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EMPLOYMENT RELATED SUPPORT SERVICES FRAMEWORK AGREEMENT MINI COMPETITIONS FOR THE PROVISION OF THE WORK PROGRAMME

Invitation to Tender Form

Tender Round title: Organisation Name: Lot: Contract Package Area (CPA):

The Work Programme Newcastle College Group Yorkshire and The Humber CPA 18 North East Yorkshire and The Humber (NEYH)

PART 1: ORGANISATION DETAILS


[1.1] Your response to Part 1 is for information purposes only. If any of this information has changed since the Framework Agreement application stage, please state this within the table below including a short explanation as to why. If you cannot provide any of the information below please explain this within the table. DWP will not be responsible for contacting anyone other than the persons named in this part of your form. If any of this information changes during the bidding period you must inform DWP of the changes by email to: WORK.PROGITTCLARIFICATION@DWP.GSI.GOV.UK Name of the Legal Entity in whose name this tender is submitted and with whom DWP will contract: Trading Name (if different from above): Company Registration Number: Company Registered address: Head Office Address, if different: VAT Registration Number: Website Address (if any): 918509211 www.ncgrp.co.uk The Corporation of Newcastle College Newcastle College Group (NCG) Not Applicable we are an exempt charity Rye Hill House, Scotswood Road, Newcastle upon Tyne, NE4 7SA

Name, address and company registration number n/a of parent company, where applicable: Name and Job Title of main contact: [REDACTED] Group Director of Business Development Address: Newcastle College Group Rye Hill House Scotswood Road Newcastle-upon-Tyne NE4 7SA Telephone no: [REDACTED] Mobile telephone no: Fax no: E-mail address: [REDACTED] Alternative contact Name and Job Title: Address (if different from above): [REDACTED] Director of Bidding [REDACTED] n/a

Telephone no: Mobile telephone no: Contact e-mail:

[REDACTED] [REDACTED] [REDACTED]

PART 2: TENDERER DECLARATION


[2.1] You must complete this Declaration by Tenderer. Failure to include this declaration may result in your bid being disqualified. To: The Secretary of State for Work and Pensions

For the benefit of the Department for Work and Pensions, we hereby warrant and undertake as follows: 1. We have examined, read, understand and accept in full the proposed Contract documents and all other documents and Annexes provided with this declaration and the clarifications issued during the Invitation to Tender period. 2. We have completed and submitted all information required in the Invitation to Tender Form in the format and order required. 3. We confirm the information set out in our response is complete and accurate to the best of our knowledge and belief. 4. We hereby acknowledge and agree that we have read, understand and accept the Work Programme Call-Off Terms and Conditions, the Work Programme Specification and the draft Order Form. [REDACTED] Scanned Signature: Date: Name: Job Title: 11 February 2011 [REDACTED] Chief Executive of Newcastle College Group The Corporation of Newcastle College

Duly authorised to sign Tenders on behalf of:

Name of Organisation: Newcastle College Group (NCG)

PART 3: THE WORK PROGRAMME CALL-OFF CONTRACT TERMS AND CONDITIONS - ALTERNATIVE AND/OR ADDITIONAL CLAUSES
[3.1] 3.1 The terms and conditions of The Work Programme will be the Standard Call-Off Terms and Conditions (set out in Schedule 4 of your Framework Agreement), as modified by The Work Programme service requirements (The Work Programme Additional Requirements). The Work Programme Additional Requirements are set out in the Call-Off Terms and Conditions for The Work Programme which is supplied with your Invitation to Tender. A document highlighting the modifications made to the Standard Call-Off Terms and Conditions to reflect The Work Programme Additional Requirements is also supplied with your Invitation to Tender; for ease of identification, the changes made since the draft version issued on 8 December 2010 are shown in boxes within the document. Any proposed amendments to The Work Programme Additional Requirement must be detailed by completing the section below, giving full details of the clause(s) you wish to amend and your proposed amendments. DWP will consider proposed amendments strictly on their merits. Please note that you may only propose amendments to The Work Programme Additional Requirements; proposed amendments to the Standard Call-Off Contract Terms and Conditions will not be considered.

3.2

3.3

Comments on The Work Programme Additional Requirements: MINI COMPETITION ADDITIONAL REQUIREMENTS (For Framework Supplier Comments only) No. of the clause(s) you Proposed amendment with proposed wording wish to amend Material Breach Insert definition for Material Breach and change all reference of material breach to Material Breach 1.10.5 Amend clause 1.10.5 to read: If the Prime Contractor or its Staff, excluding for the purposes of this clause 1.10.5 any Sub Contractor or Sub Contractor Staff, commits any Fraud in relation to the Contract or any other contract with a Contracting Authority or the Contracting Body, the Contracting Body may:1.11 Delete clause 1.11 and definitions relating to Guarantee 2.1.3 Delete clause 2.1.3 Amend clause 2.10 to read: The Contracting Body shall 2.10 monitor the Prime Contractors performance of services in accordance with the provisions of Appendix 6 or such other requirements as agreed by the parties from time to time. 4.1 Amend clause 4.1.3 to read: If the Prime Contract or its Staff, excluding for the purposes of this clause 4.1.3 any Sub Contractor or Sub Contractor Staff, engages in conduct prohibited by Clauses 4.1.1 or 4.1.2, the Contracting Body may:-

4.3

4.4

[retain clauses 4.1.3 (a) to (c)] Then insert the following wording as a new clause 4.1.4 If a Sub Contractor, the Sub Contractor's Staff or any other person acting on the Sub Contractor's behalf, engages in conduct prohibited by Clauses 4.1.1 or 4.1.2, the Contracting Body may require the Prime Contractor to: 4.1.4 (a) terminate the Sub Contract with immediate effect by giving notice in writing to the Sub Contractor and recover from the Sub Contractor the amount of any loss suffered by the Prime Contractor and/or the Contracting Body resulting from the termination 4.1.4 (b) recover in full from the Sub Contractor any other loss sustained by the Prime Contractor and/or the Contracting Body in consequence of any breach of those Clauses ; and/or 4.1.4 (c) recover in full from the Sub Contractor the amount or value of any gift, consideration or commission. Amend clause 4.2.3 to read: On the occasion of any Relevant Transfer the Prime Contractor shall comply with all of its obligations under the TUPE Regulations and the Directive in respect of the Relevant Employees. Delete clause 4.3.9 Insert the following wording to the start of clause 4.4: The parties shall comply with the obligations set out in this Clause 4.4, subject always to their obligations under the DPA. Amend clause 4.4.2 to read: The Prime Contractor shall warrant the accuracy and completeness of all the information provided to the Contracting Body pursuant to Clause 4.4.1 and authorises the Contracting Body to use any and all the information as it may consider necessary for the purposes of management of the Contract or for informing any tenderer for any services which are substantially the same as the Services (or any part thereof). Add the following new clause 4.4.6: The Contracting Body shall indemnify the Prime Contractor and keep the Prime Contractor indemnified in full from and against all direct liability or any other loss suffered by the Prime Contractor as a result of, or in connection with, the employment or termination of employment of any Relevant Employee on or following the date of termination of the Contract provided always that such liability or loss arises out of, or in connection with, any act or omission of the Contracting Body. Add the following new clause 4.3.8B: The Contracting Body shall indemnify the Prime Contractor and keep the Prime Contractor indemnified in full from and against all direct liability or any other loss suffered by the Prime Contractor as a result of, or in connection with, the employment or termination of employment of any Relevant Employee prior to the date of the Relevant Transfer provided always that such liability or loss arises out of, or

5.2.6 5.7.2 5.11.11 (c) 7.1 7.1.3

in connection with, any act or omission of the Contracting Body. Amend clause 5.2.6 to read: The provisions of this Clause shall apply during the Contract Period and for a period of [six] years after its expiry. If the contract is not intended to be funded using ESF money or as a match for ESF provision, then these clauses can be deleted. Delete clause 5.11.11 (c) Delete clauses 7.1.1 (d) (k) Delete clause 7.1.2 Delete clause 7.1.5 Amend clause 5.2.6 to read: Subject always to Clause 7.1.1 and Clause 7.1.4, the liability of either Party for Defaults shall be subject to the following financial limits: the aggregate liability of either Party for all its Defaults resulting in direct loss of or damage to the property of the other under or in connection with the Contract shall in no event exceed 15 million (fifteen million pounds); and the annual aggregate liability under the Contract of either Party for all its Defaults shall in no event exceed 15 million (fifteen million pounds).

7.1.7

8.5

The Prime Contractor shall effect and maintain with a reputable insurance company a policy or policies of insurance providing an adequate level of cover in respect of all risks which may be incurred by the Prime Contractor, arising out of the Prime Contractor's performance of its obligations under the Contract, including death or personal injury, loss of or damage to property or any other loss. Such policies must cover the Prime Contractors potential liabilities arising out of, or in connection with, the Contract and, without prejudice to Clause 7.1.11, the amount of cover should not be less than 15 million (fifteen million pounds) for claims arising from a single event or series of related events in a single calendar year. Such policies shall include cover in respect of any financial loss arising from any advice given or omitted to be given by the Prime Contractor. Such insurance shall be maintained for the duration of the Contract Period and for a minimum of six (6) years following the expiration or earlier termination of the Contract. Amend Clause 8.5.3 as follows: Subject to clause 7, where the Contracting Body terminates the contract under Clause 8.3 (Break), the Contracting Body shall indemnify the Prime Contractor against any commitments, liabilities or expenditure, which would otherwise represent an unavoidable loss by the Prime Contractor by reason of the termination of the Contract, provided that the Prime

Contractor takes all reasonable steps to mitigate such loss. The Prime Contractor shall submit a fully itemised and costed list of such loss, with supporting evidence, of losses reasonably and actually incurred by the Prime contractor as a result of termination under Clause 8.3 (Break). Delete Clause 8.5.4(a) Other than those provisions identified above, Newcastle College Group confirms that it has reviewed the Call-Off Terms and Conditions for The Work Programme and agrees in principle to each of their provisions.

Name: Scanned Signature: Position: Telephone No: Date:

[REDACTED] [REDACTED] Chief Executive of Newcastle College Group [REDACTED] 11 February 2011

DWP reserves the right to amend any provisions of The Work Programme Additional Requirements at any time during the mini-competition procurement exercise.

PART 4:

SERVICE REQUIREMENT

NOTE: MINIMUM SCORE APPLIES TO ALL QUESTIONS THAT ATTRACT A SCORE WITHIN THIS SECTION. BIDS SCORING 2 OR LESS ON ANY QUESTION WITHIN THIS SECTION WILL BE REMOVED FROM THE COMPETITION. PLEASE NOTE SCORES ATTAINED IN THIS SECTION MAY ALSO BE USED IN A TIE-BREAK SITUATION WHERE APPROPRIATE.

[4.1] Customer Journey - Process Please submit a process map showing the proposed end to end customer journey(s) and attach the process map as Annex 1. This should include a detailed supporting description of the customer journey(s) specific to this CPA. Your response must describe how you will ensure the customer journey is tailored to meet the specific needs and barriers of individual customers, and include the customer requirements defined in the Specification. Please note your response to this question will not be scored but will act as a reference point for the scoring of questions 4.1a and 4.1b Insert your response in the pre-set, shaded space of the following pages. Your response MUST be limited to five sides of A4. Note: Format requirement and page limit does not apply to the process map which you must insert as Annex 1.

4.1 NCG have created a pioneering model for delivering, through the Work Programme

(WP), a step change in the performance levels currently being achieved by the welfare to work sector in the North East Yorkshire and the Humber (NEYH) CPA. We have analysed and understood local needs in detail, and married these to DWPs strategic objectives to create an innovative solution impacting directly on sustainable job outcomes. Our approach builds upon tried and tested interventions and incorporates unique features including a psychological intervention designed to motivate and empower customers with the mindset to find work, whilst breaking down perceived barriers and identifying genuine customer needs. We have also devised a strategic employer engagement function both to access the hidden vacancies that constitute around 15% of labour market opportunity, and to create a wider range of jobs for WP customers. Central to our approach is a strong mechanism to engage the customer via a dedicated Mentor our continuous Golden Thread of personalised support. Every customer will have a Mentor who will work with them from referral through to sustained employment. Mentors will have first hand experience of the issues facing customers in NEYH such as youth unemployment in North Lincolnshire where 31% of JSA claimants are aged 18-24; lone parents in Hull as the proportion of lone parents claiming benefits is more than 50% higher than the national average (2.7% vs 1.7%) and will quickly connect and empathise with customers. The Mentor will link customers to 360-degree support encompassing job-focused training, targeted personal interventions and specialist help. NCGs delivery model is in five stages, each designed to support significantly improved job outcomes: Stage 1: INvite To maximise customer and JCP engagement from the start, facilitate a warm hand-over and gather momentum behind the customer journey, NCG has developed a robust induction process comprising: 1) A Welcome Brochure localised to NEYH with details of local success stories, the brochure provides an overview of the WP journey and details of how to join and who to contact. The brochure will be produced in other languages (e.g. for the Somali communities in Hull). The Welcome Brochure will include the NCG Customer Charter outlining service delivery levels and a Discount Card Scheme to stimulate customers interest; 2) A Central PRaP Team and Call Centre who will manage a booking system for all WP referrals. All customers will be logged on our Maytas MIS Database, which automatically notifies our call centre of the customer start. The call centre operators will then call them to arrange their first appointment. During this call we will: introduce them to their mentor, confirm a convenient time, day and venue for the appointment and establish and resolve any initial barriers such as childcare for parents, disability access issues or language barriers for people who speak little English; 3) An 0800 Referral Hotline for both JCP Advisors and customers; and 4) SMS and Email Confirmation detailing the location, date and time of their appointment along with the contact details of their Mentor. Those without phones or email access will be sent the information by post. We will also send a final SMS reminder the day before. Failed to Attend (FTA) - NCG will implement a simple 3 strikes approach to give each customer a fair and equal opportunity to explain their reasons for nonattendance and take individual action before notification to JCP. We will offer further support to our most vulnerable customers by offering home appointments or community interventions. The INvite stage ensures that every customer will have the information and support to feel at ease from the very beginning of the WP. Stage 2: INvigorate We have adopted a unique approach to induction and assessment, through which almost all customers pass through a personalised psychological and motivational intervention at the beginning of their journey. As a key mechanism to support improved outcomes, we have committed over 2 days to continuous assessment to ensure we fully understand the real and perceived needs of every WP customer activity to which traditional providers only allocate a 30 or 40 minute meeting. A core principle underlying our approach to the WP is that we will treat people as individuals and provide a service based on their needs rather than benefit type or price tag. To facilitate this, we will create a welcoming environment designed to break down barriers to and

promote mutual understanding between customers and Mentors. This will begin with the first appointment where we will invest time simply in getting to know the customer rather than drilling down into personal circumstances. The Mentor will provide a tour of the centre and the facilities on offer, and deliver an induction covering key areas such as expenses, health and safety, equality and diversity, rights and responsibilities - all designed to put the customer at ease. The customers will then be invited to attend INfit, our unique Psychological Intervention. Critically this will be undertaken before job search and career planning to ensure that customers enter the process motivated and self-aware, with clear goals and a realistic sense of possibilities. Our INfit programme updates the behavioural and motivational elements of Cognitive Behavioural Therapy and Neuro Linguistic Programming as seen in systems such as Goals UK with the practical approaches to life planning encapsulated in the internationally recognised GROW system for personal development. This emphasises realism and acceptance combined with practical approaches to personal change, encouraging customers to accept personal responsibility and an internal locus of control. Customers set realistic goals and work through both their psychological and practical barriers to employment. INfit has been created with psychologist, [REDACTED], designer of the Skills4Success programme. It will be delivered by a team of tutors on a rolling basis in each centre. Mentors will join the final sessions so there is a smooth transition from INfit to personal planning and jobsearch activity and an early opportunity for signposting to specialist provision. As our own proprietary system, we can offer INfit to our supply chain and third sector organisations at a significantly lower cost than similar commercially available interventions. We will use our For Skills electronic diagnostic tool to assess customers literacy and numeracy skills and each customer will also undertake an Employability Assessment using our custom made programme Empro. This tool was designed exclusively for NCG and our supply chain using funds from LSIS. The tool provides each customer and Mentor a personal profile indictor against each of the 17 key areas of their life including: Career; Finances; Health; Physical Environment; Family and Friends; Emotions; Personal Development; Fun & Recreation; Skills; Sector Knowledge; and Work Experience. The assessment will provide additional information to assist the customer and Mentor to explore employment barriers and also provides a baseline against which distance travelled can be measured. To further support our customers, there are 17 related e-learning resource modules, accessible at any time through the VLE. Each customer will then have a one-toone meeting with their Mentor to develop their Career Progression Plan (CPP). This meeting is deliberately timed to take place immediately after INfit so the customers thoughts and feelings remain fresh in their minds and they can talk candidly with their Mentor about the issues raised during the course. During this meeting the customer will undertake an In Work Benefit Calculation which will provide a clear illustration on how much better off they will be once they are in work and provide information on the Universal Credit, In Work Tax Credits and Childcare Allowance. During the first one-toone meeting the Mentor will also introduce the menu of support options (details below). They will agree the most appropriate and effective course to employment. This will be captured by SMART (Specific, Measurable, Achievable, Realistic and Timebound) actions to overcome every barrier and enable progression into meaningful, sustainable employment. The CPP will be signed by both customer and Mentor, providing a contractual platform upon which the customers future WP journey will be built and managed. Objectives in the CPP are measurable KPIs which will be input onto the Maytas MIS to ensure tracking and reporting of progress. Customers will be given a signed copy of the CPP and will have access to the latest version online through our innovative Virtual Learning Environment (VLE). This will also provide up-to-date vacancies matched to the career goals in their CPP, industry and sector news, and access to self directed employability and soft skills workshops. This stage ensures that each customer will have a) a greater awareness of their barriers to employment and b) a number of SMART

