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Procurement of Air Travel Services for the Australian Government – Discussion Paper

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Procurement of Air Travel Services for the Australian Government

Discussion Paper – July 2015

This document provides information and seeks feedback on the proposed strategy and draft statement of requirement (SOR) for the future air travel services (airline panel arrangement) for the Australian Government.

This document is not a notice or otherwise a part of any tender process for travel management services, which is yet to be determined or commence.

Introduction

The Whole of Australian Government (WoAG) travel arrangements are coordinated procurements, established by Finance. They service the diverse travel needs of approximately 150 Australian Government entities.

Prior to the introduction of the WoAG travel arrangements, there was no consistent approach to travel procurement across Government entities. A Scoping Study (‘the Study’) into the travel arrangements noted the decentralised approach to travel procurement, with no overarching coordination and strategic management, had resulted in a fragmented approach with inconsistent practices, duplication of effort and different pricing levels across the Government entities.

In response to the findings of the Study, Finance established and implemented the WoAG travel arrangements, with the objectives to:

reduce the cost of supply to Government entities

continue to meet the business needs of Government entities

contribute to a competitive and viable industry

establish fair, equitable and transparent processes

optimise savings through cost reductions, improved efficiencies and promoting behavioural change.

Phase 1 of the travel arrangements came into effect on 1 July 2010, with the establishment of a panel of five Travel Management Companies (TMCs) to provide travel management services, and panel arrangements with four domestic and twelve international airlines (Airlines).

Phase 2 of the travel arrangements improved efficiencies further, through the appointment of a single travel card provider, a sole accommodation program manager, and a panel of two car rental providers. These arrangements came into effect on 2 July 2012.

The first TMC panel arrangement expires in June 2015 and after an RFT process, QBT was awarded the sole TMC provider from 1 July 2015 until 30 June 2019 (excluding extension periods).

The Airline Panel, which consists of separate domestic and international deeds, is due to expire in April 2016 at the end of the current extension.

Further information on the current arrangements can be found at: http://www.finance.gov.au/procurement/travel-and-related-services/index.html


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Both phases of the travel arrangements have provided savings, addressed contractual efficiencies, increased transparency and provided greater value for money in the purchasing of travel services.

Whilst the current air travel services are a significant improvement on the decentralised approach prior to 1 July 2010, there is scope for further improvements. This paper sets out the strategy for the renewal of the air travel services (‘the Services’) and provides a draft SOR.

It is intended that the Services will include integration with the service providers under Phase 1 and 2, especially with the appointed TMC (QBT) and travel card provider (Diners Club Australia).

Air Travel Services Requirements

Finance intends to approach the market in the third quarter of 2015 to establish a new airline panel for the Australian Government. Tenderers that meet the evaluation criteria and provide value for money would be invited to join the panel.

The objectives for the air travel services arrangement include:

Continuing to maximise value for money for the Commonwealth.

Meeting the current and where possible future travel needs and requirements of Government entities.

Increasing the use of technology to streamline and increase efficiencies in service provision.

Contributing to transparency of travel expenditure through the provision of accurate and timely travel data.

Within the context of the objectives for this procurement, the key elements of the Services are:

For individuals – a service that is accessible, easy to use, safe and meets the requirements of travellers.

For Government departments and agencies – a solution that promotes administrative efficiency, reduces cost and supports effective reporting across diverse travel requirements and organisational systems, policies and operational environments.

For Finance – an arrangement where the service providers are fully accountable for the services they provide to the Australian Government.

Finance expects panellists will contribute to these objectives by:

Developing a strategic partnership with Finance to provide exceptional levels of service to departments and agencies, where issues are quickly identified and resolved.

Representing the Australian Government’s interests when dealing with relevant parties in delivering the Services to the Australian Government.

Acting reasonably at all times to ensure the success of the arrangement, including minimising risk for departments and agencies.

Maintaining open and effective communication with Finance as the contract manager of the arrangement, and with the departments and agencies as recipients of the Services.

Providing transparent pricing arrangements, including any discount or other reductions linked to the Services.

Recognising the need for delivering consistent and high quality products and services across departments and agencies, and allowing tailoring where appropriate to suit the specific needs of departments and agencies.

Actively contributing and supporting innovation and continuous improvement in service delivery.

Driving efficiencies in service delivery to support value for money to the Australian Government.

Providing services consistent with the Australian Government’s travel policies, including any individual guidelines of departments and agencies in respect of travel.


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Key features of the new airline panel arrangement are likely to include:

A simplified arrangement with both international and domestic airline arrangements covered under a single deed that provides efficiencies in contract management processes.

A two-tier structure that aims to enable a positive and collaborative arrangement with the Australian Government and apportions the administrative effort for panellists and Finance with government travel patterns.

Continued support of Australian Government’s policies including the Lowest Practical Fare (LPF) policy for official domestic travel, and the Best Fare of the Day (BFD) policy for official International travel.

Flexibility to add or remove key routes, pricing, fare classes and fare conditions.

Ability to add or remove airlines, to maintain the relevance of the arrangement to changing government travel behaviours.

A simplified annual pricing review mechanism and process for the fixed route deal fares and point of sale discounted fares.

The new Airline Panel arrangement may potentially be put in place for approximately 10 – 11 years (inclusive of extension options).

Airline panellists will provide pricing that includes:

Domestic - fixed price route deal fares for the top volume domestic city pairs with Point of Sale (PoS) discounts across other fare classes.

International - fixed price route deal fares for the top volume international city pairs with PoS discounts across other fare classes.

Point of origin (offline) - discounted pricing for Government travel that encompasses ex Australia trips, including: internal Country / Regional travel (e.g. Internal USA - Washington to New York return), inbound travel - departure outside of Australia to arrive in Australia (e.g. Ex Kuala Lumpur to Sydney return).

Ancillary services - discounted pricing or ancillary services bundled into the fare/s at no extra cost, including (but not limited to): excess baggage, airport lounge access, airport transfers, and limousine services.

Fare conditions - Flexible and highly advantageous fare conditions including (but not limited to): no ticketing time limits, last seat availability, greater standard baggage allowances, flexible fares with no change or cancellations fees, and transferability (name changes).

