388. CPA17: Serco Ltd - Tender

8/3/2019 388. CPA17: Serco Ltd - Tender

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EMPLOYMENT RELATED SUPPORT SERVICESFRAMEWORK AGREEMENT

MINI COMPETITIONS FOR THE PROVISION OFTHE WORK PROGRAMME

Invitation to Tender Form



Tender Round title: The Work Programme

Organisation Name: Serco Limited

Lot: Lot 8: Yorkshire and The Humber

Contract Package Area (CPA): CPA 17: South Yorkshire



PART 1: ORGANISATION DETAILS

[1.1] Your response to Part 1 is for information purposes only. If any of this informationhas changed since the Framework Agreement application stage, please state this withinthe table below including a short explanation as to why. If you cannot provide any of theinformation below please explain this within the table.

DWP will not be responsible for contacting anyone other than the persons named in thispart of your form. If any of this information changes during the bidding period you mustinform DWP of the changes by email to:[email protected]

Name of the Legal Entity in whose name thistender is submitted and with whom DWP willcontract:

Serco Limited

Trading Name (if different from above): Serco Welfare to Work

Company Registration Number: 242246

Company Registered address: Serco House16 Bartley Wood Business ParkBartley WayHookHampshireRG27 9UY

Head Office Address, if different: n/a

VAT Registration Number: GB 207 5233 88

Website Address (if any): www.serco.com

Name, address and company registration number of parent company, where applicable:

Serco Group PLCSerco House16 Bartley Wood Business ParkBartley WayHookHampshireRG27 9UY

Registration Number: 2048608

Name and Job Title of main contact: [redacted]Business Development Director Serco Welfare to Work

Address: Serco Welfare to WorkPortland HouseBressenden PlaceLondonSW1E 5RS

Telephone no: [redacted]

Mobile telephone no: [redacted]

Fax no: [redacted]

mailto:[email protected]

mailto:[email protected]



Duly authorised to sign Tenders on behalf of: Serco Limited

Name of Organisation: Serco Limited



PART 3: THE WORK PROGRAMME CALL-OFF CONTRACT TERMS ANDCONDITIONS - ALTERNATIVE AND/OR ADDITIONAL CLAUSES

[3.1]

3.1 The terms and conditions of The Work Programme will be the Standard Call-Off

Terms and Conditions (set out in Schedule 4 of your Framework Agreement), asmodified by The Work Programme service requirements (“The Work ProgrammeAdditional Requirements”).

3.2 The Work Programme Additional Requirements are set out in the ‘Call-Off Termsand Conditions for The Work Programme’ which is supplied with your Invitation toTender. A document highlighting the modifications made to the Standard Call-Off Terms and Conditions to reflect The Work Programme Additional Requirements isalso supplied with your Invitation to Tender; for ease of identification, the changesmade since the draft version issued on 8 December 2010 are shown in boxeswithin the document.

3.3 Any proposed amendments to The Work Programme Additional Requirement mustbe detailed by completing the section below, giving full details of the clause(s) youwish to amend and your proposed amendments. DWP will consider proposedamendments strictly on their merits. Please note that you may only proposeamendments to The Work Programme Additional Requirements; proposedamendments to the Standard Call-Off Contract Terms and Conditions will not beconsidered.

Comments on The Work Programme Additional Requirements: -

MINI COMPETITION – ADDITIONAL REQUIREMENTS (For Framework Supplier Comments only)

No. of the clause(s) youwish to amend

Proposed amendment with proposed wording

We fully support and are excited by the opportunity to participate in DWP’s further development of services using the payment by results model. However, we do remainslightly concerned that the contractual terms have not been changed to reflect this payment by results model and the risk transfer that such a model creates. We currently subcontract with over 70 organisations and are proposing subcontracting with many more if we are successful in thismini-competition.

In accordance with the notes in the Invitation to Tender Form we have not proposed amendments to the Standard Call-off Terms and Conditions, however given that thedetails of the mini-competition were published after theStandard Terms of the Call-Off Contract were agreed, wehave been asked by our subcontractors to discuss with theDWP a number of additional areas of risk which relate to

the Standard Call-Off Terms And Conditions. These areasfor further discussion include the relationship with theFramework Agreement, termination triggers,consequences, general liability and employment issues



2.13.6. We request that the right to terminate for non-agreement of the PIP is either deleted or referred toDispute Resolution. This is an outcome-based contract and as such performance failures have other contractual mechanisms that allow termination.

2.13.7. We suggest that the rights to termination should belimited to circumstances when the fault in question has not been remedied and is material, and request this clause isamended to reflect this. All other rights for termination are provided elsewhere in the contract.

2.13.9. We appreciate the repeat failure termination right DWP seeks here but request a higher threshold to allow providers a reasonable period to remedy the servicefailure. Given the time period for outcomes to be achieved,

we request that the threshold is changed from onePerformance Improvement Plan in three months to twoPerformance Improvement Plans in six months.

7.1 7.1.1. We request that this clause is returned to the position in the Standard Call-Off Terms including deletionof sub-clause (k).

7.1.3. We request that the limits of liability are amended to

be consistent with the risks specifically relating to eachcall-off contract and also to reflect the rewards of that contract. For example, a small Work Programme contract has an expected lifetime value of c£45m, yet with limits of liability of £20m per year total liability is limited to £140m -this would appear to be inequitable and is alsounenforceable with many potential primes, as such limitswould materially exceed their total annual profits leading toalmost certain insolvency.

Other than those provisions identified above, Serco Limited confirms that it has reviewedthe Call-Off Terms and Conditions for The Work Programme and agrees in principle toeach of their provisions.



Name:[redacted]

Scanned Signature:[redacted]

Position:Chief Executive Officer, Serco Civil Government

Telephone No:[redacted]

Date: 13th February 2011

DWP reserves the right to amend any provisions of The Work Programme AdditionalRequirements at any time during the mini-competition procurement exercise.



