[PROJECT/PROGRAMME TITLE]
[DEPARTMENT]
[DEPARTMENT VERSION NO]
ANNEX 4.1
COMMERCIAL (STRATEGIC SUPPLIER) CONTROLS:
PART 1 - COMMERCIAL QUESTIONS TEMPLATE
Please note that PART 1 of this document is a template for departments to compile the information requirements
needed by the Strategic Supplier Controls assessment team to administer this Cabinet Office Control. PART 2
provides guidance to support completing this submission.
Where the Department has created a business case or other relevant document, it is sufficient to provide clear
page/section references to those documents in the Commercial Questions Template to assist the assessment
team to locate the required response to each question or response requirement.
If your project or programme involves multiple Controls please seek advice from Central Controls on the
appropriate submission format.
If your Control is “joint” between Strategic Supplier and Digital and Technology (i.e. with GDS) – please note that
the commercial section in Annex 5.1 can be provided in lieu of this document.
STRATEGIC SUPPLIER CONTROL SUMMARY INFORMATION
Control Stage* (SOBC, OBC, FBC) (see HMT guidance on these stages)
(please tick below)
*Departments can use this document at any business case stage and as outlined in Controls Guidance
Strategic Outline Business
Case
Control
Category
(See Cabinet
Office Controls
Guidance for
explanation of all
Controls which
you may need to
consider)
Strategic Supplier
Digital and
Technology, inc ID
assurance
Consultancy
Outline Business Case
Full Business Case
Property (inc Facilities
Management)
Commercial Models
External Recruitment
Advertising, marketing and
communications
Learning and
development (CSL)
Redundancy and
Compensation
Programme
or Contract
Title*
*If this Control contains multiple contracts, please refer to the programme title only here
Total
Programme
or Contract
Value (£m)*
*A further breakdown of programme costs can be provided in the Control Spend Outline, though this should
include all proposed spend including Strategic Supplier spend and any other spend covered by Controls or as part
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[DEPARTMENT]
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of the programme.
Value of
Control
Request for
Strategic
Supplier
(£m)*
*Include the total programme or contract value across its life for Strategic Supplier spend (excluding any planned
extensions)
Programme
and/or
Contract
Start Date
Programme
and/or
Contract End
Date
Incumbent
Supplier(s)*
(if applicable)
*Particularly record where Strategic Suppliers are involved, i.e. currently delivering to the Department
Proposed
Prime
Supplier*
*This should also include any considered market interest from Strategic Suppliers, particularly if Department
market engagement has been undertaken and there is a belief that a Strategic Supplier may choose to bid for the
respective contract
Any known
Subcontractor(s)
DEPARTMENT CONTROL TEAM
Name
Department/ALB etc.
Senior Responsible
Officer (if applicable)
Control Lead
Date of Submission for
Control
Other contributors to
Control (in your
Contact Details
Name
Topic/Role
Contact Details
Name
Topic/Role
Contact Details
Department)
Outline any other
engagement across
Government relevant to
the Control
For example: Cabinet
Office, CCS, GDS, MPA,
HMT, GPU, PSN or other
Key Contacts involved in
this Contract or
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programme*
*A full list of acronyms can be found in the Controls Glossary
Requested target date
for Controls Decision
from Cabinet Office*
Rationale for requested
deadline
*Must be consistent with Controls SLA
*See Cabinet Office Control Guidance for further information on the Controls SLA.
STRATEGIC SUPPLIER CONTROL COMMERCIAL OUTLINE
Overview of Contract/Requirements
Provide a brief summary of the service/contract requirements or technology to deliver the required
outcomes (if within a Business Case please refer to specific sections or pages where this can be
found).
Where relevant HMG policy or guidance is met through this contract, please outline this clearly (see
Controls Guidance on Outline of Control Requirements). It is helpful to the assessment team if the
service requirements are described by what is being bought, i.e. possible reference to CPV (Common
Procurement Vocabulary) or other recognised service definitions for the sector in question. This
section can be used to describe how the commercial approach will offer VFM or to refer to relevant
sections of a business case that cover this topic.
