Pathways to Work Invitation to Tender Provider Event

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Pathways to WorkInvitation to TenderProvider
Event
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Agenda

• Detailed Service Specification
• Invitation to Tender stage and procurement
  timeline
• Funding and Payment Arrangements
• Star Rating System
• Monitoring and Evaluation
• Question and Answers
• LUNCH
• Table discussions Questions
• Final comments

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Provider-led Pathways to Work
Chris Peters
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Why are we doing Provider led Pathways

• Pathways support works!
• Significant contribution to helping 1 million
  people off IB
• Move more IB customers into sustained work faster
• Increase the of disabled people in work
• Contribute to the Governments target of 80
  employment rate for working age people
• Contribute to the eradication of child poverty
• Enable providers to deliver better outcomes

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Facts figures

• Pathways to Work has delivered
• 25,050 job entries, including over 4,500 from
  voluntary customers
• 8 per cent more people leaving benefit within 6
  months
• 9.4 per cent point increase of IB customers
  into work
• Wider context
• 1 million of 2.7 million on IB say they want to
  return to work
• 80-90 of new IB customers expect to return to
  work
• New/repeat IB claims are falling (down 52,000
  in year to Feb 2006)
• Nearly 2.4 million more people in work than in
  1997
• 10,000 new vacancies reported to Jobcentre Plus
  every day
• Labour Market inactivity at 20.9 is the lowest
  its been since 1992
• The time is right

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Provider led Pathways model

• Five monthly mandatory Work Focused Interviews
• Waivers, deferrals, good cause
• Review and update of the customers personalised
  work action plan
• Tailored, back-to-work support bannered under
  NDDP
• A Condition Management Programme
• Life event and three yearly backstop Work
  Focussed Interviews

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WORK job entry for 8.5 of in-flow 22 of
mandatory WFI 45 Voluntary customer
IB in-flow 6702
18 off-flow 8 deferred 3 waived 71 initial WFI
Voluntary C U S T O M E R 1348
70 screened in
30 screened out
3 waived some of the deferred
5 mandatory WFIs 2507
Back to Work Support
Life events WFIs
3 yearly backstop WFIs
3 yearly backstop WFIs
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Eligible customers

• Mandatory WFIs
• Incapacity Benefit
• Income Support (on the grounds of incapacity)
• Income Support (for customers appealing against a
  decision that they are not capable of work)
• Severe Disability Allowance
• From 2008, all new and repeat ESA customers

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Eligible customers

• Back to work voluntary support in addition to IB
  customers
• Disability Living Allowance
• National Insurance credits on the grounds of
  incapacity
• IS with a disability premium
• Housing or Council Tax benefit with a disability
  premium
• War Pension (where includes unemployability
  supplement)
• Industrial Injuries Disablement Benefit (where
  includes unemployability supplement)
• Pension Credit with disability premium or doctors
  statement
• Benefit equivalent to IB imported under European
  Community Regulations

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Partnership Working
A key success to Pathways outcomes...

• A seamless Customer service that puts the
  customer employers at the centre with
• prompt completion of Work Focused Interviews
  quality action plan
• effective, open relationships between the
  customer their adviser
• Tailored back to work support that maximises
  customers abilities and addresses barriers
• Effective relationship with employers
• Making the customer marketable to employers
• Successful in work support
• Prompt in work support where appropriate
• Providers promote Return to Work Credit is as a
  work incentive
• Jobcentre Plus administers Return to Work Credit
  promptly
• Customer compliance with their benefit
  regulations
• Prompt reference to Jobcentre Plus if the
  customer fails to attend without good cause
• Prompt decision and application of sanction

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Successful customer experience
Through
Tailored support to meet individual needs
Customer choice
Empowerment
Open dialogue with provider

• Personal action plan with
• Clear job goals
• That optimises individual capabilities
• Addresses barriers

Resulting in a sustainable job, with in-work
support where needed.
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Focus on Outcomes

• Where employers need and want the skills our
  Pathways to Work customers have
• Our Pathways to Work customers have the required
  standards and confidence to compete in the labour
  market
• Job outcomes
• Sustained work outcomes