4.1 Serco’s Work Programme is designed to meet the needs of all Customers in order toachieve the optimum number of sustained Job Outcomes. Customers experience anindividually-tailored journey built on an in-depth needs assessment, potentially

progressing through three distinct Phases of interventions: Engage (16 weeks) Enable

(44 weeks) and Empower (44 weeks). Serco’s Specialist Journey runs alongside themain Customer Journey and has been designed for Customers with the highest support

needs, such as learning disabilities or sensory impairments. A rich mix of Providersdelivers personalised support at each Phase, with Customers matched to Providers bestplaced to support them into suitable employment. Serco’s directory of Integrated SupportServices (ISS) wraps specialist assistance around our core provision of supported workpreparation and jobsearch. Mandatory Referrals – Serco works with Jobcentre Plus (JCP) to implement andmanage our ‘warm handover’ process in South Yorkshire, which will be adapted to meetlocal constraints. Wherever possible, Engage Providers are co-located with Jobcentres tomeet the Customer for an initial discussion after a JCP referral. Alternatively, the JCPAdviser telephones the Provider when the Customer is with them to arrange their firstappointment. Where warm handovers are not possible, Providers contact Customers

directly. During the initial discussion Providers address any personal issues that mayimpact on the Customer’s attendance, such as transport, health and caringresponsibilities, and identify any communication or accessibility needs so that appropriatearrangements can be made.Marketing to voluntary Customers – Serco works alongside our Engage Providers and

our Specialist Providers to market provision to voluntary Customers, including:

Customers from the ESA Support Group lone parents with children under five and

carers from the ESA Work Related Activity Group and IB and IS claimants eligible tovolunteer under ESF funding. Serco will produce bespoke Work Programme marketingmaterials on behalf of our network, ensuring that all materials meet JCP and ESF

requirements and are available in alternative formats and languages on request. Wherepossible, we will coordinate marketing activity with the other Prime to increase the impactof our joint activities. Marketing materials will be displayed in key locations, including localGP surgeries, day care services, Children’s Centres, nurseries and community centres.We will also market through the 20,000 member organisations of Involve Yorkshire &Humber. Serco’s Subcontractors in South Yorkshire are able to build on their existing linkswith over 200 local, community-based organisations to deliver targeted marketing to

potential voluntary Customers. For example, South Yorkshire Condition Management(Yes2Ventures) has developed links with over 240 GP practices in South Yorkshire

through their delivery of Pathways to Work and North Doncaster Development Trustbring existing links with Children’s Centres across Doncaster. Our Provider network is

additionally able to market provision from their 160 outreach sites across the region.Serco’s development of a network of ISS generates additional referrals to the WorkProgramme from voluntary Customers. Once engaged, voluntary Customers aresupported to refer to the Work Programme via their nearest JCP.

All mandatory and voluntary referrals are facilitated via PRaP. Customers receive awelcome pack including confirmation of their first appointment, our unique Customer Charter , a map and local transport information. Customers receive a reminder phone callor text the day before their appointment.Engage – Customers begin Serco’s Work Programme in South Yorkshire on the EngagePhase: 16 weeks of comprehensive needs assessment and job brokerage. All Customersidentify a Realistic Job Goal and the individual support needed to achieve it and keep it.Those closer to the labour market are supported into work quickly and efficiently; thosefurther away are matched to the most suitable Enable provision following intensive



4.1 (continued) assessment. Interventions are fortnightly as a minimum.Initial face-to-face appointment – If it has not already taken place at JCP as part of awarm handover, this takes place within seven days of referral to the Engage Provider. Our dedicated Business Processing Unit in Rhyl updates PRaP with the attachment activity viadaily reports from Serco’s Intelligent Milestone, Programme And Case Tracking system(IMPACT). Serco’s Engage Providers deliver Welcome Sessions for all Customers to

ensure they have a clear understanding of Serco’s Work Programme. Welcome sessionsprovide: an overview of the programme an introduction to their Provider details of

Serco’s complaints procedure and data protection policy and a walk-through of our Customer Charter, outlining Customer rights and responsibilities, including continuedattendance at fortnightly JCP Jobsearch reviews. Throughout all Phases, Serco’sproactive Fail to Attend Process requires Providers to engage all mandatory andvoluntary Customers who fail to attend meetings or interventions within three workingdays. Sanction doubts are raised for mandated Customers in line with JCP guidance, withquality assurance and tracking by Serco. Non-attendance of voluntary Customers isaddressed during their one-to-one meetings as part of the review of their Personal Profile& Employment Plan (PPEP). Different Customer groups, including those funded by ESF,

are separately coded on Serco’s IMPACT system, allowing us to generate tailored reportson attendance and activity for each group.The Personal Adviser – Customers benefit from a Personal Adviser at each of Serco’sthree programme Phases. They offer personalised jobsearch support; one-to-one advice,guidance, coaching; signposting/referral to ISS; and In-Work Support.Personal Profile and Employment Plan (PPEP) – During the first three face-to-facemeetings of Engage, all Customers participate in the development of a PPEP with their Personal Adviser. The PPEP is the tool that each Jobseeker uses to plan the actions thatwill prepare them to access and progress within employment. It drives all aspects of delivery, and travels with the Customer throughout their journey into sustained

employment. Development of the PPEP begins with an in-depth assessment processthat supports the Jobseeker to identify a Realistic Job Goal, building on their interests,competencies, skills and experience. This Realistic Job Goal is tested against a set of external factors, such as availability of vacancies and time-frame of the Work Programme,and internal factors, such as current skills levels and travel to work time. A Customer’sindividual needs are identified in relation to their Realistic Job Goal – ensuring a focus onconstraints/barriers that are specifically relevant to that person’s journey to work. These

might include: health housing finances childcare and other caring responsibilities

criminal record substance misuse transport personal presentation or motivation andESOL or basic skills. As part of the PPEP assessment, future In-Work Support needsare also identified through our unique Sustainability Assessment. Customers review

how moving into work could impact key personal areas such as health, finances, andrelationships. Actions to address sustainability issues are agreed, ensuring In-WorkSupport is integral to the Programme from the outset. Serco aids the identification of complex, additional needs through our work with a range of specialist partners,including members of our Expert Reference Groups, such as Barnardo’s, the Centre for Mental Health, and Serco’s Occupational Health Division, to develop, deploy and qualityassure specialist diagnostic tools for use across our Provider network, for example, toolsto diagnose dyslexia. Following the in-depth needs assessment, the Customer and their Personal Adviser work together to agree actions to address those needs and support theCustomer’s journey into sustained employment. Voluntary Customers, including loneparents and carers, are supported to develop an in-work Care Plan that addresses their

in-work childcare and care needs. All actions agreed are SMART (Specific, Measurable,Achievable, Realistic and Time-bound) and are captured in the PPEP. Where Advisersbelieve that actions are essential for progress they will mandate these within JCP