Airline panellists will meet the standard and special requirements for Government entities and travellers including (but not limited to): VIP bookings, group travel, conference bookings, charter flights, travellers requiring assistance (vulnerable and/or disabled), unaccompanied minors, excess baggage and small freight, transport of dangerous goods, transport of prisoners, witnesses and/or asylum seekers, secure hand delivery, and unaccompanied baggage.

Attachment A - Overview of Australian Government’s travel profile

Attachment B – Draft SOR (for discussion)


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Indicative Timeline and activities

The following table sets out a high level indicative timeline and activities in order to deliver the project.

Start-up (Now – July 2015)

RFT Process (Aug 2015 – Mar 2016)

Implementation (Mar - Apr 2016)

Appointment of support resources

Consultation with entities and suppliers

Draft RFT documents

Establish due diligence information

Issue RFT

Evaluate tenders

Negotiate and execute deeds

Develop change management plan

Finalise Transition Plan

Implement new arrangement

Entity communication

Services commence

Submitting your comments

Comments on this paper and the draft SOR can be directed to:

[email protected]

Procurement Coordinator Blog

The closing date for providing feedback on this consultation paper is 12 noon on Monday 20 July 2015.

Feedback and comments should be concise and include references to this discussion paper and requirements of the SOR where applicable. Please do not provide marketing data or make any other associated representations with regards to specific services of your organisation.

Where appropriate, Finance may incorporate feedback into any subsequent tender documentation, or otherwise use it to inform the proposed approach to market

1.

Finance encourages organisations to respond to this paper. However, organisations that do not respond to this paper will not be excluded for that reason from any subsequent approach to market.

Finance will not pay for any information requested nor is it liable for any costs incurred by respondents.

Finance asks that correspondence occurs through email at [email protected] or the

Procurement Coordinator Blog at Procurement Coordinator Blog.

1 Finance makes no representation that the information contained in this draft document is current or complete. Nothing in this

document or arising from this document gives, or is intended to give rise to a contract; or any obligation on the part of the Australian Government, or expectation on the part of any recipient of this document in connection with any subsequent tender process.

Where appropriate, Finance may incorporate feedback into any subsequent tender documentation, or otherwise use it to inform an approach to market. Finance also reserves the right to respond, or not respond, to specific questions or submissions.

mailto:[email protected]

http://www.finance.gov.au/category/procurement-coordinator/

mailto:[email protected]

http://www.finance.gov.au/category/procurement-coordinator/


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Attachment A – Overview of Australian Government’s Travel Profile

Air Travel (1)

Spend ($): Volume (sectors):

Domestic: $243 million 1,147,000

International: $134 million 194,000

Total: $377 million 1,341000

1. Air travel spend and volume is for the 2013/14 financial year. Air travel spend is Airline spend GST included. International Air travel includes Trans Tasman. Air travel volume is the number of one way sectors.

Top City Pairs (by volume) (2)

Domestic: International:

Sydney to Canberra Perth to Christmas Island

Melbourne to Canberra Sydney to Los Angeles

Canberra to Brisbane Sydney to Singapore

Sydney to Melbourne Port Moresby to Manus Island

Canberra to Adelaide Sydney to Dubai

Sydney to Brisbane Brisbane to Port Moresby

Melbourne to Brisbane Sydney to Abu Dhabi

Perth to Canberra Cairns to Port Moresby

Melbourne to Adelaide Melbourne to Singapore

Sydney to Darwin Brisbane to Honiara

2. Top City Pairs is the number of sectors between the cities. Domestic is originating from both cities.

General Profile:

Approximately 150 Government entities and 100,000 travellers access the whole of Australian Government travel arrangements.

The Australian Government has office locations in all Australian capital cities and a large number of regional areas. Most travel originates from Canberra, Sydney, Melbourne and Brisbane.

The Australian Government’s travel requirements are wide-ranging. In addition to the standard domestic and international booking services, they can include (but are not limited to) services such as:

VIP bookings

Group travel

Travellers requiring assistance

Excess Baggage and small freight

Limousine transfer and services / Local transportation services

Specialised travel booking services (transport of dangerous goods, transport of prisoners, witnesses and/or asylum seekers, secure hand delivery, freight, unaccompanied baggage, disabled support services)


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Attachment B - Draft Statement of Requirement for Air Travel Services for the Australian Government Overview:

This draft Statement of Requirement (SOR) is anticipated to form part of a contractual agreement

(deed) that will also include the terms and conditions under which the arrangement will operate.

Tenderers will have the opportunity to state their compliance with the SOR and draft deed as part of

their tender submission.

In order to give this draft SOR some context, Finance note that there is likely to be several other

schedules which will also form part of the deed. These other schedules primarily include:

Pricing – Fares and fare conditions

Service Level Agreement

Due Diligence Information

About this SOR:

Comments are sought where appropriate on this draft Statement of Requirement and the points raised

in the discussion paper.

This draft SOR is supplemented by:

Appendix 1: Reporting and Data specifications.

Appendix 2: Glossary


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Table of Contents

Introduction ............................................................................................................................................ 9

1 Establishment of the arrangements ....................................................................................................... 9

2 Proposed structure of the panel ............................................................................................................. 9

General.................................................................................................................................................. 11

3 Overview .................................................................................................................................................. 11

4 Whole of Government objectives ......................................................................................................... 11

5 Seamless service ................................................................................................................................... 12

6 Continuous improvement ...................................................................................................................... 12

Air Travel Services to Participants ..................................................................................................... 13

7 Overview .................................................................................................................................................. 13

8 Compliance with travel policies ............................................................................................................ 13

9 Loyalty Reward Programmes ................................................................................................................ 14

10 Fares ........................................................................................................................................................ 14

11 Fare conditions ....................................................................................................................................... 15

12 Ticketing .................................................................................................................................................. 15

13 Customer service ................................................................................................................................... 16

Special Travel Requirements ....................................................................................................................... 17

14 VIP services ............................................................................................................................................ 17

15 Children and other vulnerable people ................................................................................................. 17

16 Special Needs ......................................................................................................................................... 17

17 Other special requirements ................................................................................................................... 17

18 Emergencies ........................................................................................................................................... 17

19 Marketing and traveller incentives ....................................................................................................... 18

20 Carbon emissions .................................................................................................................................. 18

21 Technology ............................................................................................................................................. 18

