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The Work Programme Prospectus Supplier Briefing

The Work Programme Prospectus Supplier Briefing. 8 th December 2010. Agenda. Introduction – Alan Cave Work Programme Design and Payment Model – Adam Sharples Commercial Process – David Smith Close – Alan Cave. Update on Work Programme Design Adam Sharples. Work Programme Principles.

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The Work Programme Prospectus Supplier Briefing

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  1. The Work Programme ProspectusSupplier Briefing 8th December 2010

  2. Agenda • Introduction – Alan Cave • Work Programme Design and Payment Model – Adam Sharples • Commercial Process – David Smith • Close – Alan Cave

  3. Update on Work Programme Design • Adam Sharples

  4. Work Programme Principles • More “Black Box “than before • Longer contracts • Greater outcome focus • Wider range of customers

  5. JSA groups Time for referral Referral Type Mandatory Mandatory Mandatory Mandatory or Voluntary Voluntary Mandatory - 1 - Aged 25+ 2 - Aged 18-24 3 - Ex-Incapacity Benefit 4 - Seriously disadvantaged 5 - Volunteers (all groups) 6 - Flow* 7 - Ex- IB** From 12 months From 9 months From 3 months From 3 months At any time When expected to be fit for work within 3 months - ESA groups Work Programme Participants *ESA (income related) customers placed into the Work related Activity Group **EX-IB group are treated as volunteer or Flow

  6. Payment Model: principles • Payment should be exclusively or largely for delivering results and should be made after the results have been delivered • The Government will seek to avoid paying for customers who would have moved off benefits without help • • The price paid for employment outcomes should be set to make it worthwhile for delivery partners to help each group of customers • • The price paid for job outcomes should not exceed the benefit savings that have been generated.

  7. Job Outcome Payment Sustainment payments Job Start Payment trigger point Payment model structure Payment Payment (£) (£) X weeks Y weeks Attachment Fee Attachment Fee Time on Programme Time on Programme (Weeks) (Weeks) Start on Start on Programme Programme

  8. Attachment fee – paid once per person £600 1. JSA 25+ 2. JSA 18-24 3. JSA Ex-IB 4. JSA seriously disadvantaged 5. ESA volunteers £500 £400 £300 6. ESA Flow 7. ESA Ex-IB £200 £100 £0 Year 1 Year 4 Year 5 Year 2 Year 3 Contract

  9. Job outcome payment Maximum price X% Discount Y% Discount Job outcome payment Year 1 Year 3 Year 4 Year 5 Year 2

  10. JSA groups Job outcome timing Maximum duration of sustained payments 52 weeks 52 weeks 78 weeks 78 weeks 78 weeks 78 weeks 104 weeks 1 - Aged 25+ 2 - Aged 18-24 3 - Ex- Incapacity Benefit 4- Seriously disadvantaged 5- Volunteers (all groups) 6 – Flow 7- Ex- IB 26 weeks 26 weeks 13 weeks 13 weeks 13 weeks 13 weeks 13 weeks ESA groups Job Outcome and Sustained payment by customer group

  11. Maximum payments

  12. Procurement ProcessDavid SmithJohn Michalski

  13. Framework – Immediate Next Steps • Set up Meetings with preferred bidders to: • Provide feedback • Agree the final Terms and Conditions • Sign Framework Agreements by 20 January 2011 • Issue a Draft Work Programme ITT on the 8 December 2010 • Hold a provider event on the 16 December 2010 • Issue the ITT on the 22 December 2010

  14. The Work Programme • Invitation to Tender will include: • Instructions to bidders, including bid evaluation criteria • ItT Questionnaire • Specification • Pricing schedules and supporting guidance • Call off Terms and Conditions for the Work Programme

  15. Bidding for the Work Programme • WP bids can only be accepted once the Framework Agreement is received • Bidders will only be invited to bid for contracts in the lots where they were successful in the Framework competition • 18 Contract Package Areas (CPA) & 2 or 3 providers in each CPA • Separate Tender Form for each CPA • Need to express a ranked preference order where bidding for multiple CPAs

  16. Bid Evaluation - Quality • A majority of the combined total evaluation score will be allocated on the basis of the quality of the proposal. • Bidders will receive details of the evaluation criteria in the draft ItT • Some areas will be weighted more highly than others – eg. Service proposal, Supply chain management and Implementation will have higher weightings • We will be looking at the diversity of supply chains • Certain questions will be specific to the local area and we will be looking for evidence that local needs have been considered • Tie-breakers will be used where there is no clear separation of scores in any CPA.

  17. Bid Evaluation - Financial • An element of the combined total evaluation score will relate to the financial evaluation. • The financial price evaluation will consist of the assessment of the job outcome element of the funding model. • The DWP will also cross check the delivery proposal to the individual elements contained in the financial pricing proposal to ensure consistency. • DWP will looking for assurance and evidence that bidder’s can secure the necessary internal financial and/or external financial resources to fund delivery.

  18. Proposed Timetable • Draft ITT issued - 8 December 2010 • Bidder event - 16 December 2010 • ITT issued – 22 December 2010 • Tenders submitted - February 2011 • Preferred bidders announced - April 2011 • Contract Award - April - June 2011 • Implementation - May - end July 2011

  19. Performance ManagementAdam Sharples

  20. What are we trying to achieve? • Increase average time in employment for Work Programme customer groups (longer sustained jobs); and • Increase off flow rates for Work Programme customer groups (more people into work); • Decrease average time on benefit for Work Programme customer groups (people into work sooner); • Narrow the gap between off flow/time in employment rates for disadvantaged groups and everyone else (less parking of harder to help).

  21. Incentive payments • Incentive payments will be paid to Providers who have high performance for the JSA 18 to 24 and 25+ client groups from year 4. • Job outcome payments will be reduced by 10 per cent of the year 1 and 2 level each year from year 3 to fund the incentive payments

  22. +50% Performance incentive level +10% minimum performance standard JSA 25+ ESA Non-intervention performance profile • Incentive payments will be made for jobs delivered beyond a given performance level, defined as non-intervention level plus 50 per cent. 70 60 50 40 JSA 18-24 30 20 10 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

  23. Differential Pricing • The funding model builds in differential pricing in 4 ways, with each customer groups having different: • Referral points • Payment amounts • Length of job outcome payment • Length of sustainment payment period

  24. Ensuring ongoing competition • We will shift market share (customer referrals) from poorer performing providers to the better performing provider in any given area. • We will consider performance on an individual customer group basis • The first trigger point will be at month 18. Provider A 3% Provider B Job entries 24 Months 18 Months

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