Contracting for Government Programmes A focus on the DWP 2009 – 2014 Glasgow – 25 th June 2009 Edinburgh – 26 th June 2009 Dundee – 29 th June 2009

Programme Welcome by Gerry Higgins/Alistair Thornley of CEiS Introduction by Joanne Farrow/Joe Dowd of DWP DWP Strategy by Ian Short/David Hall/Jillia James A providers perspective from Gerry Croall Q&A Session Workshops on Legal and Structural Issues or Pricing and Costing Supply Chain Matching Session Close by 4.30

Outputs for the day Delegates will have: a better understanding of how DWP intends to deliver Pathways to work from 2009 and 2014 an understanding of how DWP intends to deliver the Specialist Disability Employment Programme had an opportunity to explore some of the issues raised by the new contracting arrangements had an opportunity to make initial linkages with potential partners.

Desired outcomes Delegates will have: identified some of the opportunities for their organisation in the new contracting arrangements made contact with potential supply chain partners.

Joanne Farrow – Glasgow Joe Dowd – Edinburgh & Dundee Workforce Plus

Glasgow - Ian Short – DWP Edinburgh - David Hall – DWP Dundee – Jillia James - DWP

DWP’s Commissioning Strategy DWP Delivery Directorate

8 Welfare to Work: Principles Stronger framework of rights and responsibilities; Personalised, responsive and effective approach to individual needs; Partnership between public, private and third sectors; Targeting areas of high worklessness by devolving and empowering communities; Not just jobs but sustainable jobs that offer opportunities for progression to develop our customers skills.

9 Mandatory New Deals (NDYP, ND25+ etc) Voluntary New Deals (ND Lone Parents etc) Pathways to Work & New Deal for Disabled People Workstep, Work Preparation, Job Introduction Scheme, Residential Training Colleges, Access to Work etc. European Social Fund Programme Programme Centres, Progress to Work etc. Our major current mainstream programmes

10 Commissioning Strategy – road map for change The Commissioning Strategy was published February 2008 and sets out a radical new way for DWP to work with providers. Implementation of the Commissioning Strategy opens the way for: Greater clarity on respective roles of JCP (high volume, early months support) and providers (integrating and tailoring specialist support to help those with multiple barriers to work) Fewer larger, longer contracts – Prime Contractor model Outcome based funding (which achieves best value for money for the taxpayer) High performing supply chains Increased flexibility - allowing providers to make the best decisions for customers in their locality Providers to play an integral part in the delivery of the government’s wider agenda as set out in the White Paper. The first programme to be commissioned using the new approach is the Flexible New Deal, followed shortly by Jobcentre Plus Support Contract and IDEAS (specialist disability support).

11 What the market needs to deliver We are on the brink of a revolution in the provision landscape: A single, nationwide programme for new IB customers (Pathways to Work) A single, flexible New Deal for all JSA customers A single programme for specialist disability customers (IDEAS) A single, national framework for all local, JCP provision Plus: A major shift towards alignment/co-commissioning of skills and employment provision Real integration with local strategies Movement towards multi-client contracts In effect: A “national spine” of mainstream provision, with increasing localisation Plus a series of controlled experiments to build the evidence base for the next generation of programmes

12 What will be different? Market Structure – a stronger, more consistent base of top-tier providers who can work closely with regional and sub-regional partners to deliver sustainable jobs for unemployed people. Market development and stewardship – an active and transparent DWP role to ensure that smaller, local providers, who have the capabilities we need and who perform well, can flourish and develop. Provider capabilities – spelling out the specific capabilities and requirements that make up a high-performing supply chain and an effective first-tier provider. We will contract, inspect, manage and intervene on the basis of these capabilities and requirements.

13 Code of Conduct Published as part of the Commissioning Strategy (Feb 2008). Providers who contract with DWP will be expected to operate in accordance with the Code: -Values- eg acting with integrity; -Pre-awarding of contract e.g. supply chain set up’ -Post awarding of contract- e.g. commitments honoured; -Equality and diversity; -TUPE- e.g. application and sharing information; -DWP undertaking- upholding standards- monitoring code of conduct.

