Request for Tender DES ESS

Transcription

1 Request for Tender DES ESS Insights and commentary from Disability Employment Australia

2 Contents Introduction... 3 Our recommendations... 4 Selection criteria... 5 Five year contract term... 6 Self-determination... 6 Specialist contracts... 8 Quality, sustainable outcomes... 8 Claiming fees... 8 Non-payable outcomes... 9 Performance framework... 9 Transition Other factors and observations Eligible School Leavers Program Summaries Job in Jeopardy Wage Subsidies Connections for Quality APESAA Appendix 1 Tracked changes to selection criteria

3 Introduction The following commentary regarding DEEWR s recent release of the DES-ESS Request for Tender (RFT) is provided to member organisations to use as they see fit. The insights are shared to facilitate discussion and stimulate thinking around the Government s objectives. This is not a technical analysis and it is not intended to influence the tendering process tendering is not our expertise. Rather this document aims to provide member organisations with our commentary and insights regarding the DES program Most importantly, through our conversations with the Minister s office, Disability Employment Australia is confident that our lobbying, submissions and dedication to protect the integrity of the program has resulted in the Department showing greater regard to the specialisation of DES-ESS. The figure below outlines the key topics this paper sets out to explore: Selection criteria Five year contract term Self-determination Specialist contracts Quality, sustainable outcomes Performance framework Transition 3

4 Our recommendations Our position regarding the DES-ESS tender has been described at length in our submission to the Senate Inquiry into the Administration and Purchasing of DES. In addition, we have made many other submissions on the issue of procurement to protect the integrity of the program. Below are the key recommendations we communicated to DEEWR following its release of the DES-ESS exposure draft: DES-ESS is a specialist employment service for people with permanent disability who require regular and long-term support in the workplace. DEEWR can and should ensure the selection criteria for DES-ESS has respect and regard for the specialisation of the program, its long-term relationship focus, the complexity of disability and the quality and sustainability of employment outcomes. There is a risk that the current selection criteria will not adequately assess capabilities crucial to the success of DES-ESS and the relevance of the program to its participants specifically the capability of a tenderer to provide person-centred services, long-term regular support in the workplace and understand and address the effects of disability discrimination. It is essential that any procurement of DES-ESS be judged against the objectives of the National Disability Strategy to ensure that DES-ESS remains relevant to Government policy and the disability community. DES-ESS can and should play a significant role in attracting discouraged job seekers with disability into the open labour market. DEEWR can increase workforce participation and productivity by designing the selection criteria to assess a tenderers capability to engage people with permanent disability who are outside of the labour market. 4

5 Selection criteria The table below illustrates the impact our recommendations have had on the selection criteria: Our Principles To ensure the best performing providers, DEEWR can and should assess a tenderers capability to deliver regular and long-term support in the workplace To ensure sustainable employment outcomes for people with disability, DEEWR can and should assess a tenderers capability and past performance in the achievement of outcomes that last beyond 26 weeks To foster workforce participation and productivity among people with disability, DEEWR can and should assess a tenderers capability to engage people outside of the labour force To address disability discrimination and increase demand for people with disability as employees, DEEWR can and should assess a tenderers capability to change negative perceptions in business and the community To address skills shortages and the productive capacity of the workforce, DEEWR can and should assess a tenderers capacity to address career aspirations To ensure high quality job placements and outcomes, DEEWR can and should interpret past performance more broadly than quantitative performance under outcome KPIs and star ratings by requiring tenderers to respond to Criterion 3 beyond the quantitative data held by DEEWR To foster social and economic inclusion, DEEWR can and should assess a tenderers knowledge of and capability to deliver person-centred, self-directed employment services consistent with broader Government disability policy objectives DES performance occurs under the Disability Service Standards quality accreditation framework whereas JSA performance does not, and therefore tenderers without DES experience in an ESA should not be exempt from responding to Criterion 3 To ensure confidence and faith in the procurement outcome, DEEWR can and should provide greater transparency regarding how comparative performance is assessed and weighted DEEWR Response The wording of the selection criteria has been changed in support of this recommendation. Specific references to JSA and DMS providers have been included requiring them to explicitly comment on their capacity to provide regular, long-term support in the workplace. While the RFT uses the rhetoric of quality jobs far more so than the exposure draft, the selection criteria looks for the achievement of Employment Outcomes which are defined in the RFT as meeting the current definitions of a Full or Pathway Outcome (13 and 26 weeks). There has been a substantial change the wording used for Criterion 4 insomuch it now asks all tenderers to detail their capacity to engage employers and participants. DEEWR has accepted the premise of our recommendation and Criterion 4 has been expanded to reflect the importance of changing negative perceptions regarding disability. DEEWR has accepted the premise of our recommendation and Criterion 1 has been expanded accordingly. DEEWR has provided significantly more clarity and transparency concerning its assessment of Criterion 3 and its intention to provide DES-ESS tenderers with the option of not responding to that criterion. DEEWR has changed the exposure draft significantly in response to this recommendation. The entire introduction has changed and it sets the scene for the sector in terms of the changing disability policy environment. Criterion 1 now has a higher weighting and has been expanded to reflect these capabilities. DEEWR has significantly changed Criterion 3 to reflect the specialisation and difference of DES-ESS performance compared to DES-DMS or JSA and tenderers are now required to respond to the criterion. DEEWR has now provided comprehensive information regarding the manner in which past performance will be assessed. Additionally, DEEWR clarified that any additional information provided in support of a bid should not be information or data DEEWR already holds. By merging the exposure draft and the RFT we were better able to visualise the changes made to the selection criteria. Our analysis of the changes is included for your reference in Appendix 1; alternatively members can access a merged copy of the Exposure Draft and the RFT that clearly tracks all changes (the entire RFT documentation) on our website. 5

