EUROPEAN SOCIAL FUND 2007-2013 South Tyne & Wear Valley

1. EUROPEAN SOCIAL FUND 2007-2013South Tyne & Wear Valley

2. WELCOME AND INTRODUCTIONS: • Steve Liptrot Provision Sourcing • Val Kearney Provision Sourcing • Andy Wilson ESF Project Team • Ann Westland Regional ESF Team

3. DOMESTICS

4. ESF PROJECT TEAM

5. INTRODUCTION • DWP – co-financing organisation; • ESF 2007 – 2013 Implementation project; • Project role; • Steady state arrangement Introduction

6. 2002 – 2006 PROGRAMME • 1,000 contracts; • 350,000 starts; • 80,000 job outcomes.

7. 2007 – 2013 PROGRAMME • Initial round of contracting to 2011; • Specific EU priorities aim to increase employment and reduce unemployment and inactivity; • Focus on getting people into work and/or moving them towards work; • Specific EU targets to get people into work; • EU target customer group complements DWPs’.

8. TARGET GROUPS • People with disabilities and health problems; • Lone parents and disadvantaged parents; • People from ethnic minorities; • People with low or no qualifications; • Young people, particularly if not in education or training.

9. KEY FEATURES • Added Value; • Job focussed – including ongoing support; • Meeting local needs; • Involvement of smaller providers including third sector; • Funding model will reflect ESF and DWP objectives; • All provision competitively tendered and will be delivered through Prime Contractor model.

10. LET ME JUST REMIND YOU…. • DWP will be looking to draw down around £80m a year in England; • More than the current programme; • 22% of those supported are expected to get into work; • Evaluation will look at this and longer term outcomes such as retention; • Funding and contracting arrangements in line with standard DWP approaches.

11. FINALLY……. This is our opportunity to make a difference

12. ESF REGIONAL OVERVIEW

13. Customer Journey

15. District Overview • The overall aim of the provision is to provide a seamless service to customers to enable those farthest away from the labour market to access and remain in employment via a single access point. • The Intensive Support Worker will be key to the success of the provision and will facilitate the customer journey from engagement to sustainable employment. • The provision should be flexible and innovative to address individual needs whilst being active and engaging for the customer.

16. PROVISION SOURCING TEAM

17. THE CONTRACT • The award of a contract, or promise of one only exists when you receive a formal letter from the Department for Work and Pensions Operational Procurement Unit and no offer or guarantee of any kind can be inferred from you being invited to tender for this service.

18. Procurement Aims and Objectives • Aim – to select suitably experienced providers through: • a competitive process that ensures value for money; • ensuring propriety, probity and conformity to public procurement legislation, policy and best practice; • a communications strategy focusing on the widest range of providers; • robust contracts; • sub contracting arrangements which will ensure the optimum use of smaller and specialist organisations; and • meeting specific ESF requirements including publicity, equality of opportunity and sustainable development.

19. Procurement Approach: Prime Contractor Model • Prime Contractor – DWP contracts with a single organisation (the Prime Contractors) to provide some or all of the provision, supported by one tier of subcontractors where the local supplier market and customer/employer need dictates. • Prime contractors are required to undertake the following three functions: • to provide some services directly; • to subcontract some services to other organisations and; • to manage the payment and performance of the subcontractors.

20. Advantages of Prime Contractor Model • These include: • a reduction in the number of contracts let; • A corresponding reduction in the number of providers requirements management and monitoring by DWP; • A reduction in contract letting and ongoing management costs; • Flexibility to change aspects of delivery as a need is identified; • Helping to overcome potential bottleneck issues on scheduling provision • Facilitates the employment of specialist niche providers via sub-contracting

21. Contract Packages • The contract term and size must afford stability for providers • This contract will be awarded for a period of 2 years 8 months with the option to extend for a further 2 years. • The contract will contain a break clause to allow DWP to review requirements and performance and a termination clause to allow DWP to terminate without penalty.