22 Value add services ................................................................................................................................. 19

Management Services to Finance ....................................................................................................... 19

Contract and Account Management ........................................................................................................... 19

23 Liaison and meetings ............................................................................................................................. 19

24 Escalation of issues to Finance ............................................................................................................ 20

25 Participant satisfaction survey ............................................................................................................. 20

Information Management ............................................................................................................................. 21

26 Business continuity ............................................................................................................................... 21

27 Security of information .......................................................................................................................... 21

Management Services to Participants ................................................................................................ 22


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Account Management ................................................................................................................................... 22

28 Liaison and meetings ............................................................................................................................. 22

29 Operational issues resolution – Participants ...................................................................................... 22

Appendix 1 – Reporting Specifications .............................................................................................. 23

1 Overview of the reporting specifications ............................................................................................ 23

2 Reporting Requirements – Finance...................................................................................................... 23

Appendix 2 – Glossary ......................................................................................................................... 27


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Introduction

1 Establishment of the arrangements

1.1 The Department of Finance (Finance) intends to establish a panel of airlines to provide

Domestic and International Air Travel Services to the Australian Government (the

Government).

2 Proposed structure of the panel

Explanatory note: Finance is considering a two-tier structure of the panel that aims to enable a positive and collaborative arrangement with the Australian Government and apportions the administrative effort for panellists and Finance to align with government travel patterns.

Organisations are invited to comment on the structure set out in this paragraph 2.

2.1 Finance is considering a two tiered approach to the structure of the panel. It is proposed that

successful Tenderers would be selected as either a Tier 1 or Tier 2 airline.

2.2 Under this proposal:

(a) Tier 1 airlines could benefit from:

i. Finance assisted access to entity travel managers;

ii. regular formal engagement with Finance for contract management;

iii. increased visibility on the Government’s Travel Management Company’s

(TMC) Online Booking Tool (OBT);

iv. priority status at Finance travel exhibitions and forums;

v. inclusion in communications from Finance to entities (e.g. internet, intranet,

travel guides, newsletters) and opportunity to provide articles for inclusion in

newsletters;

vi. promotion of individual airlines during a focus month;

vii. access to the Government’s enhanced survey information and opportunity to

survey Participants;

viii. access to the Government’s enhanced management reporting and analysis

information; and

ix. development of a joint strategic business plan.

(b) Tier 2 airlines would benefit from:

i. access to entities through travel exhibitions and forums;

ii. inclusion in communications from Finance to entities (e.g. internet, intranet,

travel guides, newsletters) and opportunity to provide articles for inclusion in

newsletters;

iii. general survey feedback;

iv. annual formal engagement with Finance for contract management; and

v. limited assisted access to entity travel managers.


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2.3 To be selected as a Tier 1 airline, the following criteria would need to be met:

(a) For International travel, the airline must:

i. operate flights that originate in Australia;

ii. provide highly competitive fares (Route Deals and Point of Sale Discounts) and

discounted ancillary services;

iii. operate regular flights on a least x of the Government’s top x International

routes; and

iv. provide the Government’s requirements for Air Travel Services, including Special Travel Requirements.

(b) For Domestic travel, the airline must:

i. operate Domestic flights in Australia;

ii. provide highly competitive fares (Route Deals and Point of Sale Discounts);

iii. operate regular flights on a least x of the Government’s top x Domestic routes;

and

v. provide the Government’s requirements for Air Travel Services, including

Special Travel Requirements.

2.4 Tenderers that do not meet the above criteria may be selected as a Tier 2 airline, subject to

the Tenderer being selected as a Successful Tenderer and meeting the following criteria:

(a) For International travel, the airline must:

i. provide highly competitive fares; and

ii. provide the Government’s requirements for Air Travel Services, including Special Travel Requirements.

(b) For Domestic travel, the airline must:

i. operate Domestic flights in Australia;

ii. provide highly competitive fares; and

iii. provide the Government’s requirements for Air Travel Services, including

Special Travel Requirements.

2.5 In consultation with an airline, Finance may move an airline from Tier 1 to a Tier 2 status if the

airline does not continue to meet the above criteria. Accordingly, an airline may be moved

from a Tier 2 to a Tier 1 airline if, due to a change in government travel patterns or a change in

the airline’s operations, it meets the above criteria in the future.

2.6 The criteria for selecting Tier 1 or Tier 2 airlines are subject to change at Finance’s discretion.


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General

3 Overview

3.1 This Schedule sets out the Services to be provided by the Contractor to:

(a) the Participants (as recipients of the Services); and

(b) Finance (as the contract manager of the Services).

3.2 The Services are broken into two categories:

(a) Air Travel Services provided to Participants; and

(b) Management Services provided to Finance (Participants may also be the beneficiaries of these Management Services as provided under clause x to x of this Schedule 1);

3.3 Air Travel Services are the Services that relate to the operational aspects of the Deed.

3.4 Management Services are the Services that relate to the administrative aspects of the Deed

and support the delivery of the Air Travel Services.

4 Whole of Government objectives

Explanatory note: The Government’s coordinated procurement contracting framework’s

five overarching objectives apply to these Services, whereby the Services should provide a

solution that:

(a) reduces the cost of supply to Participants;

(b) continues to meet the business needs of Participants;

(c) contributes to a competitive and viable industry;

(d) results in fair, equitable and transparent processes; and

(e) optimises government savings through cost reductions, improved efficiencies

and promotion of behavioural change.

4.1 The Contractor must contribute to the whole of government objectives throughout the Deed

Period by:

(a) developing a strategic partnership with Finance to provide exceptional levels of service

to Participants, where issues are quickly identified and resolved;

(b) representing the Government’s interests when dealing with any parties in delivering the

Services;

(c) acting reasonably at all times to ensure successful delivery of the Services;

(d) maintaining open and effective communication with Finance and Participants;

(e) driving efficiencies in service delivery to support value for money to the Government;

(f) providing services that are consistent with the Government’s travel policies and

guidelines;

(g) pricing that maximise value for money for the Government; and

(h) opportunities for reducing travel costs and advice on cost-reduction strategies.


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5 Seamless service

5.1 The Contractor must work with Finance, Participants and the TMC to provide seamless

administration and delivery of the Services.

