Schedule Part 10 - Operational and Technology Management

SIGNED ON 23/09/25

Part A: Operational Management Systems

CFL shall put in place a Corporate Management System, capable of managing, monitoring and reporting on the effective financial performance and operational delivery of the Services.

CFL shall comply with the Performance Measures and reporting requirements detailed in Schedule Part 11.

CFL shall ensure that it has in place adequate systems, procedures and controls for the assessment and management of risk in relation to the continued operation and delivery of the Services. This must include procedures for escalation of risks to Scottish Ministers as appropriate. CFL shall, within 1 months of the Commencement Date, produce a comprehensive risk register to be agreed with Scottish Ministers and thereafter to be maintained by CFL throughout the Grant Period. The risk register must be updated monthly by CFL to reflect ongoing risks and may be requested at any time by Scottish Ministers.

CFL shall produce a Business Continuity Plan (BCP) and Disaster Recovery Plan (DRP), which will be tested regularly, at a minimum annually.

CFL shall produce, publish, and implement a Quality Management Plan within 1 month of the Commencement Date. This shall outline the entire Quality Management system and include details of how the quality system will be administered. CFL shall appoint a named individual who shall have defined authority for establishing, maintaining, and reporting on the Quality Management System.

  1. The Quality Management Plan should include:
    1. An annotated chart of CFL’s organisational arrangements for maintaining and reporting against its quality management system (QMS), showing the lines of command as well as any subcontracted service providers,
    2. Proposed person who shall have defined authority for establishing, maintaining and reporting on the Quality Management System.
  • the structure and content of typical quality control procedures to be used.
  1. a list of procedures to be included in the Quality Management System for operational phases showing their hierarchy and interface; and
  2. a list and structure of procedures for monitoring of the Quality Management System.
  3. how it will be achieved In line with the principles of ISO9001.
  4. CFL is required to provide all deliverables and meet all milestones outlined in Table 37. Additionally, CFL may propose additional deliverables and milestones for approval by Scottish Ministers.
Table 37

Deliverable/Milestone

Delivery Date

Quality Management Plan to be produced, published, and implemented

Start of Contract

Quality Management Plan refreshed

Annually

2.1. Business Continuity and Disaster Recovery Plan to be produced and implemented

Within first six months of financial year

Business Continuity and Disaster Recovery Plan to be reviewed

Annually

Risk registers to be produced by CFL

1 month after commencement

Risk registers to be updated by CFL

Monthly

CFL’s Involvement of Supported Businesses and Small and Medium Enterprises (SME’s)

  • CFL shall provide plans for the involvement of Supported Businesses and Small and Medium Enterprises (SME’s):

for engaging with Supported Businesses and SME’s, including where the involvement may provide the opportunity to improve the efficiency, economy and quality of the services, which should include specific targets and a monitoring regime for engagement with local and regional businesses to support island economies. 

  • CFL is required to provide all deliverables and meet all milestones outlined in Table 38. Additionally, CFL may propose additional deliverables and milestones for approval by Scottish Ministers.
Table 38

Deliverable/Milestone

Delivery Date

CFL to provide plans for the involvement of Supported Businesses and Small and Medium Enterprises

1 month after commencement

Plan for involvement of Supported Businesses and Small and Medium Enterprises to be refreshed

Annually

Part B: Information Technology

IT Security and Policy

CFL shall maintain appropriate security systems, procedures and controls to ensure the safe carriage of passengers, freight and livestock which complies with all Applicable Law.

CFL shall implement cyber security and data handling arrangements which are comprehensive, robust, and aligned with relevant, proportionate standards, such as Cyber Essentials or an equivalent.

CFL shall align its cyber security provisions with the Scottish Government’s cyber security guidance for government departments.

CFL shall utilise the Cyber Security Procurement Support Tool (CSPST) or alternative tool that Scottish Ministers may adhere to and/or replace CSPST with. If CFL’s cyber security provisions are found to be insufficient following the utilisation of the CSPST, then CFL shall submit a Cyber Implementation Plan to Scottish Ministers for approval.

CFL, as a minimum, must comply with the Scottish Government’s IT Policy.

CFL shall comply with the Digital Scotland Service Standard (DSSS).

CFL shall comply with the Cyber Essentials Plus scheme and obtain and maintain an applicable standard for accreditation.

Technology Strategy

CFL shall produce and implement a Technology Strategy to provide a holistic view of how CFL can use technology to enhance the services delivered.

CFL’s Technology Strategy should include, as a minimum:

  1. Executive Summary
  2. Purpose of the strategy
  • IT Alignment with business goals
  1. Current state assessment; IT infrastructure overview, Application landscape, IT operations and support, SWOT analysis, Capability maturity, Key risk and constraints.
  2. Future state vision; Target architecture – Infrastructure, Applications, Data security, Innovation and emerging technologies, Strategic IT priorities and initiative, IT roadmap overview, Key programs and projects, Investment and resource requirements.
  3. Governance and Operating model; IT Organisational structure, Governance framework.
  • Cybersecurity and Risk Management
  • Stakeholder requirements and feedback
  1. KPI’s and Success measures
  2. Provide digital assistance through our customer contact centre on the use of the booking and ticketing system
  3. Review the delivery of service user communication, as a continued area of priority and considered improvement, considering social media, website, and other applicable digital means.

