PEP Supplier Event Q&A
Can you please clarify the final date for The final date for bidders to submit questions is 29 December 2009. The final
potential bidders to raise questions and publication of the Q & A Log on the DWP internet site will now be 5 January
confirm the date these will be published on 2010 not 7 January 2010 as stated in the Instructions to Bidders.
the DWP website
Is there any potential to extend a customer All customers will be mandated to the supplier for up to two years, unless they
beyond the two years of PEP provision? enter sustained employment. After this period Jobseeker's Allowance customers
will be referred back to Jobcentre Plus to continue support. Employment and
2 Support Allowance customers, who have completed their mandatory 2 years,
can volunteer to remain with the provider for the remainder of the programme if
both the provider and customer can see value in this.
Are customers able to come back onto JSA and ESA linking rules will apply. Period of exit will determine when and
programme if they leave? where they come back onto the programme.
If a customer moved to employment and It would depend how long the customer moved into employment for. If a
subsequently became unemployed would sustained job outcome payment had been made, the claim would not link and
they be reinstated on PEP? the customer would return to Jobcentre Plus and the Flexible New Deal regime.
If the claim linked, then the customer would return to the PEP provider. The
customer would need to make another claim at Jobcentre Plus but would not
count as a new referral.
With respect to the 16 hour rule, can At present there are no plans to change the 16 hour rule for customers in receipt
5 participants undertake training of more of JSA. If people want to do long term training they will be supported through
than 16 Hours? the training system.
With respect to Job Outcome payments, Part Time employment may be used as a stepping stone for customers into Full
will there be any allowance made for Time employment. Job outcome payments can only be claimed for customers
customer's entering into Part Time work? who gain employment with a minimum 16 hours per week and continuous
employment that has lasted 13 weeks. A sustained Job Outcome can also be
claimed for customers in employment, of more than 16 hours per week, for at
least 26 weeks out of 30.
Will there be an agreed performance plan There will be an performance plan for PEP and it will be published at ItT stage
Expected levels of performance for PEP are currently under negotiation, more
With regards to the performance offer, can information will be provided at the ITT stage. It is expected that the
8 you provide an indication of the expected performance requirement for PEP will be as good or better than the provision
level of performance profiles? which it replaced.
Will tolerances be imposed for PEP and There is an intention to apply tolerances to the performance offer. These are yet
9 will there be different tolerances for ESA to be agreed, further information will be supplied at the ITT stage.
and JSA customers?
How many suppliers will be short listed for There is an expectation that DWP will shortlist around 7 Suppliers for each
the ITT stage? Contract Package Area. In order to ensure there is enough competition DWP
reserve the right to invite up to 9 Suppliers in each Contract Package Area.
With respect to the performance It is expected that the performance requirement will take into account a
requirement, is there an expectation that combination of both current profiles and current performance of provision that
the performance requirement will be based will be replaced by PEP. This is still to be agreed and more information will be
11 on an improvement of current profiles for available at the ItT stage.
existing provision or an improvement on
actual performance of current provision?
In relation to the minimum value for each Contracts will be awarded to one Prime Supplier in each Contract Package
12 contract, is there an expectation that one Area.
provider will deliver each contract.
Within the funding model can a supplier DWP will require a simple framework from providers at ItT stage to enable
13 decide on how to allocate funding across evaluation but the Department is open to innovation in funding.
the 4 quadrants?
The funding model incorporates steps of Within the Accelerator Model outcomes steps for each cohort are a fixed width.
25% for cohorts, as this is a pilot will there DWP do not intend these to change, with a belief that the model encourages
be any movement in the width of these innovation, with suppliers able to compete on performance offers. A simple
steps and can the supplier decide how to framework is required at the ItT stage to allow DWP to evaluate the proposal.
allocate funding across the 4 quadrants?
The funding model is based on an The composition of cohorts detailed in the presentation are estimations of an
estimation of the cohort mix between ESA average over the lifetime of the programme. It is expected that within monthly
and JSA customers. What mechanisms is cohorts there will be some deviation, but providers are asked to align their bids
over the lifetime of the programme and this average. DWP will implement
there to reflect the changing profile mix of
cohorts? Change Control measures to respond to variations in cohort mix over the lifetime
of the programme.
What measures will the Department put in DWP will work closely with suppliers to ensure contract compliance, including
place for suppliers who under performing developing performance plans. These will be reviewed at regular intervals to
during the contract? ensure continuous improvement. In cases where underperformance persists,
formal breach of contract action will be undertaken which could lead ultimately to
16 the termination of the contract. At the ItT stage DWP will run a series of
workshops with short listed candidates to look at issues around performance
offers within their bids and the impact of their offers on the funding model.
Tenders will be evaluated to ensure that they are realistic and can be delivered.
Is any advantage given to suppliers who DWP does not give any preference to current suppliers. Each ItT is evaluated
have an existing contract with DWP? independently.
How will you make a judgement on As part of the financial evaluation DWP will assess supplier capacity and
18 whether a new supplier is able to deliver capability to deliver the new provision and look at what business they are
this provision? currently delivering or bidding for with DWP.
Will the Pathways to Work review affect The Pathways to Work review will be completed early next year. The review is
PEP and when will the review be independent of PEP although the result of this review will be considered when
concluded? finalising the Invitation to Tender for the Personalised Employment Programme.
Will the Prime Supplier have responsibility Management of sub contractor performance against the contract specification
for sub contractors? and targets is the responsibility of the Prime Supplier.
