UK-Liverpool: Smart card& Retail Solutions Project ref: 20110621 Helen Mitchell Head of Service Smart and Integrated Ticketing Merseytravel

AGENDA Introductions About Merseytravel Smart Ticketing Existing Retail Ticket Sales Project Future Retail Ticket Sales Scope of Project Lots The Consultation Process Questions

Merseytravel Operating name for two statutory organisations: Merseyside Integrated Transport Authority (MITA) Merseyside Passenger Transport Executive (MPTE) Covers 5 Merseyside districts from 18 elected members ( Liverpool, Knowsley, Sefton, St Helens and Wirral)

Merseytravel Vision Vision World Class Merseytravel A World Class Organisation and a World Class Transport System Mission "To promote an integrated transport network and improve the quality of life for Merseyside"

Merseytravel Merseytravel ensures excellent access to public transport through: Funding specific necessary bus routes Maintaining a high quality rail network Running tunnels, ferries, and tourism attractions Administration of concessionary fares Working in partnership with companies who operate bus and rail services

Smart and Integrated Ticketing Department with 23 Staff Responsible for Smartcard development within Merseytravel Responsible for Merseytravel ticketing and retail ticket strategy Managing retail outlets for ticket sales Reimbursement for pre paid (£17m) and concessionary schemes (£47m) to bus and rail operators Provides public transport information to various agencies Transport data management

Merseytravel Smart Ticketing Vision To improve the customer experience by delivering a multi modal fully interoperable smart ticketing solution across Merseyside Region

Progress So Far 8 Main gated Rail Stations ITSO enabled Smartcard validators for 82 non-gated stations close to contract award Validators installed on two ferry terminals (Pier Head to be completed in Oct 2011) Hand Held Validators deployed onto the bus, ferry and rail networks Brand Launch 19 September 2011 Bus rollout 245 Delivered since Sep 2010 and a further 145 planned in 2011/12 First Stage Coach & Arriva planned before Sep 2012

Progress So Far contd Further CMS and HOPS development planned Online retailing project due for roll out October 2011 Full test centre up running

What we want to achieve Complete geographical coverage of the Merseyside network Increased revenues Reduction in ticketing fraud. Robust and timely data collection. Improved reporting and analysis. Operational efficiencies, reduced logistical costs. Crucially– customer satisfaction, convenience and product accessibility.

The Merseytravel Delivery Team Helen Mitchell Project Sponsor Howard Smith (Team Consulting) Project Advisor Darren Hazlewood Project Leader Sharon McCall Project Administrator Louise Curran Technical Support TBC Ticketing & Retail Operations Supervisor

Responsibilities Matrix Role Responsibility Merseytravel Head of Service Project Sponsor and budget holder Merseytravel Project Leader Responsible for project delivery and coordination of project activities Merseytravel Project Technical Advisor Responsible for advising on technical matters particularly device and data interface Merseytravel Project Administrator Coordination of project administration and Team Consulting Strategic advice concerning Merseytravel’s retail strategy Ticketing & Retail Operations Supervisor Liaison with retailers in the context of hardware deployment

Project Structure MT Executive Technical Consultancy Smart & Integrated Head of Service Project Board Strategic Consultancy Project Steering Group Project Management & Support MT ICT Retailers Core Retailers Non Retailers Back office Newsagents MT Travel Centres Educational Institutions Post Office Counters Others Others

Questions

Existing Retail Ticket Sales Howard Smith

Retail - Merseytravel Ticket Sales Existing situation 2.6 million pre pay tickets sold in 2010 for a value of just under £19 million 5 main sales outlets types: - Travel Shops Railway Stations Post Offices Ferry terminals Local network of Agents (commercial & non commercial) These sales include: Annual, monthly, weekly and day tickets For multi-mode/multi-operator and Single mode multi-operator For both any time and off peak use.