actions captured in the CPP to get them effectively and efficiently into work. Stage 3: Inspire - The purpose of the INspire stage is to comprehensively address the customers barriers so they are fully ready to start a job. The INspire stage comprises a broad menu of support options designed and selected to provide as comprehensive a set of solutions as possible for each customer. How long a customer spends on the INspire stage is determined by the barriers they face and time needed to address and overcome them. Someone may skip straight to INtensify, some may simply need a refresher course in job searching, whilst others with more deeply entrenched issues such as low basic skills or poor work history will require more lengthy interventions. The menu of support offered in the INspire stage includes: a) Mentoring: The Mentor will provide ongoing support, working with the customer to turn the CPP into meaningful interventions and arranging all necessary activities, connecting the customer with the right person within the INspire team or specialist support partner; b) Employability Training: a rolling programme of courses including Employability Skills, Labour Market Awareness, Soft Skills and Confidence and Motivation; c) Employment Related Skills for Life Training: rolling programmes of Skills for Life, ESOL and IT Skills courses. All customers will be provided with an email account and also have unlimited access to VLE containing free online learning materials; d) Attitude, Confidence and Motivation further mid-point INfit courses building on work done during the INvigorate stage and delivered using a mix of in-house and specialist provision; e) Support Fund we have created a fund to cover customer costs such as travel to and from provision or childcare and to provide material solutions to barriers, such as purchasing interview clothes or work equipment such as safety boots and uniforms etc. Clear delegated authority limits will be established to ensure operational teams have appropriate empowerment to ensure swift but efficient and auditable usage of the fund; and f) Local Support Agencies will provide support that is particularly appropriate to the needs of customers in NEYH. For example we know that there are higher than UK average number of IB/ESA benefit claimants in local authorities such as Kingston upon Hull (8.2% vs 6.7%) and Scarborough (7.7% vs 6.7%). We also know the reasons behind these high numbers for example in the Myton ward (Hull) in excess of 53% of IB claimants have mental health issues. In the Scarborough ward of Eastfield there in excess of 20% of IB claimants have musculoskeletal issues. We will therefore link customers to local providers including Positive Assets who encourage and support people who have mental health problems to find and stay in employment. We also know that in NEYH there is a higher than the national average percentage of carers, 1.3% compared to the national average of 1.1%. Within the North East Lincolnshire area this rises to 1.7% and, as such, we will work with the Carers Resource, North East Lincolnshire Care Trust Plus and the NEL Carers Centre to ensure customers are able access high quality service for their dependants. For those customers identified as having major barriers to employment we have agreed terms with the following organisations: 1) Disability Works UK a consortium of nine of the largest and most experienced disability support organisations including Mencap, MIND, Leonard Cheshire, Scope, Action for Blind People and Pluss. DWUK are able to provide a comprehensive personalised service to WP customers across NEYH with moderate to severe physical and mental health issues as well as people with learning difficulties. This service will be particular relevant for IB/ ESA customers but will be readily available for any WP customer regardless of their benefit type; 2) RehabWorks UK have successfully managed and treated individuals with musculoskeletal and mental health conditions for the last 23 years. They have a track record of securing sustained outcomes in pain reduction, improved function and return to work. They will provide clinically certified interventions, physiotherapy and condition management for any customers with health conditions including IB/ ESA customers; 3) Barnardos The UKs leading childrens charity has developed an exclusive work placement scheme for young WP customers (18-24 JSA), building on the successful Barnardos Works model which achieved 83% job outcomes

beyond 26 weeks; and 4) Salvation Army will provide support for customers with multiple and complex barriers faced by all customer groups but particularly IB/ESA, early access JSA and Income Support customers including those with drug and alcohol addictions, and the homeless. Other options during the INspire stage will include: a) INdustrious for customers who wish to set up their own business delivered through the National Federation of Enterprise Agencies and their local network in NEYH providing access to specialist self employment support; b) ImagINation musical and cultural routes to employment delivered by Armstrong Learning; c) Social Enterprise Social Firms UK will create new work opportunities for harder to help customers including IB/ESA and Income Support customers using their network of 120 Social Firms in the UK including Bransholme Enterprises in NEYH; and d) The Mentoring and Befriending Foundations (MandBF) mentor matching scheme will match customers with mentors who will provide additional support both pre and post employment. The INspire stage ensures that every customer will have received personalised and tailored solutions designed to overcome barriers to work. Stage 4: INtensify The INtensify stage has been engineered to generate greater levels of performance by creating a tangible shift in the offer and support we provide to employers and customers. To achieve this, we have invested heavily in a new approach to employer engagement, employing a Business Advisor (BA) to work proactively with the labour market in NEYH. The BA will take a consultative approach to employer engagement and form long-term, multi-service partnerships with employers. They will provide new solutions to recruitment and retention needs by not only providing prerecruitment training and pre-screening, but also consulting on HR processes such as induction and workforce development. The BA will also work with recruitment companies specialising in high quality temporary work to develop job-to-job solutions in areas such as Grimsby, where there is high percentage of flexible employment. They will also work closely with employers to encourage family friendly and disability friendly jobs that would enable greater access to jobs for our WP customers. We know from our work with employers in the region and from regional policy documents (Skills Priorities Statement 2011/12) that there is rising demand for intermediate and higher level skills in the Retail sector but that sectors such as transport, hotels and catering, and business services there is a rising demand at level 2 and 4 therefore the BA will link into other NCG employer services such as our Service Academies and Workforce Development who provide services to employers including retail, business administration and construction Apprenticeships across the UK to maximise employer links and opportunities to find hidden vacancies and promote job creation through our skills escalator. This will ensure we have the volume and scope of vacancies demanded by our customers. The INtensify Team will link our WP customers to the jobs sourced by the BA as well as sourcing other vacancies that are advertised elsewhere e.g. local papers, JCP, internet etc To maximise the impact of INtensify, we will see customers more frequently and will provide every customer with access to a wide range of job finding activities and resources including: one-to-one and group job search sessions (online and traditional); mini jobs fairs and employer or sector open days; work placements; and work place tasters. To add value to this activity, we will provide a large variety of short, accredited courses based on the needs of recruiting employers. Pre-Recruitment Trainers will work with the Business Advisors to develop training schemes that result in guaranteed job interviews and jobs. These will be designed in conjunction with employers and the Sector Skills Councils, and is built upon our Skills for Jobs model which since June 2008 has been delivered with NEXT, Tesco, Spirit Group and Travelodge resulting in more than 220 people gaining sustained employment. In work support: all customers who have found a job will be offered a further INfit intervention, ensuring the customer is psychologically and emotionally job ready, with the confidence to make a positive re-entry to the workplace. This will also build self-belief by reinforcing to customers the distance they have

travelled on WP, and contribute to reducing early stage drop off rates. The Mentor will also provide a Sustainability Risk Assessment (SRA). This enables us to gauge the customers likely In Work Support needs using a simple Red Amber Green (RAG) process from which we can then identify, plan for and agree the right level of in-work support. The INtensify stage ensures that every work-ready customer will have access to employment related activity designed to engineer progression into suitable jobs. Stage 5: Independence We have developed a structured process to provide ongoing support to our customers once they have found a job. Firstly, the Mentor will continue to provide the Golden Thread of support, seeing each customer on a regular basis to check in on their progress and to iron out any potential issues. If a customer loses their job or wishes to look for a different one whilst still in work, they will still be given support from their Mentor. This is available at all times to all in work customers. Additionally, our call centre will provide a formal structure for in work support, providing both outgoing calls calling customers at predetermined times (depending on their RAG rating) and incoming calls for customers who wish to access instant support and advice. The BA will provide a third line of support, using their relationships with employers to monitor each customers in work progress and provide support to both employer and employee when necessary. Finally the Mentoring and Befriending Foundation will develop an employee mentoring scheme to match WP customers with work-based mentors. This four-way approach to in work support will ensure that our customers have every opportunity to sustain their jobs and indeed to progress to richer and more rewarding careers. The INdependence stage ensures that every customer will receive the right level and correct type of support to sustain and succeed in employment. Exit Review: for customers still on provision at week 104, an exit review will consider the customers journey, the activities undertaken and their progress towards employment using Empro all information will be documented in the Exit Report which will be forwarded to JCP. IB and IS ESF Customers will be offered the same inspirational WP journey delivered through a unique collaboration between NCG and 3SC in the community. NCG and 3SC Outreach Workers will engage IB/IS customers through a network of more than 45 community organisations including Scarborough and District Disablement Action Group. The NCG five-stage model will be delivered either through 3SCs members, or where members lack the necessary capacity through referral to NCG to deliver core elements such as INfit or skills provision. This will overcome capacity and scale issues whilst retaining services at community level, for example when an organisation well placed to engage IB/IS customers such as a disability self help group is not capable of delivering the full WP model. Our financial model is designed to accommodate a variety of payment scenarios to reflect this innovative and flexible approach to delivery, and to protect the concept of customer-centred delivery in the community. Continuous achievement throughout the term of the contract . As an Outstanding OfSTED provider, we are fully committed to continuous improvement. At policy level, we will form a National Operational Committee containing independent sector experts, psychologists and others - to review ongoing feedback on the customer journey and make practical, expert recommendations for service improvement. We will also invest in strong systems and structures for quality management in NEYH, to ensure we receive extensive feedback from all stakeholders, and act quickly on findings to deliver consistently the step change in outcomes required from the WP. [4.1a] Customer Journey - Rationale Please describe in detail: your rationale for your proposed Customer Journey(s) detailed above in 4.1 within this CPA; and

the benefits to the individual customer groups of this approach.

Insert your response in the pre-set, shaded space of the following pages. Your response MUST be limited to four sides of A4.

4.1a NCGs unique delivery model has been designed by subject specialists within NCG and external consultants, taking a clinical approach to solution design in which specific choices at each stage focus on a) maximum impact through interventions proven to contribute to job outcomes; and b) lower costs by eliminating redundant activities that do not. This ensures the highest possible impact at each stage of the journey to work: The Golden Thread NCG has supported more than 10,000 people into sustained employment since March 2009, evidence that the relationship between customer and

support worker (in our WP model, the Mentors) is a critical element of any job-focused provision. The 2007 Hasluck & Green DWP Research Report no 407 and the Adams & Carter DWP Research Report No 522: Focus Groups with New Deal and EZ customers both highlight the importance of continuous support from a single mentor within a continuous programme. Every WP customer will therefore have a dedicated Mentor to support them in to sustained employment. The Mentoring and Befriending Foundation (MandBF) will enhance the skills of our Mentors by delivering a bespoke Mentoring Skills course. Their interventions are tried and tested in over 3600 mentor matching schemes and they have trained more than 598 people in the past 12 months to become mentors. Stage 1: INvite Having delivered numerous mandatory and voluntary programmes, such as New Deal, Pathways to Work, Flexible Routeways and Flexible New Deal, we know that customers will be feeling anxious and concerned as they approach transition from Jobcentre Plus to new external provision. The DWP Research Report no 624, Job Seekers Regime and Flexible New Deal Evaluation, highlights that a seamless referral is dependant on the JCP advisors knowledge of the provision and that they often feel at a disadvantage when it is unclear who they are referring to. Layers of support and clear processes such as the Welcome Brochure and 0800 number will maximise take up of and overcome potential first barriers. DWP Report no 475, Qualitative researches exploring the Pathways to Work sanctions regime cites accessibility as a key reason given by customers for failing to attend their appointment. We also know in North East Yorkshire and the Humber (NEYH) there are accessibility issues particularly for Lone Parents and for those people living in remote areas such as Richmond. Our premises strategy therefore ensures we have offices in the key areas like Grimsby, Hull and Scunthorpe as well as establishing outreach facilities and supply chain partners in areas like Richmond and places with higher than UK average unemployment such as Whitby and Scarborough. We also have a unique deal with the Third Sector Consortium (3SC) which has a network of 45 community organisations that will work with IS / IB claimants whom we must engage voluntarily onto the programme. Small community organisations, such Scarborough and District Disablement Action Group are strongly positioned to engage with this group, so we will work with them, through the 3SC, to ensure we engage the customers effectively. Additionally we have re-designed the environment of our offices to be more welcoming as well as fully DDA compliant. A positive and welcoming first impression will create excitement and momentum about our WP provision. Stage 2: INvigorate Our model has been designed to overcome perceptions, enable customers to identify true barriers to employment and then co-design, with a dedicated Mentor, a personalised solution to move them into employment. This process starts with a comprehensive assessment and psychological intervention INfit - the main aim of which is to quickly effect a change in the mindset of each participant and to identify their underlying needs. The Skills4Success pilot - which will inform the same psychologist's work on INFit - provides an example. This programme delivered a 90% retention rate and 70% outcome levels amongst a diverse group including "hard to help" customers with criminal records, substance abuse problems and ESOL needs. Key to this success level was the shift in attitudes occasioned by the programme, helped by a motivational intervention at the critical 8 week point from a trained, non-persecuting advisor, and a mixing of groups to prevent group think. Instead of believing it was true that they couldnt find work due to their age, history, ESOL etc. customers had their assumptions challenged by others from outside their own category and therefore could maintain their confidence and self-belief. Psychological intervention has been proven to be highly successful at helping people to understand that if any real change is to take place in their lives it is down to them to make

it happen. The Ability-Attitude Matrix demonstrated here offers a simplified but informed way to classify customers on WP in psycho-social terms. The sliding scale of ability on the vertical demonstrates the level of intervention required to support customers to overcome their practical barriers to work such as a lack of skills or an issue with childcare. The horizontal gives a measure of attitude towards work and indicates the level of support required to address the more personal or perceived barriers, such as a lack of accountability, low confidence or unrealistic work expectations. Our INfit programme updates the behavioural and motivational elements of Cognitive Behavioural Therapy and Neuro Linguistic Programming with new coaching methodologies such as Clean Coaching and GROW, to help customers take responsibility for change, personal development and the journey to employment. In doing so we will quickly move customers towards the Will Work end of the spectrum meaning that we can focus on addressing practical barriers rather than spending time addressing a victim mentality or negative self perception. Research presented to the British Psychological Society Division of Occupational Psychology in 2010 by NCGs advisory psychologist to Work Programme cited 70% sustainable job outcomes amongst hard to reach customers participating in her intervention, Skills4Success, which has a number of common features with INfit. Evidence also suggests that unemployed people often perceive incorrectly they will be financially worse off as a result of moving off benefits and into work, particularly into low skilled and minimum wage jobs. The In Work Better off Calculation is the tool designed to trigger a change in the customer mindset. We will provide each customer with expert advice on In Work Tax Credits and Childcare Allowance to clearly illustrate how much better off people will be once they are in paid employment. This intervention has been built on our highly successful Support Centre in Leicester which, as a result of introducing In Work Better off Calculations, improved the JER by 4.5%. The outcome of INtensify is a comprehensive Career Progression Plan (CPP) that will demonstrate not just how the customer can get into work but also how they can make positive steps towards their long term career aspirations. Signed by both the customer and Mentor, the CPP outlines what is expected from both the customer and the Mentor and creates a contractual platform through will the journey can be managed. The process of frequent reviews will ensure that a Mentor has every opportunity to positively reinforce progression towards employment encouraging customers to drive towards their goals and maintain energy in job search. Stage 3: INspire The purpose of the INspire stage is to do whatever has to be done to address the customers needs and to prepare them for the next stage of their journey INtensify. INspire therefore empowers each customer to choose from a broad range of options to develop a personalised and tailored solution. Certain customers, such as graduates and executives, can be fast-tracked to Intensify, or linked to specialist recruitment organisations such as Prospects and the Elevation Network. We have created a unique collection of partners and specialist suppliers in NEYH that enable us to provide a very broad menu of options to address the full range of needs of customers. We have considered, by benefit type, the specialist support customers are likely to require, but the support options listed below will be available to every customer regardless of their benefit. This support includes: Youth (JSA 18-24): there are large pockets of unemployed young people living in the Wolds and Humberstone/New Waltham areas of North East Lincolnshire. Our key strategic partner, Barnardos, has a proven track record of delivering outcomes with 18-24 year old customers, with over 83% of their customers sustaining independent employment after 26 weeks. They have developed an exclusive work placement scheme for young people building on the success of their Barnardos Work model; 50+(JSA 25+): We know there are large clusters of 50+ JSA claimants in areas of NEYH including Craven where 24% of JSA claimants are aged over 50. We will work with the National Federation of Enterprise Agencies who, in 2009 alone, supported nearly 25,000 businesses to start up. The Labour Force Survey 2010 highlights that self employment is more common amongst those aged 50-64 compared to younger

