DWP Framework Specification published, ERSA provides advice to potential bidders

Yesterday, the Framework Specification and other clarifying documents were issued by the Department for Work and Pensions. For more info visit:

http://www.dwp.gov.uk/supplying-dwp/what-we-buy/welfare-to-work-services/framework-for-the-provision/

Key Dates

27 August 2010, 10am - Lot Preference Form (indicative, you will not be bound to it) and BravoSolution registration

13 September 2010 – Final Date for submission of Q&A

20 September 2010 – Final issue of Q&A log

27 September 2010 – Closing date for Framework Competition

30 November 2010 – Successful suppliers notified

December 2010 – Work Programme ItT issued 

Summary

The following summary of the documents released by DWP has been compiled by ERSA:

A pass/fail system will be used to determine basic qualification, after that, bids will be evaluated against Supply Chain Management, Implementation, Stakeholder Engagement, Contract Performance, Delivery Challenges.

Contracts may cover the whole area of a Lot or smaller areas within the Lot.  Contracts will be of a value of between £10-£50 million per year.  The value and pricing model of each set of call-off contracts will be determined by the makeup of clients participating in the programme and the purpose of the support required.

Contracts will be then be awarded to providers from within the Framework on the basis of the most economically advantageous tender in each Lot (price, quality and risk).  This could be by seeking price-based bids or by asking for performance and quality proposals at set prices (ERSA submitted providers would prefer the latter).  Providers on the Framework will not necessarily be awarded contracts.

The first contracts to be issued under the Framework will be for the Work Programme, with the competition for these contracts due to commence in December 2010. 

In the Supplementary Delivery Partner Information in relation to the Work Programme, DWP have advised that they are unable to provide detailed data sets at this time.  Like all Government departments, DWP is expecting reductions in their budgetary allocations as part of the Spending Review.

DWP have committed to providing as much information as they can, as soon as they can.  The information provided in the document is done so in good faith, but is in no way the final statement of Government requirements.

Consortia/SPVs

DWP seek to reassure potential consortium/JVP/SPV bidders that it is not their intention to disadvantage unduly such bids compared with those from individual organisations. The £20m turnover figure is intended to give potential bidders a steer regarding the size of organisation they believe is required to manage within a more challenging, outcome-funded commercial arrangement than they have hitherto employed.  In responding to the ItT, all bidders will have a further opportunity to demonstrate that alongside the turnover requirement they have sufficient wherewithal to deliver the anticipated minimum size of contract.

Finding Partners

DWP is recommending that Providers, particularly those looking to form consortia, consider using the Framework Forum on Indus Delta to find potential partners. 

ERSA is also looking to host further rounds of networking/speed dating events over the coming months to facilitate networking and participation in the Work Programme.

Let DWP know if you no longer intend to bid

ERSA has learned that DWP have received an extraordinary number in Expressions of Interest for the Framework. The size and level of risk associated with these contracts may mean that many organisations find they no longer wish to bid as a Prime.  From an ERSA perspective, organisations that decide not to continue in the process are encouraged to advise DWP at their earliest convenience. 

ERSA is working with DWP to ensure that there is an open flow of communication, both to organisations bidding as a Prime for the Framework and those organisations who wish to participate as subcontractors.