Ticket types A total of 65 ticket types fall into three broad ticket groups: Trio (25 different ticket combinations) - Multi-Mode, Multi-Operator ticket available for adults on a weekly, monthly, annual and, ‘annual off peak’ basis. also available as a Young Person Weekly ticket, a Young Person Term ticket and Adult Term ticket to enable use by students. Prices range from £7.40 for a Young Person 1 Zone Weekly ticket, to £1055 for an Adult Annual All Zones ticket. Solo (30 ticket combinations) – Single Mode (Bus only) multi-operator ticket also available for adults on a weekly, monthly, annual and, ‘annual off peak’ basis Prices range from £7.80 for a Young Person Single Area Weekly ticket to £759 for an Adult All Areas Annual ticket. Saveaway (10 ticket combinations) – Multi-Mode, Multi-Operator off peak day ticket available as an Adult and Young Person All Zones or as an Adult or Young Person Single Area (of 4) Prices range from £1.90 for a Young Person Single Area ticket to £4.50 for an Adult All Zones ticket.

Ticket types – volume & value Saveaway – high volume, low value Trio and Solo – low volume, high value In terms of ticket days: 7.5 million ticket days in total Solo 2.9 million Trio and Saveaway 2.3 million each

Ticket zones/areas – overview map

Ticket types by zone Area C sold by all 50% of all tickets sold are Area C Saveaways Area C Solo highest value ticket

Ticket type sales by outlet type Each ticket type has a sales sector champion Trio – Rail Saveaway – Commercial Agents (retailers) Solo – MTS, but more even spread between MTS, Retail & PO’s Commercial Agents – 54% by volume, 33% by value

All outlets sales performance Different ticket sales profile for each sales sector Rail – Mainly Saveway and Trio MTS – Mainly Saveaway and Solo but significant Trio too Retail – Mainly Saveaway Rail (85 outlets) are the top ticket seller followed by Retail (402) Post Offices (149) sell the same number of tickets as Merseytravel Shops (8) 9% of tickets sold are via 115 non retail agencies Sales factor is basically an equal share rating In terms of ticket days, this represents about 7 million ticket days sold Saveaway is obviously 1 ticket day per ticket sold so 2.1 million ticket days Solo works out at 2.7 million Trio 2.2 million

Retail - Merseytravel Product Sales Commercial Agents are the largest contributor of the 5 sales sectors  and accounted for over 1.4 million ticket sales (54% of all ticket sales) Commercial agents in 2 main groups: Retailers – 287  (newsagents, convenience stores, Post Office franchises, off licenses, libraries) Non Retail Public Service Agents – 115 (Employment ,Social Services, Education, Benefit support, Immigration, UKBA)

Core Merseytravel transport family – Rail, MTS, Ferry 53% of commercially sold tickets Good for rail and ferry access points Not so good for bus access points Only main bus stations Poor representation in residential areas

Core outlets and Post Offices 64% of ticket sales Increased coverage in residential areas and at some bus access points Limited out of hours coverage

All outlets Increased coverage at bus stops and out of hours Significant duplication between retailers and Post Offices Some displacement from core outlets

Issues with current ticket sales network Evolved organically without targets or strategic focus C: 650 individual ticket sales outlets in total 75% of tickets are sold by 25% of outlets Lots of very small retailers selling < 1000 tickets Retail and Post Offices compete with each other Retail and PO’s displace sales from core outlets Key Challenges: Managing peak-time queuing at core outlets Getting the right balance between outlet location, opening hours and volume sales Managing the administration burden for 650 outlets

Future Retail Ticket Sales Darren Hazlewood

Retail - Merseytravel Ticket Sales Proposed situation Merseytravel’s aspiration is: To devise and implement a new, improved network of vendors asap, in order to enhance the sales of existing paper based products and to ensure readiness for sales of smart products, when they become available. To implement changes to the business model for ticket sales within the next 18 months, taking into account the new model that will be required for the smart ticketing sales.

The Vision Merseytravel will be one of the leading transport authorities in the UK, outside London, in the implementation of smart ticketing. It will be known and respected for its innovative and efficient access to Merseyside’s attractive and appropriately priced transportation around the city region.

