DWP Work Programme update
A list of organisations who have submitted bids to be prime contractors on the framework agreement for the DWP Work Programme has been published. This is currently a long list, but will be reduced significantly once prime contractors have been selected for each of the regional lots. The list is also available as an Excel spreadsheet.
What does this mean?
The final prime contractors are expected to be large organisations, due to the significant cash flow required, the payments by results model and geographic areas covered. Therefore opportunities for smaller third sector organisations are more likely through sub-contracting arrangements.
Most organisations bidding to be prime contractors are likely to be sub-contracting some or all their delivery, and many are currently lining up their potential supply chains should they be selected as a prime contractor. DWP are pointing providers interested in subcontracting with prime contractors towards an online framework forum.
Obviously providers and local support and development organisations can also broker relationships with potential primes directly outside of this forum and would be well advised to do so.
What about smaller providers?
The Government has spent time developing a code of conduct for prime contractors and how they implement their supply chains. This Merlin Standard aims to ensure fairer relationships between primes and sub-contractors. Prime contractors are set to be judged in their bids on how robust their supply chains are and how well they adhere to the standard.
NAVCA hopes the standard will be used as a key negotiating tool by smaller providers and will help fair relationships to be established. Kevin Curley, NAVCA chief executive, recently wrote to the Charities Minister Nick Hurd MP about the standard.
The tendering process
The Work Programme is being tendered as a framework agreement. A framework agreement is a procurement method that operates as a form of approved supplier list. Once the framework is agreed it operates as a closed system for four years, not allowing new entrants. Therefore to miss being listed on a framework potentially locks you out of the system for the foreseeable future.
Getting listed on a framework is no guarantee of future contracts, or any specific quantity of work to be delivered. When the public body wants to buy the service, they will approach suppliers listed on the agreement and usually hold a mini-competition to ‘call off’ work as needed. The mini-competitions for the Work Programme framework are due in December with the first contracts being awarded towards the end of January.
Meanwhile
The parliamentary Work and Pensions Committee has decided to hold an inquiry into the contracting arrangements for the Work Programme and related provider issues. The deadline for written evidence is 25 November. Details of the inquiry and how to submit evidence are available on the parliament.uk website.