4.1a (continued) Disability Works UK. For this reason, Customers with severe learningdisabilities or visual impairments can be fast-tracked to Serco’s Specialist Journey fromday one (detailed in 4.1);

Targets support to voluntary Customers, including IB/IS Customers – Sercocoordinates marketing activity across our supply chain to target voluntary (including ESF)Customers. Our use of local Providers with existing community links enables us to raise

awareness of the Work Programme provision for voluntary Customers. For example,North Doncaster Development Trust bring links to all GP surgeries in Doncaster, throughthe Better Workplace, Better Mental Health Project, that will enable us to attract IBCustomers. Once an Attachment has been registered, Serco ensures the active

participation of voluntary Customers by: monitoring sample PPEPs to ensure that theneeds of voluntary Customers are accurately identified and addressed and that individual

progress is made requiring our Subcontractors to follow up non-attendance of voluntaryCustomers within three working days, with significant levels of non-attendance highlighted

during monthly Subcontractor performance meetings providing access to our network of Integrated Support Services (ISS), including specialist services for IB and IS Customers,

such as The Sheffield Carers Centre

and tailoring In-Work Support to meet individualneeds in-work;

Provides a strong focus on in-work sustainability – Analysis of our FND deliveryidentified that Customers’ In-Work Support needs were often addressed at the point of joboffer. Serco’s Customer focus groups reinforced the need to identify In-Work Supportrequirements earlier, enabling any potential issues to be addressed throughout theCustomer Journey. In response, we have introduced a sustainability assessment into our PPEP that identifies in-work risk factors at the start of the programme. Serco’s analysis of the reasons why Customers fail to sustain work has revealed that it is often personalissues and life changes, such as caring responsibilities and fluctuating health conditions,that are the root cause. To address this, Serco has brokered an Employment Assistance

Helpline which Customers and Employers can access. This provides 24/7 advice andcounselling on a range of work-related and personal issues. It is delivered by Care First :80% of their current service users report that the service helped to prevent job loss;

Addresses complex and diverse needs – Many Work Programme Customers will facea wide range of complex needs that impact on their ability to access and sustain work.Customers on Serco’s Work Programme are supported by their Adviser to access our network of ISS to address these needs. By aligning delivery with wider support services,Serco ensures that each Customer’s needs are addressed holistically, whilst alsodelivering value for money by avoiding service duplication. Referrals to ISS are trackedand managed via Serco’s Intelligent Milestone, Programme And Case Tracking system(IMPACT).

Benefits to individual Customer groups – Serco has designed a Work Programmesolution that maximises the benefits to all Customer groups in South Yorkshire. It hasbeen developed in consultation with our Expert Reference Group, attended by a widerange of specialist partners, including Barnardo’s, Crisis and the Centre for Mental Health.The Group has provided critical feedback on the development of our evolving solution,with a particular focus on the needs of diverse Customers. We have also established aDisability Expert Reference Group that has informed our solution specifically in relation tothe needs of disabled Jobseekers. Our delivery solution has been locally tailored. Our dedicated Partnership Manager has spent the last 6 months engaging with over 50existing local providers and 30 local and regional stakeholders, identifying and addressingthe diverse needs of local Jobseekers. Serco has drawn together a network of establishedProviders from the public, private and third sectors, whose diverse range of expertise andexperience makes them best placed to meet the diverse needs of Jobseekers in South



[4.1b] Service Requirement

DWP expect all customers to receive a minimum level of service. Please clearly define:

• Your minimum service delivery levels for all customers within this CPA;

• Your rationale that supports your approach:

• How it addresses the needs by customer groups.

Insert your response in the pre-set, shaded space of the following pages. Your responseMUST be limited to two sides of A4.



PART 5: SUPPLY CHAIN MANAGEMENT

[5.1] Delivery Strategy

Please describe in detail your delivery structure for all elements of the Work Programmeprovision across this CPA and explain why you consider your delivery strategy to be thebest approach for customers in this CPA. You should clearly state how you intend to workwith your sub-contractors and how you will ensure the needs of all your customers,including the hardest to help, are fully addressed from within your supply chain includingvoluntary sector organisations where appropriate.Please also complete:

• Annex 2 to show the structure to be put in place within the supply chain todeliver the Work Programme provision in terms of overall percentage of delivery, specialism and geographical coverage; and

• Annex 3 (Sub-contractor Declaration) for your proposed sub-contractors asappropriate.

Insert your response in the pre-set, shaded space of the following pages. Your responseMUST be limited to three sides of A4.



5.2

Serco’s Welfare to Work (W2W) business operates within the Civil Government Divisionof Serco Group. The W2W Managing Director, [redacted], reports to [redacted], Chief Executive of Civil Government, who in turn reports to Serco’s Global Management Board.The Civil Government Executive Team evaluates the W2W business monthly against our contractual targets, financial forecasts and risk assurance objectives. Every Serco

contract has a Contract Board that assures effective contractual delivery and providesresilient upwards accountability. Our Work Programme Boards will include Senior Managers from across Serco, with DWP and JCP also represented.Responsibilities and Reporting Lines – Serco’s W2W National Performance Director is responsible for ensuring the achievement of our contractual targets. They manage aRegional Performance Director for South Yorkshire who in turn manages a team of

regional Performance Managers. This team is responsible for: setting, monitoring and

managing Subcontractor performance against agreed KPIs anticipating and mitigating

any risks to under-performance managing the effective flow of volumes across the

network to drive performance and reporting monthly on regional performance. Our central Senior Employer Engagement Manager reports to the National PerformanceDirector and manages a team of regional Employer Engagement Managers. This teamis responsible for increasing the number of vacancies brokered by our network. Serco’s IS& Business Process Manager also reports to the National Performance Director and is

responsible for managing: our dedicated Business Processing Unit in Rhyl and theeffective roll-out of our Intelligent Milestone, Programme And Case Tracking system(IMPACT). Serco’s National Delivery Assurance Director is responsible for ensuringthat our Work Programme delivery meets DWP contractual standards, legislative

requirements and Serco’s best practice standards. Their direct reports include our: Head

of Quality Compliance Manager Safety, Health & Environment Lead MI Manager

Continuous Improvement (CI) & Training Manager and Information Security Manager.