Vision 2 By the time of smart ticket implementation in 2012, Merseytravel will have: created a new network of high performing, well located sales outlets that is designed to fulfil the needs of Merseyside in the most efficient and effective ways fully equipped and skilled to implement smart ticket sales established a new mutually beneficial business relationship with a limited number of third party vendors, in order to maximise their performance in ticket sales and revenue generated utilised the relationships under the Statutory Quality Partnership to deliver a Solo day ticket enabling all zones and multi-operator bus travel in Merseyside to meet identified need ensured that all aspects of its own operations – its own Travel Centres (Merseytravel Shops); ticket storage and distribution; ticket sales management; marketing and sales; IT systems; accounting etc – are transformed to be ready for smart tickets and to maximise efficiency.

Vision 3 In the years following smart ticket implementation, Merseytravel will monitor and analyse the performance of all aspects of its sales operations, using sophisticated analytical tools to identify strengths and weakness. Merseytravel will take action accordingly, resulting in refinements to the network of sales outlets, the relationship with third party vendors and its own business practices and processes.

Objectives To increase overall ticket sales volumes (in terms of ticket days sold) and value at both core outlets and commissionable retail outlets To increase the total value of the ‘Pre-Paid Pot’ that is allocated amongst the transport service providers To reduce the overall cost of ticket sales by increasing operational efficiency in ticket production, distribution to point of sale, sales administration, invoicing, payment, and sales reconciliation and all associated processes. To minimise or eliminate potential opportunities for Saveaway advanced ticket fraud and abuse.

The Strategy

The future vendor network: outlet types and roles The core “Merseytravel family” outlets of Merseytravel Shops, Rail Stations, Bus Operators and Ferry Terminals will be the primary, most cost-effective ticket sales outlets and a targeted increase in sales at each outlet will be supported by a structured, targeted, and measurable marketing campaign to drive consumer ticket purchases to these outlets. Merseytravel will use: Post Offices to widen the spread of sales outlets, with particular respect to areas not covered by the footprint of the core Merseytravel outlets. Retail outlets to increase early and late hours access to Saveaway tickets near to key bus access points. The retail network will be optimised for management efficiency, marketing efficiency and consumer recognition & access. It will number around 100 high performing outlets, where a common brand will be promoted and managed as a single group network, similar to Post Office Counters. The location of the non-core outlets selected will be such that, as far as possible, they are most likely to generate additional ticket sales, rather than displacing sales from the core outlets. The new Solo day ticket, designed specifically and solely for sale on buses, will enable seamless bus only, all zones multi-operator travel in Merseyside. The new re-branded vendor network The retail outlets should become smart ticket and EPOS enabled as a priority.

The business relationship with non-core outlets Merseytravel will ensure sales staff at retail outlets have excellent product knowledge and are able to actively sell Merseytravel products and achieve sales targets set by Merseytravel. An incentives programme will be developed to ensure and incentivise success. The training and incentives package will be specific to the vendor and outlet ticket sales profile. The commission structure and payment terms for retailers will be enhanced, based on their having EPOS (to smart ticket spec) and new stock, order and payment terms, to ensure that more tickets are ordered less frequently, with direct debit or online transfer payment on monthly terms (i.e. improved commission for reduced costs). All new retailers and those retailers moving to the new terms and conditions must meet minimum electronic ticketing requirements. Retail vendors will be seen as actively & pro-actively selling Merseytravel products by: Being easily identifiable as a Merseytravel product seller from outside & within the shop Increasing customer awareness of Merseytravel products at the till and within the shop Delivering defined Merseytravel “4 second hooks” to increase sales (“Do you need a Saveaway ticket for travel today?) Attending Merseytravel product and sales training days Achieving high scores from mystery shopper visits Achieving good customer satisfaction scores from near site researchers.