workers; Lone Parents (JSA and IS): there are large clusters of lone parents in a number of wards throughout NEYH such as Orchard Park/Greenwood and Bransholme East in Kingston upon Hull. We have worked with local specialist organisations such Surestart to ensure all customers have access to high quality and reliable childcare solutions. We will also promote the services of Gingerbread who provide a helpline and a number of courses such as Marks and Starts designed for Lone Parents which has resulted in at least 40% of customers into jobs; Offenders & Ex-Offenders (JSA Early Access): We know that specialist organisations such as NACRO are currently achieving in excess of 40% of customers back into work. As such we will work with NACRO to advocate offender rights, link offenders to housing and provide access to Resettlement Plus Advice Helpline and locally we will work with probation teams including North Yorkshire LDU (Local Delivery Unit). All Mentors will be trained in the effective disclosure of criminal records; Health (IB / ESA): Our partnership with RehabWorks whos recent contract with South Yorkshire Council resulted in 96% of customers reporting that their treatment had helped them return to work means the people with chronic health conditions will be able to access clinically certified interventions to help them manage their condition whilst in work. Additionally, our strategic relationship with Disability Works UK means that customers with any physical and mental health issues or learning difficulties can access specialist health related employment support from one of the 9 specialist organisations in their consortium; Debt / Benefit Trap (JSA, IB/ESA and IS): Within the NEYH, Scarborough has the highest bankruptcy rate in the region. Each customer will therefore have access to debt advice through our links with the Citizen Advice Bureau and we will promote access to community based credit unions such as North Yorkshire Credit Union; Homeless: No job, no home identified the complex link between unemployment and homelessness. We have therefore formed strong links with local hostels and private social landlords and support groups such as Hull Homeless and Rootless to resolve immediate housing issues. Our strategic partnership with 3SC also brings the National Housing Federation to our delivery model, as they are a core member of the 3SC consortium. We will also draw on our specialist delivery partner - Salvation Army who have 83 LifeHouses across the UK, with 14 located in NEYH; No Work Experience (IB/ESA & IS): we know from our contracts such as Community Task Force, that providing a work experience placement can significantly increase employment prospects and overall outcomes. We will therefore link customers to work placements with key employers in NEYH including Pleasure Island, BP and Youngs Seafood and support them through the placement to maximise the opportunities for on-the-job training. We will also connect customers to local volunteering opportunities through community projects and social enterprises including Shoreline with whom we worked on Project Horizon (refurbishment training programme); Support Fund: we know from our contracts such as FND and Pathways to Work that it is often practical monetary issues that prevent customers entering into work, therefore we have included a flexible support fund to provide further options for our customers. Stage 4: INtensify It is vital that customers believe they can find a job despite ongoing gloomy economic forecasts. Our approach therefore is to give all WP customers an immediate sense of opportunity regarding the local labour market together with an understanding of how they can enter and progress within it. This strategy builds on the self fulfilling prophecy ensuring we channel positive energy to secure employment a key principle that underpins all our delivery and secured our position at the top of the DWP PSL league tables in October 2009. It has been widely documented indeed the 2010 Nobel Prize for Economics was for a thesis entitled labour market and search frictions which looked at the disconnect between supply of jobs and unemployment that when recruiting, companies rely more heavily on their current employee networks to avoid the flood of unqualified candidates that come with high unemployment. We will address this firstly by having a Business Advisor (BA) who will undertake strategic employer engagement across the region. Their objective will be to source new and

hidden vacancies and create schemes collaboratively with the employer that will enable our WP customers to have direct access to jobs that previously they would not. We have already been undertaking this activity in NEYH and we know, for example, that despite recent job losses within York in the railway industry and in the coastal regions in the food production industry, the tourism and hospitality industries are relatively buoyant and there are potential jobs in the chemical and renewable energy sectors. Secondly, we have developed a unique Skills Model which will be delivered collaboratively with local providers such as Beverley College. As the leading skills FE provider, rated outstanding by Ofsted, and in its role as a leading member of the 157 Group and AOC, NCG has strong links to other colleges across the UK. We will lead the development of a skills programme for NEYH linking colleges SFA funding priorities to provision in the interests of WP customers. This will raise skills levels generally amongst our customers, and enable Business Advisors to offer a comprehensive pre-recruitment solution to employers. As a result of similar work we did with TESCO, 86% of customers went into employment and 52% remained in jobs after 13 weeks. Stage 5: INdependence We have developed our in work support method via our FND contracts which are currently achieving 13 and 26 week retention rates of 78% and 84% respectively. From talking to our customers we know that most people, once in work, only want light touch interventions, and most are keen to progress independently. Our in work support is therefore subtle but robust with a four-way approach including input from the Mentor, Call Centre, Business Advisors and work place mentors trained by the Mentoring and Befriending Foundation. All in work customers can return to us for support at any point. The CPP that we develop will ensure each customers activities contribute towards their long-term career plan and that, wherever and whenever possible, we will be able to provide ongoing support through our or our subcontractors WBL contracts. NCG is in the final stages of being assessed for Foundation Degree Awarding Powers, meaning that we can develop, deliver and award Work Based Foundation Degrees anywhere in the UK. This level of capability means we are one of the only organisations in the UK that can deliver a truly integrated, end-to-end, employment and skills solution. Continuous achievement throughout the term of the contract NCG will continue throughout the contract term to test our rationale, evaluate the effectiveness of each intervention, and improve outcomes and progression rates by continuously refining, refocusing and re-engineering our methodology. Soft data will be collected through supplier and performance reviews at cluster, CPA and national levels; informal feedback from customers; and post-recruitment feedback from employers. This will be crossreferenced to hard MI on progression rates and job outcomes to create a dynamic picture of the effectiveness of the programme for each customer group, to help refine our business processes. This bottom up process will be triangulated with top down findings from current research in the field to create an evidence-based, what works model of delivery offering continuously improving customer experiences and outcomes. [4.1b] Service Requirement DWP expect all customers to receive a minimum level of service. Please clearly define:

Your minimum service delivery levels for all customers within this CPA; Your rationale that supports your approach: How it addresses the needs by customer groups.

Insert your response in the pre-set, shaded space of the following pages. Your response

MUST be limited to two sides of A4.

4.1b Our Minimum service delivery levels(MSDL) for every WP customer are: INvite: 1) Joining Support we will provide a Welcome Brochure to every customer; 2) Jobcentre Plus will have the opportunity to offer the customer a warm handover to NCG via our dedicated customer support centre; 3) Dedicated Support each customer will be assigned a personal, dedicated Mentor to work with them throughout their journey into sustainable employment and throughout their retention period; 4) Prompt Engagement we will contact 100% of customers within 2 working days of referral from Jobcentre Plus; and 5) Rapid Appointment we will offer 100% of customers an appointment within 14 days of referral and 100% of customers will receive a reminder before their first appointment. INvigorate: Every starter will have: 1) Undertake a rigorous induction providing detailed, relevant information on the journey ahead, including: an overview of the WP experience, and details of the support we provide during employment; information on domestic arrangements and housekeeping; health & safety; Equality & Diversity and

introduction to the Virtual Learning Environment (VLE); 2) Receive a copy and explanation of the Customer Charter; 3) Have the opportunity to participate on INfit our 2 day motivational course based upon psychological principles within 10 working days of their induction; 4) Complete an on-line diagnostic assessment to establish the employability, vocational and personal skill needs of each customer to ensure a fully personalised experience; 5) Receive a Career Progression Plan (CPP), with clear steps and targets to meet their individual needs; and 6) Receive a discount card entitling the customer to discounts off relevant goods and services within their locality conditional upon continuing programme participation. INspire and INtensify: Each customer will have 1) A personalised plan of interventions, accessed from our comprehensive menu which includes: specialist provider support (Executive, Graduate, health, disability, learning etc); e-learning; vocational qualifications; self employment; employability skills; better off inwork calculations; money management etc; 2) Access our IT suite including structured jobsearch and assistance with all job applications, help with IT skills, free email address and on-line storage; 3) Unique log-on to NCGs e-learning environment which can be accessed from any internet connection during programme participation and whilst in work; 4) Options and support agreed with each customer in response to identified need and coordinated by their Mentor; 5) Ongoing contact from their Mentor, with minimum fortnightly meetings during programme participation, with agreed personalised support during employment; 6) Access to a range of appropriate vacancies (from hidden job market; exclusive links with employers; dedicated national account management team; apprenticeships; pre-recruitment courses) generated by our Business Advisors. Rationale behind the MSDL Our MSDL for North East Yorkshire and the Humber (NEYH) have been based on 1) DWPs strategic objectives, critical success factors, and overall vision for the Work Programme; 2) NCGs business objectives to drive success e.g. positioning of NCG in the top quartile of quality and performance league tables; 3) Alignment to local and national strategies and consultation with key local stakeholders; 4) Extensive evaluation of programmes such as Pathways to Work, FND and Flexible Routeways currently delivered by Intraining; 5) Published best practice; and 6) An extensive mapping exercise of the customer journey to identify core measures and associated activities that underpin the customer experience. Each staff member (either direct or supplier) will be fully trained in meeting the MSDL. All MSDL are contained within each suppliers Service Level Agreements (SLA), will be regularly monitored by the Supply Chain Manager and will be feed into NCGs Performance Management System which we use to monitor and manage total business performance. How our MSDL address the needs of customer groups: Our delivery solution for the WP is underpinned by two key elements. Firstly we will assess, diagnose and then overcome each customers barriers more efficiently and effectively. At the same time we will deliver a broader and more deeply penetrating employer engagement service providing easy access to a greater range of vacancies. Also integral to our model is the belief that each customer should be treated as an individual. All customers will have a unique WP experience, the course of which will be designed by the customer who will have a broad menu of options from which to choose. The examples below, however, provide an illustration of how a WP journey may evolve based on a range of customer characteristics and barriers formulated through years of experience and from the in depth evaluation and customer consultation we undertook in preparation for WP: JSA 18 24 our INfit programme will be delivered to mixed customer groups and as such provides a unique environment for young people to engage with and learn from a wide range of people. We will recruit staff from the 18-24 group to support relationship building. Our INspire tutors will deliver a range of employability and skills for life courses using a variety of engaging media built around popular subjects such as sport and music. We are developing innovative IT communication tools that mirror popular applications such as Facebook. Our partner Barnardos will work with us throughout the contract to

evaluate and inform youth provision. Barnardos have also designed an exclusive work placement scheme for our harder to help young people which will provide guaranteed job placements with employers such as Royal Mail and Morrissons; Incapacity Benefit / ESA may have health issues ranging from mild depression or slight back pain to severe mental health problems or musculoskeletal conditions. Our INvite stage provides a platform for us to quickly identify any obvious major conditions and, for those identified with moderate to severe issues, a fast track route to specialist support eg from Disability Works UK and The Healthy Hub and Clarion will be provided. The INvigorate and INfit stages provide further opportunities for these customers to consider their condition from a different perspective e.g. although a customer has back pain, is it really the reason they are not working? As these customers enter the INspire stage they will receive further ongoing support from specialist providers, such as RehabWorks, and our unique partnership with Social Firms UK will provide supported work placement and job opportunities through organisations like the Rerun furniture recycling in Hull and the East Riding; Income Support we have designed our WP provision to be flexible for customers such as Lone Parents and Carers with extended opening hours, home visits and peripatetic staff as well as designing our centres to be child friendly. We have also factored in provision to cover travel and childcare costs for those that face such barriers to accessing provision. Each customer will be provided with an In Work Better off Calculation that demonstrates the positive financial benefits of working. Our partnership with 3SC means that we have more than 45 community based organisations e.g. Together Women project and Shores Centre - available to either directly deliver WP provision or to provide community engagement and outreach facilities; Early Access / Returners / JSA 25+ - for long term unemployed customers and those that have been on provision for many years we have designed our WP model to be refreshing and new. The INvigorate stage immediately establishes a new feeling for customers and our key messages regarding labour market optimism, long term goals and broad choice delivered during the INspire stage are deliberately designed to engage and inspire customers that have become complacent and sceptical of such provision. Additionally, we have established links with organisations such as The Salvation Army who will support customers with major personal issues. Continuous achievement throughout the term of the contract NCG will review MSDLs regularly to ensure they align to local strategies and contribute directly to the customer experience and overall contract performance. MSDLs will be benchmarked against current service standards and performance levels through monthly CPA-level supplier meetings; and reviewed and updated quarterly at the NCG National Operational Committee.

PART 5:

SUPPLY CHAIN MANAGEMENT

[5.1] Delivery Strategy

Please describe in detail your delivery structure for all elements of the Work Programme provision across this CPA and explain why you consider your delivery strategy to be the best approach for customers in this CPA. You should clearly state how you intend to work with your sub-contractors and how you will ensure the needs of all your customers, including the hardest to help, are fully addressed from within your supply chain including voluntary sector organisations where appropriate. Please also complete:

Annex 2 to show the structure to be put in place within the supply chain to deliver the Work Programme provision in terms of overall percentage of delivery, specialism and geographical coverage; and Annex 3 (Sub-contractor Declaration) for your proposed sub-contractors as appropriate.

Insert your response in the pre-set, shaded space of the following pages. Your response MUST be limited to three sides of A4.

5.1 NCGs delivery strategy is built on the principle that every link in the supply chain should contribute to a step change in job outcomes. NCG will establish a delivery structure combining a proven, high quality local supply chain with direct delivery by NCG where the market alone cannot deliver improved outcomes. This is complemented with NCGs sharp focus, as the not for profit bidder on Work Programme, on building the capacity of the third sector to deliver cost-effective, targeted support. Local Design

Factors- The diverse geographical area includes rural, coastal, urban and industrial areas and, as such, the employment characteristics vary greatly. The two local authorities areas of, Kingston upon Hull and NE Lincolnshire account for 24.5% of the population and in excess of 40% of WP customers. There are marked variations in worklessness and deprivation with 37.5% of the resident population in the Myton ward in Hull in receipt of key out of work benefits compared to the Yorkshire and Humber figure of 13.1% and a national figure of 12.4%. The region also makes use of seasonal workers in both the tourism and food processing industries. This diversity of need and challenge requires a diverse but tightly integrated supply chain working to a common philosophy of high quality, market-leading performance, sustainable outcomes and exceptional standards of customer care. WP Delivery Structure - We will deliver WP in NEYH through a blended approach comprising: 1) Direct delivery of 67% of the end to end service; 2) Subcontracted delivery of 33% of the end to end service; 3) Specialist provision for customers identified with complex needs; and 4) Specific Interventions procured on a spot purchase basis from a portfolio of proven local specialist providers. End to End Providers - We have divided NEYH into 11 cluster areas. End to end providers, selected on the basis of credible presence, historical performance and potential for ongoing improvement, will provide full geographical coverage adopting the NCG delivery model and performance standards. Cluster Provider(s) Cluster Provider(s) Hull & surrounding Scarborough Intraining, Skills Yorkshire Coast area (Hull, Barton, (Whitby, Bridlington, for Communities Enterprise Beverley, & Hessle) & Scarborough) Grimsby (Grimsby Business Support Intraining Harrogate & Immingham) and Development Scunthorpe Intraining Selby Future Prospects Business Support Goole Igen Skipton and Development Business Support Babcock Enterprise Northallerton York (Rydale & York) and Development Future Prospects Richmond Business Support and Development A unique feature of our WP delivery strategy is our agreement with the Third Sector Consortium (3SC) who represent over 45 local third sector organisations in NEYH. Through the 3SC brokerage we can deliver WP through experienced local providers such as Nacro and Harrogate Skills for Living Centre who are providing specialist services to disadvantaged customer group including JSA early access customers such as ex offenders. As a strategic partner 3SC will work with us over the life of the contract to continually broker and grow strong third sector delivery capability. As a champion for The Big Society, 3SC can support the development of this concept within the context of the WP whilst also ensuring that we can flex and adapt our WP approach based on the varying communities of NEYH. Specialist Provision Barnardos will deliver an end to end service for disadvantaged young people (JSA 18-24) (e.g. those leaving care, with mental health issues or lifestyle challenges) based on a model currently delivering sustained employment (26 weeks) outcomes of 83%. Barnardos regional presence in the NEYH includes Harrogate, Selby and Hull and builds on strong CSR links with employers such as Royal Mail and Morrissons. Salvation Army has 14 centres in NEYH including Whitby, Scunthorpe, York and Hull, delivering end to end solutions particularly for IB/ ESA and early access customers including homeless and those with substance misuse problems. Social Firms UK, through members in NEYH including Rerun, will create job placements and sustainable jobs for hard to help customers including ex-offenders and the homeless. NCG will also work with Northern Refugee Centre and North Yorkshire Learning Consortium to support customers with significant barriers to employment. DWUK through its local members has 5 premises in NEYH (see table below) from which a

peripatetic outreach DWUK Local Partner Disability support Locations service can be Advance, Mencap, Mind Mental Health (MH) Hull (2), delivered, this is Scunthorpe, Action for Blind People Visual Impairment particularly relevant to United Response Physical, Learning & MH Beverley, IB/ESA customer Scarborough Pure Innovations Learning & MH groups but any Scope Physical & Learning customer will be able Leonard Cheshire Pan-disability to access this support. National Federation of Enterprise Agencies (NFEA) will provide a service for customers seeking self employment. NFEA have a national network of 120 self employment specialist Enterprise Agencies including Grimsby and Cleethorpes Area Enterprise Agency and York, Selby, Malton Business Advice Centre. Similarly we have arrangements in place with Armstrong Learning who will deliver ImagINation, our unique provision for people who wish to pursue musical and cultural careers. Specific Intervention Suppliers - these services will be procured on a spot purchase basis for example, Rehabworks will deliver condition management for customers with chronic health conditions including IB/ESA participants from their network of accredited clinics across the UK which provide treatment to clients within a 15 mile radius of their place of work or home address. In addition to the employability and general preemployment skills embedded in the WP model, we will also work with local training providers and colleges such as Hull College to design and purchase bespoke training solutions for our customers, based on employer needs. Contingency Plan - In the event that a supplier withdraws from our supply chain or volumes significantly increase in NEYH we have identified sufficient cover from within our Preferred Supplier Network to provide coverage for 400% of the current volumes. Why this is the best strategy for WP in North East Yorkshire and the Humber- In terms of total delivery, 86% of this contract will be delivered by public sector or not for profit third sector organisations demonstrating outstanding value for money for the British Taxpayers and ensuring, during times of austerity, that the majority of surpluses generated from WP delivery in NEYH will be reinvested in the people of the NEYH. As a public sector organisation we are committed to local accountability, meeting the needs of the customer and maximising value for money. Our selected suppliers have extensive local presence and credibility within the locations they operate. Yorkshire Coast Enterprises and Future Prospects deliver the Initial Steps programme on behalf of Intraining in York and Whitby and Scarborough. Igen deliver nextstep services and Employability Skills programmes within NEYH. Our suppliers have also shown their ability to deliver outcomes. For example Skills for Communities are one of our high performing suppliers achieving job outcome rates in excess of 45%. All our suppliers have committed to delivering above DWP minimum performance levels. Meeting the needs of customers in North East Yorkshire and the Humber - NCGs delivery strategy will fully address the needs of all customers including the hardest to help such as a) Customers with health conditions particularly relevant for IB/ESA participants Work Capability Assessments will increase the number of customers with health conditions accessing WP. IB / ESA claimants in NEYH count for 6.8% of claimants and the WP can expect to see a marked increase of customers originating from such benefits. Disability Works UK (DWUK) and RehabWorks UK will support these customers together with local providers; b) Rural Isolation - In NEYH we are able to provide coverage of the rural areas such as Northallerton and Malton through our supplier Business Support and Development who have delivery locations in these areas; c) Alcohol or Drug related problems, relevant for JSA and IB/ESA customers There are significant numbers of customers with alcohol or drug related problems in the NEYH particularly in Hull. These customers will be supported by The Salvation Army together with local support groups run by Compass; d) Lone parents and carers (IS customers), BME communities, 50+ and

