DWP setting up electronic procurement for low value training

A slightly surprising announcement has been posted on the DWP site informing providers looking to deliver contracts of less than £50,000 that an electronic procurement system is rolling out nationally over the next few months. Providers will be able to put their details online, and receive Requests for Quotation directly from DWP procurement staff. The idea is to make the procurement process simpler and easier when the DWP want to buy a few days of training, a one-off course or similar.

This raises the obvious question of when and how often that is likely to happen, given that a primary aim of the Commissioning Strategy has been to reduce the number of small contracts and procure fewer, larger, longer term programmes. Presumably, the ability to buy low value contracts is meant to support the Jobcentre-led Stage 3 of FND, and add to the services provided by JCP Support Contracts.

I've included the original story from the DWP site below under Crown copyright:

We are modernising the way we procure Low Value Welfare to Work Training

Dear Provider,

You may currently, or wish in the future, to provide Low Value Provision (LVP) for Welfare to Work related training. LVP is defined as one-off training requirements up to a value of £50k. Requirements can vary from as little as a single day's training to a number of week's activity (often leading to a relevant qualification) with a value ranging from £100 to several thousand pounds.

At present DWP relies on paper based processes for undertaking this activity and we believe that better use of our existing technologies can help achieve efficiencies for both ourselves and our suppliers.

From the 14th December 2009, DWP will be changing the way it procures LVP for Welfare to Work related training. The new system known as 'Request for Quotation' will be piloted in three Jobcentre Plus regions (North West, Yorkshire and the Humber and East Midlands), before rolling out in the remaining regions in England and in Scotland and Wales during February 2010.

To enable you to bid for and supply LVP, providers will need to complete an on-line application form that once lodged with us will remain current for 12 months or until your circumstances change, whichever is the earliest. This information will enable us to send requests for quote directly to you and for you then to respond electronically to us. As part of your application you will need to tell us the counties that you wish to deliver training in and the kinds of training that you can provide.
What do you need to do?

Nothing immediately, but if you supply provision in any of the above areas the on-line application form will be available for you to complete from 7 December. If you don't supply in any of the pilot areas you can still complete the application as this will allow us to broaden our search for suitable training where local provision is not available and is in readiness for national roll-out next year.n

So, in summary:

• A new electronic system is being introduced to provide a more efficient means of DWP buying LVP;
• An on-line application will be available for you to complete from the 7th December;
• If you wish to continue to supply LVP in the pilot areas you will need to complete the online application;
• If you supply in an area outside of the pilot area you can still complete the application;
• Once the system rolls out nationally DWP will use the system for all LVP requirements where we have suppliers capable of delivering our requirement.

Further guidance on the new process and instructions on accessing the application form will be made available next week on the Opportunities to Tender - DWP.

Regards

Matthew Barker
Commercial Solutions