Ticket sales policy Merseytravel will pursue the following policy for ticket sales through each type of outlet: Rail Stations will sell Trio and Saveaway tickets, plus Solo at Liverpool South Parkway only and will be priority vendors for smart ticket sales. Merseytravel Shops will sell Trio, Solo and Saveaway and will also be priority vendors for smart ticket sales. Buses will only sell the specially designed Solo day ticket. Ferry Terminals will sell Saveaway tickets only via counter and onsite TVMs. They will be priority vendors of smart tickets. Post Offices will sell Trio, Solo and Saveaway and be used as local trusted community based ticket sales outlets initially for paper, but later for smart tickets. Retail outlets will sell only Saveaway tickets and will become ‘Saveaway Centres’. The top performing retailers will ensure early and late hours ticket availability in key locations near bus stops. To pilot the new processes, the top 25 retail outlets will be EPOS and smart ticket enabled as priority vendors. They will achieve high volume sales with large infrequent orders. They will pay by direct debit or online transfer on agreed payment terms, possibly monthly. Smart ticket roll out to the other 75 retail outlets will be in order of sales performance and according to available budget. It will also be subject to the learning from the ‘Top 25 outlet’ pilot scheme and will consider any territory or competition issues for existing outlets. Saveaway advanced ticket purchase will be enabled as a smart ticket only, and Saveaway paper tickets will become “a buy on the day to use on the day” ticket to eliminate the potential for abuse. Best practice for online ticket sales and top up in other transport authorities (and elsewhere) will be reviewed on a continuing basis, to ensure the most appropriate and cost effective online model is adopted. Product innovation and pricing as well as tactical marketing will be used to increase the competitiveness

Operational efficiencies To enable increased sales and reduce queuing at peak times, Merseytravel Shops will develop a new process for dealing with the administration of Trio and Solo sales. TVMs will be used to alleviate counter queues at Merseytravel Shops & Ferry Terminals and dispense high volume tickets for today’s travel (Saveaway print on demand) Renewals for Trio and Solo Annual and Monthly tickets will be handled primarily at Merseytravel Shops (or a separate admin centre) but for either next working day dispatch or next working day collection. A publicity campaign will advise the public of the change in process.

Social inclusion 9% of Merseytravel’s ticket sales are to organisations whose concern is to facilitate social inclusion for disadvantaged sectors within Merseyside, by enabling their access to transport. Accordingly, Merseytravel will initiate a dialogue with such organisations to design an innovative ticket solution to meet their needs, which is also in line with Merseytravel’s key objectives. Key aims for this dialogue will be: To enable efficient deployment to users of suitable tickets, including specific time bound concessions To minimise any potential opportunity for fraud or abuse of this concession To minimise any new technical development required in deploying this solution To minimise any new sales or administration costs associated with delivering this solution To agree a ticket sales and deployment model for this sector To accurately identify on going volume sales of this concession

Ticket and Smartcard storage and distribution Merseytravel will review its arrangements relating to the distribution of tickets to retail outlets, in order to reduce costs and ‘ticket miles’, with a view to: Moving the ticket storage and distribution facility to a secure Merseyside base as soon as possible. Moving some way towards a cost neutral business model by passing on the distribution costs of paper tickets to non-core sales outlets in line with the Merseytravel cost of sale reduction policy. The secure facility will offer a range of services that will evolve in the short, medium and long term as the mostly paper ticket distribution moves to part paper and part Smartcard distribution then towards mostly Smartcard distribution in later years. As the smart ticket roll out gathers pace, more high value technical consumables will require both secure storage and distribution to transport providers and ticket vendors.