other groups further from the labour market - The economic inactivity rate in NEYH is higher for certain customers. For example the economic inactivity rate for people from BME communities is 39% and for lone parents is 22%. NCGs partnership with 3SC provides access to a wide local network of 45 community and voluntary organisations who can support us in signposting customers for advice and support. Skills for Communities, our end to end geographic provider has extensive experience in tailoring support to meet the needs of BME communities and thus is able to support this group of people, e) Young People (18-24 JSA)- As a result of the recession there has been an increase in claimants from 2,235 in 2007 to 3,575 in December 2010. This is more prevalent for young people who are parents, leaving care, have a criminal record or who are trying to live independently. Barnardos will provide post assessment end to end specialist support; and f) Hardest to help including ex-offenders, homeless. We know that in NEYH the number of unfilled JCP vacancies has decreased from 17,284 jobs in December 2007 to 11,473 jobs in December 2010. Social enterprises provide an alternative employment opportunity and we have therefore partnered with Social Firms UK. How we will work with our subcontractors. We recognise and embrace the vital role the Prime Contractor has in the effective engagement, management and development of our supply chain. We are wholly committed to working with suppliers, partners and key stakeholders including DWP to share good practice and to develop the capacity of the sector as a whole in pursuit of the step change in performance required for WP and future Welfare to Work programmes. We have aligned our approach to working with suppliers with the values of the DWP Code of Conduct and mapped to the Merlin principles. This is evidenced by a number of unique elements of our model including: our INfit and mentoring train the trainers courses to drive up the capacity of our supply chain. We have modelled a clear and transparent meshed management and supply structure. In NEYH we will have a dedicated Supply Chain Manager who will work directly with suppliers on a daily basis and will ensure the quality across the entire supply chain through regular formal meetings with each supplier and a monthly Supplier Network Meeting involving all delivery partners in NEYH. Each supplier will nominate a manager with whom the SCM will liaise on all contract issues. There will also be a Quality and Compliance Manager (QCM) to support performance management and monitoring. Qualitative and quantitative data will be used and shared with suppliers throughout delivery of the WP. The SCM and QCM will develop clear action plans with suppliers to ensure performance and quality standards remain high. We have created a structure that works with the supply chain to create data driven performance systems that provide accurate and real time performance information. In addition we will look to develop the relationship with each of our suppliers with the objectives of improving service levels to customers and identifying solutions to customer issues or to address changes that will undoubtedly occur during the WP contract period such as changes in volumes or customer groups. We will mirror DWPs performance monitoring system and market share principles to enable us to allocate customer volumes to our best performing suppliers.

[5.2] Management Structure

Please provide: a description of the proposed management structure and how the required management skills and expertise, including working with local stakeholders, have been identified and will be delivered. You should also include a description of associated responsibilities and reporting lines ; a description of how you will work with the management teams of any supply chain organisations and key delivery partners; and explain why your management structure is appropriate for the Work Programme within this CPA;

Please include an organisation chart (attach as Annex 4) showing the proposed management structure for the Work Programme for this CPA.

Insert your response in the pre-set, shaded space of the following pages. Your response MUST be limited to three sides of A4. Note: Format requirement and page limit does not apply to the organisation chart(s) which you must insert as Annex 4.

5.2 Our Management Structure has been developed through a ground up design process incorporating a detailed analysis of: workflow requirements; customer needs; skills mix; local circumstances; Critical Success Factors; risk management; and business processes. The result is an efficient structure that will deliver the clarity, accountability and leadership needed at every level to drive a step change in performance. At the strategic level, NCGs Shared Services will bring the world class service levels in HR, ICT, MIS and Estates Management that have made NCG the sectors highest quality provider, rated by Ofsted as outstanding across every division. At the delivery level, the Operational Team in NEYH will manage day to day activity through a focused structure that prioritises resources towards front line delivery. This is underpinned by clear lines of reporting and supported by rigorous reporting and MI systems linked to the continuous monitoring of outcomes and performance across the supply chain. Identifying the Required Management Expertise We have undertaken a detailed exercise to match skills and roles closely to the efficient new workflow patterns of our five-stage delivery model. Supplier selection has been based on evidence of similar skills, using a tried-and-tested skills matching system to cross-check supply chain structures against industry standards, local value added and the demands of the NCG delivery model. We have also assessed the strength and depth of the local knowledge that suppliers can bring to the Work Programme. For example, Babcock Enterprises, one of our end to end supply chain partners, is particularly well connected in NEYH with membership of local regional and economic forums including Skills and Employment Partnership in North Yorkshire. Further, we will carefully map skills across TUPEd staff to identify current and latent leadership potential, and implement clear development plans where needed - whilst also leveraging the knowledge, talent and expertise of transferring management. We will undertake regular skills audits of our own staff, and of suppliers, throughout the contract as an integral part of performance management. This will ensure the necessary skills remain in place through the lifetime of the contract. The table below provides a high level illustration of management roles, skills and responsibilities. Regional Manager reporting to Head of Employability Need Provide dynamic, locally informed and technically expert leadership to the complete delivery structure in NEYH. Ensure high quality, costeffective service delivery to realise a step change in job outcomes. Skills Experience of: managing complex, multi-site and supplier operations; budgetary management; government and stakeholder relations; and operational leadership of similar outcomes-based contracts. Responsibilities Overall contract management and delivery of all CPA contracts; quality assurance and performance management across supply chain and direct delivery; stakeholder and strategic employer relations. Supply Chain Manager reporting to Regional Manager Need Provide strong performance management, quality assurance and continuous improvement of all elements of the WP supply chain. Skills CIPS qualified; project management & negotiating skills; experience in management of training; management of personnel and suppliers. Responsibilities Maintain a responsive and resilient supplier base; manage and monitor suppliers; and develop strong relationships with all suppliers. Business Managers reporting to Regional Manager Need To drive performance and quality of all Intraining delivered WP provision be effective management and motivation of all operational staff contained within an Intraining WP business unit. Skills Experience of personnel management; financial management & budgeting skills; competent in preparing reports & understanding budgets; strong communicator; and good organisational skills.

The day to day activities, staff and resource allocation of Intraining delivery centre including liaison with local JCP. Strategic Partnership Manager reporting to Regional Manager Need To establish and maintain outstanding strategic relationships with key stakeholders and organisations throughout the NEYH. Skills Strong track record of effective engagement with partners at regional & local level; knowledge of the local stakeholders and partnerships; and knowledge of NEYH economic and labour market conditions. Responsibilities Engage with stakeholders; manage interfaces between partners; develop relationships and create new ones to maintain our position as a accessible and transparent Prime Contractor. Quality & Compliance Manager reporting to Regional Manager Need Delivery of outstanding quality, compliance, performance levels and minimum standards across both internal and supply chain delivery. Skills Experience and practice of working to quality management systems; significant experience of using management information systems; and experience of using balanced score card reporting. Responsibilities Co-ordinating activities to ensure contracts are meeting all quality standards, undertaking audits & ensure performance improvement activities are fulfilled. Employer Engagement Manager reporting to Regional Manager Need Development and delivery of high level employer engagement strategy, managing day to day relationships with key employers through a dynamic team of Business Advisors. Skills Proven competence in a sales related role; knowledge of the local business community; awareness of local labour market issues; good communication skills, oral and written; good negotiation skills. Responsibilities Engaging with strategic employers and SMEs in NEYH with a focus on the key priority sectors such as the: Energy sector including Low Carbon, the Commercial Creative, and Manufacturing. To improve management skills across the CPA, NCG will implement a new management and leadership programme for WP: The Leadership Academy. We will offer our WP delivery partners access to the Academy in order to embed consistently high standards across the supply chain and to help build capacity amongst community organisations. Furthermore our local management team will benefit significantly from the experience and knowledge we have built up in NEYH through our Intraining division which is a prominent and strategic partner with excellent links to stakeholders and employers in NEYH across all sectors. Furthermore our local management team will benefit significantly from the experience and knowledge we have built up in NEYH through our Intraining division which is a prominent and strategic partner with excellent links to stakeholders and employers in the region across all sectors. For example, through the delivery of Initial Steps, Community Task Force, Pathways to Work and FND we have built strong relationships with local community beneficial organisations such as Hull Community and Voluntary Service and Harrogate Skills for Living Centre. We have strong links with local and national employers with a solid track record of effectively engaging and working in partnership with stakeholders such as City Strategies and Sector Skills Councils. Working with suppliers and key delivery partners The Supply Chain Manager (SCM) will work directly with suppliers on a daily basis and will ensure high quality and performance through regular formal meetings with the management team of every supplier. These will involve a detailed performance review against measurable outcomes for each customer group. Performance reviews will be informed by auditable MI and robust KPIs covering both hard performance and soft people-centred standards. Meetings will also cover risk assessment and collaborative planning for ahead. These will

Responsibilities

be supplemented by a monthly Supplier Network Meeting involving all delivery partners from across NEYH in strategic planning, data and knowledge sharing and issue management. The Quality and Compliance Manager (QCM) will support performance management and monitoring. Qualitative and quantitative data will be used and shared with suppliers. The SCM and QCM will develop clear action plans with suppliers to ensure performance and quality standards remain high. We have created a structure that works with the supply chain to create data driven performance systems that provide accurate and real time performance information. Our approach can be summarised in the following diagram.

Why this management structure is appropriate - We have considered DWPs Strategic Objectives against the detailed, analytical approach to organisation design described earlier. The structure has been driven by the WP strategy for NEYH, where our proportion of delivery is 67% and our suppliers 33%. Given the high percentage of services being delivered through the supply chain, our structure emphasises the need to ensure customer volumes are managed and quality assured through an effective supply chain. We have a high proportion of the voluntary and third sector organisations in the supply chain, for example Skills for Communities and Future Prospects, and have allowed for additional investment in capacity building in the sector over time. Our national strategic partner 3SC will also build our suppliers capacity. Our structure recognises the localised nature of NEYH and the need to integrate strong local accountability through existing strong partnership arrangements. We will build on this investment ensuring we work with partners in the best possible way through the emerging Local Enterprise Partnerships. We will recruit management that have the skills to reflect the requirements of NEYH, ensuring they are able to manage the challenges ahead. We use our Leadership Academy to improve our efficiency including long term skill needs, helping to continually evaluate our HR strategy and assist with planning. We have embedded a rigorous and tight structure, underpinned by our commitment to control that will ensure management and monitoring of performance and delivery remains at the heart of our service. Continuous achievement throughout the term of the contract NCG is a learning organisation in which coaching, mentoring and staff development plays a key role. We will maintain a high quality of management personnel throughout the life of the contract by (a) enrolling managers and promising talent onto the NCG Leadership Academy as well as an adapted version of the INfit personal development programme; (b) implementing the NCG performance management system that links career progression to personal development and clear objectives; (c) creating attractive career pathways both within the Work Programme CPA and across NCGs national business; (d) setting management standards for the supply chain that are regularly evaluated as part of performance review. [5.3] Management of Delivery

Please clearly describe: How you and your supply chain will manage and monitor the quality of delivery of the Work Programme to ensure that the whole provision within this CPA is of a consistently high standard and meets your minimum service levels;

Your approach to performance improvement activities for your supply chain as a whole, outlining how you and your supply chain will act on the findings of any monitoring activity including the resolution of issues from within your own supply chain, partners or other bodies.

Insert your response in the pre-set, shaded space of the following pages. Your response MUST be limited to three sides of A4.

5.3 Rigorous, multi-level quality management and a relentless drive for continuing performance improvement across direct delivery and the supply chain will be critical to achieving the step change in outcomes required by the Work Programme. This pursuit of

excellence is embedded into NCGs delivery and management structure and employs processes, practices and techniques identified as outstanding by Ofsted. NCGs Grade one OfSTED report highlighted that, across a complex, multi-tiered group delivering a wide range of services to a diverse customer group systems for quality improvement and monitoring are particularly effective in securing improvement to the quality of provision and achievement of standards. Managing and monitoring the quality of delivery: the pursuit of excellence. NCG is committed to the pursuit of excellence through detailed, rigorous performance monitoring, comprehensive quality management, airtight quality control, continuous service improvement and a commitment to building capacity at local level. This has informed the development of industry leading Quality Management Systems which ensure consistent improvements in quality standards and service levels through principles of risk and intervention, both within our own organisation and our supply chain. We have identified Key Performance Indicators (KPIs) mapped to Minimum Service Delivery Levels and Critical Success Factors across each of: Performance; Customer Journey; Equality and Diversity; Employer Engagement; Quality & Compliance; Self Assessment; Marketing; Sustainability; Health & Safety; and Finance. These KPIs are used to identify critical actions required to drive business success and are translated into SMART contractual targets for suppliers contained within legally binding Service Level Agreements (SLAs). A Red, Amber, Green (RAG) risk performance dashboard is used to measure and monitor progress against every KPI: Green meaning no issues; Amber indicating satisfactory performance, with non-critical issues to address and or monitor with a satisfactory plan is in place; and Red meaning issues unresolved and in need of immediate intervention or escalation of breach procedure. Quality Reviews provide a pre-emptive approach to risk management, supported by rigorous verification processes such as unscheduled spot checks, desk top audits, staff observations, weekly Maytas MI Data Reports, and satisfaction surveys. The findings of each activity are inputted into the risk performance dashboard by the Quality and Compliance Manager (QCM) who is responsible for assessing and measuring the quality of each step of the customer journey. The risk performance dashboard is reviewed and analysed weekly by the QCM to identify areas of best practice and underperformance for both operational teams and suppliers. The QCM identifies local actions for operational teams and our suppliers to address any underperformance or downtrends against KPIs. On a monthly basis the QCM, operational management team and Supply Chain Manager (SCM) meet to review trends and evaluate the impact of local actions and if necessary implement strategies such as change control to mitigate risks against the contract. Evidence of our ability to deliver quality services is demonstrated by the PSL Monitoring Visit in Leicestershire, July 2009 which stated, Quality improvement at Intraining is highly effective in providing a good experience to the participants. Intraining critically evaluates all stages of the participants journey. It also evident through the successful delivery of contracts such as Community Task Force - delivered across three contract package areas in partnership with 8 suppliers supporting more than 7,000 unemployed 18 to 24 year olds and providing nearly 4,000 people access to a work placement. This highly complex contract has consistently met and exceeded performance and quality targets. Key to this is the Annual Self Assessment undertaken at every level of the organisation and informed by national, regional and local strategies and priorities, with input from all key stakeholders via quarterly DWP Quality Assurance Questionnaires and Provider Development Plans. Self Assessment is mapped to DWPs Quality Framework and Common Inspection Framework. Every aspect of the organisation is Self Assessed in line with a Risk Performance Dashboard encompassing: organisational vision and mission, financial position and evaluation of business processes against fitness for purpose, organisational capacity and capability (strengths and areas for improvement). Performance is then mapped to market position and competitor analysis (opportunities

and threats). Self Assessment results in the production of an externally verified and published annual Self Assessment Report are used to inform Business Strategy and ongoing Business Improvement. A business improvement plan is produced which is owned by senior managers and implemented, monitored and managed by Business Managers and suppliers. Continuous Improvement is a key agenda item for all strategic and operational meetings and team, individual and supplier performance reviews. The plans are reviewed formally on a quarterly basis, informed by MIS Data Reports and other key business tools including formal feedback from customers and key stakeholders and key internal and external reports e.g. external audit reports, FAM and OFSTED and internal quality monitoring reports undertaken by the Quality and Compliance Team. We have also prepared an Equality Impact Assessment (EIA) to ensure the diverse needs of all staff and customers are considered throughout delivery and will be measuring this to ensure there is no under representation of any customer group as a result of the strategic or delivery decisions made. Minimum standards for equality and diversity will be maintained through the EIA and training and diversity plans exist throughout the supply chain. All of our suppliers have committed to the minimum service standards in their SLA which reflect our Grade 1 procedures. Through our schedule of learner observations, focus groups, learner file checks, audits and stakeholder surveys, we will assess how effectively equality is being promoted in suppliers and operational teams. When required we will roll out our change control procedures to reflect the changes required to improve service delivery whilst maintaining existing services and limiting potential impacts. Critical to our success in delivering quality services is our commitment to embedding rigorous quality control, robust performance management and continuous performance improvement across the entire supply chain management. We understand the importance of excellence in Supply Chain Management and have significantly invested in procuring quality, professionally qualified and experienced resources to manage the supply chain in North East Yorkshire and the Humber. Our Preferred Supplier Network (PSN) provides a responsive and resilient supplier base which is managed by the Supply Chain Manager (SCM). This ensures we have and are able to flex our supply chains to provide the best possible solutions that will have the greatest impact on the customer. We will follow the DWP Code of Conduct and our monitoring activity has been mapped to the Merlin standard to ensure we are open and transparent in our dealings with our supply chain. The SCM will use informal and formal methods to manage suppliers applying, wherever possible, a Critical Friend approach. Formal monthly Monitoring Reviews will be held although more regular meetings may be held if necessary. The QCM will support performance management and monitoring. Qualitative and quantitative data will be used and shared with suppliers throughout delivery of the WP. The SCM and QCM will develop clear action plans with suppliers to ensure performance and quality standards remain high. We have created a structure that works with the supply chain to create data driven performance systems that provide accurate and real time performance information. Each supplier will be able to use our Management Information (MI) platform, Maytas, to record details of customer interventions and progression and to report performance. Maytas will be fully accessible to all suppliers and staff through a secure web-enabled online portal. This information will directly feed into our RAG model to provide real time accurate reports. Our online supplier web page will enable all parties to share information (policies, processes, resources etc) and identify good practice. We will run regular seminars and networking events with our suppliers to share success and best practice. Ensuring performance Improvement - Under performance or downward trends results in corrective action being taken and formalised in Performance Improvement Plans which are monitored on a weekly basis by the QCM and SCM who will also review and instigate required actions to maintain levels, such as implementing an action plan with individual suppliers or operational team to raise standards and success rates. However our risk and