14 Code of Conduct (2) To strengthen the application of the Code DWP will pilot a quality standard against its principles and criteria. Will deliver an industry led approach to co-regulation to ensure fairness, equality and transparency, that specialist quality provision is maintained and expanded, continual improvement, and that the Code becomes embedded in supply chain dynamics. A Quality Standard Advisory Board will oversee development of the Standard to achieve an independence from DWP following the pilot period.

15 Consortium development Opportunities for smaller (and larger) organisations to form a consortia. A formal consortium is a valid tendering entity; Collective track record will be considered; Individual members can play to their strengths; Allows smaller organisations to play a role in larger delivery. Providers should obtain their own legal advice when setting up a Special purpose Vehicle or consortium.

Gerry Croall – A4E

Gerry Croall Development Director A4e Scotland Ltd

A4e – Facts & Figures Established 20 years ago Operate from over 200 locations Deliver services in 11 countries Employ 3,100 staff internationally Helped 19,572 people into work last year Worked with over 700 partner organisations Supported the growth of 79 Third Sector organisations

A4e Scotland: Experience & Footprint A4e established in Scotland in 2001 A4e Scotland Ltd established in 2004 Offices in Glasgow and Edinburgh Delivery across Scotland – e.g. RIES Effective & motivated staff team of 46 Successful delivery of range of contracts:  Prime New Deal, Positive Moves, NDDP, RIES, TfW, GRfW, MA’s  Partnership approach to current contracts; A4e subcontract to RNIB,RNID & Wise Group on NDDP (Glasgow)  Scottish Refugee Council and Wise Group subcontract to A4e “We don’t do the easy stuff”

Building Capacity to be Prime Growing business for 20 years Assessed financially ability to bid for and deliver as Prime Contractor Investment in infrastructure:  Regional Development Directors, Scottish and Welsh Development Directors  Partnership Development Managers  Bid co-ordinators  Individual Contract Working Groups – local teams (Dev & Ops)  Senior Development & Development Managers  Bid writers  Additional Finance staff  HR Manager recruited to Development Team  Invested in IT system  Multi – million pound investment

Engagement with partners A4e Starting point – we can’t do this ourselves Establish strong, viable, long term, cross sectoral partnerships Partnership Manager role – critical Partnership section on website – visible, accessible and straightforward EOI’s and applications on website All EOI’s and applications notified to local Partnership Manager Partnership Manager convenes and chairs Working Group Partnership Manager/Development Director meet with all shortlisted applicants and those with whom we require additional information/clarification

Engagement with partners Agree client volumes, geographical areas, outcomes and financial package When decisions reached, all partners notified Partner then written into the bid Regular and rapid updates provided to all partners Partners selected not for who or what they are but for what they do High levels of performance required over a 5 year period Robust and solid partnerships essential

Observations of the Process Code of Conduct provided guidance for partnership building Lessons learned from past procurement:  Real, actual and viable partnerships  Terms of partnership agreed in advance of bid submission  DWP expectation that agreements to be complied with  DWP will monitor compliance with Code of Conduct Have DWP aspirations been met:  Fewer larger, longer contracts through Prime Contract model?  Outcome based funding resulting in best value for taxpayer?  High performing supply chains?  Increased flexibility, resulting in best decisions for customers? Can be time consuming process for potential partners – e.g. FND 9 Primes, 27 page application On balance, a more positive and open process

Thank you

Q&A Session

Workshops Workshop 1 - Legal and Structural Issues Glasgow & Edinburgh - Graeme Palmer, Burness Dundee - Robin Fallas, MacRoberts Workshop 2 - Pricing and Costing Glasgow - Alex Rooney of CEiS Edinburgh – James Finnie, CEiS Dundee – Roy Crosby, CEiS

Supply Chain Matching Session Speed Networking Process  Seek a person you do not know  Introduce yourself and your organisation in 2 minutes  Allow other person their 2 minute introduction  Exchange contact details  Seek new contact

Outputs for the day Delegates will have: a better understanding of how DWP intends to deliver Pathways to work from 2009 and 2014 an understanding of how DWP intends to deliver the Specialist Disability Employment Programme had an opportunity to explore some of the issues raised by the new contracting arrangements had an opportunity to make initial linkages with potential partners.

Desired outcomes Delegates will have: identified some of the opportunities for their organisation in the new contracting arrangements made contact with potential supply chain partners.