30 June 2010
Robert Whittaker
Freedom of Information Unit
2nd Floor
By Email: [email address]
Royal Mail Sheffield
Pond Street
Sheffield
S98 6HR
[Royal Mail Group request email]
www.royalmail.com
Dear Mr Whittaker
Re: Freedom of Information Act Request
I refer to your email dated 17 February 2010 and my subsequent email dated 3 June
2010. We have now had a chance to consider further the points raised by you in your
email.
In light of these and additional analysis by Royal Mail, I confirm that we are now able to
disclose the information requested in your email of 17 February. Please find attached
documents entitled as follows:
AMU costs 2008-9 [with redactions]
Revenue by Licence 2008-9
Out-sourced providers and services they provide
AMU IT costs 08/09 [with redactions]
AMU hardware and software
Description of the data supplied by third parties for use in PAF
Data supply
Staff costs by area
You will note that two of the documents are partially redacted. This information is being
withheld under section 43 of the Freedom of Information Act 2000 (FOIA) as disclosure
would be likely to prejudice the commercial interests of Royal Mail or a third party.
(i)
AMU costs 2008-9
The information redacted relates to the cost details of outsourced services. As
previously explained, following consultation with the providers of these services, Royal
Royal Mail Group Ltd is registered in England and Wales. Registered number 4138203. Registered office: 100 Victoria Embankment, London, EC4Y 0HQ.
© Royal Mail Group Ltd 2010 – Page 1 of 11
Cont…
Mail is satisfied that release of this information would be likely to prejudice their
commercial interests. The information would be of significant use to those third parties’
competitors when the terms on which the services were provided are re-negotiated by
AMU. I note that you accept this position in your email dated 17 February 2010.
(ii)
AMU IT costs 08/09
The redacted information relates to the costs of certain IT services. AMU is currently
reviewing these services in order to determine whether it would be more effective if
they were outsourced. If a decision is made to contract these services out, the release
of this information would be likely to distort any future tender exercise and affect the
competitiveness of bids. Potential contractors would gain a valuable advantage in
knowing the current pricing and costs details and could use this information to leverage
their position in negotiations with Royal Mail.
Section 43 is subject to the public interest test. Royal Mail understands that there may be
a level of public interest in the transparency of external contracts. However, there is also a
public interest in ensuring that Royal Mail is in a usual, competitive position for negotiating
contracts and in al owing normal market forces to operate. Royal Mail understands that its
contractors will be aware of its obligations under the FOIA and that information may be
made public as a result. However, the information in question is significant pricing
information, the release of which would be likely to disadvantage these contractors, which
may impact on the future interest of companies looking to bid for Royal Mail contracts. It is
clearly contrary to public interest if Royal Mail is not in a position to secure services at usual
competitive rates.
Further, as I have previously explained, the revenues and costs of PAF are subject to close
scrutiny both by the regulator, Postcomm, and the PAF Advisory Board. The existence of
both these bodies satisfies the public interest in ensuring that the AMU complies with the
regulations which apply to this product. Royal Mail therefore believes on balance that the
greater public interest lies in withholding this information.
I hope you are satisfied with the information we have provided. I understand you have
made a formal complaint to the Information Commissioner’s Office in relation to this matter
following our delay in responding to you. I would be grateful if you would confirm to me
whether you intend to pursue your complaint in light of the information we have now
provided.
Royal Mail Group Ltd is registered in England and Wales. Registered number 4138203. Registered office: 100 Victoria Embankment, London, EC4Y 0HQ.
© Royal Mail Group Ltd 2010 – Page 2 of 11
Cont…
I look forward to hearing from you.
Yours sincerely
Colin Young
Freedom of Information Manager
Company Secretary's Office
Royal Mail Group Ltd is registered in England and Wales. Registered number 4138203. Registered office: 100 Victoria Embankment, London, EC4Y 0HQ.