Technical infrastructure & stats The metric of ‘Ticket Days’ sold will be adopted and replace ‘Tickets’ sold as a key performance measure. This will facilitate and encourage a policy of up-selling from day tickets to weekly tickets and from weekly tickets to calendar monthly tickets. Merseytravel will put technology at the heart of its ticket ordering, sales, administration, distribution and reconciliation processes. All business processes and associated ICT systems will be upgraded prior to roll out of smart ticketing. As a minimum, the ICT systems upgrade will support new business processes for: Procured ticket stock control Holding retail vendor order & payment details as well as other activity like training Ticket orders/refunds from all vendors including core family outlets Reconciled EPOS based sales for all vendors including digital input from Rail, Bus and Post Office, Merseytravel Shops and Saveaway Centre EPOS systems Vendor current period activity reporting and KPIs Essential TIMS functions (as defined by the project) Historic sales activity reports, trends and KPIs (rolling last 5 years) Smart ticketing activity import and reconciliation.

Summary of key strategy points Core outlets will be primary ticket vendors to protect revenue Retail network will enhance out of hours and bus route presence Current retail network will be rationalized & optimized for efficiency Competition and displacement will be removed Smart technology will be rolled out in a phases Ticket sales processes will be enhanced and optimized TVM’s will be used as queue busters & to dispense day tickets New sales processes will be designed to aid the social inclusion agenda A new Merseyside storage facility will be facilitated Merseytravel will put technology at the heart of its sales processes

Issues and concerns Finding a satisfactory technical solution that can be deployed to small newsagents & convenience stores with: Minimal product development and rapid deployment timeline Small hardware footprint (given counter deployment) Good low cost connectivity (given this might not currently be in place) High and intuitive usability (given low technical skills of retailers) Low training need (given difficulty in pulling retailers out of their shops) Low cost (given volume of outlets and budget) High reliability (given business critical nature of tickets) Minimising the change management burden – the smart process is very different to the existing paper process.

Lunch Break

Scope of Project Lots

Structure of Lots LOT.1 Smartcard Retail System, Paper Ticket Retail System and Smartcard Retail Services LOT.2 LOT.3 LOT.3 Supply, Installation & Maintenance of Paper Ticket Retail System Supply, Installation & Maintenance of Integrated Paper Ticket & Smartcard Retail System Managed Back Office Solution Complete Managed Retail Solution

LOT.1 PROJECT OVEVIEW Supply of Electronic Ticket Machines for issuing paper tickets. Estimated contract value - £150,000 Estimated Duration of Supply Contract - 5 Years Estimated Contract Value inclusive of Hardware, Installation and warranties Minimum of 150 units to be supplied and installed

Lot.1 Programme Overview Lot.1 Paper Ticket Retail Solution Competitive Dialogue 22 Sep 2011 – 26 Oct 2011 Tender Issue 28 Oct 2011 Tender return 17 Nov 2011 Tender Evaluation 18 Nov 2011 – 15 Dec 2011 Nomination of preferred supplier 16 Dec 2011 Board Approval for preferred supplier 9 Jan 2012 Appointment of Supplier 25 Jan 2012 Contract Signing 26 Jan 2012 – 3 Feb 2012 Controlled Environment Hardware & Software Testing 6 Feb 2012 – 2 Mar 2012 Hardware Deployment 5 Mar 2012 – 1 June 2012

Minimum requirements Robust build suitable for use in the stated environment; Ability to operate from 230V (+10% / -6%) if operating at another voltage; Built to achieve an IP rating of IP54 or better (i.e. protected against dust ingress and splashing water); Negligible power consumption when the POST is dormant or in off state; Conform to all relevant EU EMC directives; Contain all required cabling for links to associated systems and power supplies; Full protection against noisy power and external connection feeds, where noise suppression devices are required these must be provided; Screen/display providing clear visual information to the user with variable settings for contrast and back lighting; Easy access to replace print media;

Minimum requirements contd Secure protection of all electronic components and cabling; Tamper proof and require specific equipment or tools for full internal access; Quick release mounting to allow for equipment swap-over; Appropriate all encompassing interfaces including connections and multiple USB and serial ports and Wireless link (GPRS/3G) for outdoor events – to allow the transmission of sales records to the back office system when the unit is used for promotional events away from conventional sales outlets.