6 Five year contract term A five year contract term offers greater stability for participants, employers and providers. Business stability should allow providers to invest time in building long-term relationships that meet the recruitment needs of large employers. Fees have not been increased and remain fixed for five more years, but it might be possible to use the following clause in the Deed as leverage: 23. DEEWR may vary payments, Participants or ESA Business Share 23.1 DEEWR may, at any time, vary the payments under this Deed, the number of Participants receiving Services from the Provider and/or the ESA Business Share or any other business levels of the Provider for all or part of the Term of this Deed by written Notice: (a) based on DEEWR s assessment of projected changes to labour market conditions in an ESA or LMR (including past and/or future projected Participant demand); or (b) acting reasonably, for any other reason as determined by DEEWR in its absolute discretion. Self-determination The industry has observed significant changes to the language used in the RFT compared to the Exposure Draft, language that reflects the specialisation of the DES-ESS program, language that clarifies the intended DES-ESS cohort and underlines the importance of the National Disability Strategy. 1 The concept of self-determination (i.e. choice and control) as the central tenet of disability policy in Australia has been made explicit, therefore future-thinking providers should ensure they are delivering true person centred services and take steps to measure the achievement of participant goals. From the Government report Inclusive Employment : a vision for supported employment: In 2022 the systems that operate in delivering supported employment will: still retain quality assurance, but the main assessor of quality will be the person with disability 2 There is a clear shift towards providing greater choice and control options to people with disability and the industry can expect those values and aspirations to grow into expectations and that our sector will eventually be synonymous with the same person centred approach. The introduction has a substantial focus on the changing environment that DES providers will be working in. Rather than opening with the Government s budgetary measures designed to create employment, it now opens with Australia s commitment to the United National Declaration on the Rights of Persons with Disability (UNCRPD). It is encouraging that DEEWR has demonstrated greater respect and regard for the complexity of disability and the changing environment