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Performance Evaluation
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Pathways to Work overview of performance
monitoring

• Provider Led Pathways
• Invitation to Tender Provider Events
• 30th October James Battye
• 31st October Billy Blyth
• 2nd November Tim Foster

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Overview

• Pathways database
• - contents
• - capabilities
• - outputs
• Database structure
• Filling in the gaps data required from
  providers
• Examples of analyses
• Estimating volumes for PL Pathways

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Database contents

• Starts/Participants
• WFI activity (initial, repeat voluntary)
• Sanction referrals and outcomes
• Screening Tool
• Choices package
• Job entries RTWC awards
• IB starts and ends
• Sustainability measures

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Database capabilities

• Aggregate counts
• Cumulative totals
• Cohort analysis
• Take up rates
• Outcome measures
• Comparisons

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Database outputs

• Performance reports /summaries
• Briefing and Parliamentary Questions
• Process improvement
• Comparative analysis
• Research samples
• Modelling expected volumes

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Database flows
Pathways Evaluation Database
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Filling in the gaps data requirement from
providers

• Personal identifier and details
• Registration / start
• Referral type
• WFI activity
• Sanction referrals
• Programme referral/start (Condition Management)
• Job entry (for provider payments)
• Sustainment off benefit/in work (for payments)

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12 month off-flow rate
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Incapacity Benefit caseload
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Choices take-up
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Mandatory process for PL Pathways estimated
volumes
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Example
WFI deferred 880
Screened out 2,200
WFI waived 330
Non-mandatory referrals
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IB starts 11,000
Initial WFI (JCP) 7,810
Screened 7,480
8 weeks
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PL referrals (mandatory) 5,060
Screened in 5,280
2 weeks
PCA exempt at claim 3
2 weeks
Mandatory PL starts (1st PL WFI) 4,070
PCA exempt before 1st PL WFI 660
PCA exempt after 1st PL WFI 440
All PCA exempt 13
4 weeks
2nd PL WFI 3,190
Further mandatory WFIs
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Contact Details

• James Battye - 0114 209 8281
• James.battye_at_dwp.gsi.gov.uk
• Billy Blyth - 0114 209 8394
• Billy.blyth_at_dwp.gsi.gov.uk
• Tim Foster - 0207 962 8611
• Tim.foster_at_dwp.gsi.gov.uk
• Please contact project direct via the e mail
  address at the end of presentation

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Tracy Hughes - Procurement
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Tender Stage 2

• Summary of this session
• Pointers on key assessment criteria
• Tender and Contracting Timetable

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Tender Stage 2
Congratulations on being shortlisted to the
second stage of the tendering process More
detailed information now needed from you,
particularly on delivery and performance
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Tender Stage 2

• The contract will be awarded to the most
  economically advantageous tender in each
  District.
• 60 of the marks are awarded for quality
• 40 of the marks are awarded for price

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Tender Non Complaint Bids

• Tenders may be rejected for the following
  reasons
• Late or incomplete submissions
• Does not conform to terms and conditions
• Does not offer the target number of job outcomes
• If TUPE is applicable GAD determines that the
  Provider pension is not comparable
• Provider fails Accreditation

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TenderQuality Assessment Criteria

• Key assessment criteria (part C of ItT)
• This is what well judge the quality aspect of
  your tenders against
• Make sure you fully answer the questions
• Do not exceed the stated sides of A4 anything
  over the limit will be disregarded
• All questions are important but see the weighting
  of each question to see its relative importance

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Tender Relative Weighting

• Performance, skills and experience 4
• Service Delivery Model 4
• Organisation Infrastructure 3
• Human Resources for Pathways 3
• Proposals to deliver WFIs 5
• Proposals to deliver CMP 5
• Proposals for Delivery of Job-focused Support 5
• Quality Standards and Evaluation 3
• Implementation Plan to Delivery 2
• Premises and Facilities 3
• Record Keeping and Administration 1

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TenderKey Criteria Scores

• Risk - Score 0
• Partially Meets Requirement - Score 1-2
• Meets Requirement - Score 3-4
• Added Value - Score 5-6
• The score for each question will be multiplied
  with the weighting to give a total quality score.

