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

Technical requirements: The DWP wishes to establish two (2) contracts, each with a different supplier, to deliver mental health support services under the access to work programme on a national basis (excluding Northern Ireland). In respect of each contract, Services to be delivered throughout England, Wales and Scotland. The service is to provide a DWP support measure for customers with a mental health issue or condition and the service aims to enable more people with mental health issues/conditions to stay in, advance and flourish in work. Full details of the required service are set out in the specification.
This is a notice for social and specific services in accordance with Directive 2014/24/EU of the European Parliament and of the Council Article 74 and regulation 75 of the Public Contracts Regulations 2015. The procurement falls under Schedule 3 of the Public Contract Regulations 2015 (Regulations) (health, social and related services category) (known commonly as the ‘Light Touch Regime’).
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(iii) to not award any contract as a result of the procurement process commenced by publication of this notice;
The DWP wishes to establish two (2) contracts, each with a different supplier, to deliver mental health support services under the access to work programme on a national basis (excluding Northern Ireland). In respect of each contract, services to be delivered throughout England, Wales and Scotland. The service is to provide a DWP support measure for customers with a mental health issue or condition and the service aims to enable more people with mental health issues/conditions to stay in, advance and flourish in work. Full details of the required service are set out in the specification.
This is a notice for social and specific services in accordance with Directive 2014/24/EU of the European Parliament and of the Council Article 74 and regulation 75 of the Public Contracts Regulations 2015. The procurement falls under Schedule 3 of the Public Contract Regulations 2015.
Nature and extent of the modifications (with indication of possible earlier changes to the contract):
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: Remploy Ltd