7 The central tenet influencing current disability policy in Australia is that self-determination should be a key feature in funding and service delivery: that is, people with disability should make choices about their own lives and the services that support them. 3 However some of the language used is paternalistic, Disability Employment Services (DES) offers the platform to ensure that everyone who is able to participate in the labour market. In our view, DES- ESS should be the platform for anybody who wants to participate in the open labour market. People with a speculatively assessed work capacity of 0 7 hours are excluded from participating. We advocated that the NDIS would bring a change of values and aspirations for people with disability and it is pleasing that DEEWR has made this explicit in the RFT: The introduction of a NDIS represents a fundamental reform to the way disability services are funded and delivered. While the Productivity Commission s report suggested that DES would not be part of the NDIS, there will be a need for close coordination between the NDIS and employment services in order to improve outcomes for Participants. 4 DEEWR still claims that DES providers have flexibility to develop personalised services, however we would suggest that flexibility is compromised as the Deed is 144 pages long with 44 sets of accompanying guidelines. As a general comment, there is greater use of the terminology the open labour market used in the RFT compared to the ED. The RFT appears to hold to the conventional medical model of disability insomuch that it requires providers to assess the impact of the Participant's disability on their capacity to find and maintain Employment as opposed to building on the strengths and abilities of participants. The Department also appears to discount the evidence-base of successful disability employment strategies when it limits the opportunities for work experience opportunities. The policy is wellintentioned and could be interpreted as protecting the interests of people with disability; however it does perversely limit options: As there must be a likelihood of ongoing, paid Employment for Participants, Unpaid Work Experience Placements cannot take place in volunteer or unpaid jobs, or non-ongoing or temporary positions. Participants can participate in such placements for a minimum of eight hours a week, up to a maximum of 50 hours a fortnight. 5 It is these (low risk) opportunities that provide a flexible environment for an organisation to provide an opportunity for a person with disability to experience the world of work. In many cases, these opportunities allow an employer to experience the value add of disability employment. There is a clear disconnect with the state of the Australian labour market where up to 40% of people work in insecure or non-traditional forms of employment. 6 Temporary or non-ongoing positions, from an employer s perspective, are the ideal opportunity for work experience and from a provider s perspective are ideal for labour market testing. 3 DEEWR, 2012, Request for Tender DES-ESS , Page 2 4 Ibid, Page 3 5 Ibid, Page 21 6 ABS, Forms of Employment 7

8 Specialist contracts The RFT places a greater focus on and apparent desire for specialist providers by expanding the information available regarding specialist contracts, including clarity around the concept of coverage; and providing greater transparency and insight into the information required to demonstrate the need for a specialist service, and where to find it. The RFT also provides tenderers with greater clarity regarding how DEEWR assesses value for money and makes it clear that the availability of specialist services that meet specific participant needs is a factor. The availability of specialist providers offers more choice to a participant. Quality, sustainable outcomes It appears that the flexibility introduced around permissible breaks during the Global Financial Crisis has been continued in the DES Deed. Providers are able to utilise the 20 day window where a participant loses their job in the outcome period: Where a Participant loses their job and needs to find alternative Employment, a break of up to 20 Business Days is allowed. 7 Again we see the insertion of a quality imperative from DEEWR in the RFT compared to the ED. The RFT includes a new section Quality Outcomes for Job Seekers although it runs the risk of assuming that transitional employment (or permanent employment) in a social enterprise lacks quality. It is also rather paternalistic again in that DEEWR does not consider transitional or capacity building activities to be of quality. Quality is a matter for the participant. However it is important to note that DEEWR appears to be taking a similar line to Disability Employment Australia the purpose of the program is sustainable employment and while these activities certainly add to peoples prospects, they in themselves don t always represent the objective of the program (rather they are more representative of the journey). Efforts are made to highlight that providers will still receive service fees, and job placement fees, for these types of placements / interventions they are valued and effective. The emergence of social enterprises is a key issue for the sector, especially in the contexts of contrived employment or non-ongoing employment. There are many examples of social enterprises that provide ongoing sustainable employment opportunities and there are those that don t. Where do members see the risks and opportunities? There s an apparent dissonance between DEEWR s requirement for a provider to have a Disability Employment Strategy to employ people with disability, but a raft of rules that apply to non-payable outcomes within their own organisation. Claiming fees Providers must be aware that any staff member claiming fees must have completed the DEEWR online training module first (this includes service fees): The Provider must: 7 Ibid, Page 35 8

