ESF Co-financing (CFO) LSCWMLGA Memorandum of Agreement

							ESF Co-financing (CFO) LSC/WMLGA Memorandum of
Agreement

This Memorandum of Agreement is a non-legally binding partnership agreement
between the LSC and the WMLGA for the West Midlands Local Authorities (the
Partners) (The WMLGA acting on behalf of the region’s strategic local authorities).

This partnership will develop a joint ESF Co-financing Plan for the West Midlands
region, which aligns with the ESF Regional Framework.

JCP on behalf of DWP have separately applied to be a Co-financing Organisation
(CFO). LSC and WMLGA and the local authorities on behalf of the sub regional
groups (SRGs) of Birmingham and Solihull; the Black Country; Coventry and
Warwickshire, Herefordshire, Worcestershire, Shropshire and Telford; and
Staffordshire and Stoke on Trent; will work with JCP to ensure clarity on lead
responsibilities relating to the ESF Regional Framework.

The LSC will be the accountable body, manage and administer the procurement,
commissioning and contracting processes, and provide match funding for this Co-
financing Plan.

The Plan will take into account individual local employment and skills plans led by
local authorities reflecting the needs of individual labour markets and
disadvantaged client groups for the relevant geographical areas. This will enable
the partnership to have specifications to meet the very focussed sub-regional and
local needs. The partners will work closely with the 5 SRGs to ensure these
needs are addressed.

The Partners by general agreement will review and amend this Memorandum of
Agreement on an annual basis and in response to changes in the role and remit of
the LSC, WMLGA and local authorities.

This agreement sets out the guidelines for managing ESF co-financing in the West
Midlands between 2007 and 2010 noting that the Regional Framework runs until
2010. It also defines how conflicts of interest will be managed by the partnership
(Annex 1 and 2)

This agreement supersedes all previous agreements and arrangements either
verbal, or in writing, including any that may have been assumed by ‘custom and
practice’ prior to the issue of this agreement.

Throughout this agreement the partners will ensure in line with EU procurement
guidelines that appropriate measures are in place to avoid any conflicts of interest
arising.

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2        PURPOSE OF AGREEMENT

The purpose of this Memorandum of Agreement is to set out the governance,
management and accountability arrangements for the LSC and WMLGA joint ESF
Co-financing Plan for the West Midlands.

The WMGLA and LA representatives will participate in:

    -   Developing strategic and operational priorities for the whole Plan

    -   Strategic and operational planning and management arrangements for the
        whole programme

    -   Development and definition of service specifications subject to the
        adherence to agreed criteria detailed on conflict of interest.

    -   Procurement and commissioning process subject to the adherence to agreed
        criteria detailed on conflict of interest.

    -   Appraisal, selection and performance management of activity subject to the
        adherence to agreed criteria detailed on conflict of interest.

    -   Ongoing review and evaluation of programme delivery performance and
        impact

The partnership will establish systems to monitor and evaluate delivery to ensure
that the Plan remains transparent to delivery partners, increases strategic
direction; ensuring locally sensitive delivery to improve accessibility for
disadvantaged communities, empowers local action to meet local needs; has a
positive impact on the key target beneficiaries.

The partners will develop a detailed data sharing agreement to facilitate analysis
and reporting of programme delivery performance and impact, effective client
tracking, maximise operational effectiveness and efficiency and safeguard
personal data. In the event of the termination of this agreement, the LSC will
provide the WMLGA with the beneficiary and operational data in line with the data
sharing agreement and conflict of interest criteria.

Indicators to collect this information should be established at the outset of the
agreement and reviewed at the mid-term review in 2009.




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3      DURATION OF THE AGREEMENT

This agreement shall commence from 31st August 2007 and will remain in force
until 31st December 2010 subject to the rights of early termination under this
agreement. (ESF Regional Framework only runs until 2010.) No modification,
variation or amendment to this agreement shall be effective unless in writing and
has been signed by or on behalf of the parties to this agreement.

4      RESOLUTION OF DISPUTES

It is recognised that from time to time disputes and problems will arise. Any
disputes concerning this agreement and relating to the services provided under
this agreement shall be referred to the Co-financing Board.

5      TERMINATION

•   This agreement does not constitute a legally binding contract or partnership.
    Either party can cancel this agreement by giving three months notice in writing.
    Modifications to this agreement can be made at any time as long as they occur
    in writing and are agreed by both parties and the Co-financing Board

•   Should either LSC or WMLGA cease to trade, they will notify the other party in
    writing that this agreement will terminate. Under these circumstances, both
    parties agree to give the other as much notice as is reasonable.