intervention principles seek to address issues before they become a concern. When no discernible improvement is made in performance over an agreed duration, escalation processes are implemented with support from HR and the Quality team. If a training need is identified then the QCM and SCM will agree a course of action to address it. This may include arranging a visit from a Subject Matter Expert from NCG (such as Health & Safety) or organising a job-shadowing day with another organisation within the supply chain thus sharing best practice. If an operational team or supplier is rated Red in any area of the review then the QCM and SCM will escalate and discuss the issue with the Regional Manager. Corrective action will be agreed and formalised in a Business Improvement Plan which will include tangible improvement measures. For example, analysis of MI reports identified the level of overstayers in our PSL contract in Leicester was well above the national average of 22%. The provision was Red flagged with several changes being made to overcome the issue, including placing our staff at each city Job Centre Plus office to engage customers and conducting a 4 week long exercise to see all customers at week 10 and above of the Gateway stage to allocate them a placement. Within 3 months this rate had dropped to 4%. Should any supplier or operational team be Red flagged, they will be supported to improve their capacity and capability. The risk assessment will be regularly reviewed as outlined above and will identify areas of concern. The SCM is responsible for developing contingency plans for suppliers who are deemed to be high risk and will ensure ongoing communication throughout the life of the delivery to ensure our supply chain is never broken. Mitigating factors such as building the capacity of suppliers through training plans have been embedded into our model to ensure targets are realised and performance improvement measures are quickly implemented. Although we have robust escalation procedures aimed at improving performance, in certain cases it may be necessary to withdraw a contract from a supplier. Our PSN means that we are able to ensure minimal disruption to service provision and that suitable suppliers with the right capability and capacity will be available to start at short notice. To provide for what we expect to be exceptional incidents, we will follow the DWPs Code of Conduct recommendations in setting up an Alternative Dispute Resolution. Our Dispute Resolution process is agreed prior to agreeing any contract and is based upon open and honest discussion aimed at resolution. Where complaints or disputes arise our processes will be able to efficiently and effectively resolve any concerns. A robust complaints procedure is in place with clear timescales to resolve. When complaints are not resolved, a customer will liaise with an Independent Case Examiner who will mediate and broker a solution. Continuous achievement throughout the term of the contract NCG will deliver ongoing performance improvement as measured by sustained job outcomes, progression rates and customer and employer satisfaction. Performance will be monitored against KPIs at cluster level through weekly performance /supplier reviews; against regional benchmarks at CPA level through monthly supply chain forums; and against national targets at multi-CPA level through the NCG National Operational Committee. Overperforming suppliers will be rewarded with increased market share, mirroring the DWP incentive system, whilst under-performing suppliers, and those lagging the supply chain, will receive voluntary then mandated support, with consistent underperformance triggering a robust change control procedure. In this way, the entire delivery structure will continue to develop and to deliver improved outcomes throughout the life of the contract. [5.4] Delivery Locations

Provide details of the key delivery locations and explain how you and your supply chain will achieve full geographical coverage of provision for the delivery of the Work Programme within this CPA; and

Detail what you have taken into account in terms of the needs of the customer groups in determining this approach.

Insert your response in the pre-set, shaded space of the following pages. Your response MUST be limited to four sides of A4.

5.4 Premises strategy for Work Programme Our strategy has been driven by the need to locate premises that are: easily accessible to

and meet the needs of all customers; offer the taxpayer value for money; and provide an attractive, welcoming and fit for purpose environment from which to deliver NCGs innovative five-stage Work Programme delivery model. The Local Design Team (LDT) for North East Yorkshire and the Humber (NEYH), comprising local specialists and Group Property Services, analysed demographic data; customer demographics; travel to work patterns and local transport routes taking into account the proximity of bus and train stations. Information from this analysis shows that there are strong commuting flows between Beverley and Hull. It also highlighted hotspots of customer groups in the NEYH such as 13% of all JSA claimants aged 18-24 and 25+ years in NEYH reside in or around Grimsby (NOMIS mean average JSA claimants by Jobcentre). The team also undertook customer focus groups, noting that customers preferred (and were more likely to attend at) centres close to local facilities such as high streets, supermarkets, etc. As a result of this extensive exercise, we have adopted a strategy of fixed premises supported by links to community outreach activity where travel to fixed premises is prohibitive. This ensures full geographical coverage targeting areas hardest to reach such as Northallerton and Malton and proactively supporting customers who face the most significant barriers and accessibility issues as we know for example in the Eastfield ward of Scarborough there is in excess of 20% of IB claimants with musculoskeletal issues. NCGs dedicated Property Services team has supported the sourcing and selection of delivery locations in the NEYH. We have received excellent feedback from both Ofsted and Job Centre Plus on the design and layout of premises. A recent external monitoring visit to our Intraining Grimsby centre stated that The centre is very welcoming and illustrates a professional organisation. Our delivery locations - detailed in the table below will provide robust and full geographical coverage across all of the JCP Districts ensuring no customer has to travel more than 60 minutes from the JCP office mirroring the agreement made between the customer and JCP. Goole Referring JCP Offices Goole WP Delivery Sites Igen - 4 First Avenue, Goole, DN14 6JQ Grimsby Cluster Referring JCP Offices Grimsby Bridge House, Immingham WP Delivery Sites Intraining - Newchase Court, Armstrong Road, Grimsby Harrogate Cluster Referring JCP Offices Harrogate WP Delivery Sites Business Support and Development 3 Station Parade Harrogate HG1 1UF Hull & surrounding area (Hull, Beverley, Barton & Hessle) Referring JCP Offices Hull Essex House, Hull Market Place, Barton, Beverley, Hessle WP Delivery Sites Intraining - Europa House, Ferrens Way, HU1 3UT Skills for Communities 1) 256 Anlay Rd, Hull HU3 2) Bean St, Hull; 3) Bethune Avenue, Hull HU4 Northallerton Referring JCP Offices Northallerton WP Delivery Sites Business Support and Development 17 Market Place, Bedale. DL8 1ED Richmond Referring JCP Offices Richmond (Yorkshire) WP Delivery Sites Business Support and Development 40c Newbiggin Street, Richmond DL10 4DT

Scarborough (Whitby, Bridlington, & Scarborough)Cluster Referring JCP Offices Newmarket, Bury St Edmunds, Haverhill, Sudbury, Stowmarket, Mildenhall WP Delivery Sites Yorkshire Coast Enterprise 1) Auborough Street, YO11 1HT 2) Cayley Court, Hopper Hill Road, Eastfield, YO11 3YJ Scunthorpe Cluster Referring JCP Offices Scunthorpe Bridge House, Scunthorpe Station House WP Delivery Sites Intraining - 199-201 High Street, Scunthorpe Selby Cluster Referring JCP Offices Selby WP Delivery Sites Future Prospects - Selby North Childrens Centre, Flaxley Road Selby, YO8 4DL Skipton Cluster Referring JCP Offices Skipton WP Delivery Sites Business Support and Development 1) Bunkers Hill, Skipton, BD23 1HU; 2) Cavendish House, Newmarket Street, Skipton, BD23 2HN; 3) CODA, Mill Bridge House, Mill Bridge, BD23 1NJ York (Rydale & York) Cluster Referring JCP Offices York Clifford St ESJ, York ESJ, Rydale ESJ WP Delivery Sites Future Prospects 1) 24 Swinegate York YO1 8AZ 2) Burton Stone Community Centre, Evelyn Crescent York YO30 6DR 3) Foxwood Community Centre, Cranfield Place York YO24 3HY 4) Bell Farm Social Hall, Roche Ave, York YO30 9BB 5) Haxby Road Childrens Centre, Haxby Road York YO31 8JN; 6) Clifton Childrens Centre, Kingsway North YO30 6JA 7) New Earswick Folk Hall, Hawthorn Terrace, York, YO32 4AQ Babcock Enterprise Merchant House, 11a Piccadilly, York, YO1 9WB Community locations In addition to the fixed centres detailed above, we will operate on an outreach basis using existing community based venues. We and our end-to-end suppliers currently operate out of 79 community venues throughout NEYH including West Hall Customer Info Centre (Hull); Belfour Road (Hull); Tang Hall Library (York); Acomb Explore (York) YO24 3BZ; Selby Library; Community House (Selby); Rydale Childrens Centre; Grimsby Town Hall, Evolution Business Centre (Northallerton); Community Resource Centre (Bridlington).Our specialist delivery partners including Salvation Army, Barnardos, Disability Works UK and Third Sector Consortium (3SC) members such as NACRO, Richmond Fellowship and Harrogate Skills for Living Centre who are able to support delivery at the heart of NEYH communities Meeting the needs of all customer groups To encourage access, we have taken into consideration: Availability of FacilitiesFindings from more than 10 different focus groups show that participants want flexible access to services and resources at times that suit their lifestyles. Therefore we have extended our opening times in all main centres to provide customers with access from 8:30am to 5:30pm Monday to Friday and 9:30am to 12 noon on Saturdays (51 weeks per year closed Christmas / New Year week). Main delivery centres will also offer scheduled late night opening to enable customers to provide improved access for those who are in

work or have caring responsibilities during normal working hours; Welcoming spaces We understand the anxiety of many customers about joining Work Programme, and have worked with Redbox to create an environment that is welcoming, inspiring, well-resourced and non-threatening. This both enables and encourages customers to progress, gain skills and enter employment. Upon first entry to our premises, all customers will be welcomed by staff in a reception area and given a tour of the centre so that they feel more at ease. A recent JCP visit to premises in Leicester identified our services as inspirational and noted The whole set up was welcoming and accessible for the unemployed and would enable those with low self esteem to quickly feel at home. Accessibility of facilities All our centres, including those of our suppliers, will fully comply with the Disability Discrimination Act (DDA) and will be accessible to individuals with physical disabilities. The Health & Safety Manager will review all premises including those of our suppliers, undertaking a risk assessment and DDA compliance check of the building and its interior. Premises reviews will form part of our performance management processes, ensuring that we are meeting the needs of all customer groups and delivering the appropriate level of outreach to the needs of customers in remote areas of NEYH such as Northallerton and Malton. As well as supporting outreach services, 3SC will continually grow its membership in the NEYH, sourcing new partners and suppliers to meet the needs of the hardest to reach customers. 3SC will ensure that we are delivering in the right places to target those furthest away from the fixed delivery locations. Some of the key elements we have built into our delivery strategy include: Customers with disabilities / health conditions: Currently over 46% of our customers have declared a disability, and 44% of Incapacity Benefit (IB) claimants in NEYH are in receipt of their benefit due to mental health conditions. Myton in Kingston upon Hull has the highest volume of IB claimants in NEYH and 100% of IB claimants in Sheriff Hutton; Croft, Penhill, West Craven, Marston Moor and Derwent have been claiming for 5 years or more so we have also selected premises that have nearby disabled parking provision and are only a short distance from local transport links. We have already started adapting centres to widen participation and meet the needs of diverse customers, including the ESF-funded group claiming IB. These include but are not limited to: step-free centres; appropriate and easily readable signage; hearing loops; adjustable PC workstations; Braille signage; safe, comfortable and confidential one-to-one rooms; and wide, easy access walkways and doors. Our specialist delivery partners Disability Works UK and the RehabWorks will provide customers with specialist facilities including using a bio-psychosocial and work-focused model to address customer needs. Using only clinicallyevidenced treatment methodologies, in line with National Institute of Clinical Excellence (NICE) guidelines these services provide the highest possible standards, evaluating the physical, educational and psychological needs of the customer to implement solutions. Further, we have specialist provision from Clarion Work Focus who will work directly with this group as they have significant experience and utilise innovative methods to support unemployed deaf people. Customers with caring responsibilities (lone parents) In NE Lincolnshire, for example, there are 50% more lone parents claiming benefits than the national average. Using this knowledge, we have actively selected premises in Scunthorpe that are close to schools, nurseries and Sure Start centres and will ensure that premises are family friendly incorporating child friendly rooms in every centre and where possible access to a play area with toys. We expect increased volumes of Income Support claimants funded through ESF, and have positioned suppliers such as Skills for Communities and Igen, who have significant experience of delivering successful lone parent and carer targeted projects to overcome barriers of entry to work through their grass root approach to delivery. Rurally excluded customers Certain areas within NEYH such as Northallerton and

Malton are rurally isolated and customers have difficult in accessing main centres. We have therefore devised a number of solutions including access to the Virtual Learning Environment to assist and reduce the frequency that customers need to travel to our centres; and facilitating links with organisations such as Wheels to Work and Green Light to Work to promote greater accessibility. These solutions are in addition to outreach facilities provided by ourselves and supply chain. BME groups Within Hull there are significant numbers of BME communities such as Somalian. As such, our reception area will have displayed information in appropriate community languages identifying staff with the ability to speak these languages. In addition we will provide access to a prayer room to take into consideration religious and cultural practices. Customers with complex barriers to work: To meet the diverse needs of our customer, we have included a space for a local community area, set aside for community groups and local support organisations e.g. ADS Hull, NHS Health Trainers and Compass to deliver their services to our customers and to display, engage, meet, discuss and generally raise awareness of their role and services amongst the local community. This design has been heavily influenced by our Leicestershire Support Centre which acts as a one stop shop for customers to access a range of support under one roof this was viewed by OfSTED as highly effective. Continuous achievement throughout the term of the contract NCG will maintain flexible leases and select configurable spaces so that the service estate can be flexed and refined over time, ensuring the optimal spread of properties is available throughout the life of the contract.

[5.5] Volume Fluctuations and Customer Group Changes

Describe how you and your Supply Chain will maintain service delivery in the event of fluctuations in numbers of customers and changes to the customer groups referred including potential alterations resulting from changes to the welfare regime referred to you (see Future Services Schedule). Your response should include the following: How you will maintain minimum performance levels; How you will manage expanding/contracting business as a result of Market Shift or economic factors without an adverse effect on service delivery.

Insert your response in the pre-set, shaded space of the following pages. Your response MUST be limited to two side of A4.