9 (a) ensure that any of its Personnel that are required to submit claims for payment, have successfully completed Claims Processing Training prior to submission of any claim for payment to DEEWR by them; and (b) when requested by DEEWR, provide evidence that the relevant Personnel have successfully completed Claims Processing Training. 8 Claims Processing Training means the online training provided by DEEWR for Providers in relation to the processing of claims for payment. 9 Non-payable outcomes DEEWR should be mindful that the RFT appears to exclude genuine open employment opportunities in ADEs and it is not reflective of the information provided in Non-Payable Outcomes appendix of the Outcome Guidelines: For instance, an Outcome cannot be claimed for a placement in an Australian Disability Enterprise as, not only is it a placement within a program funded by the Commonwealth, but the employment is not in the open labour market. 10 DEEWR has clearly signalled its intent to make recurring education outcomes a non-payable outcome. We would support this policy but question how the rule might apply for a person a subsequent period of service with a different provider. A participant may wish to attempt a new course and it may offer a better pathway and more importantly it doesn t restrict choice and control over services. Performance framework The review of the performance framework has been made explicit and there is a real opportunity for our members to leverage off the selection criteria used to influence the performance framework review. The review is set for completion prior to the issuing of contracts. Disability Employment Australia will convene a Performance Framework Reference Group, membership will be by invitation however extensive consultation will be undertaken with the membership. The implications of not zero-basing performance data need to be explored and we would appreciate feedback from the membership and will be guided by the Performance Framework Reference Group. Initial thoughts question whether or not there will be level playing field as some providers will have more (or less) performance data. The performance framework drives outcomes and ultimately provider behaviour as they work to achieve those outcomes. There are many mentions to quality jobs in the RFT which highlights the dissonance of removing quality indicators from the performance framework: A Participant who has been Employed should not be Anchored into an Outcome until the DES ESS Provider is confident that the Job Placement is a good fit for the Participant and that the job is a quality, sustainable option for the Participant Ibid, Page Ibid, Page Ibid, Page 37 9

10 Together the Code of Practice and the Service Guarantee form part of the performance framework and ensure each Participant receives a high-quality service. 12 The RFT contains an additional note concerning the star ratings bands and weightings attributed to outcomes in the performance framework. Note: The DES Star Ratings Bands may be reviewed at DEEWR s discretion in consultation with the industry. 13 One and two star contracts will be the subject of business reallocation as of 31/12/14 and 30/06/16. Transition Our position was underpinned by four main principles and it was motivated by putting the participants interests first: Existing relationships (especially those between workers and employers) should be preserved and maintained wherever possible; Efforts should be made to ensure voluntary participants do not disengage; Participants should be given choice and control in the transition process; and Case continuity should be maintained. We have had a significant influence on the transition policy, participants will not be moved from a provider who has a reduced business share and a provider who gains a transitioned job seeker must (as a condition of signing its Deed) be able to provide the following services from 1 February Provide sufficient assistance and cooperation to relevant relinquishing Providers to enable Services to continue to be provided to relevant transferring Participants, as directed by DEEWR, including participating appropriately in joint meetings Comply with all conditions under the Deed relating to privacy, protected information and security, and Set up all IT Employment Services Systems and all related accesses including security in order to access transition screens in the Employment Services System and receive relevant Records. For transitioned job seekers, this requirement is good news and will go some way to maintaining continuity of service, especially if they are in Post Placement Support or Ongoing Support. It also seems likely that DEEWR as a customer is looking for providers that are willing and able to provide this service prior to the start of the new contract. Disability Employment Australia did recommend that payments were made available to ensure this was a viable service for providers to deliver, however it does not appear as though that recommendation has been adopted. While participants won t automatically be transitioned from a reducing provider they will be given the choice which is a policy that we support and is in line with self-determination as the central tenet of contemporary disability policy. There is a very clear expectation from DEEWR that providers will cooperate when arranging and conducting Joint Meetings. DES-ESS participants are among the most vulnerable people in society and therefore their transition must be given genuine consideration. 11 Ibid, Page Ibid, Page Ibid, Page 39 10

