Action West London –Changing Lives through Employment, Education and Enterprise

Our Mission Helping disadvantaged people improve their lives through Education Employment Enterprise

Our Target Groups Those most disadvantaged in society: Unemployed Low or no education Lone parents Young people (NEETs) Young and adult offenders Care leavers Older people Refugees Black and ethnic minorities Mental health difficulties

Moving on Up ( Trust for London )

Track Record Established charity and social enterprise Successfully delivered over 80 projects and contracts in Education – Skills Funding Agency (SFA), EU Training—DWP, SFA, UK Online, EU Employment—DWP, LDA, London Councils Self employment/business start up—LDA, Acton Street Market, Doughnut Factory/Business Centre Social enterprise –London Borough of Hounslow tender, Big Lottery Collaborating for Change

Contracting experience Sub contractor to Prime contractors on 1. WORK PROGRAMME—payment by results— (Sustained employment 26 weeks+) -- achieving over 145% contract targets DWP Employment Support programme ESF Employment job outputs contract SFA/ESF NEETs contract PLUS Led consortiums of VCS partners for ESF etc.

LONDON ESF YOUNG ACHIEVER OF THE YEAR

Working as a Sub contractor WHY?- Little or no alternative funding and -- Contracts so large £ s’ £ s’, -Insufficient turnover - Financial risk -Management systems IT infrastructure Geographical spread e.g. 7 West London Boroughs

What to consider before sub contracting 1. Why do it? 2. Does it fit your Mission and your strategy? 3. Is your Board happy ? 4. What have you got to offer? 5. Have you got the right staff? 6. Have you got the right (performance management) mind set? 7. Have you got the right infrastructure (IT/data protection/Quality controls)

More what to consider ! Financial risk v financial opportunity Cash flow risks of payment by results Increased emphasis on ‘Payment by results’ Reputational risk Your track record of delivery –JOBs, JOBs, JOBs !!! (and SUSTAINED JOBS –13 or 26 weeks minimum) Reputation of Prime contractors –(e.g. how do they treat sub contractors!!) Stress level tolerance –staff, managers, Trustees ! Range of expertise in your organisation

Negotiating contracts Does Prime clarify key points of contracts (100 page contracts?) Transparency of Primes –does the Prime state clearly their Management fee ? Is this negotiable? Are all sub contractors given the same deal? How do you know if you’re being offered a fair deal? Different deals offered by different Primes

Negotiating contracts continued! How do you calculate financial risk of the contract ? Can you confidently deliver outputs required for amounts offered? Be clear about what outputs are being paid for in contract --e.g. training v jobs Does contract guarantee required referrals? Payment by results risks and Risk of ‘clawback’ Penalty clauses –what happens if you can’t deliver contract and want to withdraw? WANTED!!---Contracts Masterclasses !!!

WHAT HAPPENS WHEN THINGS GO WRONG?

Things WILL go wrong! Discuss with Prime contractor at early stage! Don’t wait until ----CRISIS CRISIS CRISIS!! Develop positive relationship with the Prime’s contract manager Plan ahead Ask for help and support Share concerns –ITS GOOD TO TALK ! Avoid formal warnings Check what contract says

Performance Performance Performance Performance management throughout is key Prime contractor manages sub contractors’ performance strictly –and continuously Iron hand in velvet glove! No ‘favours’ because of being a charity or VCS Staff need to buy in to a performance culture Targets, supervisions, activity and time monitoring ESF regulations are a minefield but must be followed Get performance right and you will deliver Helps you build a track record for future bids

NEXT STEPS Get list of Primes if possible Contact Primes –they won’t necessarily contact You Register on Primes web sites E mail or call Primes Ask LVSC and register on database EOI’s,EOI’s,EOI’s,EOI’s,EOI’s,EOI’s--and more-- EOI’s! Prepare –track record, premises, method of work, finances,employers, networks, labour market knowledge Very time consuming-staff expertise etc.

How can Primes support sub contractors? Make EOI process simpler and more unified Provide workshops to discuss pros and cons of sub contracting –risks v rewards Provide simple key points of contract conditions Help sub contractors with financial risk calculations Help sub contractors with Performance management Staff training Share employer vacancies Regular meetings for all subs together in supply chain

Primes support sub contractors (cont.) Keep sub contractors regularly informed Develop an ongoing partnership relationship Explain why Prime may want your organisation as a sub contractor on one contract—but then not on a future contract Share Quality processes and policies Share Good practice –from Prime contractors’ teams who deliver as well as from sub contractors Plenty of carrot -but not too much stick!

CARROT - V - STICK

CAREFULLY WEIGH UP RISKS V REWARDS AND if you go ahead GOOD LUCK !

Dr John Blackmore Chief Executive Action West London Crown Street, Acton, London W3 8SB E T (0) F (0) M