LOT.2 Overview Supply of Electronic Ticket machines for issuing paper tickets and smartcard products Estimated contract value - £300,000 Estimated Duration of Supply Contract - 5 Years Estimated Contract Value inclusive of Hardware, Installation and warranties Minimum of 100 units to be supplied and installed

Minimum requirements Robust build suitable for use in the stated environment; Ability to operate from 230V (+10% / -6%) if operating at another voltage; Built to achieve an IP rating of IP54 or better (i.e. protected against dust ingress and splashing water); Negligible power consumption when the POST is dormant or in off state; Conform to all relevant EU EMC directives; Contain all required cabling for links to associated systems and power supplies; Full protection against noisy power and external connection feeds, where noise suppression devices are required these must be provided; Screen/display providing clear visual information to the user with variable settings for contrast and back lighting; Easy access to replace print or smart media;

Minimum requirements Contd An accessible printer device either as an integral element or remotely located from the POST. The printer should be capable of printing both tickets and receipts; ITSO certified software system; Use readily available paper ticket stock Secure protection of all electronic components and cabling; Appropriate, accessible and secure housing for the ISAM; Tamper proof and require specific equipment or tools for full internal access; Quick release mounting to allow for equipment swap-over; Appropriate all encompassing interfaces including connections and multiple USB and serial ports and An ISO 14443 Type A and B ITSO compliant reader built into the equipment. Wireless link (GPRS/3G) for outdoor events – to allow the transmission of sales records to the back office system when the unit is used for promotional events away from conventional sales outlets. USB Interface for the connection of an external printer.

Lot.2 Programme Overview Lot.2 Paper Ticket & Smart card Retail Solution Competitive Dialogue 22 Sep 2011 – 26 Oct 2011 Tender Issue 28 Oct 2011 Tender return 17 Nov 2011 Tender Evaluation 18 Nov 2011 – 15 Dec 2011 Nomination of preferred supplier 16 Dec 2011 Board Approval for preferred supplier 9 Jan 2012 Appointment of Supplier 25 Jan 2012 Contract Signing 26 Jan 2012 – 3 Feb 2012 Controlled Environment Hardware & Software Testing 6 Feb 2012 – 2 Mar 2012 Hardware Deployment 5 Mar 2012 – 1 June 2012

LOT.3 PROJECT OVEVIEW Ticket Sales Reconciliation System - a hosted back office service that connects to paper ticket ETMs, paper ticket + smart product ETMs, Ticket Vending Machines and EPOS systems. Estimated Lot value £ £200,000 Estimated Contract duration 3 Years (plus client option to extend +1yr, +1yr = Total of 5 Years) Estimated Contract Value inclusive of software development, testing, commissioning and support

Minimum requirements A hosted back office service is required that connects to the following systems: MT Web Service, MT TVMs, MT EPOS, MT Retail POSTs, MT Rail The system must be designed such that additional modules can be added if or when new ticketing, or related, system are introduced. The system must provide a screen (or screens) showing the sales for the day: By System type (Web, TVM, EPOS, MT Retail POST, Rail Retail POST) By Service provider (company providing retailing service) By Service Provider (specific retail outlet) By POST ID (specific retail POST) A warning must be shown against POST and Outlets when their credit limit has been reached. This must be a configurable value.

Minimum requirements contd Sales History Reports The system must provide reports showing sales histories for specified date and time ranges: By System type (Web, TVM, EPOS, MT Retail POST, Rail Retail POST) By Service provider (company providing retailing service) By Service Provider (specific retail outlet) By POST ID (specific retail POST) Note that, in order to support audit requirements, historical data and reports must remained unchanged even in the event that the Retail POST is moved from one location to another. Details of the location must be included for all transactions. Back-up and Archive Facilities Full Back-up and Restore functionality must be included An Archive and Archive Restore facility must be included

