Public procurement notice: Modification Of A Contract/Concession During Its Term
Published: 2020-09-29
Buyer: Department for Work and Pensions
Country: UK
Contract type: Services
Procedure: Open procedure
CPV classification: 75200000 | 85000000 | 85100000: Health services | 85140000: Miscellaneous health services | 85300000
EU fund: ESF

Technical requirements: The Department for Work and Pensions has contracted with two separate suppliers to deliver holistic assessment services under the access to work programme on a national basis. Services will be delivered throughout England, Wales and Scotland. The assessments will take into account a customer's disability, explore relevant factors that may create workplace barriers and produce a report that identifies options with regard to overcoming them.
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(iii)to not award any contract as a result of the procurement process commenced by publication of this notice; and
The Department for Work and Pensions has contracted with two separate suppliers to deliver holistic assessment services under the access to work programme on a national basis. Services will be delivered throughout England, Wales and Scotland. The assessments will take into account a customer's disability, explore relevant factors that may create workplace barriers and produce a report that identifies options with regard to overcoming them.
On 9 April 2020 the interim payment arrangement was agreed and implemented quickly to make appropriate payments to providers to calm the reaction in the market and provide a degree of confidence to maintain services. This was in line with Cabinet Office PPN 02/20 and provided cash-flow until June 2020. This delivered the objective in the very short term.
On 1 July 2020 the next stage of the strategy was implemented and suspended the Payment By Results model, replacing it with a new Cost+ model until the situation changes. This replaces the interim payment arrangement.
Acknowledging the uncertain environment; the new model will be subject to regular reviews, to assess the external conditions. The Department will reserve the right to revert to the original model, subject to notice, at any time. Whilst it may be appropriate to revert directly to the original arrangements, this will need careful consideration and assessment of the environment, not least the pipeline of participants to realise outcomes, the labour market conditions and the potential changes to citizen behaviour including restrictions.
The outbreak and subsequent impact of the Covid-19 pandemic posed a threat to the viability of the contracted employment services market. Without intervention, the market would not be sustained to support wider society get back to work.
The conventional Payment by Results (PBR) model does not generate sufficient income for providers to remain viable or to maintain capacity and capability. Providers are also mainly reliant on referrals to provision by Jobcentre Plus and this activity was de-prioritised to focus on the national need to pay benefits. Some providers were already experiencing financial stress and many organisations in the supply chain are small third sector companies being impacted by the wider impact of Covid-19. The Labour Market and economy is suffering the consequences of the Covid-19 pandemic and existing delivery arrangements are not appropriate in the current restricted climate.


Winner: People Plus Group Ltd