Contract notice
Section I: Contracting
authority
I.1) Name and addresses
Post Office Limited
London
UK
E-mail: Procurement@postoffice.co.uk
NUTS: UKI
Internet address(es)
Main address: https://www.postoffice.co.uk/
I.3) Communication
The procurement documents are available for unrestricted and full direct access, free of charge at:
https://postoffice.wax-live.com/S2C/SignIn.aspx
Additional information can be obtained from the abovementioned address
Tenders or requests to participate must be sent electronically to:
https://postoffice.wax-live.com/S2C/SignIn.aspx
Tenders or requests to participate must be sent to the abovementioned address
I.4) Type of the contracting authority
Body governed by public law
I.5) Main activity
Other: Retail (Postal Services)
Section II: Object
II.1) Scope of the procurement
II.1.1) Title
Warehousing, Storage and Delivery Services
II.1.2) Main CPV code
63122000
II.1.3) Type of contract
Services
II.1.4) Short description
Warehouse Operation outsourcing opportunity. The Post Office are seeking interested organisations to participate in a restricted tender process to outsource the National Stock Centre (NSC) operation.
The Post Office are looking to award up to a 10 year contract.
II.1.5) Estimated total value
Value excluding VAT:
50 000 000.00
GBP
II.1.6) Information about lots
This contract is divided into lots:
No
II.2) Description
II.2.3) Place of performance
NUTS code:
UK
UK
II.2.4) Description of the procurement
The Post Office Ltd National Stock Centre (NSC) consists of two operations: Warehouse operations and Delivery Services. Warehouse operations includes forecasting, inventory planning and receiving SKUs from suppliers all the way up to delivery of transactional and value stock. Carriage management includes the dispatch of thousands of parcels a year from the stock centre to Post Office locations across the UK. The Post Office distributes stock to branches under an outsourcing arrangement and will continue doing so with a third party courier which will end in 2025/2026. It is anticipated that from the end of the existing outsourcing arrangement, the supplier will be required to undertake logistics services for the remainder of the duration of the contract.
In the last operational year the Post Office:
-Processes c.900,000 orders per annum through the warehouse.
-Delivers c.600,000 of these orders) through next day and 48 hour parcel delivery services to c.11,500 Post Offices nationwide in the UK.
-Warehouse holds 2400 SKUs, stores 4500 pallets and receives 16,500 pallets annually.
Post Office are seeking to outsource their National Stock Centre operations so that they can benefit in the following ways:
Cost
o Reduce operating costs to gain better visibility into the cost drivers.
o Benefits to changes in volume leading to cost change.
Service
o Post Office currently operates a legacy paper pick warehouse system and is looking to benefit from moving to a Vendor operating a modern warehouse software platform in order to improve pick accuracy.
Capability
o Post Office would like to move towards a newer WMS platform with increased functionality and streamlined processes.
o Post Office is looking to gain increased visibility of the order within the warehouse, with the ability to see when an order is received, picked, packed and shipped.
o Confirm exactly what orders and SKUs have been dispatched on which trailer, ensuring that there is full visibility on what exactly is being sent to which location.
Flexibility
o What Post Office would like to have by outsourcing their operation is to be able to take advantage of being able to flex their volumes at peak times, reducing it once the peak is over and also benefit from the associated cost flex that is in line with volumes.
II.2.5) Award criteria
Price is not the only award criterion and all criteria are stated only in the procurement documents
II.2.7) Duration of the contract, framework agreement or dynamic purchasing system
Duration in months: 120
This contract is subject to renewal: No
II.2.9) Information about the limits on the number of candidates to be invited
Envisaged number of candidates: 5
II.2.10) Information about variants
Variants will be accepted:
No
II.2.11) Information about options
Options:
No
II.2.13) Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds:
No
Section III: Legal, economic, financial and technical information
III.1) Conditions for participation
III.1.2) Economic and financial standing
Selection criteria as stated in the procurement documents
III.1.3) Technical and professional ability
Selection criteria as stated in the procurement documents
III.2) Conditions related to the contract
Section IV: Procedure
IV.1) Description
IV.1.1) Type of procedure
Restricted procedure
IV.1.8) Information about Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement:
No
IV.2) Administrative information
IV.2.2) Time limit for receipt of tenders or requests to participate
Date:
31/10/2022
IV.2.4) Languages in which tenders or requests to participate may be submitted
EN
Section VI: Complementary information
VI.1) Information about recurrence
This is a recurrent procurement:
No
VI.3) Additional information
Please use the link below to register on Post Office's Web3 portal in order to access the event for this Procurement.
https://postoffice.wax-live.com/S2C/SignIn.aspx
If you have any queries about registering please contact procurement@postoffice.co.uk
VI.4) Procedures for review
VI.4.1) Review body
Post Office Limited
London
UK
VI.5) Date of dispatch of this notice
30/09/2022