© Royal Mail Group Ltd 2010 – Page 3 of 11
Cont…
Annex 1: AMU costs 2008/09
£k
Direct Costs
Staffing
1,267.20
Royal Mail UK Addresses CD
redacted
Royal Mail UK Addresses CD (New Supplier)
redacted
Licence Compliance (DQM)
redacted
Delivering the new licence
105
Agency fees
redacted
Marketing and Communications
18.1
Office Support
29.5
Travel and Subsistence (T&S)
99.1
Solutions Providers Database
redacted
Connect redacted
Addressing Consultancy
0
Revenue Modelling
redacted
PAF Quality
43.8
PAF Advisory Board (PAB)
28.3
Data Supply
redacted
Finance and Fulfilment
180
PH Desk & IT Desktop Charge
128
Legal Costs (External)
redacted
Legal Costs (Internal)
102.6
Postage 256.8
Training 17.2
Web Development
16.4
3,411.10
Customer Services Charge
Postcode Enquiry Line
424.3
PAF Maintenance (Doxford)
2,061.90
AMU Overhead Charge
64.3
2,550.50
Service Delivery Maintenance and Data Supply
RM Address Validation
11,154.10
Service Delivery Penalty
0
Customer Reported Query
17.6
RM Data Supply Redirection
111.8
RM Data Supply Siebel
4.4
RM Quality Mailing
88.7
PAF Related Census
89.3
11,465.90
Information Systems
PAF System Support Costs
4,567.50
4,567.50
Royal Mail Group Ltd is registered in England and Wales. Registered number 4138203. Registered office: 100 Victoria Embankment, London, EC4Y 0HQ.
© Royal Mail Group Ltd 2010 – Page 4 of 11
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Annex 2 Revenue by Licence for 2008/9 (current)
Licence type
Revenue
System £12.3m
Multi-system £2.9m
Users £7m
Clicks £1.1m
Corporate £0.8m
Data supply
£0.8m
Total £24.9m
Royal Mail Group Ltd is registered in England and Wales. Registered number 4138203. Registered office: 100 Victoria Embankment, London, EC4Y 0HQ.
© Royal Mail Group Ltd 2010 – Page 5 of 11
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Annex 3: Out-Sourced Providers and services they provide
DQM:
auditors (ie check returns etc from solutions providers)
Dawleys:
data management
Open:
marketing
services
Eulogy:
PR
Landmark: database
services
Bernard Hodes:
recruitment
BMS:
recruitment
Data Advance:
training
CSC:
hosting service for PAF and associated applications
Royal Mail Group Ltd is registered in England and Wales. Registered number 4138203. Registered office: 100 Victoria Embankment, London, EC4Y 0HQ.
© Royal Mail Group Ltd 2010 – Page 6 of 11
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Annex 4 - AMU IT costs 2008/09
Exc. Vat
Indicative Application expenditure
Total (£k)
Wintel (NT) Charges
Basis of cost al ocation
AMC H'line
0.0
AMN (redacted)
AMU Specific cost
PAF (NT) (redacted)
Postcodes On-line (redacted)
AMU Specific cost
Quick-Address Pro
23.5
AMU Specific cost
Postcodes online intranet (Replaces PAF above)
13.7
AMU Specific cost
Address Services (Replaces PAF above)
6.2
AMU Specific cost
UNIX Charges
PAF (redacted)
AMU Specific cost
RMGTT/PAF (redacted)
AMU Specific cost
Main Frame costs (redacted)
PAF (redacted)
AMU Specific cost
DR (redacted)
AMU Specific cost
ASSAM costs
PAF (redacted)
AMU Specific cost
Type 1 (redacted)
AMU Specific cost
Type 2 (redacted)
Total value of ARCFs raised
Postcodes On-line Intranet:
9.2
AMU Specific cost
Postcodes On-line Internet:(redacted)
AMU Specific cost
AMN: (redacted)
AMU Specific cost
AMC Helpline
Address Services (redacted)
AMU Specific cost
Quick Address Pro
4.4
AMU Specific cost
PAF Updates (redacted)
AMU Specific cost
AMC Online
6.9
AMU Specific cost
EAIS
PAF
35.7
AMU Specific cost
I*Net - Storage
AMC (redacted)
AMU Specific cost
Postcodes online (redacted)
AMU Specific cost
I*Net - Traffic
PAF updates (redacted)
AMU Specific cost
Postcodes online (redacted)
AMU Specific cost
AMC (redacted)
AMU Specific cost
Postcode online finder app
Cost to serve postcode finder pages (redacted)
Usage
Apportionment
Address Finder
435.8
Usage
Apportionment
PAF Product Media Production
219.8
AMU Specific cost
Ebusiness Management Services (redacted)
Overhead
apportionment
Helpdesk, XFS, Security etc proportion of costs
620.7
Overhead
apportionment
Royal Mail Group Ltd is registered in England and Wales. Registered number 4138203. Registered office: 100 Victoria Embankment, London, EC4Y 0HQ.