Our Head of Quality manages a Complaints & Investigations Manager and regional teamsof Quality Assurance (QA) Managers, who are responsible for assuring the quality of our provision across our delivery networks, supported by QA Assistants. TheCompliance Manager is responsible for compliance and fraud prevention across our networks. Serco’s Continuous Improvement (CI) & Training Manager oversees both aCI Manager and a Trainer in South Yorkshire. The CI Manager works alongsideSubcontractor Senior Management Teams to identify any critical underlying issuesimpacting on performance and co-develop sustainable solutions. The Trainer worksalongside Subcontractor HR leads to identify and address the skills needs of frontlineteams. Serco’s Strategic Director for England is responsible for establishing our MutualManagement Board in South Yorkshire. Our Business Development & Enterprise

Director manages: regional Business Development & Enterprise Managers, responsiblefor aligning our delivery with wider local services and brokering additional investment into

the network and our Head of Communications, who oversees and coordinatescommunications in each CPA, supported by central Communications Managers. Our Senior Finance & Commercial Manager manages regional Finance Managers,responsible for financial forecasting against contract profiles.

Serco has identified the required management skills and expertise for our Contract

Management Teams through our: analysis of the core competencies required to bothdrive the achievement of optimum outcomes across our supply chains and assure the

quality of our frontline delivery, gained through our 18 months’ experience as the onlyPrime Contractor in welfare-to-work delivering entirely through local Subcontractor

networks management of contracts in the local region, including HMP Doncaster andconsultation with local stakeholders. Serco delivers these required skills and expertise



5.3 (continued)Manager works at a strategic level with the Senior Management Teams of under-performing Providers to identify any critical (and often subtle) underlying issues preventingoptimum performance. Issues addressed could include, for example, the alignment of resources, organisational culture or management prioritisation of operational issues. TheCI Manager works with Serco’s Communications Team to facilitate best practice sharing

across the network. Additionally, we deploy a SWOT team on a temporary, case-by-casebasis to address any critical systemic challenges faced by a Provider. The SWOT teamdraws on the best resource from our Serco Contract Management Teams to deliver targeted support in the relevant functional area, such as data security, fraud or performance management. Serco’s regional Trainer assesses network-wide skills needs,working with Provider HR leads to enable them to assess the training needs of their frontline teams. Ongoing training needs analysis feeds into Serco’s development of tailored modules. Providers can access training through a range of delivery modes,including through Serco’s ‘Train the Trainer’ model. Serco is additionally developingaccredited industry standards for welfare-to-work delivery and management staff throughour sponsorship of Inclusion’s POWER Group (Professionalisation Of Welfare Expert

Reference Group).Ensuring provision meets our minimum service levels – Customers have our minimum service levels explained to them at the start of their journey and are regularlyinvited to give feedback on the service that they receive. Serco designs a suite of tailoredexception reports in IMPACT that analyse each Provider’s adherence to our minimum

service levels, including: reporting on overdue actions by frontline staff member andanalysing the delivery of our service levels for specific Customer groups (such as thoseliving in rural areas or those from BAME groups). Serco has developed a set of bestpractice toolkits that support Provider frontline teams to deliver our minimum service

levels effectively, including toolkits for: inductions initial appointments assessing

Customer Realistic Job Goals

effective jobsearch

caseload management

and In-Work Support. Additional assurance that our minimum service levels are being deliveredto all Customer groups is provided by our Equality & Diversity Steering Group, whichmeets bi-annually and is chaired by our Strategic Director for England, [redacted], who isthe former Chair of the Commission for Racial Equality.Approach to performance improvement – Serco has designed a KPI system for theWork Programme that provides both the right commercial drivers to incentiviseSubcontractor performance and assures the quality of the entire Customer journey.Learning lessons from FND, we have devised a points-based KPI regime that drives theachievement of targeted outputs, imposing financial penalties where appropriate for under-performance. All Providers must achieve our KPIs, which mirror DWP’s contractual

requirements of maximising: Jobseeker Attachments Job Outcomes andSustainment Outcomes. Our KPIs and SOEs additionally reflect the Provider behaviours

that we seek to drive, including: upholding our Customer Charter maximising

Jobseeker engagement ensuring that each Customer receives a tailored service and

progresses throughout the programme, including those with complex needs and raisingthe visibility and effectiveness of In-Work Support. Serco will establish a Provider ExpertPanel, made up of representatives from our network, which will provide ongoing feedbackon our KPI regime, enabling us to continuously hone its effectiveness.

IMPACT will be used to report on the quantitative elements of all KPI measures,supported by qualitative input on service delivery from our QA team. Our PerformanceManagers use TOOLKIT to capture each Provider’s journey and to calculate their performance score using our points-based system. Every quarter, the PerformanceManager summarises the Provider’s scores for the previous three months to determine



[5.4] Delivery Locations

• Provide details of the key delivery locations and explain how you andyour supply chain will achieve full geographical coverage of provision for thedelivery of the Work Programme within this CPA; and

• Detail what you have taken into account in terms of the needs of thecustomer groups in determining this approach.

Insert your response in the pre-set, shaded space of the following pages. Your responseMUST be limited to four sides of A4.



5.4 The sites shown on this map are the confirmed main and outreach delivery sites for Serco’s Subcontractors in South Yorkshire.