5.2 For Participants, the Contractor must provide:

(a) consistent, high level and high quality Services;

(b) proactive and timely responsiveness to needs, concerns or complaints raised with the

Contractor;

(c) support in meeting the travel needs of individual Participants, including Special Travel

Requirements; and

(d) timely, accurate and reliable reporting.

5.3 For Finance, the Contractor must provide:

(a) a single point of contact for day-to-day account management;

(b) a clear line of escalation to the Contractor’s senior executive to resolve issues if

necessary;

(c) timely, accurate and reliable reporting and data that meet Finance’s needs;

(d) a high quality service, whenever issues of concern or complaints are raised they are

responded to in a efficient manner; and

(e) opportunities for reducing travel costs and advice on cost-reduction strategies.

5.4 For the TMC, the Contractor must:

(a) make available, access to all current the Contractor’s current fares, including the Fares

in the Pricing Schedule at Schedule x through the most efficient distribution channel

nominated by the TMC and approved by Finance;

(b) work cooperatively with the TMC in achieving the Government’s objectives and

compliance with travel policies;

(c) work proactively with the TMC to ensure that tickets in credit are used before expiring;

(d) work proactively with the TMC to ensure that all ancillary services can be booked

through the TMC’s systems with no manual intervention required by the TMC;

(e) meet and liaise, acting reasonably at all times, with the TMC to resolve any persistent

issues; and

(f) provide the TMC with access to relevant Contractor personnel and regular updates on

the most current industry and product information.

6 Continuous improvement

6.1 The Contractor must identify, recommend and implement processes to improve the

effectiveness and efficiency of the Services that would benefit Participants either operationally

or financially, in particular by:

(a) identifying, communicating and implementing cost savings initiatives and strategies;

(b) providing training and education material, including product updates, to inform

Participants on an ongoing basis of the Services; and

(c) attending and presenting, from time to time, at events such as Finance’s travel forum.


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6.2 The Contractor must consider and implement where agreed by Finance, any suggestions or

recommendations it receives from Finance or any Participant in relation to improvements of

the Services. The Contractor must implement any improvements agreed by Finance and the

Contractor as soon as practicable.

Air Travel Services to Participants

7 Overview

7.1 The Contractor must provide Air Travel Services to the Participant. This includes the provision

of:

(a) Australian Domestic and/or International Air Travel Services;

(b) a variety of competitive fares classes;

(c) cabin classes that include First Class, Business Class, Premium Economy and

Economy, where available;

(d) efficient check-in and baggage collection services;

(e) efficient ticketing systems enabling the TMC to amend and cancel Bookings; and

(f) assistance with Special Travel Requirements.

Explanatory note: More information about the current airline panel arrangement is available

at: http://www.finance.gov.au/procurement/travel-and-related-services

8 Compliance with travel policies

8.1 The Contractor must support Participants to comply with Government policy by:

(a) understanding the Lowest Practical Fare (LPF) policy for official Domestic travel;

(b) understanding the Best Fare of the Day (BFD) policy for official International travel;

(c) working cooperatively with Finance and the TMC in achieving the Government’s

objectives and travel policy compliance; and

(d) monitoring and reporting any non compliance with the LPF and BFD policies.

8.2 The LPF and BFD policies are available at http://www.finance.gov.au/procurement/travel-and-

related-services/travel-policies.html

8.3 The Contractor must support Participants to comply with entity specific travel policies where

these are not inconsistent with the LPF and BFD policies.

http://www.finance.gov.au/procurement/travel-and-related-services

http://www.finance.gov.au/procurement/travel-and-related-services/travel-policies.html

http://www.finance.gov.au/procurement/travel-and-related-services/travel-policies.html


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9 Loyalty Reward Programmes

Explanatory note: Finance’s objective in relation to loyalty reward programmes is that a traveller’s choice is not influenced by the benefits associated with the accrual of loyalty reward points and status recognition.

Currently, Government policy does not allow Travellers to accrue Loyalty Reward Points through membership of Loyalty Reward Programmes when travelling on official business. The Contractor may award or record, as part of the Traveller's profile, status credits to Travellers in respect to their official travel.

Current panel airlines assist Travellers to comply with this policy by:

(a) suppressing Loyalty Reward Points (with no intervention required by the TMC), in

relation to official travel;

(b) working with the TMC in the management of Loyalty Reward Points;

(c) working cooperatively with the TMC to ensure that the necessary steps are taken

to ensure that Loyalty Reward Points are not allocated;

(d) if notified, or if a panel airline becomes aware, that Loyalty Reward Points have

been awarded to a Traveller; they work with the TMC to remove these points; and

(e) reporting to Finance on any non compliance with the awarding of any Loyalty

Reward Points.

Organisations are invited to provide information about meeting this objective and any opportunities, current or emerging technologies and systems that are available to enable loyalty reward points to accrue and be used at a Government department/agency level.

10 Fares

Explanatory note: Finance requires a variety of fares that include:

(a) Domestic and International fixed price route deal fares for the top volume city pairs

with Point of Sale (PoS) discounts across other fare classes.

(b) Point of origin (offline) - discounted pricing for Government travel that

encompasses ex Australia trips, including: internal Country / Regional travel,

inbound travel - departure outside of Australia to arrive in Australia.

(c) Flexible and highly advantageous fare conditions that include (but not limited to):

no ticketing time limits, last seat availability, greater standard baggage allowances,

flexible fares with no change or cancellation fees, and transferability (name

changes).

10.1 The Contractor must offer highly competitive Fares that are its best available in the market,

and provide flexible and advantageous Fare Conditions for the Government.

10.2 The Contractor must offer, where applicable, the following Fares:

(a) Domestic;

(b) International (ex Australia); and

(c) Point of Origin (flights that do not originate in Australia) which include:

i. country to country

ii. International internal domestic flights


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iii. flights departing from outside of Australia to return to Australia.

10.3 The Contractor must ensure that all air fare types offered to the market, including contracted

fares offered to the Government are made available through the most efficient distribution

system nominated by the TMC and agreed by Finance.

10.4 The Contractor must ensure that the loading of all air fare types offered to the Government,

including contracted fares, allow for a high degree of process automation (e.g. automation of

reissues and refunds).

10.5 The Contract must ensure that all Fares and inventory are loaded accurately in the TMC’s

systems and represent the actual services provided on the aircraft allocated for a flight.