•   In the event of a termination, WMLGA reserve the right to LA beneficiary data
    provided to the LSC subject to provider terms and conditions. The data is to be
    provided to WMLGA by LSC in a format specified by WMLGA.

•   The Chief Executives of the parties to this agreement or their representatives
    will agree full termination arrangements. Termination shall not affect any
    liabilities or rights of either part existing at the time of termination.

6      MANAGEMENT OF THE PLAN

•   An ESF Co financing Board to be set up with LSC, WMLGA, JCP (for DWP)
    partners, local authorities who represent the SRGs. GOWM and WMEN will be
    invited to the Board as observers.

•   The Board will be chaired by the Regional Director of the LSC and the vice
    chair will be the Chief Executive of WMLGA.




                                                                         Page 3 of 18
•   Board membership will be drawn from;

       •   LSC

       •   WMLGA

       •   LAs representing the 5 Sub Regional Partnerships groups (SRGs)

       •   JCP


•   Terms of Reference for the Board will be developed to include;

       •   Agreement of joint working arrangements

       •   Agreement on strategic and operational priorities

       •   Ensuring equitable distribution of the budget and programme delivery
           across the West Midlands region in accordance with the ESF Regional
           Framework 2007-2013.

       •   Agreement of arrangements for monitoring and evaluation of delivery
           performance and impact

       •   Reviewing and amending working arrangements to achieve the purpose
           of this Memorandum of Agreement

       •   Establish a written protocol and set of working arrangements for the
           management and resolution of conflicts of interest.

       •   Agree rules of engagement regarding specification development,
           procurement and commissioning, and local delivery.

       •   Agreement to commission independent research and support to carry
           forward this agreement as appropriate.

       •   A process will be agreed for the resolution of disputes

       •   Timing of meetings


•   The 5 local authority representatives of the SRGs will ensure plans are
    developed that reflect sub regional and local priorities and ensure fit with
    LAA/MAA priorities and local targeting against regional ESF specifications.


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•   The 5 SRGs will each nominate a local authority representative to attend the
    Board. LA involvement will be supported and co-ordinated at the separate
    Local Authority ESF Officers Group, a sub group of the Regional, European
    and International Officers Group facilitated by the WMLGA.

•   An LSC, WMLGA and SRG Task and Finish group will be set up, (in
    accordance with conflict of interest criteria) to develop tender specifications for
    Priority One for endorsement by the Board. This group may reform to
    undertake any discrete development, research or review tasks thereafter.

(NB: A diagram to explain these broad arrangements is attached – Appendix 1)

7      AGREEING STRATEGIC PRIORITIES FOR THE WHOLE PROGRAMME

Against the ESF agreed Framework, a regional Co-financing Plan will be
developed by the LSC and WMLGA and Local Authority representatives of the
SRG

The Plan will ensure strategic fit to existing activities and strategies (including
WMES and RSS) in line with the ESF Regional Framework.

The priorities of this plan will reflect regional, City Region, sub-regional and local
priorities to meet the needs of individuals and contribute to the achievement of
LAA targets for the reduction of worklessness

Budget and activity planning will reflect the needs of individual labour markets,
disadvantaged client groups and neighbourhoods and distribution of client groups.


8          DEVELOPMENT OF SERVICE SPECIFICATIONS

•   Where practicable service specifications will be consistent across the region,
    while being sensitive to local priorities. Some elements, however, will need to
    respect local delivery frameworks and priorities.

•   Service specifications will be developed in a timely manner in time to meet the
    LSC procurement milestones.

•   Working arrangements and criteria will be agreed at Board level to ensure
    there is no conflict of interest in specification development and local delivery.




                                                                           Page 5 of 18
Priority 1

Extending Employment Opportunities:

Activity to support the Priority area:
       Closing the gap on the national benchmark for Level 2 at 19 in the WM

       Reducing NEET in the areas of the WM above the national benchmark

       Closing the gap on the national benchmark for adults with no or low
       qualifications through Skills for Life and pre-employability

       Developing and delivering an Integrated Employment and Skills System

       Engagement of disadvantaged groups in activities to move towards
       employment.
       Regeneration and growth of our most deprived areas.
       Employer led interventions

•   Lead CFO accountabilities for Priority 1 worklessness element will be agreed
    by JCP and LSC, to avoid overlap and ensure complementarity between
    different strands of work

•   The WMLGA and SRG representatives will have the lead responsibility in
    partnership with relevant LSC staff such as the City Region, City Strategy
    team, to develop the specifications for the client engagement and support as
    part of the worklessness strand of Priority 1.