5.4 (continued)nearest bus stop. There are also premises on East Bank Road within a 10 minute walk of the JCP office on Eastern Avenue. Further surrounding premises include 2 in Heeley, onein Gleadless, one in Hackenthorpe, one in Bradway and one on Maltraves Crescent. Tothe north of Sheffield centre there are 3 sites in Burngreave with 2 on Savile Street Eastwithin 2 minutes of a bus stop and a further one on Lyons Street. 2 delivery sites are also

in Tinsley, with one on Meadowhall and another on Bawtry Road, with an additional site inDarnall. To the north of Sheffield City Centre, delivery sites are located in Wadsley Bridgeand Longley Park. In Stocksbridge there is a delivery site on Coal Pit Lane within 5minutes of a bus stop.Rotherham – 26 confirmed sites provided by BEST, CTS, Groundwork and PhoenixEnterprises. There are 5 delivery sites in central Rotherham, 3 of which are within a 5minute walk of the JCP offices. A further site is on the High Street and another within 3minutes of the train station. Further from the centre are sites on Rawmarsh Road, which iswithin 10 minutes of the train station and 5 minutes from the nearest bus stop, andanother 2 sites on Erskine Road. There are additional sites near Barkers Park and inGreasbrough and the 2 premises in Rawmarsh are on Dale Road within 2 minutes of the

nearest bus stop. South of Rotherham centre there are 2 premises on Moorgate Roadnear Rotherham District General Hospital. Rotherham East also has 2 delivery sites closeto Fitzwilliam Road.Barnsley – 16 confirmed sites provided by BEST, Groundwork, and BarnsleyMetropolitan Borough Council/Barnsley Development Agency (BMBC). Central Barnsleyhas 5 delivery sites with one within a 3 minute walk of the JCP offices. The others, all of which are within 5 minutes of a bus stop, include a site on Kendray Street, one on ChurchStreet and a further 2 on Summer Lane and Churchfield. Further south there are 2 sites,with one near Worsbrough Common and one on Thornton Road. To the west there are 2premises in Penistone. There are 3 sites, one of which is 2 minutes from JCP offices, inthe rural town of Goldthorpe. To the north, Cudworth, Grimethorpe and New Lodge allhave delivery premises within five minutes of a bus stop. Other towns with premisesinclude Wath-upon Dearne, Hoyland, Brampton Bierlow and Thurnscoe.Doncaster – 17 confirmed sites provided by BEST, Groundwork, Urbanbiz and NorthDoncaster Development Trust. Of our 3 premises in central Doncaster all have a bus stopwithin a 5 minute walk. One site is on Princegate, less than 3 minutes from JCP officeswhile another is on Market Street. A further site will be delivered from Doncaster College.Outside of the centre there is a site in Bentley close to the High Street and one in Intakeon Montrose Avenue. Further north there are 4 premises across Askern, Stainforth,Thorne and Moorends. New Rossington has a delivery site on Grange Lane within 3minutes of a bus stop. South west of Doncaster, Edlington has a delivery site and

Conisbrough has 2 premises on Castle Avenue and St. Peter’s Road. Mexbrough isserved by 2 premises, one on Dolcliffe Road and the other near Wath Road.

Facilities – Serco has evaluated the suitability of Provider delivery sites as part of theSubcontractor selection process and provides assurance that premises contain: ▪ an areafor confidential interaction between Advisers and Customers ▪ training rooms ▪ privateinterview rooms ▪ jobsearch facilities (including broadband internet and telephones) ▪ andtoilets with disabled access. Premises all open between 9am and 5pm, Monday-Friday,with 15 sites additionally providing evening opening and 8 providing weekend openings.

Meeting the needs of all Customer groups – Serco’s strategy for organising delivery of

the Work Programme has been informed by our in-depth understanding of the needs of Customers in South Yorkshire, built up over 6 months of research and consultation in the



5.4 (continued)region. Our robust Subcontractor selection process included an evaluation of the

geographical coverage and quality of Provider premises, addressing factors such as:

accessibility of premises for all Customers transport routes access to childcare

facilities and jobsearch resources. Throughout this process, Serco considered the needsof:

Customers experiencing a disconnection from services – Serco ensures access for Customers in rural areas, such as Penistone, which has infrequent trains to Barnsley towncentre. Our approach is to ensure equality of access to all Customers in less well-connected areas through Providers such as BMBC, who have access to outreachlocations across the district including Penistone Library;

Customers who find it difficult to leave their home for health reasons – Our outreach solution provides extended coverage for all Customers and where necessary wewill offer home visits;

Customers with disabilities – Serco will support all Subcontractors follow best practiceguidelines as outlined in the Equalities Act. We will ensure that all Customers’

accessibility and support needs are met, which may include: access to a disabled toilet;lifts or alternative ground-floor venues; facilities such as hearing induction loops, Brailleand large key keyboards; and disabled parking. Our Providers have access to anexclusive package of support and guidance from our partner, the Employers’ Forum onDisability, to support them in delivering the best possible service to this Customer group;

Customers with children – Serco supports our Subcontractors to ensure their premises are child friendly and feature toilets with baby changing facilities. 24% of localoffices have onsite childcare facilities and 70% of locations have access to a crèche withina 30 minute walk. If requested, a Customer can choose to attend a Provider near to his or her child’s school. Serco will gain up-to-date information on local childcare servicesthrough our partnerships with Local Authority Children’s Information Services;

Customers who require a prayer room – 90% of our Subcontractor premises haveprivate rooms that can be used as prayer rooms;

Customers from BAME groups – All instructions regarding travel to a Provider’soffices are given to Customers in a clear format and are available in a range of communitylanguages on request;

IB/IS Customers. Our Subcontractors work from a range of community venues that willenable us to market to voluntary IB and IS Customers, including 98 Children’s Centresand 240 GP surgeries and Health Centres across South Yorkshire.

Serco’s Quality Assurance Managers work alongside our Subcontractors to assure thequality and accessibility of all Provider premises and facilities, including outreach sites,with input from our Health, Safety & Environment lead. This includes reviewing:compliance of facilities within the Equalities Act and Health and Safety Act; andcleanliness and overall physical maintenance of premises. Serco's experience indelivering Facilities Management contracts across the UK, including for Local Authorities,gives us a unique insight into best practice. Recommendations as a result of Provider premises assessments feed into Provider Quality Improvement Plans. Serco's QualityAssurance Managers utilise Customer feedback to inform the quality-assurance of Provider premises and facilities, including on accessibility issues. Best practice inadjusting facilities to meet Customer need (including those with physical disabilities) isshared at Provider Best Practice Forums and disseminated across the network by our

central Communications Team.



5.5 Serco’s Work Programme model is best-placed to maintain minimum performancelevels and service delivery in the instance of changes to the number or type of Customersbecause it: ▪ mitigates risk to performance by having multiple Providers delivering in eacharea ▪ draws on the widest possible range of professional job brokerage and specialistskills ▪ utilises existing infrastructure in all locations ▪ and provides complete geographicalcoverage. Serco’s Common Operating Platform (COP) supports the delivery of our

welfare-to-work contracts and defines the core components of our delivery model. TheCOP maintains strong common standards, mitigating the risk of a reduced quality of service or performance as a result of a change in the number or type of Customers. TheCOP provides a replicable approach and delivers both scalability (to cope with fluctuatingvolumes) and flexibility (to adapt to new contractual requirements).