10.6 Finance may undertake regular benchmarking of fares to ensure they loaded accurately in the

TMC’s systems and are highly competitive.

11 Fare conditions

Explanatory note: Finance is looking for fare conditions that provide efficiencies and savings to Travellers and the Government.

Organisations are invited to propose any fare conditions, in addition to those described in paragraph 11.1 that may provide efficiencies and savings.

11.1 The Contractor must offer advantageous Fare Conditions that may include:

(a) increased baggage allowances;

(b) flexibility to amend or cancel bookings with minimal or no financial impact; and

(c) flexible, or no ticketing time limits with ticketing time limits remaining fixed at the time

of booking.

12 Ticketing

12.1 The Contractor must provide efficient ticketing systems that include:

(a) the ability to hold bookings, pending final confirmation and approval of the Traveller’s

itinerary;

(b) automated process for booking additional baggage, through the TMC’s OBT;

(c) clear notification of ticketing time limits; and

(d) automated suppression of loyalty reward points.

12.2 The Contractor will work with Finance, Participants and the TMC to ensure that there are no

financial losses or unnecessary costs are incurred as a result of travel changes, including:

(a) the placement of tickets (including partial tickets) in credit to be used as determined

by the Participant and

(b) efficient processing of refunds.


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13 Customer service

Explanatory note: The objective of customer service is to meet the business needs of Government Travellers. Finance is interested in gaining a better understanding of any cost implications with providing the services described in this paragraph 13.

13.1 The Contractor must manage and communicate information to Travellers and the TMC,

including notification of:

(a) cancellations and delays, offering alternative arrangements as required;

(b) flight changes;

(c) departure gate changes;

(d) reimbursement of costs due to delays that result in missed connections; and

(e) when the Traveller is required to transfer to another carrier to complete the Trip.

13.2 The Contractor must use its best endeavours to ensure that Government Travellers are not

inconvenienced due to flight changes including disruptions regardless of their status with the

airline or its Airline Partners.

13.3 The Contractor must provide Travellers with an efficient check in service including, where

available:

(a) priority check in;

(b) electronic check in e.g. internet and mobile;

(c) self service kiosks;

(d) airport check in desks;

(e) group check in; and

(f) assistance with Special Travel Requirements.

13.4 The Contractor must provide travellers with efficient baggage services, where available, which

include:

(a) priority baggage

(b) access to services at airport counter check in;

(c) self serve bag drop facilities at check in;

(d) oversized baggage and excess baggage;

(e) assistance with Special Travel Requirements;

(f) efficient delivery of baggage for collection by the Traveller.

13.5 Travellers with the appropriate status level or ticket conditions are to be provided with access

to the Contractor’s airport lounges, where these facilities are available at a particular airport.


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Special Travel Requirements

Explanatory note: Finance is interested in gaining a better understanding of any cost implications and the effect these may have on Fares in providing the Special Travel Requirements described in this section.

14 VIP services

14.1 The Contractor will provide assistance to VIP Travellers, including:

(a) a liaison officer to assist VIP Traveller at the airport;

(b) priority check-in and baggage facilities at airports;

(c) limousine transfer services, where applicable,

(d) identification, for the duration of the Trip, that the traveller is a VIP including advising

Airline Partners and where possible, Other Airlines.

15 Children and other vulnerable people

15.1 Where a Booking has been made for a child or another Vulnerable Person and a Participant or

the TMC has advised the Contractor that the booking involves a child or another Vulnerable

Person, the Contractor must comply with clause x of the Deed.

15.2 The Contractor, in providing the Services, must provide duty of care to children and other

Vulnerable Persons.

16 Special Needs

16.1 The Contractor must provide support and services to assist Travellers that have Special

Needs, including assistance in boarding flights, in-flight care, arrival and disembarking at

destination including baggage transfer and collection.

17 Other special requirements

17.1 The Contractor must assist Participants, through the TMC, with Bookings for Special Travel

Requirements, including:

(a) transport of dangerous goods (e.g. firearms/hand cuffs/chemicals);

(b) group travel;

(c) transport of prisoners, witnesses, or asylum seekers;

(d) secure hand delivery of goods;

(e) unaccompanied baggage/small freight;

(f) transport of plants and animals e.g. dogs; and

(g) disability and elderly support services.

18 Emergencies

18.1 In the event of any emergency, the Contractor must support the Traveller, TMC, Participant

and the Traveller’s family with assistance to ensure that all concerns and/or queries are

responded to in an efficient and effective manner.

18.2 The Contractor must inform Finance, as soon as practicable, of any emergencies and the

action being taken to resolve or manage the situation.

18.3 The Contractor must manage and provide, as required:


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(a) assistance to the Traveller and where necessary expedited repatriation services;

(b) respond to enquiries from the Participant, TMC, Finance, or other Commonwealth

entity where relevant;

(c) respond to enquiries from the Traveller’s family;

(d) in-flight, in-terminal or en-route emergency assistance; and/or

(e) arrangements with other carriers to offer streamlined support services to Travellers, including flight change assistance.

18.4 For international emergencies, the Contractor must cooperate with the Commonwealth’s

contracted service provider, currently International SOS (ISOS), who provides overseas

medical and travel assistance to subscribing entities.

19 Marketing and traveller incentives

19.1 The Contractor must not send any direct or electronic marketing material to Travellers,

including promotional offers linked to Loyalty Reward Programmes, without approval from

Finance and/or the relevant entity’s travel manager.

19.2 The Contractor must not offer Participants booking incentives such as flight upgrades or the

opportunity to bid for flight upgrades.

20 Carbon emissions

20.1 On request from Finance, the Contractor must report on the impact of the Government’s travel

on the environment, in terms of carbon emissions.

20.2 Where available, and as required, the Contractor must:

(a) provide and implement a process that reports and tracks the level of carbon

emissions as a result of the impact of air travel costs; and

(b) recommend an offset program that may be applied and offset at point of ticketing that

enables the reduction of carbon emission impacts.

21 Technology

Explanatory note: Finance’s objective is to utilise technology to be more efficient.

Organisations are invited to advise if there are any limitations in providing the technology described in this document and to propose any other innovations to assist the Government in meeting its objectives.

Finance is also interested in gaining a better understanding of any cost implications in providing this and any new technology.