5.5 NCGs priority at all times during the WP contract will be to drive a step change in performance whilst at the same time delivering outstanding quality and customer service. We are confident that we can deliver consistently above DWP performance expectations,

regardless of market conditions, customer changes or volume fluctuations. This is because of our significant experience managing complex businesses to consistently high operational and financial performance through the cycles of institutional, economic, political, professional and policy change. NCG has transformed over the last ten years from a regional FE college turning over 30 million p.a. in 2000 to a multi-divisional 160 million pa group of companies in 2011. Our plans for controlled growth remain ambitious and NCG is set to grow further in 2011 as we have been named as preferred merger partner for Northumberland College. Continued, profitable growth in an economic downturn itself a function of powerful leadership, effective management, robust systems and well established processes to empower the front line is a powerful metaphor for our approach to the WP contract in North East Yorkshire and the Humber will play an integral part in our corporate business plan and even at early bid stage has been a priority issue for the NCG Chief Executive Officer and Executive Team, demanding high standards of scrutiny and transparency of all potential risks and scenarios associated with the contract. Identifying risk and change Our WP financial models, and associated assumptions, are integrated with our Maytas MI system so we can effectively and continuously compare real time performance against the levels assumed in our model. This will enable local management to monitor outcome rates and volumes proactively and in real time, flag other key indicators (such as customer volumes) immediately if they are not in line with forecasts and implement rapid remedial action in line with NCGs quarterly Performance Monitoring and Collaborative Planning process. Risks, tolerances and other issues will be reviewed formally at least monthly and informally on a continuous basis, enabling rapid identification, decision and response regarding potential major and minor changes. Planning for risk and change whilst developing our WP solution we have modelled multiple variations of customer volumes and group composition, their impact and likely delivery, structural and cost implications. Using the key indicators mentioned above we have developed a detailed NEYH WP Risk and Change Plan which identifies and addresses two key areas of potential change which we have planned for as follows: 1) Changes to service delivery required as a result of: a) eligibility changes such as extending the joint claim offer or introduction of new customer groups eg through ESF funds etc; b) changing government policy such as the introduction of Universal Credits expected in 2013 and the proposed Social Housing reform; c) changes to programme delivery for example responding to extra incentives to support ex-offenders and including new conditionality and sanctions regimes; and d) changes to customer demographics, (for example, CESI have forecast that by 2014 approximately 60% of all WP customers will at one time have claimed a health related benefit). We will maintain at least the minimum DWP performance levels during such changes through a number of measures: Our Preferred Supplier Network has an unrivalled depth and breadth of capability and capacity due to the unique partnerships we have brokered with key organisations such as Disability Works UK (DWUK) and the Third Sector Consortium (3SC). These are both consortia with strong and growing local membership in NEYH including Autism Plus and Goodwin Development Trust. Their managing agent model provides us and therefore our customers with access to more than 100 community based and specialist organisations. DWUK and 3SC will work with us over the life of the contract to flex and adapt their membership to suit the changing needs of our customers. A good example of how we have already used this arrangement successfully is the way we adapted our model through 3SCs membership to manage delivery of the WP to the new IB/IS customer group introduced to the specification during the bidding process. Continuous evaluation and improvement the NCGs Performance Monitoring and Collaborative Planning process continually evaluates performance and progress to inform resourcing decisions, staff training plans, etc. For example, during delivery of FND in Leicestershire we identified that a large proportion of customers needed advice on in work benefits etc. We introduced our Support Centre which included a benefits

expert able to run in depth analyses of each customers financial situation. This enabled many more customers to see the positive financial benefits of working and as such our job outcome rate increased by more than 4%. We will apply this approach to WP in NEYH to identify skills gaps (both internally and within our supply chain) that may emerge as a result of changing government policies and the new benefit regime etc. NCG (and our supply chain) will have access to wider resource of NCG resident experts in areas from Access to Learning and Youth Engagement to Business and Enterprise. This means that we can quickly design new solutions and provide comprehensive and cost-free expert training for internal and external teams. For example, we will draw on the expertise of the Director of Offender Learning to respond to changes in programme design affecting ex-offenders. When necessary we will also broker links to external consultants to ensure we and our supply chain have the skills, capability and capacity to respond to changes in design without affecting performance. 2) Shifting market share We will maintain minimum performance levels during such changes by carefully evaluating the effects of expanding or contracting market share on a number of key areas of our business including: a) Finance We are aware that increased and decreased market shares will have a significant impact on our working capital. For example, increases in share will require additional monies to fund resources requirements (estates and staffing), whilst decreases in market share will lower income against disproportionate (and largely fixed) costs. To manage impact and maintain performance, we will draw on our financial strengths as a public corporation with low levels of financial gearing and debt to provide sufficient cash to support ongoing contract delivery; b) Premises To maintain performance levels as a result of increasing market share we will: 1) Use outreach locations and premises of key partners such as Salvation Army; 2) Increase availability of premises through the extension of opening hours; 3) Review layout of the centres to maximise floor space; 4) Draw on scale-able centres to gain increased capacity; and 5) Invest in premises or additional floor space in buildings with short term leases. We will manage a decreasing market share, by 1) Utilising office space for other contracts that we operate in NEYH; 2) Providing additional space in our centres for local community groups to deliver services; and 3) Rationalising our estates portfolio and temporary shifting activity out of outlying area offices until share is increased; c) Staffing we will: 1) Increase hours of part time staff; 2) Temporarily move staff from areas least affected by market share; 3) Move staff from other contracts in the region; 4) Employ temporary staff with the relevant skills and qualifications; and 5) Recruit additional staff. To maintain performance levels as a result of contracting market share, we will :1) Reallocate staff resource to other contracts; 2) Increase activity levels with customers or staff development measures; and 3) Begin process of gradual staff reduction; and d) Supply Chain We will mirror DWPs principles of market share with all our supply chain partners this means that we can shift volumes from lower performing suppliers to higher performing organisations to limit the occurrence of decreases in market share to NCGs overall delivery. To effectively manage decreases in market share, we will re-allocate volumes across our supply chain to reflect overall changes in customer volumes and supplier performance taking into consideration the minimum volumes that could be handled by each supplier. To manage increased market shares we will: 1) Offer our high performing suppliers increased volumes; 2) Increase the use of specialist suppliers to provide ad-hoc delivery solutions; 3) Use our Preferred Supplier Network to select additional suppliers and 4) Increase own internal delivery to cover additional volumes. [5.6] Managing the Customer Experience

Please describe: How you will evaluate and monitor the quality of the Work Programme provision to ensure that it meets the needs of individual customers;

What procedures will be in place for handling complaints as well as feedback from customers of their experiences on the programme; and

how you will act on any findings.

Insert your response in the pre-set, shaded space of the following pages. Your response MUST be limited to two sides of A4.

5.6 Evaluating and Monitoring the quality of WP - NCG has a strong commitment to quality and high quality experiences for customers. We have excellent accreditation standards including: Ofsted Outstanding: Grade 1 provider status, Matrix

Excellence Award; and Positive About Disability. Our Quality Improvement processes are mapped to the DWP Quality Framework, Merlin Standards and Ofsteds Common Inspection Framework. We operate through a self regulating model of quality underpinned by Quarterly Quality Reviews. We will continually evaluate services and will receive feedback at any point from customers and employers through online a dedicated webpage - and offline mechanisms such as compliment, complaints and comment boxes in delivery centres and informal review meetings between the customer and Mentor, and employer and Business Advisor. The Quality and Compliance Manager (QCM) will be dedicated to managing quality in North East Yorkshire and the Humber (NEYH). Feedback from partners and suppliers will be captured through our Stakeholder Engagement Strategy managed by our Strategic Partnership Manager. To manage the overall customer experience we will therefore take a three pronged approach, matching detailed MI reports - which have a strong focus on job outcomes and sustainability rates by DWP customer group - with stakeholder feedback, in particular employer opinion, to improve service design. This approach will ensure we continually improve our service delivery, have greater impacts on individual customers and drive overall contract performance. For example, from MI data we will be able to identify a downward trend in sustained employment outcomes for Income Support participants. This data will be balanced with feedback from customers and employers to identify the root cause of the issue. This could simply be a lack of suitable childcare which creates attendance issues or a confidence issue affecting the customers ability to undertake their work, resulting in customers dropping out of work. As a result of this feedback, we will work to improve and refine our model, this may include incorporating new interventions proven to deliver outcomes by building a customers confidence in the workplace or working together with key stakeholders locally to source reliable, high quality affordable childcare solutions for customers where this an issue. Evaluation: MI Data reports are scrutinised to examine trends in outcomes and to evaluate provision in terms of customer experience based on outcomes. Additional evaluation tools include direct feedback from customers via the opinion card feedback system and customer review & evaluation panels. Customer focus groups were considered by Ofsted as the best they had seen. Data and feedback from customers and stakeholders is analysed at every level providing a clear evaluation of whether our provision is fit for purpose and good value for money and provides the evidence and rationale to forge continuous investment and improvement. Monitoring is undertaken by the Quality & Compliance Team (QCT) for both direct delivery and subcontracted provision. Scheduled and unscheduled visits are undertaken by the team to include observations of teaching and learning, Information Advice and Guidance and other interactions with customers and desk top audits of customer files and inspection of the quality of action plans and progress reviews. Reports of the outcomes of monitoring are produced after each visit and issued to local and regional managers and used to support evaluation of the quality of provision. Feedback is also sought from employers through our Employer Satisfaction Surveys and other local stakeholders e.g. LSPs and Jobcentre Plus can feedback on the quality of service provided by us and our supply chain. Meeting the needs of individual customers The Head of Quality and Standards will undertake a strategic analysis of all feedback and self assessment underpinned by MI reports which provide individual customer details: ethnicity; age; gender; disability; and any barriers such as lone parents, language etc. We have selected a supply chain to reflect the diverse needs of NEYH, drawing in specialist provision such as Disability Works UK who deliver support with issues such as deafness, blindness and autism. We will set a benchmark based on actual outcomes across all customer groups to ensure parity of outcomes underpinned by the E&D policy. Weekly, monthly and quarterly performance reviews of MI reports will ensure targets are being met and action plans created to close any gaps. Quality Improvement and Business Planning reviews

will ensure quality provision is maintained with mitigating action implemented. Procedures for handling complaints Our compliments, complaints and comments policy underpins our commitment to maximising the customer experience. We will inform customers during initial meetings and induction of the process explaining: how it works: what it means; and what will happen, issuing details in customer handbooks. We will reiterate the process at review meetings. The documents are available in various formats and languages. Complaints can be raised to any member of staff, directly to the Quality Unit on a dedicated phone number or through the Intraining website. An agreed time-scale to respond and resolve concerns forms an essential element of the process to ensure the matter is concluded in a timely manner. Levels of complaints and compliments are monitored, recorded and cascaded to teams to ensure we are evaluating the quality of provision and meeting the contractual obligations. All complaints are logged, recorded and shared with the Quality Team. A tracking form is used to record key details including, the complainant, the individual the complaint has been passed to, the deadline of response, outcome of investigation and the date of the final response. The complaints are responded to formally with a written explanation and outcome within 20 days. All complaints are investigated thoroughly. When not resolved at the first stage, the complaint is escalated through the management structure and continues until Stage 4. Beyond this stage the complaint if not resolved is escalated further to the Chief Executive. When complaints are not resolved, a customer will liaise with an Independent Case Examiner who will mediate and broker a solution. A summary of compliments and complaints will be tabled at team meetings to identify action required to prevent future occurrences ensuring lessons learned of good and bad practice. Acting on the findings - We will immediately act and implement any required changes to maintain quality service provision. KPIs will be used to monitor trends in quality provision. We will quickly mobilise an experienced team who will work closely with the supply chain and operational teams to ensure that provision is reviewed and mitigating activities such as action plans are created. Where any issues of quality are identified a formal quality review will be undertaken by the Quality Unit with corrective action agreed and formalised in Business Improvement Plans. Where there is no improvement in quality over an agreed time period, a formal contract review is undertaken with the appropriate manager, which may result in disciplinary action or withdrawal of contracts from suppliers. We will follow our change control procedures at all times ensuring that the appropriate level of management are informed of issues, options and solutions to make informed decisions. We will bring suppliers together to evaluate services and share good practice, highlighting any issues and what steps are being taken to resolve. We will follow the principles You said we did to show customers and stakeholders that we take complaints seriously and do act on the findings. Feedback boards will be displayed in centres alongside our internal branding with notice boards dedicated to jobs, positive contribution and safeguarding. All suppliers will be included in any ongoing training and development to ensure that any actions deriving from review meetings, monitoring and action plans are supported by real solutions brokered by the SCM in the first instance. Continuous achievement throughout the term of the contract NCG will use soft data such as customer feedback together with hard MI on outcomes and progression rates to critically evaluate the effectiveness of the programme for each customer group. This will be analysed on a monthly basis to inform the continuous refining, re-focusing and re-engineering of methods, interventions and techniques so that the programme evolves alongside changing customer needs over the lifetime of the contract.

PART 6:

RESOURCES

[6.1] Staff Resources Staffing Numbers, Job Titles and Roles Please provide:

Details of the number of staff, shown as full time equivalents, you and your supply chain propose to employ to manage and deliver the Work Programme for this CPA. You should include a description of why you consider this staffing level is appropriate for this CPA at contract start date, together with details as to how you will manage the staffing levels as customer volumes rise and fall over the lifetime of the contract. This should include a description in detail of the number of staff to be drawn from current resources, those to be recruited by both your organisation and any supply chain organisations involved. Please provide details of how you have identified the skills required by staff in your organisation, and that of any sub-contractors, to deliver the service you have proposed at Section 4. You should describe how you propose to acquire staff with these skills or provide the appropriate training to ensure that these skills are available to commence delivery of the service on the date you have proposed. A resource plan should be provided (attach as Annex 5) showing how staffing, by full time equivalent and job title/role, will be allocated across this CPA and a description of the job roles of staff shown in Annex 5.

Insert your response in the pre-set, shaded space of the following pages. Your response MUST be limited to five sides of A4. Note: Format requirement and page limit does not apply to the resource plan which you must insert as Annex 5.

6.1 [REDACTED]

[6.2] Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE)

Please refer to the Provision Specification and Supporting Information before completing the following TUPE questions. [6.2a] TUPE Managing the Transfer Please detail your plans and those of any Sub-contractors for managing TUPE transfers which will/may result from this Work Programme contract. Your response should include: measures you propose to take under Regulation 13 of the TUPE regulations, (including any proposals to seek agreement to change terms and conditions of employment or any redundancies for organisational, technical or economic reasons over the life of the Contract), to enable you to meet their statutory requirements; how you propose to communicate with transferring staff prior and immediately after the transfer date; an outline of your plan of activity to transfer in staff; how you propose to work with existing employers to ensure a smooth transfer of staff; and details of how you plan to ensure that any Sub-contractors will fulfil the requirements of TUPE Regulations and any relevant Codes and Statements of Practice.

Insert your response in the pre-set, shaded space of the following pages. Your response MUST be limited to two sides of A4.

6.2a NCG have a depth of experience of managing successful TUPE of staff both into and out of the organisation. In the last eight years we have transferred more than 6,000 staff into NCG and consulted with employees, their representatives and unions to ensure a smooth transition meeting all legal and regulatory requirements. Proposed measures - We are adept at understanding variations and legacy contract agreements and the importance people place on protected terms of employment and intend to review all terms and conditions during a period of due diligence to ensure any changes we intend to propose are thoroughly communicated and consulted on prior to transfer. In the same way we will work to keep redundancies to the minimum but if necessary we will implement a comprehensive procedure that complies with all legal requirements within The Collective Redundancies Regulations 2006. The process will be managed by our HR team and will involve in-depth consultation with all relevant representatives and individuals. Pre-transfer - NCG is aware of the need to consult with, and support staff, eligible to transfer alongside the need to discuss and agree the process for supporting TUPE with other Prime contractors in the CPA and our supply chain. We will meet with the other Primes and supply chain to agree a communication strategy and process which we will discuss with present employers and unions. These discussions will include our proposals for supporting the process and the measures we may propose prior to transfer subject to due diligence. We hope to obtain all necessary data from outgoing providers and start the due diligence exercise, where possible, after preferred bidder announcement to ensure sufficient time is given to communicate and consult thoroughly. In particular we want to ensure staff that may be on long term sick, maternity or any other episode are identified and considered as part of the communication and consultation. Although we understand the consultation period will remain the responsibility of the existing employer we will seek to support this process as fully as possible including attendance at one to one consultations and the joint consultation activity and establish a number of ways in which we can communicate with employees. This will include a dedicated email and telephone helpline and issue of a regular TUPE Q & A. We recognise the importance of timely and clear communication of information relating to the transfer and will establish employee road shows ensuring our consortias senior management and dedicated HR TUPE specialists are able to attend these for transferring staff, so people can put names to faces and start to get to know their future employers. Our proposed TUPE plan will commence on 15th April11 with a period of due diligence and existing employer communications and finish after a 6 week communication and consultation period on the 17th June11. This timescale will allow staff to transfer on 20th June11 and spend time during the first 10 days getting to know their organisation, being inducted into the new programme and undertaking necessary training and development activity to ensure job readiness . Our activity plans and communication activity are summarised in the table below: Method Recipient Communication Dates Meetings / HR Depts of Discussion of any known measures 28/04/11 consultation the outgoing proposed, e.g. long term sickness of employers. staff. Initial Trade Unions Meet with TUs to agree format for joint 26/04/11 Meeting & consultations meetings and any content representative of measures letter. s Establish e- All affected All relevant staff can send general 29/04/11. mail/ staff. queries, with a generalised weekly e-mail Ongoing telephone sent to all staff in response as a FAQ throughout helpline & the process. Q&A log.

Employee & Union reps trained letters 1st, 2nd and final JCC meeting 1st and 2nd Workforce consultation 1st individual consultation 2nd individual consultation Formal Letters Welcome packs issued

HR Depts and staff of the SC. All staff JCC

Inform & help supply chain create their TUPE implementation plan and ensure they are aware of their responsibilities Measures letter Support JCC meeting Minutes circulated and responses considered and discussed at second and final meeting Support JCC meetings

17/05/11 10/05/11 23/05/11 03/06/11 16/06/11 1st complete 30/05/11 2nd complete 03/06/11 23/05/11 -30/05/11 30/05/11 -03/06/11 13/06/11

All affected staff.

Offered to all affected staff. All affected staff. Sent to all staff All new staff

Support one to one meetings Support one to one meetings and discuss outcome of role match Offer of employment made to all staff.

Issue Welcome Packs to transferring 13/06/11 employees, confirming their continuity of employment, pension rights and employer obligations under TUPE. Induction All new staff Starts Induction sessions for transferred 20/06/11 employees. We will work with our supply chain to ensure compliance with TUPE regulations as part of our implementation planning. To date we have undertaken a close examination of suppliers HR processes and specifically their capability, capacity and willingness to adhere to TUPE regulations. Adherence to TUPE legislation and other HR codes of practice etc will be fully outlined in the Service Level Agreements and contracts between NCG and the supply chain. In order to ensure that all suppliers fully understand the implications of TUPE we will run TUPE workshops and use our in-house TUPE experts to engage and work in partnership with our subcontractors: walking and talking them through their obligations to consult and inform on matters relating to the transfer, including the method of supporting formal consultation and sharing any proposed measures. We will discuss and share our well-established TUPE project plans and build in regular HR project reviews to ensure the transfer remains on course and that we work collaboratively in partnership to fulfil all of our statutory obligations. Further support will be provided by NCGs HR team and Shared Services. This means that small or specialist organisations who may not have much experience of TUPE will have direct access to expert advice and opinion on the matter. Additionally, as part of our plans for managing TUPE, we will have a nominated TUPE lead accountable for overseeing all TUPE arrangements associated with this CPA, this will include performance management of the supply chain via weekly performance reviews. This will ensure there is the proactive identification of any risks and issues that may arise to make sure the transfers are executed effectively, fairly and legally. This means that each member of our supply chain will have access to tried and tested procedures, policies and best practice and access, at all times, to a subject matter expert and legal opinion through NCGs solicitors Watson Burton. [6.2b] TUPE Managing the Transfer

Please supply details of what lessons you and any of your Sub-contractors have learned from TUPE transfers and/or major organisational change which will influence how you would handle similar issues in the context of this Work Programme contract including details of how it influences how you would manage any transfer/change which may arise as a result of this Work Programme contract. Please describe what aspects of TUPE you consider will be relevant to this procurement. Insert your response in the pre-set, shaded space of the following pages. Your response MUST be limited to one side of A4.