Maintaining performance in the event of fluctuating volumes – Serco is experiencedin managing fluctuating Customer volumes. Our monitoring of FND volumes enabled us toanticipate increased referrals of 70% between January and March 2010, and to managethem effectively to achieve a 183% increase in Job Starts during the same period. We willmanage fluctuations by: ▪ working closely with Jobcentre Plus (JCP) to predict and

stimulate referrals, including monitoring and forecasting referrals from Early Access andvoluntary Customers ▪ analysing volumes via our Intelligent Milestone, Programme AndCase Tracking system (IMPACT), used by all Providers in our network ▪ and conductingextensive labour market analysis from a range of sources including NOMIS and Inclusiondata. Our Subcontractors additionally bring experience of managing volume fluctuationson FND and other contracts. Serco maintains performance across the network in the

event of fluctuations in Customer volumes by: aligning Subcontractor funding with

Customer volumes disseminating predicted Jobseeker volumes weekly evaluating theimpact of anticipated volume fluctuations during weekly Subcontractor performance

telekits supporting Subcontractors to develop and maintain Resource Plans that address

their current and future staffing demands based on contract need and anticipated volumes formulating contingency plans with Providers that can be executed quickly in the event

of higher or lower volumes monitoring Subcontractor caseload sizes as Customer numbers vary, ensuring the right Customer-Adviser ratio to achieve optimum performance

and training frontline teams to manage both small and large caseloads. Serco uses theflow of Jobseekers through a Subcontractor as a performance management tool: reducingthe flow temporarily reduces caseload sizes and increases Customer interactions.Similarly, a reduction in flows can free up time to focus on qualitative aspects of delivery.We support our Subcontractors to maintain performance in response to decreased

volumes by: removing consistently under-performing Subcontractors from our supply

chain, reducing over-capacity and increasing performance facilitating premises-sharing

agreements where Subcontractor leases are not viable based on flows and supportingSubcontractors to manage natural staff attrition, ensuring that staff are not unnecessarily

replaced. We maintain performance in the event of increased volumes by: increasingthe flow of Jobseekers to high-performing Subcontractors who have the financial and staff

resource to increase their capacity bringing additional Subcontractors into the network

where required capacity-building Subcontractors to increase group-based interventions

in response to higher flows and coordinating recruitment drives and utilising our purchasing power to secure additional serviced offices in response to sustainedincreases. The measures above are also used to respond effectively to shifting marketshare.

Maintaining performance in the event of changing Customer groups – Serco and our supply chain will maintain performance in response to changing Customer groups,

including as a result of the Future Services Schedule. We will achieve this by: working



PART 6: RESOURCES

[6.1] Staff Resources – Staffing Numbers, Job Titles and Roles

Please provide:

Details of the number of staff, shown as full time equivalents, you and your supplychain propose to employ to manage and deliver the Work Programme for this CPA.You should include a description of why you consider this staffing level is appropriatefor this CPA at contract start date, together with details as to how you will manage thestaffing levels as customer volumes rise and fall over the lifetime of the contract. Thisshould include a description in detail of the number of staff to be drawn from currentresources, those to be recruited by both your organisation and any supply chainorganisations involved.

Please provide details of how you have identified the skills required by staff in your organisation, and that of any sub-contractors, to deliver the service you have proposedat Section 4. You should describe how you propose to acquire staff with these skills or provide the appropriate training to ensure that these skills are available to commencedelivery of the service on the date you have proposed. A resource plan should beprovided (attach as Annex 5) showing how staffing, by full time equivalent and jobtitle/role, will be allocated across this CPA and a description of the job roles of staff shown in Annex 5.

Insert your response in the pre-set, shaded space of the following pages. Your responseMUST be limited to five sides of A4.

Note: Format requirement and page limit does not apply to the resource plan which youmust insert as Annex 5.



[6.2] Transfer of Undertakings (Protection of Employment) Regulations 2006(TUPE)

Please refer to the Provision Specification and Supporting Information before completingthe following TUPE questions.

[6.2a] TUPE – Managing the Transfer

Please detail your plans and those of any Sub-contractors for managing TUPE transferswhich will/may result from this Work Programme contract. Your response should include:

• measures you propose to take under Regulation 13 of the TUPE regulations,(including any proposals to seek agreement to change terms and conditions of employment or any redundancies for organisational, technical or economic reasonsover the life of the Contract), to enable you to meet their statutory requirements;

• how you propose to communicate with transferring staff prior and immediately after thetransfer date;

• an outline of your plan of activity to transfer in staff;

• how you propose to work with existing employers to ensure a smooth transfer of staff;and

• details of how you plan to ensure that any Sub-contractors will fulfil the requirementsof TUPE Regulations and any relevant Codes and Statements of Practice.




7.2 (continued) understanding of their staffing needs. This prevents employer fatigue frommultiple Providers pursuing the same vacancy and has been implemented successfully onFND. ‘It is really useful to have Serco’s services to organise providers and have one point

of contact ’ (Conduit) facilitating vacancy sharing throughout the network, withProviders encouraged to record vacancies onto Serco’s IMPACT system. This providesequal access to sourced vacancies for all Providers and Customers;

5) Ensuring continuous engagement with employers. Serco’s aim is to become thesupplier of choice for the maximum number of employers, securing repeat business byprofessionalising the network’s employer-facing function. To this end, Serco hasestablished Minimum Standards for working with employers which our Providers are

required to follow, including: Candidate Preparation – All candidates are pre-screenedto ensure a good match, maximising job take-up. We also develop employer-led trainingin response to specific labour market need, and in consultation with the businesscommunity and skills partners. For example, WISE Ability provide pre-employmenttraining and pre-interview screening for Polestar’s Sheffield-based manufacturing plant on

a regular basis. Post Placement Support – Serco’s Subcontractors deliver apersonalised package of In-Work Support that includes: access to a dedicatedEmployment Assistance Helpline providing 24-hour support and professional advice for line managers and our Customers on any issues that may put the employee’s job at risk;our Employers’ Forum on Disability package, which includes: a dedicated EFD Helplineand an online employer toolkit; ‘Train the Trainer’ sessions to equip our Providers’employer facing staff with all the skills they need to successfully place disabledCustomers with local employers; and support in applying for funding from schemes such

as Access to Work. In Work Progression – Support for employers to provide career progression to their new employee through: accessing in-work training grants; linkingemployers with apprenticeship schemes; and drawing on the expertise of our Subcontractors, such as Centre For Full Employment, who have safeguarded the jobs of