11 1 February through 3 March 2013 will see the majority of Joint Interviews conducted. There is an expectation that any information that will support the participants progress in DES is handed over to the new provider, including information stored in third party software or in hard copy files. DEEWR is in consultation with the Industry identifying the Participant information not in the Employment Services System, which will be shared between Providers. 14 Service fees will be made available pro-rata basis but outcome fees will be payable to the organisation managing the participant at the time the claim becomes available. Providers need to collaborate and work together in the best interests of participants. Other factors and observations Eligible School Leavers Despite extending its consultation window re: proposed changes to the Eligible School Leavers pathway to 21 June 2012, the proposed changes to the ESL program have been communicated in the RFT. Greater clarity has been provided around the background and intention of the ESL pathway. Program Summaries We need to explore the issue of an OSA being triggered after 12 months after job placement, especially in light of recent changes to the non-payable outcome guidelines. A provider might not anchor a person until they ve been working in (sustainable and ongoing) employment, which might take place any time after job placement. Should the OSA be triggered 9 months from the date of the 13 week outcome instead? For the future we might want to position the program to be supportive of people with disabilities who chose to access higher education: Ongoing Support is not available to Participants who have achieved an Outcome through Education. 15 Job in Jeopardy The RFT does not accurately reflect recent changes to the JiJ eligibility criteria, insomuch that a person does not have to have been employed over the previous 13 weeks, instead their job needs have been likely to have lasted more than 13 weeks, in cases where the person has been employed less than 13 weeks. To be eligible for Job in Jeopardy Assistance, the person must have been Employed for a minimum of eight hours a week on average over the previous consecutive 13 weeks and is likely to lose their Employment in the immediate future. 16 Wage Subsidies While Wage Subsidies themselves are often attributed to the creation of employment opportunities for people with disability, too often they provide the vehicle for contrived 14 Ibid, Page DEEWR, RFT DES ESS, Page Ibid, Page 25 11

12 employment arrangements, or arrangements that only suit the duration of an outcome, for example: DES ESS Providers can Reimburse an Employer up to $3000 to employ an eligible Participant for at least 15 hours per week for at least 26 weeks. 17 Given that the highest performance and remuneration occurs at the 26 week outcome, this can cause an impression that the outcome is the focus of service delivery, not the Participant or the Employer. Connections for Quality This language of this section has been improved insomuch that it demonstrates a commitment to quality and choice for job seekers and employers. Members will need to be aware they must post their undertakings to Connection for Quality and DEEWR expects providers to publish claims they have made in their tender regarding individualised and diverse services. Employers and participants will be given the online functionality to give feedback regarding providers claims. Providers need to publish their claims to the Connections for Quality website prior to January 2013 to ensure transitioned (and new) participants are given the opportunity to make a more informed choice of provider. APESAA References to the findings from the APESAA panel have been removed from the RFT however the same claims about reduced administration have been made, in the context of changes from DEN to DES and appears to discount the findings of the NOUS report, etc. 17 Ibid, Page 26 12

13 Appendix 1 Tracked changes to selection criteria Criterion 1 Understanding of Disability Employment Services Note: Criterion 1 is only to be addressed once at the organisational level. Demonstrate how your organisation will respond to and implement the Government s policies relating to employment services for people with permanent disability over the life of the DES ESS Deed. (Weighting: 1520 per cent) Note: Criterion 1 is only to be addressed once at the organisational level. Your response should describe: your organisation s knowledge and understanding of: o the employment service framework for people with permanent disability, including the Government s workforce participation and skills agendas, and o the Government s broader disability services policies and their interaction with the employment service framework the integrated disability employment services that your organisation will offer to Participants and Employers, including how your organisation will ensure this Service: o delivers holistic, person-centred and individualised assistance o continually meets and adapts to the needs of Employers and people with permanent disability, and o includes strategies to facilitate career development, and o fosters the continued engagement and participation of people with permanent disability your organisation s understanding of the performance factors that lead to high quality sustainable Employment Outcomes for people with permanent disability, including the strategies your organisation will use with available resources to achieve: o sustainable Employment Outcomes o, effective Interventions o, Training and skills development o, mentoring and ongoing support for people with disability., and o Ongoing Support (likely to be on a regular and long-term basis). (Limit of characters) Criterion 2 Management and Governance Note: Criterion 2 is only to be addressed once at the organisational level. Demonstrate how your organisation s management and governance arrangements will drive performance and quality service delivery. (Weighting: 1510 per cent) 13