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TenderPerformance offer

• Number of Job Outcomes broken down by type and
  contract year
• Favourable outcomes against target
• Providers are expected to give a convincing,
  evidenced case for their outcome proposal
• The outcome proposal is not weighted with the
  quality criteria. Either meets requirement or
  risk
• Financial evaluation will be 40 of score
• Total Contract Price ? Total No Outcomes Price
  Per Outcome

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Tender

• Question 1 performance, skills and experience
• We need evidence that you have the ability and
  capacity to delivery high quality provision
  against the full specification and to the
  customer group.
• Not just your performance, but also any partners
  sub-contractors
• Targets, outcomes achieved , inspection results

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Tender

• Question 2 Service Delivery Model
• Proposals to show how each element of the service
  requirement will be delivered by whom
• How you will manage the flow of referred and
  non-referred customers within annual budgets
• How you will ensure continuous improvement
• How you will work with partners and local
  employers

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Tender

• Question 3 Infrastructure, Management and
  Capacity
• To give us an assurance that you have the
  infrastructure and management capacity to deliver
• Dont forget to attach an organisation chart,
  showing responsibilities, interfaces and
  locations of key personnel, partners
  sub-contractors
• Robust management strategy for simultaneous
  delivery of Pathways and other contracts

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Tender

• Question 4 Human Resources
• We need to understand what staff you will use for
  the contract, and their skills and experience
• Not just your staff, but also any sub-contractors
  
• Outline your staff training arrangements
• Provide contingency plans
• TUPE Districts proposals for communicating
  transferring staff

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Tender

• Question 5 Work Focused Interviews
• We need to know you have understood the mandatory
  elements of WFIs
• Evidence of how you will identify address
  individual customer needs to engage, motivate and
  move them into work
• Convincing process and content

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Tender

• Question 6 Condition Management Programmes
• We need to understand how you propose to deliver
  CMPs which meet individual customers needs
• How they conform to clinical governance standards
• Evidence of qualifications, experience and
  performance in this area with this client group
  (Inc sub-contractors)

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Tender

• Question 7 Tailored Job-Focused Support
• We want to know what individually tailored
  support will be available to customers
• Who will deliver it and how?
• In-work support for sustainable outcomes
• Local labour market intelligence

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Tender

• Question 8 Quality Standards and Evaluation
• We need to be sure that you can deliver provision
  to high quality standards
• Tell us about any quality standards you have
  achieved, including any sub-contractors
• Tell us about your monitoring and evaluation
  systems and how you and your sub-contractors act
  on these

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Tender

• Question 9 Implementation plan
• We need to be sure you can be ready to deliver
  from w/c 29 October 2007
• Timetable should show all key activities,
  including
• Securing suitable premises
• Recruiting and training staff (inc.
  subcontractors)
• Marketing/publicity
• Contingency plans

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Tender

• Question 10 Premises and Facilities
• We need to understand where the provision will be
  delivered from
• Why do you feel the premises are suitable?
• Are the premises accessible?
• Are there good transport links?
• What other equipment and resources will be
  available?

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Tender

• Question 11 Record keeping and administration 
• Important that you are able to provide accurate
  information on customers, their progress and
  outcomes
• Confidentiality and Data Protection Act
• Complaints, problems grievances
• Transfer of records

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Tender

• Overall we are looking for convincing tenders
  from experienced organisations with innovative
  ideas about how to help people get closer to the
  labour market and find sustainable jobs.

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TenderPoor responses

• Unrealistic or unconvincing proposals
• No evidence of experience or success with
  customer group
• Management of risk unconvincing
• Details of how partners will work together is
  sketchy
• Lines of responsibility unclear
• Resources to manage this alongside existing
  contracts unclear

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Tender

• Phase 1 timescales
• Tenders due back by noon 9 Feb 07
• Results communicated w/c 16 April 07
• Contracts awarded by w/c 9 July 07
• Delivery begins end Oct 07

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Tender

• Some key additional points
• We dont expect you to be able to deliver
  everything yourself. Engage with suitable
  sub-contractors
• Make sure your tender shows the specific
  arrangements you have with partners and
  sub-contractors in Section 7 Part B.