53 people in the last five months by sourcing appropriate training. All of these jobs wereguaranteed for a minimum of 12 months as a result and would have resulted inredundancy without this training. Serco further capacity builds the employer functionsof our Subcontractors. The EEM uses reports from IMPACT to assess the effectivenessof each Provider’s employer engagement strategy through a thorough assessment of:number of vacancies secured; vacancies converted into Job Outcomes; job sustainabilityperformance; and repeat business secured from employers. Where best practice isidentified, it is shared across the network. Where weaknesses are found, our EEM workswith the employer-facing teams of Subcontractors, to develop long-term, sustainable

improvements, including: promoting the use of pipeline tools for vacancy generation

working with managers to develop sales-focused employer communications plans

providing guidance on recruiting talented and effective employer engagement teams

and organising training to up-skill Provider teams. All these methods have beensuccessfully implemented and developed through 18 months of FND delivery, whereSerco has seen the proportion of outcomes gained through employer engagement activityrise from 10% to 60% since the start of the programme.6) Finding and funding innovative solutions – Our EEM is equipped to create newsolutions to meet employer and Customer needs. This might include, for examplearranging jointly-funded buses to support Jobseekers from rural parts of Barnsley toaccess the 1,000 new jobs created by employer ASOS. Solutions are facilitated bySerco’s unique Innovation, Enterprise, & Investment Initiative which invests in demand-ledinitiatives that stimulate the local economy and create job opportunities. Our BusinessDevelopment & Enterprise Manager works alongside our EEM to identify opportunities for funding that will generate additional, sustainable Job Outcomes for Work ProgrammeCustomers in South Yorkshire.



8.1a (continued) stimulate the local economy and create job opportunities for Customers.8. Sustainability ( performance uplift, improved sustainability ) – higher levels of long-term

sustainability are possible because we: gear our payment structure for Subcontractors to

incentivise the right job placement and then ongoing in-work contact require that all

Customers receive a tailored package of In-Work Support that is tracked and assured

offer additional In-Work Support tools for Providers, Customers and employers, such as

the Employment Assistance Helpline brokered by Serco.9. Funding Structure ( performance uplift, improved sustainability ) – Serco will not simplyreplicate the Prime Contractor funding structure down through the supply chain. Instead,

through gearing the funding differently, we: target funding on different sorts of

interventions through our three Phases and our Specialist Journey make the funding

work harder to derive enhanced performance widen the scope of our service to address

the needs of more Customers tailor our funding structure by Customer group, reflecting

the higher level of resource that some Customers are likely to require remove incentives

for ‘parking’ create a flat payment profile for Subcontractors over the contract life to

support business planning and viability create more money upfront, recognising Provider

cash flow requirements and link Provider payments to sustained employment to drivethe right behaviours, without creating long-term, unviable risks for them.10. Transformation ( performance uplift, performance with new Customer groups,improved sustainability ) – we will roll out a fully-costed Transformation Programme for the

Work Programme, through which we: change the culture of Providers, supporting them

to move towards a focus on outcomes manage and build the capacity of Providers,including their frontline staff skills base, their leadership and performance management

skills, and their cash flow and deploy our bespoke points-based Work Programme KPIsystem, which provides the right commercial drivers to incentivise Provider performance.

Achievement of performance outcomes is further enabled by our bespoke IntelligentMilestone, Programme And Case Tracking system (IMPACT), used by all Providers in our network. IMPACT monitors parity of outcomes for all Customer groups, with any disparityaddressed during weekly Provider performance telekits. ESF Customers are colour-codedon IMPACT, ensuring that we monitor and achieve parity of outcomes for IS and IBCustomers. Serco and our Subcontractors are able to achieve the performancebenchmarks with each Customer group as follows:

All groups within ESA and ex-IB – Serco’s Expert Reference Group for Disability –including representation from Mencap, RNIB, RNID and MIND – has been tasked withreviewing the impact of the Work Capability Assessment (WCA) on Customers migratingfrom IB onto JSA and ESA (Work Related Activity and Support Group) and consolidating

best practice evidence about how to support this new Customer group into sustainedemployment. The group has also included representation from a member of Professor Harrington’s team, who have led the Government’s review of the WCA. Our consultationhas highlighted the importance of Individualised Placement Support (IPS), a methodologythat focuses on using sustained employment as a therapeutic tool to better manage ahealth condition, particularly a mental health condition. As a result, Serco has workedalongside the Employers’ Forum on Disability (EFD) to create a series of toolkits thatprovide an enhanced work-first plus approach for Customers on health-related benefits,including a dedicated EFD Helpline. Our Subcontractors bring experience and expertise of achieving performance outcomes for ex-IB and ESA Customers. For example, WISEAbility is an experienced Provider in Australia’s Job Network and have achieved a 4 (out

of 5) Star Rating for their Disability Employment Network contract with an equivalentCustomer group, bringing international expertise to our supply chain. Performanceoutcomes are optimised for ESA Volunteers through our Providers’ existing links withlocal GP and health services, which enable them to market to and support this group.



8.1a (continued)

IB Customers – Serco’s three-Phase model creates a performance uplift for IBCustomers: those diagnosed as requiring more intensive support during Engage (such aslong-term IB claimants) are supported to transition to a Provider specialising in supportingthis Customer group, such as Groundwork, who have achieved up to a 60% Job Outcomerate for long-term IB voluntary claimants from ex-mining towns in Yorkshire. IB Customers

also benefit from our Specialist Journey, with Providers such as Disability Works UKdelivering tailored, work-focused support for people with complex needs and disabilities.