22. BID EVALUATION • Bids will be evaluated on the basis of: • Quality and Price • best combination of these = Value for Money

23. CONTRACT LENGTH • Start date 17th November 2008 • Initially contract to 3rd August 2011 • Possible contract extension to 2013

24. QUALITY ASSESSMENT

25. QUALITY ASSESSMENT • Part 1 – Organisation Identity • Part 2 – Declaration by Tenderer • Part 3 – Organisation Identity • Part 4 – Contracting Strategy • Part 5 – Quality Assurance • Part 6a – Business Capability Performance • Part 6b – Business Capability Customers

26. QUALITY EVALUATION • Part 6 – Business Capability Employers • Part 7 – Delivery Proposals • Part 8 – Human Resources • Part 9 – Management and Quality • Part 10 - Premises and Facilities • Part 11 – Implementation Plan

27. QUALITYEVALUATION SCORING • EXCELLENT 5 points • GOOD 4 points • FAIR 3 points • DOUBTFUL 2 points • POOR 1 point

28. WEIGHTING • Contracting Strategy 4 • Quality Assurance 3 • Business Capability – experience and performance including evidence of track record 5 • Business capability – knowledge and experience of customer groups and moving them closer to the labour market 5

29. Weighting continued • Business capability – knowledge and experience of working with employers 4 • Delivery Proposals 5 • Human Resource 3 • Management and Quality 4 • Premises and facilities 1 • Implementation Plan 1

30. PRICING PROPOSAL • Pricing Proposal Document • Supported by comprehensive guidance • Breakdown of costs • Supporting Assumptions • Offer of proposed starts & job outcomes

31. FINANCIAL EVALUATION • Pricing Proposal checked for accuracy • Cross checked with Tender Form • Clarification

32. BID CONTENT • Bids will be evaluated taking into account: • Quality score • Price • Best combination of both

33. Tips • Tips for writing your bid: • Read the specification • Read the questions carefully • Page count – 35 pages in total • Your decision number of words/pages per question • Don’t assume anything • Describe HOW

34. ACCREDITATION PROCESS • Momenta: • Completed on line • Financial • Legal Entity • Health & Safety Information • Financial Viability Risk Assessment • Proof of insurance • Diversity and equal opportunities

35. FUNDING MODEL

36. INTRODUCTION TO FUNDING • Background to Funding Model • Funding Arrangements • Evidence Requirements • Financial Evaluation • Tolerances

37. BACKGROUND • Ministerial drive - payment for results • Reduced bureaucracy for both parties • Price based competition • Delivery and Outcome payment • One job outcome per customer

38. FUNDING ARRANGEMENTS - 1 • Agreed Contract Price • 50% for Delivery • 50% for Job Outcomes

39. FUNDING ARRANGEMENTS - 2 • Delivery Fee: • 50% of contract price • ÷ by 32 equal monthly payments

40. FUNDING ARRANGEMENTS - 3 • Job Outcome Fee: • 50% contract price • ÷ agreed Job Outcome target • = unit price per Job Outcome

41. EVIDENCE REQUIREMENTS • Delivery Payment: • No evidence requirementsJob Outcome: • original letter from Employer

42. EVIDENCE REQUIREMENTSJOBSEEKERS ALLOWANCE • Job Outcome definition: • lasts for at least 16 hours each week • expected to last at least 13 weeks • begins within 6 weeks of leaving provision

43. EVIDENCE REQUIREMENTSINACTIVE CUSTOMERS • Job Outcome definition: • lasts for at least 8 hours each week • expected to last at least 13 weeks • begins within 6 weeks of leaving provision

44. TOLERANCES

45. TOLERANCES - 1 • Safeguard for volumes exceeding or not meeting expectations • Table C provider’s suggestion • Honest assumption • Tolerances discussed with preferred bidders

46. TOLERANCES - 2 • Written into the contract • Performance monitored monthly • Improvement plans put in place • Agree new profiles • Levels not used for evaluation

47. CONTRACT VALUES

48. CONTRACT VALUES • Each specification will state: • an indicative range value • An indicative range value for a possible extension

49. VOLUMES

50. VOLUMES • Each specification will show: • Indicative numbers of starts and job outcomes • Majority of starts through the provider