•   The WMLGA and SRG representatives will have the lead responsibility, in
    partnership with the LSC, to develop tender specifications and select managing
    agents for Community Grants in line with ESF guidelines. Roles and
    responsibilities will be agreed at the Board.

•   The LSC will have the lead responsibility in partnership with WMLGA and SRG
    representatives to develop the specifications for skills development/vocational
    training in Priority 1 including NEET.

Priority 2

Developing a Skilled and Adaptable Workforce

Activity to support the Priority area:

       Closing the gap on the national benchmark for Adults qualified to Level 2



                                                                        Page 6 of 18
       Closing the gap on the national benchmark for adults with no or low
       qualifications through Skills for Life

       Developing high level skills within the workforce to meet the regional
       productivity challenge

       Shifting the mix and balance of provision to better meet the needs of
       employers

       Re-structuring the economy


•   The LSC will have the lead responsibility in partnership with WMLGA and SRG
    representatives to develop the specifications for priority 2, to ensure
    consistency and complementarity with other provision e.g. LEGI.

•   The Board will agree CFO Plan broad service specifications across both
    Priority 1 and 2


9      PROCUREMENT AND COMMISSIONING PROCESS

•   The LSC procurement and commissioning process will be followed.              This
    includes:

       •   A pre qualification questionnaire (PQQ)

       •   An invitation to tender (ITT)

•   The Board will review the performance of the procurement and commissioning
    process including PQQ and ITT after every tender round. This is to ensure this
    process includes applications from organisations that are geographically
    focussed and do not wish to or cannot successfully bid to deliver services at a
    regional or City Region level, subject to the requirements of the service
    specification.

•   Procurement and commissioning will be at a regional level with sub-regional
    and local focus and specificity

    Capacity-building and sub-regional briefings will be a part of the joint
    arrangements to ensure inclusion of all potential applicants and partners.

•   A Partnership Technical Assistance plan will be developed to support joint
    LSC/WMLGA/ SRG working and related activity including research.




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•    Technical Assistance funding will be sought to ensure appropriate support and
     development work to facilitate clustering and capacity building is available to
     maximise the involvement and contribution of the 3rd sector in the delivery of
     activity under Priorities 1 and 2.

•    There will be close involvement of the voluntary and community sector at sub
     regional and local level to inform the development of CFO plan. This will be
     facilitated through SRGs representatives on the Board, monitoring and review
     of the outcomes of the process, and any other relevant means.


10      APPRAISAL AND SELECTION OF PROPOSALS

•    The contract appraisal and selection procedure will be designed so as not to
     preclude 3rd sector organisations. The Board will review the performance of
     the appraisal and selection process annually.

•    The partners with SRG representatives will appraise proposals for priority 1
     client engagement and worklessness support activity, in line with LSC national
     guidelines and the conflict of interest criteria.

•    GOWM and West Midlands European Network will be invited as independent
     observers of the selection process.

•    The Board will agree selection of proposals for the whole programme

•    Following selection of preferred providers by the Board, the LSC will be
     responsible for concluding the provider contract negotiations.

•    An LSC agreed process will provide feedback to unsuccessful applicants with a
     view to developing their capacity to produce successful bids. This will be
     discussed and reviewed at the Board.

11      CONTRACT MANANGEMENT

•    Contract management will be carried out by the LSC.

•    The performance of the contract management process will be reviewed by the
     Board annually. This is to ensure this process does not preclude delivery of
     projects from 3rd sector organisations, subject to the requirements of the
     service specification.




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12    MONITORING AND EVALUATION

Monitoring and evaluation reports will be provided at local authority and at the sub
regional level with a format agreed between the partners and the SRGs to ensure
consistency of reporting and so that LAs can feed back into LAAs

The Board will agree arrangements for ongoing monitoring of linkages with ERDF
(in particular the Sustainable Urban Development Priority). It will also encourage
and promote the sharing of good practice and disseminate good news stories.