21.1 The Contractor is required to use and maintain up to date technology to support Services

provided to Participants, including:

(a) electronic check in;

(b) electronic baggage tags;

(c) baggage tracking;

(d) mobile phone/tablet applications; and

(e) passenger notification of flight changes and disruptions, including through SMS.


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21.2 The Contractor must support the technology provided by the TMC by making all Fares and

ancillary services available on the TMC’s GDS and OBT.

22 Value add services

Explanatory note: Finance objective is to receive the best possible services for Government Travellers that represent value for money and meet their business requirements.

Organisations are invited to provide information about any additional services it will offer as

part of its value proposition to the Government. These services may include:

complimentary access to airport lounges

priority check in and seating

complimentary extra leg room

complimentary pre-selected seating

priority baggage collection

no ticketing time limits

market share and/ or revenue rebates

tiered discount structure

ticket funds

greater standard baggage allowance

discounted excess baggage

complimentary stopovers/ side trip

last seat availability

complimentary airport transfers and limousine services

other incentives.

Management Services to Finance

Contract and Account Management

Explanatory note: Finance’s objective is to develop a strategic relationship with the panel airlines to provide an exceptional level of service to Finance and Participants.

Finance is interested in gaining a better understanding of any limitations associated with

providing the Management Services to Finance and any cost implications with providing

these services.

23 Liaison and meetings

23.1 The Contractor must liaise with, and provide information to Finance, as required throughout

the Deed Period.

23.2 During the Deed Period, the Contractor’s senior management team and Finance will have

contract management meetings. Tier 1 airlines will meet with Finance, not less than two times

a year and Tier 2 airlines will meet with Finance not less than once a year.


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23.3 The meetings will take place at a time and location (or via the use of technology such as

teleconferencing or videoconferencing) to be agreed between Finance and the Contractor and

will review matters including:

(a) the level to which the Contractor is meeting its obligations under the Service Levels

set out in Schedule x;

(b) the extent to which the Contractor, in delivering the Services, is contributing to the

objectives outlined in clause x of this Schedule 1, and meeting the requirements of

this Deed;

(c) the extent and effectiveness of the Contractor in satisfying its obligations to work and

cooperate with the TMC;

(d) any unresolved complaints or issues by Finance or Participants, any other incidents,

feedback or solutions, and the efforts of the Contractor to resolve those unresolved

complaints or issues; the identification of opportunities to achieve cost efficiencies in

the delivery of the Services;

(e) any new, or changes to, products and services or industry developments that may

impact on the Services (where this is not inconsistent with the Deed); and

(f) any issues relating to the Deed

23.4 Finance may, at its discretion, vary the frequency and content of the contract management

meetings.

23.5 At least 15 Business Days prior to the contract management meetings, unless otherwise

agreed by Finance, the Contractor must provide Finance the reporting set out in Appendix

One: Reporting and data specifications.

24 Escalation of issues to Finance

24.1 Where the Contractor is unable to resolve a complaint or operational matter with a Participant

in accordance with paragraph 29 of this Schedule 1, the Contractor, or the Participant, may

request that Finance intervenes to assist in resolving the issue.

24.2 Where escalation has been requested, Finance will liaise with the Contractor and the

Participant to assist in the resolution of the issue(s) raised and may request supporting

evidence and documentation. In doing so, Finance will have appropriate regard to any issues

or concerns raised by the Contractor and the Participant.

24.3 Where Finance raises concerns about the quality or application of the Services under this

Deed, the Contractor must take the appropriate actions to resolve these concerns to the

satisfaction of Finance.

24.4 Where an issue cannot be resolved by Finance and the Contractor, the procedures in clause x

of the Deed are to be followed.

25 Participant satisfaction survey

25.1 Finance may undertake Participant satisfaction surveys to assess the Contractor's products

and services under the Deed.

25.2 As directed by Finance, the Contractor may be required to provide information to Finance in

the preparation of these surveys.

25.3 Finance may share the results of Participant satisfaction surveys with Participants.


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25.4 The Contractor may undertake its own survey of Participants in relation to the Services. These

surveys must be approved by Finance prior to release and any survey data must be shared

with Finance in full.

Information Management

26 Business continuity

Explanatory note: Finance’s objective is to minimise any disruptions to services for Government Travellers.

26.1 The Contractor must have a Business Continuity Plan, which minimises the disruption of

Services to Finance and Participants in the event of a disaster or critical event.

26.2 The Contractor must put in place measures to ensure all information is accessible and

recoverable through an appropriately developed Business Continuity Plan, which minimises

the disruption of Services to Finance and the Participants.

26.3 The Contractor’s Business Continuity Plan should be regularly reviewed, at periods not greater

than six months, to ensure it is current and up to date with any changes the Contractor has

made to their infrastructure.

26.4 The Contractor must undertake regular formal testing of its business continuity processes.

Evidence of this testing must be provided to Finance on request.

26.5 The Contractor must backup information systems on a daily basis, without disruption to the

Services.

27 Security of information

Explanatory note: Finance’s objective is to ensure that all Traveller profile and payment information is kept secure at all times.

27.1 The Contractor must ensure that all information contained in a Booking is held and managed

in a secure environment to protect against fraudulent transactions or improper use.

27.2 The Contractor is to report any fraudulent transactions, improper use of data or security

breach incidents to Finance and any affected Participant immediately upon identification.

27.3 The Contractor is to comply with the Australian Privacy Principles in relation to the collection,

storage and transmission of personal information that is captured about the Traveller.

27.4 The Contractor must ensure that any person, whether an employee or subcontractor, engaged

in the management of this Deed or the performance of Services only has access to the data

that is reasonably required for the performance of that person’s responsibilities.

http://www.oaic.gov.au/privacy/privacy-act/australian-privacy-principles


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Management Services to Participants

Explanatory note: Finance is interested in gaining a better understanding of any limitations associated with providing the Management Services to Participants and any cost implications with providing these services.

Account Management

28 Liaison and meetings

28.1 The Account Manager must meet with a Participant, at times and dates as reasonably

required by the Participant, to address any issues, complaints and specific requirements that a

Participant may have (that are not inconsistent with the Deed).

