National Delivery Group/ Potential Work Programme Prime Contractors Note of Meeting 25 th January 2011

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1 National Delivery Group/ Potential Work Programme Prime Contractors Note of Meeting 25 th January 2011 Attendees Chair: Professor Alan McGregor, Glasgow University Scottish Government: Joanne Farrow, Sharon Hamilton, Michelle Gibson, Jim O Rorke Skills Development Scotland: Katie Hutton Jobcentre Plus: Elaine Boyce/Dave Findlay Local Employability Partnerships/ CPP s: David Coyne/ Liz Logan - Glasgow Works, Dawn Redpath/Andrea Watson - Dumfries & Galloway Council, Andy Lee - North Ayrshire Council, Allan Millar/Michelle Gautier - Dundee City Council, John Bergin - East Renfrewshire Council, Gillian Robertson - Aberdeen Works, Jane Gair - Highland Council, Alan Weaver - Moray Council, Jim Rafferty - Edinburgh City Council, Greig Robson - North Lanarkshire Council, Simon Carey/Anne Sheils - South Lanarkshire Council, Fiona Cameron/ Shelley Hague - Angus Council, Wilson Lees - Clackmannanshire Council, Anne McIntyre - Fife Council, Des Friel - Stirling Council, Ailsa Duncan Aberdeen City Council, Shaun Lundy Inverclyde Council, Veronica MacMillan Scottish Borders Council, Lynn Webster Perth & Kinross Council, Valerie Stewart South Ayrshire Council, Drummond Stewart East Dunbartonshire Council, Margaret McDermott/Rita Easterbrook West Dunbartonshire Council, Ian Gilchrist Falkirk Council, Ian Hepburn West Lothian Council, Chris Smillie Aberdeenshire Council Third Sector: Donna MacKinnon SCVO, Blyth Deans The Lennox Partnership, Judith Thomas WEA Scotland, John Reid Access to Employment Potential Prime Contractors: John Wallace - JHP, Tom Waddell/Alistair Grimes - G4S, Austin Hardie/Julie Thomson BBWR, Kirsty Taylor/Barry Fletcher Ingeus, Amanda Edwards/Sara Neilson Reed In Partnership, Jane Leavey The Wise group, Nick Young Working Links Following a morning discussion session the NDG posed the following questions to the potential prime contractors. The range of answers are noted. What will be your approach to Employer Engagement, ensuring joined-up working, in what is already a crowded landscape? Recognition that no one Prime will be able to undertake this on their own, and will need to work in tandem with others on supply chain. Efficient and effective employer engagement is key, and Work Programme (WP) is not about increasing the number of contacts with employers, but joining up those already engaged, providing opportunity to bring people together to work more closely. Delivery will change throughout duration of the contract, as what works well becomes more apparent. Primes will also bring access to own jobs, as are large employers in their own right.

2 How will Primes deliver in rural areas, ensuring equal access to provision and opportunities? Will look at who is already delivering successfully in that area as a sub-contractor, utilising existing experience and knowledge of area. If none available then investment will be required i.e. use of outreach premises, pooling of resources, mobile services, etc. Keen to work with each Local Authority/ partnership to identify and purchase suppliers. Recognise the diversity of communities across Scotland, and the need to develop a supply chain with breadth and depth in order to meet WP obligation for all areas. Will the pricing structure then reflect delivery across different areas (e.g. rural/ urban)? Yes, it is likely that cost will reflect the different delivery required How will you respond to the biopsychosocial needs of Incapacity Benefit client migrants? Ingeus will look at their existing delivery models for pathways in relation to long term health conditions, and continue to use specialist health interventions G4S will ensure that specialist delivery is built into supply chain Working Links have experience of this customer group, and will bring that experience into their supply chain Expectation that client group will change throughout the duration of the (5 year) contract, which will require supply chain management, engaging with organisations who can deal with different barriers/ clients at different stages, and not lock into one model of delivery throughout Will Primes pay for services currently funded by CPP s i.e. childcare, literacy support, money advice? G4S will fund a Knowledge Bank, to ensure provision of these services for clients. If these are already delivered within an area, there is an expectation that they would not double fund these. BBWR keen to discuss what prime will pay for, and what services are already being provided within an area. Consensus that there is recognition of strain on existing resources and desire to engage with CPP s to look at best use of all resources. No desire to duplicate services, or double fund. G4S have already issued letters of intent confirmed funding for likely gaps. Representatives from the local employability partnerships noted that sub-contracting and partnership working are two different things, that defined payments should reflect public funded services and that primes should be aware that Local Authorities may be planning service reconfiguration so dialogue is needed. What role will other funded provision play i.e. Training for Work? As the Programme runs there is a need to ensure that it is integrated effectively with any other funded services, but unlikely instantly. A long term ambition would be to have same set of objectives/ outcomes.

