TV Licensing Postal Services

Award outcome

Description

The BBC is tendering for the provision of TV Licensing Postal Services. Under the terms of the BBC Royal Charter the BBC is responsible for the collection and administration of the licence fee revenue throughout the UK, the Channel Islands and the Isle of Man. The majority of TV Licensing letters are sent to unlicensed addresses to ensure all households and other premises are correctly licensed but TV Licensing also issues letters to direct debit customers in line with its statutory obligations under the BACS Regulations. The estimated total contract value of £158 million is based on the BBC utilising the full contract term available of five (5) years. Of these estimated costs, the vast majority of the spend is direct pass-through to Royal Mail for the final mile delivery (historically in excess of 95% of the costs), which the BBC and service providers are unable to influence as Royal Mail have to be utilised for this final step of the service. The remainder of the estimated contract value (i.e. less than 5% of the estimated total contract value of £158m over five (5) years) represents the anticipated service provider's costs for collection, sortation and delivery of mail items to Royal Mail inward mail centres.

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