TITLE OF REQUIREMENT

Core Counter Transactions Contract

We confirm that, to the best of our knowledge, the Candidate is not in breach of the provisions of Regulation 23 of the Public Contracts Regulations 2006 (as amended) and in particular that:

Grounds for mandatory rejection (ineligibility):

The Candidate (or its directors or any other person who has powers of representation, decision or control of the named organisation) has not been convicted of any of the following offences:

(a)

conspiracy within the meaning of Section 1 of the Criminal Law Act 1977 where that conspiracy relates to participation in a criminal organisation as defined in Article 2(1) of Council Joint Action 98/733/JHA (as amended);

(b)

Corruption within the meaning of Section 1 of the Public Bodies Corrupt Practices Act 1889 or Section 1 of the Prevention of Corruption Act 1906 (as amended);

(c)

the offence of bribery;

(d)

fraud, where the offence relates to fraud affecting the financial interests of the European Communities as defined by Article 1 of the Convention relating to the protection of the financial interests of the European Union, within the meaning of:

(i)

the offence of cheating the Revenue;

(ii)

the offence of conspiracy to defraud;



(iii)

fraud or theft within the meaning of the Theft Act 1968 and the Theft Act 1978;

(iv)

fraudulent trading within the meaning of Section 458 of the Companies Act 1985;

(v)

defrauding the Customs within the meaning of the Customs and Excise Management Act 1979 and the Value Added Tax Act 1994;

(vi)

an offence in connection with taxation in the European Community within the meaning of Section 71 of the Criminal Justice Act 1993; or

(vii)

destroying, defacing or concealing of documents or procuring the extension of a valuable security within the meaning of Section 20 of the Theft Act 1968;

(e)

money laundering within the meaning of the Money Laundering Regulations 2003; or

(f)

any other offence within the meaning of Article 45(1) of the Public Sector Directive.

Organisation’s name

PayPoint PLC

Signed

XXXXXX – this has been redacted under FOIA Section 40(2) Personal Information

Position

Business Development Director

Print Name


Date

9 March 2012



DISCRETIONARY GROUNDS FOR REJECTION:

The Candidate (or its directors or any other person who has powers of representation, decision or control of the named organisation) confirms that it:

(a)

being an individual is not bankrupt or has not had a receiving order or administration order or bankruptcy restrictions order made against him or has not made any composition or arrangement with or for the benefit of his creditors or has not made any conveyance or assignment for the benefit of his creditors or does not appear unable to pay or to have no reasonable prospect of being able to pay, a debt within the meaning of Section 268 of the Insolvency Act 1986, or article 242 of the Insolvency (Northern Ireland) Order 1989, or in Scotland has not granted a trust deed for creditors or become otherwise apparently insolvent, or is not the subject of a petition presented for sequestration of his estate, or is not the subject of any similar procedure under the law of any other state;

(b)

being a partnership constituted under Scots law has not granted a trust deed or become otherwise apparently insolvent, or is not the subject of a petition presented for sequestration of its estate;

(c)

being a company or any other entity within the meaning of Section 255 of the Enterprise Act 2002 has not passed a resolution or is not the subject of an order by the court for the company’s winding up otherwise than for the purpose of bona fide reconstruction or amalgamation, nor had a receiver, manager or administrator on behalf of a creditor appointed in respect of the company’s business or any part thereof or is not the subject of similar procedures under the law of any other state;

(d)

has not been convicted of a criminal offence relating to the conduct of his business or profession;

(e)

has not committed an act of grave misconduct in the course of his business or profession;

(f)

has fulfilled obligations relating to the payment of social security contributions under the law of any part of the United Kingdom or of the relevant State in which the organisation is established;

(g)

has fulfilled obligations relating to the payment of taxes under the law of any part of the United Kingdom or of the relevant State in which the economic operator is established;

(h)

is not guilty of serious misrepresentation in providing any information required of him under this regulation;



(i)

in relation to procedures for the award of a public services contract, is licensed in the relevant State in which he is established or is a member of an organisation in that relevant State when the law of that relevant State prohibits the provision of the services to be provided under the contract by a person who is not so licensed or who is not such a member;

(j)

where applicable, the Candidate is not registered on the professional or trade register of the relevant State specified in Schedule 6 of the Public Contracts Regulations 2006 in which he is established under conditions laid down by that State.

Organisation’s name

PayPoint PLC

Signed


Position

Business Development Director

Print Name


Date

9 March 2012



PART G – DECLARATION

When you have completed the PQQ, please ensure that:

1 You have answered all the questions;

2 You have enclosed all documents requested;

3 The following attachments are included within your response:

Certificate of Incorporation [Part B Question 4];

Health and Safety Policy [Part B Question 5];

Equal Opportunities Policy [Part B Question 7];

Environmental Policy [Part B Question 8];

Management Structure (if applicable) [Part B Question 9];

Ownership Structure [Part B Question 10];

Reference Contacts of three client references [Part D];

Part F Declaration of Good Standing (signed in two places);

Part G Declaration;

Banker‟s Reference [Appendix B];

Accounts Information [Appendix B Section 2].

4 You have read and signed the section below:

If the Candidate proposes subcontracting or comprises a consortium, this declaration is to be made by each substantial subcontractor or consortium Member and references below to the „Candidate‟ (in (A) to (D) below) shall be deemed also to be a reference to the subcontractor or Member completing the declaration.

(A) I certify that the information supplied is true and accurate to the best of my knowledge and

that I accept the conditions and undertakings applicable to the PQQ.

