TR5396 - SaaS Invoice Processing Software Solution

AI-generated analysis of the documents. Check the official notice and any amendments for current submission details.

1. At a glance

2. Scope of Work

The Electricity Supply Board (ESB) seeks a Software-as-a-Service (SaaS) solution to automate invoice capture, validation, processing, and workflow management for supplier invoices. The solution must support a minimum annual volume of approximately 140,000 invoice-related documents, including an estimated 120,000 supplier invoices.

Key functionalities required include:

• Invoice Ingestion: Support for multiple methods, including e-Invoicing, scanned documents, and email submissions.
• Automated Data Capture: Utilisation of Optical Character Recognition (OCR) and Artificial Intelligence/Machine Learning (AI/ML) for accurate data extraction.
• Document Management: Identification and exclusion of non-invoice documents and duplicates.
• Invoice Matching: Automated matching against purchase orders and goods receipts, including two-way and three-way matching, with discrepancy management.
• Approval Workflows: Configurable workflows for non-PO invoices, supporting parallel and sequential approvals, and management via a pre-approved PO Vendor Exemption table.
• Tax Treatment: Functionality to determine and apply tax treatments such as VAT, RCT, and PSWT.
• Cost Allocation: Automated or pre-determined assignment of Cost Objects and General Ledger (G/L) Accounts for accurate financial posting.
• One-Time Vendor Processing: Specific workflow for processing invoices from one-time vendors, including capture of details and transfer to the ERP system.
• ERP Integration: Real-time integration with ESB's on-premise SAP S/4HANA 2023 system for seamless data synchronisation.
• Supplier Portal: A self-service portal for vendors to track invoice status.
• Security: Robust security controls, including role-based access, secure user authentication, and segregation of duties.
• Reporting & Analytics: Dashboard reporting for real-time visibility into invoice processing activity and performance analytics.
• Audit & Compliance: Comprehensive audit trail logging all actions, approvals, and system events, enforcing segregation of duties, and supporting fraud detection and audit requirements.
• Implementation Services: User training, solution configuration, and integration support.
• Customer Support: Ongoing 24/7 customer support via phone, email, live chat, and a ticketing system.
• Document Storage: Secure storage and retrieval of invoices and supporting documents.
• Data Hosting: All Personal Data must be hosted exclusively within the European Economic Area (EEA) or an EU-approved country with an adequacy decision.

3. Background & buyer context

The Electricity Supply Board (ESB) is a statutory corporation established in 1927, majority-owned by the Irish Government. ESB operates across the electricity market, including generation, transmission, and supply, with a regulated asset base of approximately €12 billion. The procurement aligns with ESB's strategy, "Driven to Make a Difference: Achieving Net Zero by 2040," which prioritises sustainability and leadership in the transition to a net-zero future. ESB seeks procurements with positive environmental, social, and economic impacts, aligning with ISO 20400 Sustainable Procurement standards and its Sustainability Leadership Plan. ESB is also a founding member of the Irish Supply Chain Sustainability School. This tender aims to modernise and automate invoice processing to enhance efficiency and compliance.

4. Eligibility & selection criteria

To be considered for this tender, applicants must meet the following minimum requirements. Failure to meet any of these pass/fail criteria will result in disqualification.

• Turnover requirement:
• For a single applicant with no entities being relied upon for financial resources: Average annual turnover of a minimum of €396,000 (excluding VAT) over the two previous financial years.
• For applicants relying on other entities for financial resources (including consortia): The combined or consolidated average turnover of the applicant and any relied-upon entity must be a minimum of €396,000 (excluding VAT) over the two previous financial years. For consortia, this minimum applies to each applicant member and the consortium as a whole.
• Insurance:
• Public/Products Liability Insurance: Minimum indemnity limit of €6.5 million per claim, and in aggregate for Products Liability.
• Employer's Liability Insurance: Minimum indemnity limit of €13 million per claim.
• Professional Indemnity Insurance: Minimum indemnity limit of €1 million per claim and in the annual aggregate.
• Cyber Liability Insurance: Minimum indemnity limit of €1 million per claim and in the annual aggregate.
• Applicants must provide statements from insurers confirming current or willingness to provide the required minimum levels of cover.
• Certifications:
• Compliance with EN ISO 9001 or equivalent (certification to be attached if applicable).
• Operation to a recognised information security standard such as ISO 27001 or equivalent (certification to be attached if applicable).
• Past experience: Not specified for this tender.
• Personnel: Not specified for this tender.
• Geographic / facility constraints: Personal Data must be hosted exclusively within the European Economic Area (EEA) or an EU-approved country with an adequacy decision.