Providers will be encouraged to report back on the impact of activities delivered by
projects as well as on outputs




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       Appendix 1


       ESF CFO Planning and Management Structure


                                      DWP / ESFD




                                    ESF/ CFO Board                        PMC
                                 LSC, WMLGA, SRG, JCP



                            LSC/LA Task and Finish Group




Birmingham       Black Country       Coventry and       Hereford and        Staffordshire
and Solihull         SRG             Warwickshire       Worcester &          and Stoke
   SRG                                  SRG              Shropshire           On Trent
                                                        Telford SRG             SRG



       Note: Below the SRG local arrangements will be made by the LA to ensure that
       the service specifications reflect the needs of individual labour markets and
       disadvantaged client groups and neighbourhoods. These may be new or existing
       groups.




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Annex 1

             West Midlands LSC/WMLGA Co-financing Programme
                  Conflict of Interest Management Strategy


Purpose of document

The purpose of this document is to
   •   provide guidelines for LSC, WMLGA and SRG representatives (Local
       Authorities) so that conflicts of interest are avoided during the procurement
       and delivery of the West Midlands ESF programme
   •   help address any concerns that the provider base may have that the
       procurement of ESF related activity is not fair, open and transparent. Public
       procurement is required to be open, fair and transparent under the 1957
       Treaty of Rome and subsequent European and UK procurement regulations
       (Public Contracts Regulations 2006).


LSC/WMLGA Programme and Conflicts of Interest

The West Midlands ESF programme for 2007-2010 is being delivered by two co-
financing organisations, Job Centre Plus and by the LSC/WMLGA partnership.
The management of the LSC/WMLGA programme will also involve Local
Authorities from the European funding Sub-Regional Groups (SRGs) on a Co-
financing Board.

The benefit of the partnership is joint investment planning across public funding
bodies in the region for the benefit of the region’s targeted participants. It will
ensure the commissioning is coherent and joined up, and aligns to Local Area
Agreement priorities as well as regional targets.

The LSC is a Non-Departmental Public Body that funds post 16 education and
learning in England and does not deliver training itself. It is the accountable body
for the programme. Although the WMLGA represents the county, unitary,
metropolitan and district & borough councils of the West Midlands, it is a separate
legal entity in its own right and has its own staff. It also would not deliver training
itself.

The representatives from the SRGs will be Local Authorities, private providers or
Third Sector organisations and may tender for activity under the plan. This
presents a potential conflict of interest and this document lays out how this will be
managed.




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A conflict of interest is where an organisation involved in procurement may have
an interest in the outcome of the procurement that means they may not be able to
be impartial or objective in the procurement process or may receive an unfair
competitive advantage. Such conflicts may be real, potential, perceived from the
viewpoint of some external observer, or some combination of these. Not all
conflicting interests are unethical or impermissible. Ways can usually be found to
manage or reduce a conflict to an acceptable level.

In this programme we will look to manage potential conflicts through disclosure
and keeping potential conflicts apart.

Conflicts of Interest will be managed at two levels. Firstly at the organisational
level, and secondly at the individual level. The main aim of the management
actions at the organisational level is to ensure that no organisations have a
competitive advantage in tendering. The main aim of the actions at the individual
level is to ensure that any information or discussions that a person has will (1) not
create a competitive advantage for their department/directorate and (2) they will
not impart that information to another part of their organisation, thus creating an
unfair advantage. The latter will be managed through a confidentiality clause on
the Disclosure Form.

All conflict of interest documentation will be maintained by the LSC for audit.

Main Commissioning and Management Activities on the Programme

The main activities on the LSC/WMLGA programme are:
   • Developing co-financing plan
   • Tender specification development
   • Tender appraisal
   • Tender panel
   • Co-financing Board meetings

Developing the Co-financing Plan

The co-financing plan is the document that explains what the LSC/WMLGA
Partnership will be delivering and how it will do so. It is a high level document, and
involvement in its development does not create any competitive advantage
because it is available to all stakeholders.

The LSC will lead on the development of the co-financing plan as the accountable
body but will work with the WMLGA and the local authorities to ensure it reflects
local needs and its fit with Local Area Agreements.




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All Local authorities involved in the development of the co-financing plan will
disclose the activities that they may tender for and this will be noted at the CFO

Board. This will be monitored through a matrix of ESF activities that local authority
departments are interested in.

Tender Specification Development

The development of the tender specifications is an area that creates the potential
for a conflict of interest.