6.2b Newcastle College Group (NCG) has grown significantly over the last decade through a series of strategic mergers and acquisitions. These include merging with

Skelmersdale and Ormskirk College (SOC), and later the acquisition of TWL, (2007) and Carter and Carter (C&C), (2008), which led to the formation of Intraining. These complex transactions involved more than 1,200 transferees. Each transfer or major organisational change is monitored by a TUPE working party established to manage the transfer process, ensure lessons are learned, inform continuous improvement in working practices and share best practice internally and across our supply chain. Lessons Learned: 1) There is a need to performance manage suppliers TUPE transfer process closely, via weekly reviews throughout the process to ensure adherence to all appropriate regulations, particularly regulation 13, and to complete the process in a timely and fair fashion. This has been identified through our experience designing and implementing complex supply chains. The performance review system is set out in our detailed mobilisation plan, which has been collaboratively created with our suppliers. 2) A realistic TUPE transfer timetable and detailed mobilisation plan is essential to a successful transfer. 3) Open and regular communication is critical. During the C&C transfer, uncertainty amongst transferring staff regarding pay was addressed through open and regular communication including a detailed TUPE pack for all staff and 1:1 sessions with a TUPE consultant. 4) In the final evaluation it was found that a familiar face was important to transferring staff through the transfer process. Hence, NCG will offer staff a posttransfer 1:1 with the same HR representative who carried out the pre transfer 1:1. Case Study 1: Our TUPE experience with C&C was of a similarly large scale 951 people were transferred to NCG, whereas 220 people are to be subject to TUPE in North East Yorkshire and the Humber region. The C&C faced issues that are directly relevant and comparable to WP. C&C was created from 6 different companies and as a result of this within the C&C group there were 42 different sets of Terms & Conditions, (T&C), that needed to be transferred in a short period of time due to the company being in administration. Lesson Learnt: Post transfer, the solution was to create a centrally based Shared Services team to provide central resource and expertise, supported by an efficient HR Management Information System (HRMIS). This team, in operation since 2008, can now support large scale TUPE transfers with minimal disruption to day to day activities. Case Study 2: Via our experience developing complex supply chains, for example for our DWP Prime Contracts for ESF Long Term Unemployed in Cumbria and Lancashire and Hampshire & the Isle of Wight, we have created a collaborative, rapid but realistic TUPE planning and implementation process for the supply chain that identifies and proactively manages risks and anxieties at supplier level. This is achieved through training workshops, a TUPE mentor, provision of all required documentation and a rigorous, transparent, proactive implementation and weekly performance review process. Training workshops detailing our TUPE implementation plan, will be delivered at York, Hull and Scarborough. Finally, we are conscious that TUPE transfers will need to managed smoothly across the whole delivery structure, to enable a timely start to operations and to support the necessary step change in outcomes. Our ability to manage large-scale TUPE transfer and complex, major organisational change successfully is amply demonstrated by the fact that both Skelmersdale College and Intraining overcame long histories of poor quality and performance to be rated by Ofsted as Grade 1: Outstanding providers in 2008 and 2009 respectively.

PART 7:

STAKEHOLDER ENGAGEMENT]

[7.1] Local Stakeholders

Please describe in detail how, in relation to this CPA you and your supply chain will engage with key local stakeholders including smaller and voluntary sector organisations to ensure effective on-going relationships with them throughout the life of the contract. Insert your response in the pre-set, shaded space of the following pages. Your response MUST be limited to three sides of A4.

7.1 As a public sector organisation, Newcastle College Group (NCG) is driven by a mission to develop people through learning and achievement for the benefit of themselves, society and the economy. Our status as a national public corporation and as the most successful college merger partner in the UK, a grade 1-rated national

provider of training and skills solutions, and a national welfare to work provider means that we are closely familiar with the stakeholder composition of English regions and the importance of community, voluntary and public interest bodies in economic development and growth. Building on our existing links To ensure a confident start at contract award, we have already deployed teams into the North East Yorkshire and the Humber (NEYH) to build on existing relationships with key local stakeholders such as regional Jobcentre Plus offices, i.e Hull, Scarborough, Skipton and Scarborough Jobmatch, Surestart, Shelter, and Connexions; inform them of our proposals for the Work Programme (WP); generate momentum for working together; and deepen our understanding of common themes and challenges facing the area. For example, after engaging with the York and North Yorkshire Partnership Unit, Work and Skills Partnership we are aware that transport can be a major barrier to work as parts of North Yorkshire are very rural. We will therefore ensure that we utilise community outreach venues in this area to allow for greater participation and access. Post-award, we will continue to update and review relations with new and existing stakeholders to bring as full a range as possible into a locally driven delivery model. We are fully aware that the effectiveness of our signposting to specialist providers and voluntary organisations such as Frank, Street League, Hull Hopeless and Rootless, Minerva Project and Wheels to Work is a key driver in how quickly WP customers enter into employment. Effectiveness relationships with key local stakeholders and voluntary organisations will ensure that customers receive high quality support as efficiently as possible. Local strategic partnerships with third sector partners such as Third Sector Consortium (3SC), Disability Works UK (DWUK) and Barnardos ensure we provide tailored solutions for all our customers. Identifying Key Stakeholders - We have identified the following NEYH stakeholder groups: Local Authorities (LAs) to contribute to the achievement of Local Area Agreement targets and work collaboratively to common goals, we will build on existing relationships. We have held recent discussions with Julie Chandler of the York and North Yorkshire Work and Skills Partnership about how we may work together to ensure that WP effectively complements local provision and infrastructure; and our solution design will support local economic development plans. We understand LEPs across NEYH are not yet finalised, there will be a York & North East Yorkshire LEP and a LEP for Humber which is still to be defined. We will work across the two on cross cutting themes such as Renewable Energies; Local Strategic Partnerships (LSP) such as Work and Skills Partnership (WSP) to align WP delivery to local LSP strategy on worklessness. Local Jobcentre Plus (JCP) offices to ensure that we promote our provision and identify ways in which we can improve the efficiency and effectiveness of our intervention. Our Partnership Managers will meet with local JCP Managers on a regular basis throughout the contract to identify ways of working together in a more joined up way, i.e running events collaboratively, sharing premises. This frequent dialogue will ensure that we are proving complimentary provision, a warm handover to customers joining the WP, whilst ensuring key messages remain consistent. Housing Associations/ Registered Social Landlords such as Chevin Housing Association to develop a partnership approach during the delivery of WP which will ensure that we fully understand their aims and objectives and ensure that our provision dovetails into their employment services to avoid duplication. We will also invite them to advise and support our customers where necessary on their specific housing needs and requirements. Colleges/ Training Providers Newcastle College is part of NCG. We will also expand on wider links with Hull College, Yorkshire Coast College and YH Training. Employment and Skills Boards (ESBs) to report on worklessness and the evolving

employment and skills needs in NEYH. Strategic Health Authorities (SHAs) to ensure we understand key issues and agendas and make sure we are promoting health and wellbeing as part of our customers journey. Voluntary/ Third Sector Specialist Organisations to identify the best ways of working together to provide a user friendly and convenient service for our customers, we will interact and generate links with voluntary organisations such as Coast and Moors Voluntary Action Group, YMCA and TUKES. We will also draw on 3SC to broker links and build capacity within their multiple micro level organisations to create flexible solutions. These links will enable NCG to address the needs of customers on WP and efficiently signpost them to the correct support agencies. This will ensure they receive the required training, support and guidance to achieve job readiness status. Engaging and Maintaining Relations with Stakeholders To ensure that we continually improve our delivery and achieve WP objectives, it is essential that we involve stakeholders fully throughout the contract life cycle. This will ensure that delivery is fully informed by local need and that provision is aligned to the work of community and voluntary organisations. To reinforce already existing links, fill any identified gaps and raise awareness of WP to key stakeholders throughout the life cycle of the contract, we and our suppliers will: 1) review and build upon our already existing stakeholder map that identifies all relevant stakeholders within NEYH, complete with their respective needs and priorities. This will ensure that we and our suppliers are fully represented throughout this complex web of relationships, thereby achieving maximum coverage throughout NEYH. This will enable our delivery to be influenced, fully recognised and reflected within local economic and social regeneration solutions. We will map roles, both internally and with our suppliers to ensure complete and appropriate coverage; 2) undertake strategic engagement, managed centrally by NCG and Intraining Directors, with stakeholders such as DWP, CBI, Association of Colleges, 157 Group and the Employment Related Services Association; 3) form an Operational Committee (OC) that will include representatives from strategic partners and national bodies including Barnardos, 3SC, Disability Works UK, National Federation of Enterprise Agencies and Social Firms UK. This OC has two clear benefits: a) Key WP agendas such as Youth, Health and Enterprise are represented by independent national experts in this field; b) DWUK, NFEA, Social Firms UK and 3SC represent hundreds of small and local voluntary and civil society organisations and as such can bring the micro level voice up to the strategic level; 4) deploy Strategic Partnership Managers (SPMs) to contribute to local agenda-setting and committee activity with stakeholders such as LEPs, LAs, ESBs, SHAs, LSP, acting as ambassadors for the WP throughout the life cycle of the contract. This will ensure that delivery is fully embedded and aligned to key local strategies such as the York and North Yorkshire Strategy ensuring longevity of presence and a high degree of influence; 5) use our links to seek champions within stakeholder organisations to act as advocates of WP. This will provide important feedback to NCG and its suppliers about how our provision is viewed and will help to define future plans and key messages going forward; 6) add value by understanding key stakeholder strategies and objectives such as the Bridlington Renaissance Partnership, and ensuring that we are working together to support their goals and provide suitable intervention where necessary. 7) centralise stakeholder engagement in the performance management of our supply chain. To ensure suppliers are targeting the necessary stakeholders, they will submit a stakeholder maps for their service areas, assessed by the SPM through monthly contract reviews together with KPIs on stakeholder engagement and contribution to local and community issues. This will ensure our suppliers are fully integrated into the local and regional stakeholder network; 8) deploy Welfare Advisors within the localities to broker links and develop a network of specialist support agencies. Our Welfare Advisors will create an online database of agencies that we can draw on when signposting our customers to specialist

intervention. For example, we are aware that that the main problems in the Hull area are related to health inequalities therefore we will ensure that we understand the changes being made to available Health Support Services in 2011, we know that more than 22% of of JSA claimants have been claiming JSA for more than a year and hotspots tend to be concentrated in Hull and Grimsby deprived areas. Our Welfare Advisor will broker links with specialist agencies such as Health support providers and specialists such as Junction Drugs forum and Hull Carers centres to enable us to better understand the complex barriers that our customers face when making the transition from benefits to employment. We also employ our own bilingual staff within our centres to reduce barriers and increase access. This database will be maintained and built upon throughout the contract to ensure we have access to appropriate support that meets emerging needs as WP evolves; 9) invite key stakeholders to regional launch events complete with a WP information package outlining our delivery strategy and model; a Frequently Asked Questions documents addressing common inquiries and concerns and an online Question and Answer database for "self-serve" reference; 10) produce a targeted stakeholder newsletter released quarterly to provide regular WP updates and success stories; 11) attend regular networking events to promote our provision and engage additional stakeholders where necessary to provide more joined up ways of working and clear routes out of worklessness for our customers; 12) utilise the knowledge and contacts of our suppliers and specialist providers to continually expand and develop our existing network to achieve even greater coverage and increased depth, thereby ensuring continued engagement; 13) establish a CRM system that will provide a central repository to store all stakeholder engagement activity. This will be shared with our suppliers to avoid duplication and allow a structured and cohesive approach to the engagement of stakeholders throughout the contract, ensuring relationships are maintained, with a clear strategy for the number of visits per year per stakeholder group; and 14) to maximise efficiency of existing forums, seek representation at key strategic meetings such as the Hull Local Strategic Partnership in order to report on progress and ensure local accountability. This will enable us to share our issues and problem areas with stakeholders and discuss ways of working together to solve problems, demonstrating transparency in our operations. This will aid the directing of our business planning process and ensure that our programmes and services face the needs of the local economy in which they serve. Continuous achievement throughout the term of the contract NCG will play an ongoing, long term role in economic development as a key contributor to the community of local stakeholders throughout the life of the contract. Our Strategic Partnership Manager will be a permanent appointment tasked with making a vital contribution to local policy development, whilst our Employer Engagement team will cement lasting relationships between the Work Programme and local employers. We will also provide a long-term income stream for local voluntary sector and smaller providers, helping to build sustainable capacity for the long term.

[7.2] Employers Please describe in detail how you and your supply chain will actively engage with employers to develop proposals that accurately reflect local needs and describe how you will work collaboratively with employers on an ongoing basis to secure job outcomes for customers attending the Work Programme in this CPA.

Insert your response in the pre-set, shaded space of the following pages. Your response MUST be limited to three sides of A4.

7.2 Employer engagement has not yet realised its potential to generate job outcomes for unemployed people. This is because employers often have negative experiences with the sector being supplied with candidates that do not meet their minimum standards, have insufficient training and or who have left the job soon after appointment. We propose to address these issues by re-focusing effort on identifying and understanding employer needs, and presenting customers who are both job ready and matched to need. Categorising and identifying To ensure a co-ordinated and targeted approach, we have categorised employers within North East Yorkshire and Humber (NEYH) into the

following three groups: Large employers such as BP, Bourne Leisure; Associated British Ports, Aviva and Seven Seas; Small and Medium Enterprises (SMEs) we know that there are approximately 1.6 million businesses in the UK. Two thirds of these employ a workforce of more than 25, with only 2% of business employing over 100 staff and the local economy in NEYH is dominated by SMEs despite a low business density; and Micro employers we will target employers that are based locally such as Wold Top Brewery. Three stages to successful employer engagement Particularly in times of downturn and recession, employers often turn to their pool of existing employees when looking to recruit new staff - jobs that never make it into the public realm. We will tap into hidden vacancies through successful employer relations built on trust and high quality provision. Stage one will focus on re-defining our relationships with employers based around the value that we can bring and the outcomes that we can achieve for the Work Programme (WP). We will therefore provide an employer responsive skills and resource solution that is built on the credible back bone that we are the only Ofsted Grade 1 national skills provider bidding for the WP programme. We will implement the following: 1) Networking strategy - we will develop a networking strategy that will be mapped specifically to the business support organisations operating in NEYH, this will include: i) Attending employer networking events - that serve the local business community to raise awareness of the benefits gained by investing in projects such as WP whilst also discussing skills and employability strategies. Our Business Advisor (BA) who reports directly to our Employer Engagement Manager (EEM) will attend public and paid for events like Harrogate Business Forum and One Hull Business Forum and those hosted by local authorities and Local Enterprise Partnerships to target employers, particularly SMEs as they total 99.8% of all private sector enterprises and contribute to 61% of employment; ii) Speaking at business networking events - on subject matters that demonstrate our world class capabilities, for example, our Aviation Academy. We will also talk about current labour market issues, unemployment levels and how these affect businesses and also conduct presentations on how employers can benefit from the recession; iii) Cold calling and meetings we will utilise our existing employer call centre function to generate appointments for our Employer Engagement Manager and Business Advisors to meet with HR Directors from organisations across NEYH. We will map this so that the EEM deals with larger employers whilst the BA deals with SMEs and micro organisations. Our value proposition will be to support employers in their skills and resource strategy by providing access to: a) Improved and skilled candidates we know that there is a high percentage of both skilled and graduate unemployed people within NEYH, for example Ryedale is being hit by a "brain drain" of talented students because of poorly paid employment and a lack of career opportunities. We will therefore work with employers to match these customers to employers, thereby providing them with early access to suitable and job ready candidates to retain talent in NEYH; b) A targeted skills and resource proposal where we will meet with employers to identify and understand exactly what they require from candidates in terms of specific expertise, experience required and skills and training levels. We will then draw up a bespoke solution to encompass all specific employer requirements and ensure that we train and re-package our customers so that they are fully aligned to employer requirements; and c) A 0% recruitment solution by undertaking the above, we will provide a free service to employers, supplying customers that entirely meet their needs. 2) Corporate and Social Responsibility (CSR) strategy we will implement a CSR strategy with our partners Barnardos to engage with employers using the good will CSR route to provide work placements for our customers. This will be particularly beneficial for those hardest to reach customers and will provide them with valuable work experience with a national employer. Our partner Barnardos has engaged with a number of large employers in the UK to help drive sustained employment for young people and achieve CSR workforce development. Barnardos has been a charity partner of Royal Mail since

