Outsourcing physical records storage

Key things to remember

• Legal duties: Public offices must keep State records safe and well-preserved, as required by the State Records Act 1998, Sections 11(1) and (2).
• Ownership: State records belong to the State unless State Records NSW provides permission to transfer them.
• Disposal: Records can only be disposed of if approved by State Records NSW, usually through specific retention and disposal authorities.
• Storage rules: State records must be stored following the Standard on the physical storage of State records.
• Accountability: It's important to keep good records of contract tenders, issues, and management. This helps ensure the public office stays accountable and manages any liability over time.

Tenders for outsourced records storage

When tendering for physical records storage services in NSW, there are many rules to follow. You can find full details of these rules on buy.nsw.

To make sure you choose the right provider, you need to be clear on:

• what services you require
• the level of service that is acceptable
• the likely future growth of your needs.

Here are some key points to clarify when tendering:

• Ensure the service provider and storage facilities comply with State Records NSW standards, especially the Standard on the physical storage of State records.
• specify the volume and format of records to be stored.
• Determine the frequency of record retrievals, including any out-of-hours retrievals or special services for urgent requests.
• Clarify which records control systems will be used, whether manual or electronic, and how they identify records (for example, unique identifiers, location details).
• Outline any special requirements for storing records in special formats or those requiring higher security.
• Consider requirements for the secure destruction of records.

Costs to consider

Cost is an important factor when evaluating tenders, but it shouldn't be the only one. Be aware of hidden costs that might arise, such as:

• Palletising: Charges for preparing items for destruction by removing them from shelves.
• Early withdrawal fees: Some storage providers charge full storage rates if you retrieve records before the agreed retention period ends.
• Collection charges: Costs for transferring records to the storage facility.
• Urgent retrieval surcharges: Extra fees for urgent record retrievals.
• Termination charges: Fees for ending the contract early.
• Exit fees: Fees for removing boxes from the shelves and marking them as permanently withdrawn. 

By identifying and minimising these hidden costs, you can make a more informed decision when choosing a service provider.

The contract

Always have a contract or legal agreement in place when outsourcing records storage services. The contract should outline the expected services, which might include:

• records retrieval
• listing and indexing
• scanning of records on demand
• destruction
• regular reporting of service statistics
• disaster management

Each public office may have specific requirements, so tailor the contract to your needs. The contract should clearly define:

• service expectations
• fees for services, including hidden costs like those outlined earlier.

Additionally, ensure the contract includes key terms and conditions such as:

• liability
• contract duration
• notice period and form of notice
• dispute resolution mechanisms
• penalties for breach of contract

Note: Specify which storage facilities will be used. Providers may move records between different facilities for efficiency, so it's essential to include this in the contract.

Inspecting facilities

Before finalising any contracts, it’s a good idea to visit and inspect the storage facilities. Walking through the facility helps you spot potential issues. Always ask for documentation, and if problems arise, agree on an improvement plan or another solution.

Sending records to the storage provider

When transferring records to a storage provider, ensure you:

• create and keep lists of records transferred (these can often be generated automatically using records management software)
• continue to manage disposal of records. Although the provider may physically destroy records, the public office is still responsible for ensuring disposal complies with the current retention and disposal authorities. Make sure you document the destruction of State records.

Note, there may be additional issues to consider that are specific to particular facilities or providers. Storage of records is a risk-based decision. A service provider may be the best available option even if they cannot meet all of your requirements.

What to look for when inspecting storage facilities

• Secure location of the facilities (away from obvious hazards, for example, gas works, flood zones).
• Building fabric is appropriate.
• Specialist storage areas for media requiring different conditions.
• Secure loading and unloading areas (for example, not shared with other organisations, protected from weather).
• Covered vehicles used for transporting records.
• Fire detection and suppression systems, for example smoke/heat alarms, sprinklers, fire extinguishers.
• Environmental monitoring devices.
• Disaster bins.
• No direct sunlight.
• Weatherproofing.
• Signs of mould or other pests.
• Outstanding maintenance of building.
• Broken or old equipment.
• Storage of any other objects/artefacts/items/materials. (Note: Records storage facilities should only be used in accordance with the Standard on the physical storage of State records.)
• Disorganised, dirty or cluttered storage areas.
• Storage areas not separated from staff areas.
• Unattended open doors and other evidence of poor security.
• Evidence of maintenance.
• Well maintained, functioning equipment.
• Clean facilities, equipment and containers.

Sample questions for records storage providers

• Where will our records be stored (that is, which facilities?)
• Do these storage facilities meet the Standard on the physical storage of State records issued by State Records NSW? If not, what are the problem areas? What are the plans to address this?
• Do you have a current disaster plan?
• When was this last tested? When was the plan last reviewed?
• What is your maintenance/inspection schedule?
• What is the fire detection and suppression system?
• How do you control the free circulation of air?
• What control systems do you use to manage records?
• What system do you use to destroy records safely and securely? Do you provide Certificates of Destruction?
• What training is provided to staff?
• How secure are the storage facilities? What are the security arrangements? Note: Ask more probing questions if confidential records are being stored. Find out about arrangements for security, access and staff employed.

Documents to ask for

• disaster plan
• guidelines issued to staff re, for example, records handling, information security
• references.

Note: There are other management documents that you may want to view as evidence of the financial viability of the company. For example, management plan, annual report. 

Managing performance

To ensure value for money and efficiency, it’s essential to monitor the provider's performance. Effective monitoring encourages continuous improvement and compliance with contract terms. The contract should outline the monitoring and reporting requirements, including:

• service delivery targets
• fees and charges
• standards of facilities and equipment.

Monitoring can be done through:

• regular reporting
• inspections.

Some statistics you may want to monitor include:

• percentage of files retrieved within the target time
• number of complaints
• cost per file retrieval
• cost per file stored
• number of files not located (note: responsibility may lie with the public office or contractor)
• number of files retrieved
• number of files returned
• number of files destroyed
• number of boxes stored
• loose filing done.

Incorporate these monitoring requirements into the contract to ensure ongoing performance and accountability.

Get more information

• Appendix A - Checklist for physical records storage
• buy.nsw
• Standards Australia, AS/NZS 1015: 2011 Records Management – Physical Storage. Available through Intertek.
• Accountable outsourcing
• Standard on the physical storage of State records  
• Solutions for Storage: Guidelines on the Physical Storage of State records