5. Award criteria & scoring

The contract will be awarded on the basis of the Most Economically Advantageous Tender (MEAT). The specific award criteria and scoring methodology will be detailed in the Request for Tender (RFT) stage. Applicants who fail any of the pass/fail selection criteria will not be evaluated under the qualitative criteria and will be eliminated from the procurement process. The PQQ stage focuses solely on pre-qualification based on mandatory requirements.

6. Submission requirements

Applicants must complete and submit the Pre-Qualification Questionnaire (PQQ) in English. The PQQ Response must be a full and true disclosure of all relevant and up-to-date information. Applicants are permitted to add additional lines to pro-forma tables but cannot amend other parts of the PQQ.

Key submission components include:

• PQQ Response Document: Completed questionnaire detailing the applicant's suitability.
• Financial Information: Statements of turnover and profit and loss accounts for the previous two financial years, denominated in Euros (€) or converted to Euros using the exchange rate from www.oanda.com if originally in another currency.
• Insurance Confirmation: Statements from insurers confirming required insurance cover levels.
• Certifications: Copies of relevant ISO certifications (ISO 9001, ISO 27001 or equivalent).
• Declarations: Tax clearance certificates or access numbers from Irish Revenue for the applicant and any entities being relied upon.
• Consortium Details: If applicable, details of each Applicant Member and any Entity Being Relied Upon, including their roles and financial information.
• Submission Portal: Responses must be submitted via the eTenders platform.

A mandatory site visit is not specified for this PQQ stage.

7. Key dates & process

8. Contract terms that matter

The contract is anticipated to run for an initial term of 3 years, with an optional extension of 2 years, making a maximum potential contract duration of 5 years. The agreement will be subject to regular operational reviews. The specific terms and conditions will be detailed in a draft contract provided at the Request for Tender (RFT) stage. This contract will be based on bespoke terms and conditions, amended as required by ESB. Applicants must be prepared to contract under Irish law. The procurement process follows a negotiated procedure, and the contract will be awarded on the basis of MEAT.

9. Risks, red flags & unusuals

The PQQ process is designed to pre-qualify a limited number of bidders for the subsequent RFT stage. The minimum turnover requirement of €396,000, while not exceptionally high, is a pass/fail gate. The requirement for Personal Data to be hosted exclusively within the EEA or an EU-approved country is a critical technical and compliance constraint. The ESB's emphasis on sustainability and alignment with its Sustainability Leadership Plan suggests that this will be a significant factor in the RFT evaluation, even if not explicitly detailed in the PQQ selection criteria. The negotiated procedure allows for dialogue, which may present opportunities for clarification but also requires careful management of communications.

10. SME fit assessment

This tender is structured as a Pre-Qualification Questionnaire (PQQ) followed by a Request for Tender (RFT), indicating a competitive process. The minimum average turnover requirement of €396,000 over two years suggests that small to medium-sized enterprises (SMEs) with a proven track record in SaaS invoice processing solutions could be eligible, provided they meet the insurance and data hosting requirements. Consortium bids are permitted, allowing smaller firms to partner with others to meet the criteria. The bid preparation effort for the PQQ stage is moderate, focusing on demonstrating financial stability, insurance coverage, and basic technical capability. The Pwin signal is neutral at this stage, as the incumbent is not named, and the process is competitive. The tender is genuinely open to specialist SaaS providers capable of meeting the technical and compliance demands.

11. Where to dig deeper

• Source RFT filename: PQQ.docx
• eTenders CFT ID: Not specified
• Contact: ESB Procurement via the eTenders platform
• Key Attachments:
• Pre-Qualification Information and Questionnaire (PQQ)
• OJEU Contract Notice (referenced)
• ESB Sustainable Leadership Plan (linked)