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Tender

• Dont attach any additional information unless we
  ask for it
• Submit your tenders by noon on 9th Feb we
  wont accept late bids
• Send in the original, signed copy of each
  completed Tender, plus four other paper copies
  (including one copy unbound) and one other
  electronic copy on disk.
• Send in your response to the pricing schedule in
  Section 5 or 6 for the appropriate District you
  are tendering for (TUPE or Non TUPE)

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Tender

• Thank you and good luck!

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Funding and Payments Gwen Short - Finance
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Introduction

• Background to Funding Model
• Funding Arrangements
• Evidence Requirements
• What we expect from Providers
• Evaluation of bid

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Funding Model Background

• Supports Green Paper intent
• outcome based contracts
• payment by results
• Price Based competition
• Providers offer of moving customers into work
• Payments split into Service Fee and Outcomes
• Reduces bureaucracy for both parties

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Funding Arrangements

• Service Fee
• 30 of contract price
• Paid as 36 equal monthly instalments
• Job Outcome payments
• 50 of contract price
• Paid as a unit price for each outcome achieved
• Sustained Job Outcome payments
• 20 of contract price
• Paid as a unit price for each sustained outcome
  achieved

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Evidence Requirements

• Service Fee No requirement for evidence
• Signed declaration from Provider
• Job Outcome Provider evidences
• Letter from Employer
• Jobcentre Plus will check a percentage
• Sustained Job Outcome JCP evidences
• Provider tracks and claims
• JCP will evidence a via off benefit check

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What we expect from Providers

• Completion of the Pricing Proposal Documentation
• Pre-defined spreadsheet
• Total Contract Price by cost category across 3
  years
• Supporting Assumptions
• Number of Job outcomes
• Number of sustained Job Outcomes

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Evaluation of Bid

• Bids evaluated on quality, risk and price
• Separate quality and finance evaluations
• Finance evaluation based on Value for Money
• Financial evaluations February 2007
• Quality and Finance brought together 60/40
  weighting

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Jobcentre Plus Star Rating
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What is Star Rating?

• The Star Rating system is an overall assessment
  made of a provider based on a range of weights
  and measures

• The introduction of a Star Rating system, whose
  results will be published, was the recommendation
  of a recent independent review of procurement
  within Jobcentre Plus

• Ministers are now keen that this is put into
  place

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Background

• Provider Task Force recommendation

• Jobcentre Plus Review of Procurement (ATOS
  Consulting)

• Informed by, but different from, Australian
  model

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Why do we need Star Rating?

• Every year Jobcentre Plus spends millions of
  pounds procuring training provision to help
  Jobseekers back into work
• Improving the quality of publicly funded
  services is high on the Ministerial agenda

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Principles behind our Star Rating system

• Robust, fair, open and honest

• No burden on providers to supply more information

• We will use data already collected by Jobcentre
  Plus

• Will complement similar work taking place within
  other parts of Government

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Where are we now?

• Part of a wider set of developments impacting on
  the procurement of Jobcentre Plus provision and
  the relationship with providers
• Small project team set up
• Initial discussions with stakeholders and
  consultation with the Provider Community
• Clarifying early design principles with Ministers

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Proposals

• Start April 2007
• Limited range of programmes included
• Will draw in only selected drivers
• Findings discussed with providers, but not
  published

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Potential Measures

• Activity levels
• Outcomes
• Unit costs
• Quality- self assessment and inspection
• Delivery of key processes
• Contract compliance financial risk
• Customer feedback

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Future Developments

• All programmes will be included
• Find ways to capture soft information such as
  customer feedback
• Build on the rating for each contract to an
  overall rating for the provider
• High level Star Ratings to be published

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Consultation and Feedback
Email starrating_at_jobcentreplus.gsi.gov.uk

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Contact Details

• Email Questions to
• steelcityhouse-pvspathways_at_jobcentreplus.gsi.gov.u
  k
• Last date for questions is 26 January 2007
• Responses will be regularly published on
  jobcentreplus.gov.uk on the partners page on the
  Pathways to Work Section (Opportunities to
  Tender)