3 Given the evident commitment to partnership working, will Primes build in requirement for sub-contractors to work in partnership with CPP s and the existing local delivery infra-structure(s)? Obligation for primes to ensure subs managed effectively, robust delivery strategies in place, and connectiveness to local areas from subs. Recognition that subs will need to connect well with local employability partnerships. Primes recognise and are impressed with the local arrangements, pipelines, etc already in place within areas. The local employability partnerships also acknowledged their obligation to engage with Primes and sub contractors. How do you see your relationship with the other Prime Contractor partner of competitor? Nature of contract will encourage competition, as DWP may direct bigger share of clients to better performing Primes. Primes keen to encourage openness however, and are already coming together to share information, and develop best provision. Compelling argument for collaboration between Primes, and all recognised the role that the NDG to ensure ongoing collaboration and discussion. How will you protect supply chain providers from cash flow issues, particularly Third Sector organisations? G4S have released their pricing model, which includes option for smaller organisations to request more up-front funding (not conditional on job outcomes). Working Links are also developing different funding models What is your understanding of TUPE implications, and the impact on the supply chain? All primes recognise and understand their legislatory obligations in this respect, and are working with their own HR departments to work through the details. What level of investment will be made to support and develop your supply chain? All primes recognised the need for investment financial, capacity building, time and expertise which can be passed on to support smaller organisations. Again the Primes acknowledged the changing needs of customers and supply chain organisation over the duration of the contract, and are keen to be flexible to respond to these. Will sub-contractors have to adopt the Primes model of delivery? Primes will not dictate delivery methods, albeit certain contractual obligations may be passed on. Keen to encourage sharing of good/ best practice over the contract duration. Recognition that differing labour market conditions will require different approaches.

4 How do you see the Primes role in terms of economic growth, and tackling the seasonal nature of opportunities in some areas? Recognition of differing labour market conditions, and that not enough jobs in some areas, but WP given customers longer to re-train, up-skill, etc in order to ensure best fit for the job opportunities that are available. Funding channelled towards sustainable jobs, to ensure that primes incentivised to look at best job-match. What are the opportunities to continue discussion/ negotiation post bid (14 th February)? All primes keen to continue discussion post-bid date. Would potential Prime Contractors be willing to participate in a similar meeting with national Third Sector organisations? Yes supply chains will continue to be developed throughput the duration of the contract. Local Authorities were then asked to outline the main points that they think primes should take cognisance of moving forward: Public sector finances becoming tighter As far as possible to minimise risk being passed to sub-contractors Recognise existing good practice in working with this client group Understand and recognise existing delivery infra-structures, build upon these, and participate in local employability partnerships Recognise a clients journey towards work, and the length of time that this can take. Other Actions/ Issues Agreed It has been agreed that successful Prime Contractors will be invited to join the National Delivery Group Scottish Government to facilitate meetings between those areas where the local authorities/local partnerships are acting as sub-contractors to share practice, etc. Survey Monkey to be issued end March to gather baseline information from service providers will be repeated 6 months time to determine Work Programme/ Welfare reform impact on pipeline services NDG to be used as Forum to continue discussion around performance, common issues, good practice, etc. A further meeting to be re-convene with NDG, once successful primes announced Employability in Scotland website details to be forwarded to potential Primes, drawing attention in particular to facility to click on specific localities for local labour market and employability details. ( Similar meeting with Third Sector employability forum to be organised Ascertain opportunities for Local Authorities (not acting as sub-contractors) to lobby DWP for local input into contract management*

5 * Update from DWP advises that: There will be a robust customer complaint processes in place in WP. The exact design is still being finalised but this may include financial penalties should the complaint go to the Commissioner and be upheld. All customer complaints will be visible to DWP who will ensure the issue is resolved within the terms of the contract. Outside of customer complaints, should wider strategic partners feel the service is 'not as it should be', they could raise it at the strategic (partnership wide) meetings or directly with the DWP Account Manager for the given provider. The names of the Account Mangers will be on the DWP website. The specification requires bidders to set out the minimum service levels available to all customers and DWP will be assessing bids, in a very competitive environment, with the clear goal of selecting the provider that offers the very best service and outcomes to customers.