Commercial or Procurement Approach
If a new Contract, Single Tender Action or Framework Call-Off (outline as appropriate)
Outline of
Market
Engagement*
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*This could include any pre-procurement formal or informal discussions with markets and suppliers that
influenced the procurement procedure proposed or planned activity
Procurement
Procedure
used/
Options*
*Outline any options considered and/or discounted and why the preferred option offers VFM
Competition
Assessment Level of
Supplier
response in
procurement
or through
Framework (if
applicable)*
If a
framework,
detail on calloff procedure
and nature of
framework
services*
*The information required should be based on the stage at which the programme or project is at (i.e. SOBC,
OBC, FBC); please outline any bidder/supplier interest at each stage – this could include PQQ/ITT/ITN if at FBC
*Please also provide any detail on Lots used in frameworks including services per lot and suppliers within that
lot
SME
Engagement
(if any)
If an existing Contract change, variation, extension etc. (outline as appropriate)
Outline of any
Market
Engagement*
*This could include any formal or informal discussions with markets and suppliers that influenced the
commercial approach proposed, or nature of discussions to date with the incumbent supplier(s)
Methodology
proposed/
Options*
*Outline any options considered and/or discounted and why the preferred option offers VFM
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How contract
permits
proposed
commercial
approach*
*Outline any key contractual clauses, provisions the department plans to utilise to affect change or position
required
Previous
Changes in the
Contract
(if applicable)
*Outline of any previous changes in the life of the contract, how applied and impact on scope and TCV
Proposed
“negotiated”
position
(if applicable)
SME
Engagement*
(if any/applicable)
*Where changes, strategy may enable SME sourcing – describe this impact if any
Commercial Contract Conditions
Form of
Contract*
*State form of contract chosen, e.g. industry standard (e.g. JCT, NEC, ICE, Model Contract) or where other
forms of contract have been consulted or adopted
Key Commercial
Conditions to
manage supplier
performance*
*Based on form of contract chosen - including description of any payment mechanisms or other relevant
clauses applicable to the commercial case for managing the supplier and why these will assure VFM
Contract
Extension
Provisions*
*Here outline any proposed in a new contract or if the Department is entitled to enact any contract
extension now as part of the proposed commercial approach in this Control
Break Clauses in
the contract*
*Provide any detail within relevant contacts with Strategic Suppliers what break clauses will be included
(related to the chosen form of contract)or those that the Department wishes to utilise and any costs
associated (these may be future costs and not included in the spend request)
Exit or transition
arrangements
*Outline any provisions in the contract proposed (e.g. at OBC) or applied (at FBC) to enable exit or transition
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from an incumbent supplier to a new supplier
Open Book*
*Including whether the contract has open book in principle or have other comparable access to review and
how this has or will be utilised
Change Control
Procedures*
*Include any relevant information here on any change control procedures that relate to this Control, either
those in the form of contract to be used in the future or those that the Department wishes to apply as part
of this Control
Pricing Basis
Outline/
Description of
approach*
*Summary statement of how the price has been or will be assessed in relation to VFM, including whether
the price is “fixed”, involves time and materials or other mechanism
Cost comparator
or benchmarks
used*
*e.g. assessment cross-govt or sector used to assess VFM
Rate Card data*
*If applicable, e.g. average day rates contained in the Contract
Any indexation
provisions (e.g.
RPI)
Margins
proposed –
Prime*
*Include any detail on profit, risk or other applicable margins proposed
Margins
proposed –
subcontractor
(include any detail on
profit, risk or other
applicable margins
proposed)
Please outline
any licensing
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costs associated
with this
programme or
project
Commercial issues and Management
Outline of key
commercial risks
and mitigations
Contract and
Supplier
Management
Risk
Management
Approach or
Issues
Any Transition
Issues (if
applicable)
Any Exit issues (if
applicable)
CONTROL SPEND OUTLINE
Overall Control Spend (including any associated programme costs)
*Summary of costs within
this
Control
20xx/xx
£m***
20xx/xx
£m***
20xx/xx
£m***
20xx/xx
£m***
20xx/xx
£m***
Total
£m***
E.g. CAPEX
E.g. REVEX
E.g. OPEX
Applicable Transition or Exit
Costs
Total Cost (Total Contract
Value – TCV)
Total **Savings
Proposed/Achieved
[savings area subtotal]
[savings area subtotal]
*If the year-by-year cost profile is not known, please average the expected savings over the relevant years.
**In the first column please provide a total saving per year, plus any sub-level description of the saving areas that will be delivered as a
result of this Control expenditure.
***Figures should be rounded to one decimal place, .e.g. 5.5, 10.4 etc.
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Spend by Activity – Programme Level
Please provide detail of spend across the wider programme in which this Control fits. This could
include any related Contracts or Controls at a department level, or other costs that the Department
wish to be recognised in the spend Control (e.g. internal programme costs if an ICT programme,
consultancy, smaller enabling procurement spend).
This should also include the “sourcing” or procurement route for each component of the
programme – e.g. OJEU, G-Cloud, other framework, existing contract, internal etc.
Dependent of the “stage” of the Control, this information may vary (e.g. SOBC, OBC or FBC).