Deliverables and Milestones

CFL is required to provide all deliverables and meet all milestones outlined in Table 39. Additionally, CFL may propose additional deliverables and milestones for approval by Scottish Ministers.

Table 39

Deliverable/Milestone

Delivery Date

Produce and implement the Technology Strategy

Within first 6-months of first Financial Year.

Technology Strategy review and update

Annually

Technology Strategy Group

CFL shall establish a Technology Strategy Group, which shall be run by CFL, with CFL being responsible for driving technical elements and discussions.

CFL shall appoint representatives to the group and use best endeavours to involve Scottish Ministers and Transport Scotland Ferries Directorate.

The Technology Strategy Group should aim to drive positive strategic change and feedback and input for technology initiatives across CFL’s organisation and CHFS network in alignment with the Islands Connectivity Plan and the agreed CFL corporate and business plan.

The group must consult with the Ferries Community Board (FCB), and Mobility and Access Committee for Scotland (MACS), and others as appropriate on any user acceptance testing for customer facing systems.

The remit of the group should include, as a minimum:

  1. Input to the forming and agreeing CFL’s Technology Strategy.
  2. Input to prioritising technology initiatives and investments.
  • Review cyber security and maturity plans
  1. Monitoring performance of technology across CFL’s service, including progress on technology related projects and service.
  2. Ensuring best practice when considering technology proposals and initiatives.
  3. Endeavour to deliver effective end user testing for any applicable scheme.
  • Provide input and feedback on technology innovations and trends, where they could pose opportunity for improving delivery of services.

The Technology Strategy Group must meet 6-monthly as a minimum and provide updates to Scottish Ministers through means of meeting minutes and a 6-monthly Technology Strategy Group report, which CFL will develop and agree with Scottish Ministers.

Deliverables and Milestones

CFL is required to provide all deliverables and meet all milestones outlined Table 40. Additionally, CFL may propose additional deliverables and milestones for approval by Scottish Ministers.

Table 40

Deliverable/Milestone

Delivery Date

Implement the Technology Strategy Group

Q2 in CP1

Technology Strategy Group report to be produced

 6-monthly

Part C: Innovation and Continuous Improvement

CFL shall proactively integrate Innovation and Continuous Improvement into all aspects of the Services delivered under this Agreement. CFL shall continuously seek opportunities to enhance operational efficiency, service quality, customer satisfaction, and sustainability through innovative practices and a structured approach to continuous improvement.

Innovation

CFL shall actively engage with Scottish Ministers and the Ferries Community Board to identify opportunities for innovation that address local needs, enhance service delivery, and improve the user experience. Such opportunities may be developed and delivered as pilot projects to assess their feasibility and, where they are demonstrated to deliver the anticipated benefits, may be implemented on a wider or permanent basis.

CFL shall incorporate identified and agreed innovation initiatives within the Annual Business Plan submitted to Scottish Ministers. Each initiative shall have clear, measurable objectives, defined implementation timelines, anticipated benefits, and criteria for evaluating success. Initiatives shall be clearly set out in the Annual Business Plan, identified as Innovation and/or continuous improvement and published as part of the annual plan on the CFL website.

CFL shall report progress, outcomes, and impacts of implemented innovation initiatives, as part of the Annual Performance Report.

CFL shall continually monitor industry developments, emerging technologies, and best practice standards to identify additional innovation opportunities and shall bring forward proposals for consideration by Scottish Ministers as appropriate.

Continuous Improvement Plan

CFL shall ensure that Continuous Improvement is embedded within its Quality Management System as a systematic and ongoing process that supports the delivery of the Services.

CFL shall agree and maintain a Continuous Improvement Plan, which sets out how Continuous Improvement will be delivered, governed, and sustained throughout the Term of the Agreement. The Plan shall be aligned with the Vision and Priorities of the Islands Connectivity Plan and updated annually or as otherwise agreed with Scottish Ministers.

The Continuous Improvement Plan shall clearly outline the methodology, review cycles, and internal responsibilities associated with delivering continuous improvements. CFL shall use a range of feedback and performance monitoring tools to inform its improvement activities, including but not limited to:

Community engagement (including input from the Ferries Community Board)

Customer surveys and complaints analysis

Operational performance data; and

Service benchmarking and audit findings.

CFL shall publish within its Annual Performance Report a summary of key improvement themes and actions, demonstrating transparency and accountability in its approach to Continuous Improvement.

CFL shall actively participate in and support relevant governance forums that contribute to continuous improvement, including the Network Strategy Group, Strategic Network Planning Forum and Technology Strategy Group.

CFL is required to provide all deliverables and meet all milestones outlined in Table 41. Additionally, CFL may propose additional deliverables and milestones for approval by Scottish Ministers.

Table 41

Deliverable/Milestone

Delivery Date

2.3.1. Engage with Scottish Ministers and FCB to identify potential innovation opportunities and incorporate in the annual business plan

Report annually in line with business planning dates

Publish agreed innovation opportunities as part of the Annual Business Plan

Annually in line with business planning date

Report on progress, outcomes, and impacts of innovation initiatives implemented, included in the Annual Performance Report.

Annually as part of Annual Report publication

Develop, produce and publish a Continuous Improvement Plan outlining approach, governance, and methodology

Within 1 month of commencement

Refresh Continuous Improvement Plan

Annually

Publish summary of key improvement themes and actions as part of Annual Performance Report

Annually