29 Operational issues resolution – Participants

29.1 The Contractor must manage complaints and issues raised by Participants. The Contractor

must use its best endeavours to resolve all service complaints or issues raised by a

Participant using the following procedures:

(a) complaints or issues are logged by the Contractor

(b) complaints or issues are acknowledged by the Contractor with an initial response and

where possible a resolution provided within one Business Day

(c) if a resolution is not available within one Business Day, the Contractor must advise

the Participant in the initial response when a resolution will be provided. The

Contractor must resolve complaints or issues in less than three Business Days

(d) if a resolution is not available within three Business Days, the Contractor and the Participant must agree on a resolution schedule. If the Participant’s complaint is not resolved within the agreed timeframe the complaint will be escalated to Finance.

29.2 Where the Contractor is unable to resolve a complaint or issue with a Participant, the

Contractor, or the Participant, may request that Finance intervenes to assist in resolution.

29.3 The Contractor must maintain a register of complaints and issues resolved and provide this

register to Finance and Participants as requested.


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Appendix 1 – Reporting Specifications

Explanatory note:

This Appendix 1 has been provided to give organisations a general understanding of the type of information required by Finance and Participants at various times throughout the Deed.

The intention is for the Contractor to provide maximum detail and transparency in reporting and underlying data.

Subject to any revisions agreed with successful Tenderers, the data and reporting requirements set out below will be incorporated as an appendix to Schedule 1 of the Deed.

The information provided in this Appendix 1 is not intended to be a complete or definitive list and Finance may add, remove or change the reporting and data specifications and requirements at any time, or based on Tenderers responses.

1 Overview of the reporting specifications

1.1 The Contractor is required to provide regular, detailed and accurate reporting and data as part

of the Management Services to Finance and Participants to provide maximum detail and

transparency of the Travel Services ordered during the Deed Period.

1.2 The purpose of this Appendix 1 is to outline the reporting requirements agreed between the

Commonwealth, as represented by Finance, and the Contractor responsible for the provision

of the Services.

2 Reporting Requirements – Finance

Explanatory note:

The reporting requirements are currently drafted as an indication of the reporting requirements, but are not intended to be a complete or exhaustive list.

The final reporting requirements will be agreed with successful Tenderers based on the sophistication and functionality of their business intelligence reporting.

2.1 The Contractor must provide the following reports to Finance for the purpose of discussion

and analysis at the contract management meetings:

Contract Management Report

2.2 To provide Finance with information about the air travel expenditure and trip volume made

during each month by the Participants. The report is to include, at a minimum:

(a) Air Travel Volume – an outline of the volume of travel split by domestic and international travel and including the following:

i. volume of air travel (by Sectors);

ii. volume of other services

(b) Air Travel Expenditure – an outline of the travel expenditure, split by domestic and international travel and separating:

i. the total base fares;

ii. the total taxes (include the total GST component separate from other tax components for domestic travel);


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iii. the total expenses of ancillary and additional charges (e.g. excess baggage);

iv. the total supplier change fees; and

v. the total merchant fees,

(c) Contracted Fare Usage – an outline of the expenditure and volume of contracted and non-contracted fares, split by domestic and international travel.

(d) Cabin Usage – an outline of the expenditure and volume of airline cabin usage, split by domestic and international travel, including the following:

i. First class

ii. Discount First class

iii. Business class

iv. Discount Business class

v. Premium Economy class

vi. Discount Premium Economy class

vii. Economy

viii. Discount Economy

(e) Fare class (Fare Code) Usage – an outline of the expenditure and volume per fare class, split by domestic and international travel.

(f) Destinations (Top City Pairs) – a breakdown of the volume (by sectors), expenditure and cabin class of air travel highlighting the top 50 city pairs domestically and top 50 city pairs internationally for the Participant.

(g) Destinations (Regions) – a breakdown of the volume (by sectors), expenditure and cabin class of air travel of the international cities, countries and regions travelled to by Participants.

(h) Savings (Contracted Rates) – a breakdown of the savings achieved by using the contracted fares in comparison to:

i. published fares

ii. fares purchased.

(i) Kilometres travelled - a breakdown of the kilometres travelled overall and per region per cabin class at the WoAG level and for Participant.

(j) Combined reporting – where requested by Finance, the Contractor will combine one or more of the above reports to create larger snapshots (e.g. quarterly statistics). In addition, it may be acceptable if a Contractor’s current standard reporting has a number of the above reporting categories combined with other categories (e.g. savings contracted rates reporting may be combined with the destinations – top city pairs reporting category).

(k) Benchmarking – where requested, the Contractor will provide a comparison of the information outlined above to:

i. the current financial year to date statistics and totals; and/or

ii. the same month in a previous financial year, after 1 July 2016.

(l) Breakdown by Participant – where requested, the Contractor will provide a further breakdown of the information outlined above by Participant.


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On Time Performance Report

2.3 To provide Finance with analysis of the domestic and international on time performance of the

Contractor, where possible through the Bureau of Infrastructure, Transport and Regional

Economics (BITRE), including :

(a) On-Time Flight Performance - overall, and across nominated routes;

i. for the previous 12 months (on a quarterly basis), the % of flights on time;

ii. for the previous 12 months (on a quarterly basis), the % of flights delayed more than 15 minutes (departure point);

iii. for the previous 12 months (on a quarterly basis), the % of flights delayed more than 15 minutes (arrival point);

(b) Cancelled Flights - overall, and across nominated routes;

i. for the previous 12 months (on a quarterly basis), the % of flights cancelled within five hours of departure; and

ii. for the last 12 months (on a quarterly basis), the % of flights cancelled within two hours of departure.

Complaints and Compliments Report

2.4 To provide Finance with a log/register of complaints and compliments made by Travel Bookers

and Travellers, including:

(a) date and time the complaint or compliment was made;

(b) a general description of the complaint or compliment;

(c) detail of any action taken by the Contractor in response to the complaint or compliment;

(d) date and time the complaint or compliment was responded to by the Contractor;

(e) if a complaint, an outline of whether or not the party making the complaint was satisfied with the response provided; and

(f) breakdown of Contractor compared to third party supplier complaints or

complements.