The development of the specifications will be split into three activities: high level
ideas generation for the specifications, drafting the specifications and agreeing
them at the Co-financing Board.

It is intended to include participants from the SRGs at workshops to identify high
level themes or ideas for the tender specifications. The output of these workshops
will be high level and may or may not be used for the generation of the
specifications; therefore attendance at the events does not give the attendees an
advantage over other bidders. Notes from the events will be published on the LSC
internet for all stakeholders to see.

The tender specifications will be written by the LSC, WMLGA staff and local
authorities. In order to ensure objective provider performance and eliminate unfair
competitive advantage, those representatives of SRG organisations who have a
potential or actual, direct or supervisory responsibility for provision and so who
may be directly competing for such procurement shall be excluded from attending
any meeting at which tender specifications are discussed and such tender
specifications shall not be shared nor discussed with such representatives until
such time that they are made public.

If at any meeting of the Board the question of tender specifications arises, those
members who may have such a potential or actual interest shall leave the room
and the relevant part of the minutes of the Board shall not be provided to them
until such time as such matters become public.

All staff, for all organisations, writing tender specifications will complete a
Declaration of Interests/Confidentiality form.

The Board will sign off the tender specifications as fit for purpose. The Board will
be made up of LSC, WMLGA and Local Authorities representatives who do not
have a conflict of interest within the terms described in this document. All
members of the Board will complete a Declarations of Interests form.

Tender Application Appraisal




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The PQQs are mostly autoscored. LSC staff will appraise the sections that are not
autoscored.

The tenders will be appraised by the LSC, WMLGA staff, and those
representatives of LAs whose departments have not been involved in tendering,
so that there are no conflicts of interest within the terms of this document.

All staff appraising the tenders will complete a Declaration of
Interests/Confidentiality form.

Tender Panel

The tender panel will review the appraisal scores and sector/background/
geographic spread of delivery to agree the applicants who will be invited to discuss
a formal delivery contract.

The tender selection panel will be made up of LSC, WMLGA staff, and Local
Authorities that have not tendered, to avoid conflicts of interest.

Co-financing Board Meetings

The Board will be made up of staff from the LSC, WMLGA, with a Local Authority
representative from each SRG. The Board will regularly review high level
performance of the programme against the targets in the Co-financing Plan and
the Regional Framework, not the detailed performance of specific contracts, which
will be done by LSC Partnership Teams. Because of this focus, and the
management of contracts by the LSC, there should not be any conflicts of interest.

Each member of the board and a named alternate will be identified at the start of
the programme and will complete a Declaration of Interests and Confidentiality
document as part of the conflict management actions.

Board members will not have a direct or supervisory responsibility for the direct
delivery of provision under this programme.

If there are discussions about specific specifications or contracts that may
generate a conflict of interest, the organisation involved will leave the meeting
room while these discussions are held.

The minutes for the Board meetings will be published on the LSC website.




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Raising Concerns Over Potential Conflicts of Interest

If organisations outside of those in the partnership perceive a conflict of interest,
they can raise their concerns with the LSC, as accountable body, through the Area
or Regional Offices.

The LSC also has a complaints process detailed on its website that can be used to
make formal complaints.




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Annex 2

Declaration of Interests
2007-13 ESF Programme
Sept 07 Procurement


NAME:

ORGANISATION & DEPARTMENT:

Attached are the PQQs received for the September 07 Procurement Round. As
a Board member, named alternate Board member, specification writer, appraiser,
or attendee of the selection panel you are involved in the appraisal and selection
process. Please use this form to declare any interests/bias that may affect your
ability to be impartial and objective and agree to the confidentiality principles.

For the organisations and/or projects that you or your family have an interest in
please:
   •   tick the right hand column on the attached list,
   •   provide an explanation below, If none, state ‘none’
   •   complete the declaration statement and
   •   sign and date the form.

Please use this space to explain any interests or bias you may have regarding the
organisations or applications you have ticked on the above list




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Statement
*
    Delete as applicable

I confirm that to the best of my knowledge, this information is correct and that I or
my family have interests / no interests* to declare regarding the organisations
and/or projects listed.

I agree to not disclose information that I am privy to through board meetings,
specification writing, appraisal or any other event to other staff from my
organisation or any other organisation that may be tendering, which may give
them an uncompetitive advantage in tendering.



Signed:


Date:



Please return this form to the LSC Regional Contract Team.




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