Lot.3 Programme Overview Lot.3 Managed Back Office Solution Competitive Dialogue 22 Sep 2011 – 26 Oct 2011 Tender Issue 28 Oct 2011 Tender return 17 Nov 2011 Tender Evaluation 18 Nov 2011 – 15 Dec 2011 Nomination of preferred supplier 16 Dec 2011 Board Approval for preferred supplier 9 Jan 2012 Appointment of Supplier 25 Jan 2012 Contract Signing 26 Jan 2012 – 3 Feb 2012

LOT.4 PROJECT OVEVIEW A Retail Outlet Managed Service for retailing Merseytravel ticketing products (paper and smart). Estimated Lot value £ £1, 200,000 Estimated Contract of 3 Years (plus client option to extend +1yr, +1yr = Total of 5 Years) Estimated Contract Value inclusive of hardware, software, support Minimum requirement for 300 retailer outlets required across Merseyside

Minimum requirements This must include all the ticketing functionality described within this document for LOT1, LOT2 and LOT3. The Supplier of this LOT must provide and maintain equipment as described in this document for LOT1, LOT2 and LOT3 or equipment that achieves the same overall functionality and service. This equipment would remain owned by the supplier. The ticket equipment and supporting back office system must provide live data feeds to the Merseytravel TSRS System (see LOT3). Web views to the back office and HOPS systems must be provided. Reports (as described for LOT1 and LOT2) must be provided.

Lot.4 Programme Overview Lot.4 Complete Managed Retail Solution Competitive Dialogue 22 Sep 2011 – 26 Oct 2011 Tender Issue 28 Oct 2011 Tender return 17 Nov 2011 Tender Evaluation 18 Nov 2011 – 15 Dec 2011 Nomination of preferred supplier 16 Dec 2011 Board Approval for preferred supplier 9 Jan 2012 Appointment of Supplier 25 Jan 2012 Contract Signing 26 Jan 2012 – 3 Feb 2012

Questions

Why Competitive Dialogue? Technical complexity Develop the specification with the experts The need to understand the market solutions before tendering Ensure we achieve the most economically advantageous tender

The tender process The consultation process will consist of a series of meetings with suppliers to refine the scope of supply and contract terms. When Merseytravel is in a position to identify the solution or solutions, which may meet its requirement, the candidates are asked to submit their final offer on the basis of the solutions discussed and presented during the dialogue. These final tenders need to contain all the elements required and necessary for the performance of the contract. There is scope for post-tender discussion with the candidates who have submitted final tenders, limits are placed on these discussions. “Discussions with candidates or tenderers may be held but only for the purpose of clarifying or supplementing the content of their tenders of the requirements” The offers are evaluated against pre-determined award criteria, which allow for the most economically advantageous tender to be selected.

The process We expect to hold two rounds of meetings with suppliers individually, with an option for further third round if required First Meeting Review initial documents supplied Discuss specification Initial discussions on contract Roles and responsibilities for project Update Specification and Draft Contract Merseytravel to update specification and draft contract Supplier to review revised contract and specification

The process Second Meeting Review documents supplied Discuss and refine specification Discussions on contract terms Agree on further meeting requirements Update Specification and Draft Contract Merseytravel to update specification and draft contract Supplier to review revised contract and specification

Communications process All communications with bidders will take place through the “The Chest” No other communications will be allowed Face to face meetings Meeting minutes Specification drafts for comment at meetings Tender documents

Stick or Twist? Suppliers can pursue one or more of Lots providing PQQ you have been selected Suppliers can withdraw from a particular Lot any stage during the process Merseytravel will not eliminate any supplier as we have not set the criteria to do this

DIALOUGE PROGRAMME Key Milestone Dates Opening Presentation session 13th September 2011 Round 1 Dialogue Sessions Wk Commencing 19th September 2011 Round 2 Dialogue Sessions Wk Commencing 3rd October 2011 Tender Evaluation 18 Nov 2011 – 15 Dec 2011 Nomination of preferred supplier 16 Dec 2011 Board Approval for preferred supplier 9 Jan 2012 Appointment of Supplier Jan 2012

Questions