I understand and accept that false information could result in rejection of the submissions.

(B) I certify that the Candidate has not and will not canvass or solicit any officers, employees, agents or advisers of DVLA in connection with the preparation, submission and evaluation of this PQQ and that to the best of my knowledge and belief, no person employed by the Candidate or acting on its behalf has done or will do such an act.



I also understand that it is a criminal offence, punishable by imprisonment, to give or offer any gift or consideration whatsoever as an inducement or reward to any servant of a public body.

I agree not to enter into any agreement or arrangement with any other person that he / she shall refrain from bidding.

I understand that any such action will empower DVLA to cancel any contract currently in force and exclude the Candidate from the selected list of bidders.

(C) I understand and agree that any change in the identity or control of the Candidate or to

any other material information provided in response to the PQQ shall be notified to DVLA

as soon as possible.

DVLA reserves the right to review the Candidate's participation in the selection process in these circumstances.

(D) I confirm that the Candidate has not colluded or collaborated with any other Candidate

bidding for the services nor will it during the procurement process.

Signed: XXXXXX – this has been redacted under FOIA Section 40(2) Personal Information

Name: XXXXXX – this has been redacted under FOIA Section 40(2) Personal Information

Position: Business Development Director

For and on behalf of PayPoint PLC

Date: 9th March 2012



APPENDIX A – SMALL MEDIUM ENTERPRISES

Small Medium Enterprises are defined as enterprises that have fewer than 250 employees, have an annual turnover not exceeding approximately £40m, or an annual balance sheet in total not exceeding approximately £33m and are not owned (25% or more) by another organisation which is outside the definition of an SME. Small Enterprises are defined as enterprises, which employ fewer than 50 persons and whose annual turnover or balance sheet does not exceed approximately £8m. Micro Enterprises are defined as enterprises which employ fewer than 10 persons and whose annual turnover or balance sheet does not exceed approximately £1.6m.

(Please note: This information is required for statistical purposes only).

Not Applicable

Small Medium Enterprise

No

Small Enterprise

No

Micro Enterprise

No



APPENDIX B – FINANCIAL SITUATION

Banking Details (for information only)

Name and address of principal banker together with banker‟s reference.

Bank Name

XXXXXX – this has been redacted under FOIA Section 43 – Commercial Interests

Address


Town/City


Postcode


Banker’s reference enclosed (please √ )


Open book approach (for information only)

Please confirm the willingness of the candidate to take an open book approach to allow Value for Money to be demonstrated.

Yes



Accounts information

Please provide a copy of the full report and audited accounts for the last 2 financial years for both the Ultimate Parent Company and the Candidate.

The following PDF attachments are provided:

PP Half Yearly Financial Report to 25 September 2011.pdf

PP Annual Report to 27 March 2011.pdf

PP Annual Report to 28 March 2010.pdf Please also provide the latest set of management accounts for the next financial year.

In accordance with London Stock Exchange regulations, PayPoint is not able to release interim management accounts, however a copy of the Interim Management Statement issued on 26 January 2012 is attached as:

PP Interim Management Statement 26 January 2012.pdf

Please note a Creditsafe or equivalent report will be used by DVLA in evaluating account information.

If the information you are submitting is for a financial year-end more than 10 months ago, please submit the latest available information or a statement signed by the Finance Director detailing any major changes in the current financial position since the date of the latest information provided.

Whilst PayPoint‟s full financial year ended on 27 March 2011, it is assumed that the half year report to 25 September 2011 and subsequent Interim Management Statement provided will be acceptable. Candidates who do not have 2 years of audited accounts should provide whatever audited accounts they may have.

Not applicable, full accounts have been provided Newly formed Candidates should provide a statement of the Candidate‟s turnover, profit and loss account and cash flow for the most recent year of trading and / or a statement of the Candidate‟s cash flow forecast for the current year and a letter from the Candidate‟s bank outlining the current cash and credit position.

Not applicable



Obligations and Guarantees

Please provide details and advise whether any obligations or guarantees will be provided by a parent company or holding company. Candidates should note that DVLA‟s reserves the right to request a parent company guarantee at a later stage.

XXXXXX – this paragraph has been redacted under FOIA Section 43 – Commercial Interests



In order to carry out the financial analysis the following information must be available:

XXXXXX – this table has been redacted under FOIA Section 43 – Commercial Interests



APPENDIX C – CONSORTIUM AND SUB-CONTRACTING ARRANGEMENTS

XXXXXX – this has been redacted under FOIA Sections 41 Information Provided in Confidence and 43 – Commercial Interests

1 – Consortium Details If it is available, please provide details of the constitution and the shareholders involved.


Entity Name If applicable, Include company name, company registration number and place of registration of all consortium shareholders and any SPV established by them for purpose of bidding for this opportunity. Add extra rows where necessary.

Percentage shareholding (where applicable)


2 – Organisational Responsibilities Candidates should make entries for subcontractor or consortium members that are currently identified/envisaged. Please indicate in the table below (by inserting the relevant company/organisation name) the composition of the supply chain, indicating which member of the supply chain (which may include the Candidate itself) will be responsible for which element of the requirement.

Service area or sub-area

Organisation How much of the requirement will they directly deliver by value %

What will they directly deliver




3 – Substantial Sub-Contractors Candidates should list below any sub-contractor that could potentially be responsible for 20% or more of the services to be provided by value.

Organisation name Organisation address and contact details


Documents

PRE-QUALIFICATION QUESTIONNAIRE CORE COUNTER SERVICE