14 Note: Criterion 2 is only to be addressed once at the organisational level. Your response should include how your organisation will: ensure its governance arrangements, communication strategies, organisational management and accountability structures comply, or will comply with, the DES Deed recruit, train and retain suitably qualified and experienced staff, including ensuring and ensure a supportive working environment that: o values the development of its people through staffing and organisational development plans, and o ensures front-line staff have appropriate skills to work with a range of Participants with differing work capacity and capability due to their disability, and manage performance and quality of service delivery, and ensuring your organisation hasensure: o a high level of leadership o effective planning o a supportive working environment that values the development of its people through staffing and organisational development plans o a good set ofappropriate measurement tools across all areas of operations o effective processes for identifying issues and mitigating risks that may affect service delivery o effective processes to ensure contractual, legislative and legal compliance o effective stakeholder engagement o continuous improvement and innovative practices o appropriate customer service and Complaints handling processes, and o compliance against the Commonwealth s Disability Services Standards. Your response should also provide details of any industry standards against which your organisation is already accredited (in addition to the Disability Services Standards). (Limit of characters) Criterion 3 Past performance Note: Criterion 3 is to be addressed at the ESA level for each ESA you are bidding for business. Additionally, if your organisation is tendering to provide specialist employment services, this criterion is to be addressed at the ESA level for the specialist service you are bidding to provide in that ESA. Demonstrate experience and past performance in the delivery of Employment Assistance (or similar Services) and the achievement of sustainable Employment Outcomes, for people with disability. (Weighting: 40 per cent) Note: Criterion 3 is to be addressed at the ESA level for each ESA in which you are bidding for business. Additionally, if your organisation is tendering to provide specialist employment services, 14

15 this Criterion is to be addressed at the ESA level for each of the Specialist Services you are bidding to provide in that ESA. Your response should include, at the ESA level: your organisation's experience in delivering individualised employment services that are most relevant to Disability Employment Servicespeople with disability, in particular people with permanent disability, including your experience and achievements in: o providing tailored Employment Assistance to job seekers, for example interviewing, Assessment, quality and sustainable Job Placement and Ongoing Support o delivering sustainable quality Employment Outcomes for job seekerspeople with disability (both Volunteers and those with participation requirements) for example interviewing, assessing, providing tailored Employment Assistance, quality and sustainable Job Placement and Ongoing Support o assisting people with disability to gain skills, work experience and Training to address Skills shortages and labour market needs quantitative data to demonstrate your achievements, your performance outcomes and their sustainability in programs you have delivered other than DES ESS or Job Services AustraliaDES DMS qualitative evidence such as case studies to demonstrate your achievements and innovations, and any barriers that may have affected your organisation s performance, and how achieving these performance levels demonstrates your ability to deliver Disability Employment ServicesDES ESS in this ESA. Note: DEEWR is committed to ensuring equity in the tenderingtender process and consistent with the Commonwealth Grant Guidelines (CGGs) will ensure that all potential suppliers are dealt with fairly and in a non-discriminatory manner. All Tenderers, whether existing Providers or not, have the same opportunity to provide a written response to the past performance Selection Criterion and to have them evaluated in a consistent manner. Criterion 4 Local strategies for Employer and employerparticipant engagement relevant to the ESA Demonstrate local strategies and collaborative arrangements to achieve sustainable outcomes for people with permanent disability and Employers. (Weighting: 30 per cent) Note: Criterion 4 is to be addressed at the ESA level for each ESA you are bidding for business. Additionally, if your organisation is tendering to provide Specialist employment Services, this Criterion is to be addressed at the ESA level for the Specialist ServiceServices you are bidding to provide in that ESA. Demonstrate local strategies and collaborative arrangements to achieve outcomes for people with disability and employers. 15

16 (Weighting: 30 per cent) Your response should include, at the ESA level, how your organisation will work with other organisations to: engage and provide people with permanent disability, Employers and other organisations with the best possible access to your Services, including details on the suitability, geographic coverage and accessibility of your premises develop strong labour market knowledge and use this knowledge to develop and adapt strategies to meet the diverse needs of Participants and Employers in this ESA engage and work with Employers in the ESA to meet their labour needs and support individual Employers to maintain quality, sustainable Open Employment outcomes for people with disability engage and work with community organisations and other stakeholders to support people with permanent disability to achieve Employment, Educational or social outcomes, and provide pre-employment, training, mentoring, Ongoing Support and other Services to assist people with permanent disability get ready for work, placed into quality jobs and maintain sustainable employment.open Employment, and positively influence Employer and community perceptions and capability regarding the employment of people with disability in Open Employment. Case studies and examples of local collaboration and how these will be further developed or applied in the ESA to achieve outcomes, will assist in assessing your response to this Selection Criterion. You should state the other organisations you will work with to deliver high quality services in this ESA and provide details on how you will engage with them. (Limit of characters per ESA) 16