Loyalty Reward Programme Suppression Compliance Report

2.5 To provide Finance with details of the Contractor’s compliance with the suppression of Loyalty

Reward Points. The Contractor must report to Finance if any Loyalty Reward point were

awarded to Travellers at the WoAG level and for each Participant. The report is to provide at

the WoAG level and at each Participant the minimum:

(a) the total number of Travellers who have been awarded points across WoAG;

(b) the total number of Travellers who have been awarded points per Participant;

(c) the reason/s for the awarding of these points;

(d) meditation steps to ensure the reason/s for the awarding of points will not reoccur; and


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(e) confirmation of the points awarded reported in the previous period have been cancelled or removed from the Travellers account.

Upgrades Report

2.6 To provide Finance with details of any upgrades offered to Travellers at the WoAG level and

for each Participant and the reasons why the upgrade was provided.

Sales Calls / Support Report

2.7 To provide Finance with information about the level of promotion and support the Contractor is

providing to Finance and Participants in relation to the Services including:

(a) number of face to face meetings other communications (e.g. phone calls,

teleconferences, webex) with Finance and Participants, including:

i. list of Participants

ii. type of communication

iii. short description of reason for meeting

iv. provide any overall issues or major feedback that came from these meetings.

(b) number of face to face meeting and other communications (e.g. phone calls,

teleconferences, webex) with other air travel stakeholders (e.g. TMC, Travel Card

provider), including:

i. list of Participants

ii. type of communication

iii. short description of reason for meeting

iv. provide any overall issues or major feedback that came from these meetings.

3 Reporting Requirements – Participants

Explanatory note:

The reporting requirements are currently drafted as an indication of the reporting requirements for Participants, but are not intended to be a complete or exhaustive list.

The final reporting requirements will be agreed with the successful Tenderers based on the sophistication and functionality of their business intelligence reporting.

3.1 The Contractor must provide reporting to Participants, as detailed in section 2, for the purpose

of discussion and analysis at Participant meetings.

3.2 This reporting will only include the Participant’s data, unless authorised by Finance.

4 Ad Hoc Reporting

4.1 The Contractor is to provide ad hoc reporting and data, including fares and pricing, where

requested by Finance or Participants, to assist with additional requests for information.

4.2 Ad hoc reporting and data will be provided within three Business Days of the Contractor

receiving a written request for ad hoc reporting and data from Finance or Participants.


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Appendix 2 – Glossary

Explanatory note: The definitions in the glossary are provided for the purpose of clarity and are in

additional to any definitions that may be included in the RFT and draft Deed.

Definitions:

Term/abbreviation Meaning

Airline Partners Airlines affiliated with the Contractor through either an alliance, code share

arrangement or other partnership.

Air Travel Services Refer to clause x of the SOR

Australian Government The Commonwealth of Australia and where the context permits, the

Australian Federal Government.

Booking The reservation of Air Travel Services with the Contractor for a Traveller.

Business Class As described in the pricing schedule at Attachment x.

Business Day A day that is not a Saturday, Sunday or public holiday in the in the Australian

Capital Territory.

Domestic Travel between the states and territories of Australia, excluding Australia’s

external territories.

Economy As described in the pricing schedule at Attachment x

Excess Baggage Baggage that exceeds the allowed limits for weight, size, or number of

pieces. Carriers usually charge extra for excess baggage and in some

cases, may have to ship it later rather than with the passenger.

Fares The fares contained in pricing schedule at Attachment x.

Finance Department of Finance, as the representative of the Commonwealth of

Australia.

First Class As described in the pricing schedule at Attachment x.

Note: Government policy currently restricts the use of First Class by a

Traveller.

Non-flexible As described in the pricing schedule at Attachment x.

Semi-flexible As described in the pricing schedule at Attachment x.

Fully-flexible As described in the pricing schedule at Attachment x.

Global Distributions

Systems or GDS

A computerised system containing information about schedules, availability,

fares and related services, through which reservations can be made and or

tickets issued.

International Travel outside of Australia (including Trans-Tasman Travel unless the

context requires otherwise).


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Loyalty Reward Points Any points allocated to a member of a loyalty reward programme.

Loyalty Reward

Programme

Any programme or scheme established by a person to award points, credits

or other benefits to a Traveller personally, including those forms of benefits

which may be converted into other forms of benefits which may be utilised by

a Traveller personally.

Management Services The services described in clause x of the SOR.

Online Booking Tool or

OBT

An internet-based tool or system provided by a Participant’s Travel

Management Company.

Note: The OBT used by QBT (refer definition for Travel Management

Company) is Amadeus e-Travel Management. The OBT used by FCm Travel

Solutions is e3Lumina.

Other Airline An airline other than the Contractor that is providing air services to a

Traveller as part of a Trip, including Airline Partners.

Participants (a) Australian non-Corporate Commonwealth Entities subject to the

Public Governance, Performance and Accountability Act 2013;

(b) Australian Corporate Commonwealth Entities subject to the Public

Governance, Performance and Accountability Act 2013, which may

opt in to this whole-of-government arrangement with the agreement

of Finance;

(c) Ministers, Parliamentarians and their staff; and

(d) any other entities that Finance approves to participate in this whole-

of-government arrangement and which opt-in.

Premium Economy As described in the pricing schedule at Attachment XX

Point of Origin The city/airport that a flight departs from.

Point of Sale

Discounts

Fixed percentage discount off the Tenderer’s published fare.

Route Deals Fixed fares for a designated route

Services The services to be provided by the successful Tenderers selected in

accordance with this RFT.

Service Levels As described in Schedule x of the Deed.

Special Needs Any special needs required by a Traveller as indicated by the TMC or a

Traveller in a Booking e.g. wheelchair.

Special Travel

Requirements

As described in clause XX of the SOR.

Tier As described in clause XX of the SOR.


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Travel Management

Company or TMC

The service provider/s contracted to provide travel management services to

the Australian Government.

Note: From 1 July 2015, QBT will be the sole TMC for the Australian

Government with the exception of Ministerial and Parliamentary Services

whose current TMC is FCm Travel Solutions.

Traveller Any person, authorised by a Participant, for whom a Travel Booking has

been made.

Trip The complete journey, from the originating city/airport to the final destination,

which includes the return sector.

VIP The highest office holders within an entity (including authorised entities), as

determined by a Participant including Members of Parliament.

Vulnerable Person As defined by State or Territory legislation refer to clause XX of the draft

Deed.

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