JSA 18-24 – JSA Customers benefit from the performance uplift created through our local alignment, as we broker effective cross-referral mechanisms with services for youngpeople, including apprenticeships and Connexions services. Our local labour marketintervention includes a forecast of future vacancies and the skills required to access them.This feeds into employer-led pre-employment training (supported by Serco’s EEM) thatenables us to meet the long-term skills aspirations of younger Jobseekers, supporting in-work progression and sustainability. Performance is underpinned by the track record of our Providers in supporting 18-24 year olds into work: for example, our network includesthe Source @ Meadowhall, who specialise in delivering vocational training and

apprenticeships to young people and supported over 700 people into work last year.

JSA 25+ – Our three-Phase model drives performance for JSA Customers: the initial16-week Engage Phase provides the right level of diagnostic and jobsearch support toachieve performance outcomes with those Customers who are closest to the labour market. Our model reflects the fact that previous programmes for this Customer group,including PSL New Deal and EZs, achieved the majority of performance outcomes duringthe first 16 weeks of provision. JSA Customers with more complex needs, such as thosewho have migrated from IB, progress to receive more intensive support from an Enable or Specialist Provider. Serco’s network collectively supported 32,800 Jobseekers into work

last year. This includes: BEST, who have supported over 5,000 Jobseekers into work

through their delivery of the New Deal Prime Contract in neighbouring West Yorkshire

and CTS, who have achieved up to 45% Sustained Job Outcome rates on their FNDsubcontract. JSA Customers benefit from our sustainability measures, including theEmployment Assistance Helpline that provides 24-hour professional support to addressany issues that may put a person’s job at risk. It is delivered by Care First : 80% of their current service users report that the service helped to prevent job loss.

JSA Early Access – Through local alignment, we ensure that Early Access Customerscan benefit from a range of Integrated Support Services – such as housing and substancemisuse support services – that address their needs holistically, both prior to and in work.Our network includes Subcontractors who specialise in working with these Customers,including SOVA, who have supported 8,600 ex-offenders into work over the last 3 years

through the delivery of their national ESF-funded PS Pluss contract. IS Customers – Serco’s funding structure and three-Phase model target resources atthose with the highest level of need, including, for example, lone parents and carers on ISrequiring replacement childcare costs for the early weeks in work. Support for loneparents builds on best practice evidence gained from programmes such as NDLP andDiscovery Weeks, by integrating confidence-building activities early during the EngagePhase. Local alignment enables us to both market to and meet the needs of ISCustomers, building on the local links of our Providers with Children’s Centres, schools,nurseries and carer and family support groups. Our Subcontractors bring experience of working with this group. For example, SCOOP Aid, lone parent specialists, haveexceeded the Job Outcome target on their local Reaching Communities contract by 27%.



9.1 (continued)across the network, and delays to Serco’s Security Plan sign off. Mitigating actions

include: failsafe backups of all system data deploying a contingency version of

Serco’s current management system, iCMS prior purchase of user licenses web-based

training materials in place for Subcontractors a dedicated Trainer in place to train the

network using a ‘Train the Trainer’ model a Data Security Plan (building on FND

experience) that is reviewed and approved by our internal CLAS Consultants and DWP

and early engagement with Subcontractors to support the drafting of robust individualSecurity Plans. Regional Set Up risks include: Subcontractors insufficiently resourcedor with inadequate premises, and Subcontractors withdrawing from the network before go-

live. Mitigating actions include: supporting and auditing Subcontractors in production

of Implementation Plans during Due Diligence Subcontractors sharing premises and

Serco brokering sharing of human resource and having multiple Providers – with 7reserve Subcontractors. Serco’s successful implementation of three FND contractsprovides further assurance of our ability to manage implementation risks. These contractswent live on time despite some serious external challenges, including a three-month delay

to Preferred Bidder announcement. Serco has demonstrated our ability to deliver contingencies in short timeframes. For example, following delayed clarification of high-level referral processes of Customers to FND, Serco set up a Central Processing Team(in Rhyl, Wales) in just two weeks.

Risks relating to winning multiple contracts fall into four key areas: 1) Financial –

Serco overcomes this challenge through: sufficient cash reserves to support the working

capital requirements of delivering all 11 contracts for which we are tendering assessing

the financial robustness of our Subcontractors as part of the selection process quarterlymonitoring of the financial strength and liquidity of all of our Subcontractors based on

Dunn and Bradstreet analysis and using local Subcontractors with existing infrastructurethereby minimising fixed and start-up costs associated with new contracts. 2)

Management capacity – Serco overcomes the impact of this challenge through: a

recruitment drive already in place for key delivery staff our ability to draw on specialist

resources from across the Division, Serco Group and specialist consultants flexible

recruitment plans in place for all possible contract win outcomes providing a ring-fenced

implementation budget for each contract structuring the mobilisation of each contractaround a Common Operating Platform with a Regional Operating Model to facilitate

regional variation and ensuring clear governance structures to manage the WorkProgramme through a Contract Board for each CPA. 3) TUPE – We manage this

challenge through: having a dedicated HR TUPE lead in each contract area, providing

proactive support to our network to facilitate the smooth transfer of all affected employees and building on the experience and resources developed to successfully manage TUPE

during FND. 4) Subcontractor capacity – Serco mitigates this risk through: use of localProviders, whose existing infrastructure, experience and partnerships minimise the impact

of contract implementation and delivery a multiple Provider model, which minimises the

impact of winning multiple contracts on any sole Subcontractor different Subcontractor

networks in each CPA auditing and assuring Subcontractors’ Implementation Plans to

ensure they are realistic and properly resourced identifying opportunities to shareresources from other Subcontractors, deploying Serco’s resources and expertise to

address identified gaps and cross-referencing and checking the stability of stated

resources for these Subcontractors on the assumption that we win all contracts. Just 26%of Serco’s Providers in South Yorkshire have signed up to deliver Serco’s WorkProgramme in more than one CPA.



9.2 Contingency Arrangements

Please describe:

• how your proposals for delivery of services within this CPA will be putin place without adversely affecting your organisation’s or your Sub-contractors’

ability to deliver existing and recently won contracts as well as other contractsyou are bidding for.

• in detail your contingency plan for maintaining the entire scope of your proposal within your bid should members of your supply chain withdraw prior tocommencement of delivery of this contract.


388. CPA17: Serco Ltd - Tender

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