Can sub-contactors bid at this stage? DWP want bids from Prime Suppliers or SPVs only. To register an expression
of interest to be a sub-contractor for the delivery of PEP please complete the
attached proforma. If you have submitted a form already, this has been logged
You have clarified that there will be 2 It is the Prime Suppliers responsibility to identify sub contractors. At the ItT stage
Prime Suppliers. Who will select sub we will be asking for details of who the Prime Suppliers will be using as sub
22 contractors? contractors. Information on key subcontractors will form part of the contract. Any
changes will need to be agreed with DWP with assurances that the supply chain
have the capability to deliver to an equal standard.
Do the estimations on Cohort Mix include Yes, this includes ESA volunteers and it is expected to be less than 10,000.
Looking at funding of ESA and JSA Currently DWP envisages 75/25 split between JSA/ESA. Although there may be
customer groups, is there any flexibility of some deviation from this the supplier will need to align their bids around this
pricing if the customer profile changes average. This could be subject to change control during the contract.
I am in the process of identifying Details of the organisations that attended the PQQ Supplier event are attached
organisations likely to tender to develop below.
relationships as a sub - contractor. Would DWP has recorded details of organisations that are seeking sub contracting
it be possible to have a list of opportunities for PEP and we will sharing this information with all organisations
organisations having expressed an interest that move onto the second stage. To register an expression of interest to be a
in the PQQ and / or those that attended sub-contractor for the delivery of PEP please complete the attached proforma. If
the event? you have submitted a form already, this has been logged by DWP.
Can you confirm that the estimated total Yes, the estimated funding for both contract package areas, over 4 years totals
26 funding for the programme, over 4 years is £328 million.
What is the contract value for both the There are two separate Contract Package Areas, they are:
areas of Thames Valley and Barnet, 1) Hampshire and Isle of Wight Jobcentre Plus District; plus Thames Valley
Enfield and Haringey? Jobcentre Plus District with an estimated value of £218 million; 2)
Barnet, Enfield and Haringey part of the North and North East London Jobcentre
Plus District with an estimated value of £110 million. DWP will only
27 be accepting bids from Prime Suppliers or SPV's who can offer full delivery
across the Contract Package Area. DWP has recorded details of organisations
that are seeking sub contracting opportunities for PEP and we will sharing this
information with all organisations that move onto the second stage.
Yes, this will be sufficient. If there is any specific further information we require
As an overseas company, we have not post submission we contact you for clarification.
filed any returns with Companies House.
We do have audited accounts, which have
28 been filed with the countries equivalent.
Could you clarify if this is sufficient, or if
there is another specific document you
require from us to satisfy this requirement.
DWP do not require any addresses (contract or authority) or contact details for
Please could you confirm what information the contracts you have successfully delivered within the last 3 years.
is required for Part E - Q25? Is the
address requested the address of the
29 contract or the address of the authority the
contract is with? Do you require a named
contact / contact details for the authority of
every contract which is referenced to
enable DWP to contact the authority?
We have put ourselves forward as a DWP want bids from Prime Suppliers or SPVs only. You may wish to complete
potential sub-contractor and have since the sub contractor interest form (see attachments at Question 25). These
made contact with an organisation bidding details will be shared with the organisations that move on to the second stage of
as a Prime Contractor and passed on our the PEP procurement.
details. In this situation could you please
confirm if you wish us to submit a PQQ for
our organisation alone?
Are you going to co-commission additional We are looking at how we can add value to this contract through a co-
activity with the DWP? commissioning arrangement with DWP
Would the LDA consider commissioning We have no current plans for co-commissioning with DWP for FND but would
on any other DWP programmes including consider this in the future. The LDA is also in discussion with DWP regarding
on Flexible New Deal (FND)? the alignment the alignment of services for Progress 2 Work Programme and
Invest to Save.
Are you involved in the Specification and Our early discussions are focused around funding an additional (voluntary)
33 marketing, or have LDA got items to 'bolt' customer group but nothing is finalised.
onto the service?
In event of local authority bidding, would it No because LDA is a separate body to a Local Authority and those involved in
34 compromise LDA's position in the evaluation are bound by confidentiality agreements (Chinese Walls)
How much funding is the LDA intending to Initially £10m over the first two years.
contribute to the PEP in London?
Would the LDA extend the funding over Yes subject to performance and further funding becoming available.
the following two years?
Were the additional places included in the The figures in terms of finance and places included in the PQQ do not include
figures on the slide and will the any of the proposed LDA activity. If the joint activity goes ahead then full details
Specification be accommodated to include will be provided in the Invitation to Tender document.
What is the LDA role in the tender The LDA will be invited to take part in the evaluation of bids. Precise details
process? have not yet been agreed.
Do the LDA envisage working closely with Not at present.
prime/subs on any other schemes?
What outcomes will the LDA expect from Discussions are underway between the LDA and the DWP, a further 12 month
providers? sustained job outcome is being considered.
Presumably the payments are based on Discussions are still in train regarding the funding model but it is likely that the
41 outcomes? LDA investment will follow the DWP model i.e. service fee plus outcome
When will we be clear about the LDA In March within the Invitation to Tender.
additional activity and funding?
What percentage of the contractual 5% to 10%
arrangement is LDA contributing?
Can you please confirm if, in Part F DWP require copies of the last two years of Statutory Accounts that have been
section 4 of the PQQ, where you ask to filed at Companies House.
see copies of the last two years of Annual
Returns filed at Companies House, you
expect to see the Statutory Accounts and
44 not the company information Annual
Returns? The company information Annual
Returns only has information relating to
names of current directors and their
business contact information etc.