Activity
£m*
Duration
Requirement
Sourcing
Approved
by**
Date
Total already
approved
Total in this
request
Total yet to be
requested
Total expected
spend
*Figures should be rounded to one decimal place, .e.g. 5.5, 10.4 etc.
**Please provide reference to the departmental or other governance group or stage that approved the designated spend ahead of this
Control, or when this will be planned if the spend will occur later in the programme. It is noted that this may not include spend that
requires Cabinet Office spend approval via Controls.
Spend by Supplier
If suppliers have not been identified as yet (e.g. project or programme is at SOBC, OBC, then
indicative spend per service is sufficient.
Supplier
[INSERT VERSION NO/DATE]
Spend
£m*
Duration
(months)
Aspect of Service Procured (Activity)**
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Spend
£m*
Supplier
Duration
(months)
Aspect of Service Procured (Activity)**
Total
*Figures should be rounded to one decimal place, .e.g. 5.5, 10.4 etc.
**Where in Overview/Contract Requirements you have used reference to CPV (Common Procurement Vocabulary) or similar to describe
the services bough this should be reflected in describing the aspect of service procured.
PART 2 – COMMERCIAL QUESTIONS TEMPLATE GUIDANCE
(PLEASE DELETE BEFORE FORMAL SUBMISSION TO THE CABINET OFFICE)
General information requirements
The Commercial Questions template* has been designed to enable Departments to provide all
relevant information required by Cabinet Office and Crown Commercial Service to administer the
Strategic Supplier Control. The template is designed to meet information requirements at all
relevant approval points (e.g. OBC, FBC).
*Where the Department has created a business case or other relevant document, it is sufficient to provide clear
page/section references to those documents in the Commercial Questions Template to assist the assessment team to
locate the required response to each question or response requirement.
More information on Cabinet Office Controls can be found here.
Through compilation of information in this format Crown Commercial Service is able to assess the
applicable expenditure request. If a business case (e.g. SOBC, OBC, FBC) or other similar document
already provides the information required in the Commercial Questions Template, it would be
helpful to provide clear cross-referencing in this template to direct the assessment team to the
required responses.
This spend request may need to be considered in conjunction with other spend controls, commonly
Digital* & IT, Consultancy and Property Controls. More information can be found in the Cabinet
Office Control Guidance or please contact Cabinet Office Central Controls.
*The Digital & IT Control questions (contained in the Cabinet Office Technology and Digital Spend Control Form) also contains a section on
commercial questions. Where the Control is “joint” between Strategic Supplier and Digital/IT, the Department is advised to meet the
requirements of this Commercial Questions Template for commercial issues, alongside completing the Digital & IT form.
Below is a summary of the requirements per section of the Commercial Questions Template:
CONTROL SUMMARY INFORMATION & PROJECT CONTROL TEAM
Here information is required to provide a high level overview of the Control Request, basic contract
information (i.e. what is being sourced/bought and why), and key contacts that could be relevant to
the Control or who can be contacted to provide any further narrative or respond to queries relevant
to this Control. It is also helpful to record any key contacts in Cabinet Office and other agencies who
may have provided support or advice to the department (e.g. GDS, GPU, CCS etc.).
Example:
[INSERT VERSION NO/DATE]
[PROJECT/PROGRAMME TITLE]
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[DEPARTMENT]
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Other contributors to
Control (in your
department)
Outline any other
engagement across
Government relevant to
the Control
Name
Topic
Contact Details
Jonathan Jones
Angelica Smith
Procurement Strategy
Service Manager
responsible for
developing the solution
HMT Departmental
Contact
GDS lead for project
since S-OBC
J.J@department.gov.uk
A.S@department.gov.uk
Jose Money
Adam-Paul Macintosh
j.money@hmt.gov.uk
amac@gds.gov.uk
Requesting a date for a decision
Where your department requires a Controls decision by a certain date, this can be noted and a
rationale provided by your department. Please note that not all requests can be accommodated;
Cabinet Office and Crown Commercial Service will endeavour to work with your department to
ensure that there is no adverse effect to your programme when administering this Control.
CONTROL COMMERCIAL OUTLINE
Here the assessment team are seeking to understand what the contract service is, how the
department procured or secured the commercial proposal to be considered in this Control, and the
nature of the commercial proposal itself. A key part of this assessment here is whether the chosen
commercial methodology meets appropriate legislative, procedural and HMG policy requirements
(e.g. seeking competition, enabling SME access to contract opportunities, how the solution aligns to
the Government Digital Strategy following the advice and guidance provided in the Government
Service Design Manual).