© Royal Mail Group Ltd 2010 – Page 7 of 11
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Annex 5
AMU hardware and software
Total Staff in Post
32
Vacant post
1
Test Machine
1
Total PCs (including Laptops)
34
Hardware/Software
Number of Users
Laptop 19
Desktop 15
Printer 6
Lotus Notes
33
Windows 33
Adobe Acrobat Professional
2
Adobe Acrobat Reader
33
Internet 33
Eicon Aviva
23
ESFS 9
Action/Request/System (Remedy User)
1
MS Visio
3
Citrix 31
Checkpoint/Pointsec 19
Respond 3
6
UK Adds
17
Symantec 33
Access
10
E-Learning 7
Brother Printer Driver
6
Omniture 1
AS400 6
ATG Control Centre 6
1
Adobe Photoshop 6.0
33
Terminal Services Client for CRS (AMN)
4
Autoroute 2
Siebel 1
Microsoft Project
1
Odyssey 5
Cisco Systems VPN Client
19
Microsoft Outlook 8
1
Microsoft Office Live Meeting 2007 (Webex)
33
Microsoft Office Communicator 2007 R2 (live messenger)
33
Royal Mail Group Ltd is registered in England and Wales. Registered number 4138203. Registered office: 100 Victoria Embankment, London, EC4Y 0HQ.
© Royal Mail Group Ltd 2010 – Page 8 of 11
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Annex 6: Description of the data supplied by third parties for use in PAF
Third party
Description of data supplied
Local authorities in England, Wales and NI
Details of planned new build properties, house
name changes, street name changes (data
which is collated ancillary to the Local
Authorities’ statutory duties)
General Register Office for Scotland
Details of planned new build properties,
addresses not on PAF for checking
Land & Property Services NI
General address queries e.g. address not on
PAF, address on PAF but not yet built,
duplicate addresses for checking (e.g. if house
name and number so appears as two
addresses but in reality is one)
Land Registry
General address queries (as above)
Environment Agency
General address queries (as above)
Local health authorities
General address queries (as above)
Ordnance Survey
General address queries, multiple residence
addresses, duplicate addresses, addresses
incorrectly held on PAF, addresses OS believe
have been demolished but are held on PAF
Office of National Statistics
General address queries (as above) (related to
Census)
TV Licensing
General address queries – addresses not on
PAF or addresses they can’t find e.g. not
delivery points e.g. tv in a officers’ mess but
delivery point only at front office
BBC/Capita
As with TV Licensing
SAGA
General address queries (as above)
London Society of Chartered Accountants
General address queries (as above)
Sainsburys PLC
General address queries (as above)
Pharmacy 4U
General address queries (as above)
Centrica
General address queries (as above)
Customers
General address queries (as above)
Note: Royal Mail receives a lot of 'general' queries where people can't find an address on PAF either
because it has been missed or more often because the file they are using is out of date and needs
to be refreshed.
Royal Mail Group Ltd is registered in England and Wales. Registered number 4138203. Registered office: 100 Victoria Embankment, London, EC4Y 0HQ.
© Royal Mail Group Ltd 2010 – Page 9 of 11
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Annex 7: Data supply
New wording
Question: Is data supplied under contract and/or in return for any payment?
Answer: Some data is supplied under contract and some is supplied voluntarily. On certain
occasions Royal Mail makes contractual payments, sometimes goodwill contributions to
costs and sometimes no payments at all. Royal Mail is looking to formalise all relationships
going forward.
NOTE: PLEASE SEE BELOW FOR PREVIOUS WORDING FOR COMPARISON
Question: Is data supplied (i) under contract and (ii) for payment?
Answer: For the most part the address queries received by Royal Mail are dealt with as a general
customer query and there is no contract or financial arrangement in place with the supplier.
For the Census work for ONS and a smal piece of work with GROS, Royal Mail has been
paid for the address checking it has undertaken and for ONS this was under a legal
agreement. Royal Mail is looking to introduce contracted work with its major address
suppliers, i.e. those that submit more than 10,000 queries annual y, but to date no formal
arrangements have been established and no money has changed hands. With the Local
Authorities Royal Mail makes a goodwill payment for each address that they provide. This is
not done under contract.
Royal Mail Group Ltd is registered in England and Wales. Registered number 4138203. Registered office: 100 Victoria Embankment, London, EC4Y 0HQ.
© Royal Mail Group Ltd 2010 – Page 10 of 11
Cont…
Annex 8: Staff costs by area (expressed in percentage)
Address maintenance - £2.55m
%
1 Updating
addresses
84.90%
2 Managing the postcode enquiry line
15.10%
100.00%
Address management - £1.27m
%
3 Customer
relationship
management
13.03%
4 Marketing
17.96%
5 Customer
services
14.65%
6 Finance
8.22%
7 Licensing
11.37%
8 Quality
control
25.73%
9 Hd of AMU & support
9.04%
100.00%
Royal Mail Group Ltd is registered in England and Wales. Registered number 4138203. Registered office: 100 Victoria Embankment, London, EC4Y 0HQ.
© Royal Mail Group Ltd 2010 – Page 11 of 11