Key information required here includes:
- How the supplier was/will be identified (e.g. existing/incumbent provider, new
procurement, framework, spot purchase or single tender action etc.)
- Market engagement and testing – how this was conducted and the result, and strength
of that interest and how the department ensured sufficient interest in the contract
- Form of contract, key contract conditions, pricing basis and how the costs were
assessment against market norms or benchmarks
- Any known commercial risks identified by the department and how they will be
managed
Below are a series of examples to assist departments in compiling responses to these questions:
Example:
Procurement
Procedure used
“The department is planning to undertake this “procurement” procedure due to
the nature of the services being procured requiring [insert rationale]. Supplier
engagement has identified that this is the best route to market available to the
department to ensure VFM and to offer maximum competitive tension.”
Example:
Methodology
proposed
The recommended option was chosen ahead of the following options:
1. Single Tender Action – discounted because [insert rationale].
2. HMG-Framework 123 - discounted because [insert rationale].
3. Negotiation with incumbent - discounted because [insert rationale].”
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Example:
Key Commercial
Conditions to
manage supplier
performance
“The form of contract chosen is industry standard and has the following
conditions to ensure that supplier performance can be effectively managed, for
example:
I.
A payment mechanism – this clauses provides [insert benefits]
II.
A gain-share mechanism – this clauses provides [insert benefits]
III.
A benchmarking clause – this clauses provides [insert benefits]
IV.
Scheduled break clauses – this clauses provides [insert benefits]
V.
Termination for convenience clause – this clauses provides [insert
benefits]”
Example:
Cost comparator
or benchmarks
used
“The department has used UK-WIDE-INDUSTRY-STANDARD indices to verify and
tests costs at OBC stage, and will utilise specific benchmark pricing that will form
part of the evaluation of bidder proposals during procurement.”
Example:
Contract and
Supplier
Management
Risk
Management
Approach or
Issues
“The supplier will deliver this commercial project via a Change Control Notice,
which we outline here at OBC. To manage delivery the department will:
 Cap the costs of the change against the agreed CCN;
 Establish before implementation whether this change will have any
material effect on the exit costs agreed at the outset of the contract;
 Introduce weekly review meetings in the implementation phase of the
change and then re-sequence these to monthly for the remainder of the
contract, and feed in to wider performance management of the
contract;”
CONTROL SPEND OUTLINE
Here the assessment team is looking for a clear picture of the overall spend requirements in this
Control (also shown at a supplier level), how this contract fits into a wider programme spend which
should also be included, and see detail on savings and other associated costs (e.g. exit or transition
costs). This ideally should show the total contract value (TCV) for the control request, year-by-year
contract or programme value, and provide sufficient subsets of spend to express clearly how the
commercial cost is constructed for the project or programme.
Example:
Overall Control Spend (including any associated programme costs)
*Summary of costs within
this
Control
E.g. CAPEX
E.g. REVEX
E.g. OPEX
[INSERT VERSION NO/DATE]
2014/15
£m***
5
5
2015/16
£m***
5
2017/18
£m***
5
[PROJECT/PROGRAMME TITLE]
2018/19
£m***
5
2019/20
£m***
Total
£m***
5
5
25
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[DEPARTMENT]
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Applicable Transition or Exit
Costs
Total Cost (Total Contract
Value – TCV)
Total **Savings
Proposed/Achieved
REVEX SAVING BASED ON
REVISED BENCHMARK FOR
SERVICE COSTS
SCOPE REVIEW FROM
PREVIOUS CONTRACT
1
1
2
6
5
5
5
6
32
2
2
2
2
2
10
1.5
1.5
1.5
1.5
1.5
7.5
0.5
0.5
0.5
0.5
0.5
2.5
*If the year-by-year cost profile is not known, please average the expected savings over the relevant years.
**In the first column please provide a total saving per year, plus any sub-level description of the saving areas that will be delivered as a
result of this Control expenditure.
***Figures should be rounded to one decimal place, .e.g. 5.5, 10.4 etc.
Example:
Spend by Activity – Programme Level
Activity
£m
Duration
Procurement
Support to FBC
1
2 years
Enabling
Software
0.1
1
Total already
approved
Service
Requirement
Source
Approved by
Date
Support to the
internal
Cabinet Office
department
Consultancy
Consultancy Jan 14
team to manage Framework
Control
this
procurement
Related
software
needed by
G-Cloud
ICT approval Dec 13
procurement
team
1.1
20
Total in this
request
20
Total yet to be
requested
0
Total expected
spend
21.1
[INSERT VERSION NO/DATE]
4
System
Restricted
Procedure
[PROJECT/PROGRAMME TITLE]
Internal
Approvals
Board
By Jul 14
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