2008. Their Unlocking Talent programme engaged 100 disadvantage young people in work experience placements, leading to real jobs and apprenticeships. Furthermore, they have worked with Scottish and Southern Energy (SSE) to meet their recruitment needs and provide high quality in work support in the form of a workplace mentoring scheme to help young people settle in and ensure jobs are sustained. In 2009/10, SEE placed 260 people through this scheme, the majority of which were managed by Barnardos. Stage two will focus on converting our employer engagement activity into sustainable job outcomes and strengthening ongoing partnerships by: a) Offering up-skilled candidates by putting them through tailored intervention in our centres which will consist of a combination of employability skills and our market leading model to provide candidates with re-skilling, training and development in accordance to identified need. This will ensure that customers are prepared, have a good attitude and are fully job ready before they are placed in front of an employer for consideration; b) Providing sector specific training that will be linked to large employers. For example, we know that there are a number of developments in the hospitality and tourism sectors with a number of new hotels being built in Whitby and Scarborough. We will train and prepare customers through setting up a virtual work environment so that customers are trained and equipped with the necessary skills i.e, health and safety, cash desk operation, food hygiene, numeracy and literacy, customer service and team building to ensure they meet the requirements of the employer. We have great experience of this type of intervention for example, we worked collaboratively with Poundland as they were opening a new store in Leicester and were experiencing difficulties in recruiting suitable staff. We provided a complete recruitment service from advertising, and identifying suitable candidates through to holding induction days for newly appointed staff. We placed 17 people into employment and achieved an 82% sustainable employment rate. Furthermore, the candidate we supplied for the assistant manager post has since been promoted to store manager which stands as testament to our tailored pre-employment training and in work support systems; c) Targeting growth and dynamic sectors such as low carbon, chemical, advanced manufacturing, distribution and logistics, tourism, financial and business services, retail and construction across NEYH. We also know that the NEYH has a high performing food and drink sector (UKs largest food producing region) with a significant proportion of high growth SMEs driving the local economy. We will work with employers in these sectors for example, Aunt Bessies and Icelandic Group Ltd in Hull; Youngs Seafood (Findus) in Grimsby and Westler Foods in North Yorkshire and their supply chains including the farming areas in East Yorkshire and North Lincolnshire and the ports on the river Humber to address their labour turnover issues and provide a suitable skills and resource proposal that will meet their growth plans. For example, we will adopt a consultative approach and engage with same sector employers within NEYH such as those mentioned above to create clusters and obtain a comprehensive and efficient diagnosis of need in terms of their workforce requirements. We will then establish temporary pop up shop/ service academy arrangements that will deliver specific training courses to our customers so that they are job ready and signed off as being suitable to enter employment in that sector. This will ensure that the customers we put forward to employers in these areas have been specifically primed to meet their need. This will generate positive experiences for the employer as candidates will match their requirements, with the necessary skills level and positive attitude. Clustering employers together will ensure it is more feasible and cost effective; and d) Providing ongoing quality assurance and employee support. This is particularly important during the first six months of an employees appointment, ensuring that they have access to the right level of support and information is imperative to ensuring they feel settled. This will aid in achieving sustainable job outcomes and will also assist in the development of long standing employer relations, demonstrating our commitment to delivering a high quality service. We will also continually evaluate the way in which we engage with employers and will introduce Employer Satisfaction Surveys to

gather feedback and best practice to improve the services we provide to employers. Stage three will focus our attentions on sustaining job outcomes and assisting employers to better maintain their labour turnover. We will achieve this by: 1) Providing a robust and structured in work support service once customers have found a job. This will consist of the: a) the Mentor will continue to see each customer on a regular basis to check in on their progress and to iron out any issues; b) customers will be able to access our call centre who will provide a formal structure for support; c) Business Advisors will provide a third line of support, using their relationships with employers to monitor each customers progress and provide supportive interventions to both employer and employee when necessary; and d) we will develop an employee mentoring scheme to match WP customers with work-based mentors. 2) Maximising temporary and flexible job outcomes by taking advantage of DWPs new regulations, we will match the labour market requirements for NEYH regarding seasonal and temporary requirements. For example, we know that the coastal resorts of Bridlington, Scarborough, Whitby and Cleethorpes, together with historic York have seasonal vacancies during peak times. We also know that the significant retail sector in NEYH benefits and suffers from seasonality. We will therefore manage the career paths of our customers to develop job-to-job solutions where there are high numbers of flexible opportunities, thereby satisfying employer demand and achieving job outcomes for our customers. Having a career progression plan in place for these customers will ensure they can move successfully from one temporary job to another and eventually into a permanent post. Maintaining Job brokerage In addition we will also be undertaking the job brokerage function in alignment with this. Our Intensify team will source appropriate public realm vacancies for WP customers through liaising with Jobcentre Plus, searching the internet and local papers etc. They will also liaise closely with our Business advisors to tap into any new vacancies that have been created through our focused three staged approach. Managing interfaces To ensure that our bespoke employer engagement strategy remains focused and targeted and key messages remain consistent, we as prime contractor will be wholly responsible for its delivery and implementation within NEYH. We will ensure that we share our intelligence through our Customer Relationship Management system of which our suppliers will have access to. We will also provide access to any hidden vacancies that we have uncovered. We will performance manage the quality of our suppliers delivery by setting clear protocols for our suppliers to adhere to. We will also develop in consultation with employers a set of employer standards, consistent with our own, which our suppliers will need to sign up to. We will also establish KPIs which will be linked to the number of sustainable outcomes achieved and to ensure vacancies are filled by appropriate customers. This will raise the quality of candidates and safeguard our approach to ensure high quality delivery across the board. Continuous achievement throughout the term of the contract NCG will play a key role as a partner to local employers throughout the life of the contract, cementing a lasting relationship between the Work Programme and local labour markets.

PART 8: CONTRACT PERFORMANCE


[8.1] Performance Job Outcomes

Using worksheet C. Outcome Volumes provided in the Pricing Proposal document, please detail your expected performance in this CPA and provide comment on how this compares to the national benchmark levels detailed at paragraph A4.18 of the Work Programme Specification. Your response must address individual customer groups separately and differentiate between job starts/outcomes and sustained job outcomes. Please note your response to this question shall not be scored but will be used to inform the evaluation of your response to question 8.1a Insert your response in the pre-set, shaded space of the following pages. Your response MUST be limited to two sides of A4.

8.1 The table below illustrates our year-on-year performance offer by customer group for North East Yorkshire and the Humber along with DWPs Minimum Performance Levels as detailed in Tab C of the Pricing Proposal. We have also included a column on the right which shows the overall performance as a percentage of total customer referrals not attachments as this is how we measure performance of our existing contracts and as such provides a like-for-like platform for comparison in the following section (8.1a). Our

approach has been to track our performance at 15% above DWPs minimum levels of performance and section 8.1a provides full rationale and justification as to why we think this is achievable and indeed how we will achieve it. JSA 25+ NCG Offer DWP Benchmark JSA 18 - 24 NCG Offer DWP Benchmark JSA Early Access NCG Offer DWP Benchmark JSA Ex IB NCG Offer DWP Benchmark ESA Flow NCG Offer DWP Benchmark ESA Ex-IB NCG Offer DWP Benchmark ESA Volunteers NCG Offer DWP Benchmark Income Support / Incapacity Benefit NCG Offer DWP Benchmark Y1 121 105 Y1 53 34 Y1 17 18 Y1 8 5 Y1 40 21 Y1 8 6 Y1 56 42 Y1 14 28 Y2 1,636 1,061 Y2 616 397 Y2 132 95 Y2 51 33 Y2 113 84 Y2 66 42 Y2 331 217 Y2 163 138 Y3 1,449 1,257 Y3 603 498 Y3 131 113 Y3 56 48 Y3 116 97 Y3 75 63 Y3 310 264 Y3 125 122 Y4 1,286 1,109 Y4 515 463 Y4 126 106 Y4 50 44 Y4 116 95 Y4 69 59 Y4 223 203 Y4 49 50 Y5 Y6 Y7 2,120 2,214 Y5 Y6 Y7 856 910 Y5 Y6 Y7 209 201 Y5 Y6 Y7 3 17 Y5 Y6 Y7 188 203 Y5 Y6 Y7 12 30 Y5 Y6 Y7 168 221 Y5 Y6 Y7 0 6 Contract Life Job Outcome % 35.05% 30.47% Contract Life Job Outcome % 46.13% 40.11% Contract Life Job Outcome % 21.48% 18.64% Contract Life Job Outcome % 15.28% 13.21% Contract Life Job Outcome % 20.50% 17.85% Contract Life Job Outcome % 9.03% 7.89% Contract Life Job Outcome % 44.02% 38.29% Contract Life Job Outcome % 41.22% 40.27%

[8.1a] Performance - Rationale

Please provide your rationale for your expected Job Outcome Performance levels, by individual customer groups as detailed in 8.1. Explain the activities and support that will be introduced to help secure the achievement of these performance levels together with any other best practice evidence to support your proposed performance. Insert your response in the pre-set, shaded space of the following pages. Your response MUST be limited to four sides of A4.

8.1a Principles underwriting our performance offer our performance offer for WP North East Yorkshire and the Humber (NEYH) has been developed around three core principles:

1) We have presented prudent and conservative minimum offers, not optimum offers. These have been set to reflect what we believe are achievable based on our current performance and other critical elements which we detail below. We fully expect and plan to achieve significantly higher levels of performance than stated over the life of the contact and thus trigger incentive payments across both NCG and our supply chain. We have not however factored these incentive payments into our core financial model because as we explain in the next point we have built a model that is commercially prudent; 2) the minimum offers reflect a delivery solution that balances ambition with commercial prudence. The Office for Budget Responsibility has forecast a gentle increase in UK Gross Domestic Product year on year for the next 5 years, suggesting ultimately that the UK has emerged from and will remain out of recession and that steady economic growth will be achievable in the medium term. Since this data was published, however, the UK returned negative growth figures in the three months to December 2010 sparking concerns of a double dip recession. Regardless of how economic recovery ultimately rolls out, it is clear that the numbers of unemployed people will remain high throughout the life of the WP. A jobless recovery is also very likely given the volume of workers being kept under-employed (eg working 4 day weeks), meaning that as the economy recovers the job market slack will be taken up by existing workers for at least the first 12 months. The resultant lag between economic upturn and stubbornly high unemployment figures has been well documented by Oxford Economics. Our plans for WP in NEYH are both innovative and ambitious, and yet have had to be developed against this backdrop of economic uncertainty and labour market pessimism; and 3) our supply chain will need capacity building NCG is nationally and internationally renowned as a market leader and an innovator, delivering high quality and cost-effective efficient public services. This extends to our delivery of current DWP employability contracts through our Intraining division as detailed below. Our objective and intention with the WP therefore is to use NCGs rigorous, multi-level performance management programme, sophisticated quality improvement systems, progressive management and staff development strategies and innovative operational delivery model to drive our supply chain towards a new standard for performance and quality for the industry. As an ERSS Framework provider, we acknowledge and are fully prepared to address and resolve the performance gap that exists between the sectors current capability and DWPs required performance levels (the step change). We are also conscious that among our supply chain, some providers might face initial challenges in meeting the DWPs minimum standards as these are higher than typical industry performance. As such, we have modelled our performance offer to allow for underperformance in the early years of the contract as we capacity build our suppliers and transfer skills, systems, processes and knowledge across the supply chain. We are also hoping to increase the overall volumes let to third sector suppliers able to target the hardest to help and acknowledge that progression rates may be slower in this sub-category as niche providers familiarise themselves with Work Programme. NCGs Executive have a sharp and relentless focus on delivery of performance and quality and the same scrutiny will be applied across the delivery structure in house and supply chain - for the WP to ensure performance consistently tracks above the minimum levels of performance. These three key principles have resulted in a commercial model for the Work Programme in NEYH that will hold up robustly during the short-term economic uncertainty whilst at the same time offering capacity to drive consistently higher performance in later years and thus, over the life of the contract. Historical Analysis of Performance To develop and quantify our performance offer for the WP in NEYH we firstly studied Management Information from a variety of

contracts we have delivered to customer groups the same as or similar to the eight WP customer types including New Deal (delivered throughout Lancashire) Flexible New Deal (Leicestershire and N Yorkshire and Humber), Pathways to Work (Cheshire & Warrington and Yorkshire and Humber), Flexible Routeways (Leicestershire & Northamptonshire) and ESF Range of Projects (Cumbria and Lancashire). We have chosen these contracts to use as a benchmark because we feel they represent the closest comparator to WP in terms of customer groups and associated issues. From this information we have been able to extrapolate the job outcomes rates for each customer group as follows: JSA 25+ - as with the majority of the sector, our FND performance was below standard during the early months of the contract. However our statistical trends have shown continuous month on month improvements and since August 2010 we have averaged a 13 week short job outcome rate of 34% for this cohort across our two contracts; JSA 18 24 our performance tracking for this cohort across our two FND contracts and our Flexible Routeways contract in Essex has shown we are also currently achieving very positive outcomes for young people with a 13 week short job outcome rate of 43.8%. ESA Flow the combined 26 week sustained job outcome rate of our two Pathways to Work contracts is an average of 34.56% over the last 12 months, demonstrating consistent performance that tracks well above DWPs minimum levels of performance ESA ex Incapacity Benefit likewise, the combined 26 week sustained job outcome rate for this customer group on the two Pathways to Work contracts averages 22.40% over the last 12 months, demonstrating again consistent performance that tracks well above DWPs minimum levels of performance for this customer group. ESA Volunteers our track record with ESA Volunteers on Pathways to Work is also outstanding with 26 week job outcome rates since August 2010 of 45.23% in Yorkshire and Humber and 39.65% in Cheshire and Warrington. Incapacity Benefit and Income Support our ESF Range of Projects contract in Cumbria and Lancashire delivers community engagement and job focused support to people furthest from the labour market including Income Support and Incapacity Benefit claimants. Since January 2010 we have engaged more than 1,000 people from this customer group and supported 29% of them into employment. Creating a baseline this customer-group-by-customer-group statistical analysis of our existing performance provides evidence that we are currently delivering to levels that will match or exceed DWPs minimum performance levels. This places us in a strong position to start WP strongly. Indeed our phasing of job outcomes shows a greater level of performance in the earlier years of the contract. There are a number of other key elements and considerations we have factored in to our performance offer including: Changes to the Welfare to Work and Jobseeker regime More effective and job focused solutions delivered to unemployed people before they are referred to the WP such as JCP Support Contracts, Community Task Force, Future Jobs Fund and Young Persons Guarantee mean that more customers will enter WP more job ready. The longer programme length of the WP up to 2 years also means that we (and our suppliers) will have longer to work with each customer resulting in a greater depth of understanding of their true barriers to work and a stronger relationship between Mentor and customer. Additional differences such as off benefit checks and the four weekly sustainment payment model mean that more positive job outcomes will be captured through the WP as we support customers to move from job to job rather than returning to JCP. Finally the introduction of Universal Credit and enhanced conditionality will support and encourage more people to enter and stay in meaningful employment. The Labour Market Our WP model is driven by a new approach to employer engagement which has been built upon the collective experience of all of NCGs divisions. We have included a team of dedicated Business Advisors who will take a consultative approach to engaging employers and as such enable us and therefore our customers to access more vacancies and the hidden labour market. Additionally we will target

dynamic and growing sectors in NEYH such as advanced manufacturing, low carbon, chemical, distribution and logistics, tourism, financial and business services, retail and construction to develop pre employment training programmes and Service Academies that will give our WP customers direct and rapid access to guaranteed jobs and work placement opportunities. In formulating our performance offer for NEYH we have also considered closely the local labour market and analysed where the jobs are likely to come from, both in the short term as we ramp up the WP and in the medium term, as the provision becomes embedded in the region and the impact of the forecasted economic upturn becomes apparent. We therefore know that there has been a significant decline in the food production industry in NEYH but conversely there has been strong growth in the hospitality, tourism and low carbon sectors, with planned wind farms in the North Sea off the Yorkshire coastline likely to create significant numbers of jobs in the next 5 years. INvigorate and INfit A unique feature of our WP model is the introduction of INvigorate, an in depth front end assessment including our two day psychological intervention INfit. By introducing this programme at the very beginning of their journey, we know there will be a light bulb moment for the majority of participants at which point they will take firm responsibility for their own development and progression through WP. By incorporating a thorough process of assessment within the INvigorate stage, we are able to create a plan of action that will provide a clear route to sustained employment for each customer. Similar psychological interventions, such Skills4Success, the precursor programme to INfit, have proved highly successful at supporting people to access employment more quickly. Skills4Success delivered 70%-80% sustainable job outcomes in a study presented to the BPS Division of Occupational Psychology Annual Conference in 2010, whilst interventions in Work Directions uplifted job outcomes to 40% above the average for Greater London. The Right Support for the Right Person The INvigorate and INfit interventions enable us to identify exactly the right type and level of intervention and support to provide and this has enabled us to allocate resources much more accurately, resulting in efficiency savings which in turn will enable us to recruit more specific roles, such as the Mentor, INfit Tutor and Welfare Officer meaning there will be a clearer understanding and segregation of roles amongst our staff so they can focus on providing exactly the right type and level of support for each customer. There will therefore be more face-to-face workers supporting our WP customers. We will also ensure that we recruit our staff from the local area ensuring our staff, and those of our supply chain, reflect local demographics such as youth unemployment in North Lincolnshire and lone parents in Hull and as such will be able to connect and empathise more effectively with our WP customers. We have also modelled a unique four-way approach to in work support combining informal and formal supportive techniques to ensure more people are able to sustain their jobs for longer. A well selected, capable and experienced supply chain We have designed a delivery strategy that includes a network of specialist partners that are able to meet the specific needs of NEYH whilst at the same time delivering strong performance. We are subcontracting the whole of Harrogate, Northallerton, Skipton and Richmond to Business Support and Development because they have strong strategic links in the North Yorkshire area which is a geographically challenging area; we are subcontracting out the whole of the Goole cluster to our partner Igen, who have strong links into the local economy via their work with East Riding Council. Babcock Enterprises deliver employability programmes to both young people and adults via NEET and Skills for Jobs programmes and currently achieve in excess of 40% into EET and employment. Skills for Communities who will be delivering in the Hull area have significant experience of working with BME communities and employ people from these communities. Yorkshire Coast Enterprise is reknowned locally for providing employability and business skills with a profound understanding of the local labour market and can evidence a 66% JER in Scarborough. Additional support will be provided across the CPA by core specialist

partners including Barnardos, who have designed an exclusive work placement scheme for our young customers based on a model that currently delivers 83% of all participants into employment and the National Federation of Employment Agencies who will provide self employment support to our entrepreneurial customers new business friendly policies imply many new businesses will be started up during the next 4 years resulting in a 1 million+ rise in the number self-employed. Incorporating quality providers and partners such as these within our WP delivery infrastructure in NEYH means we will benefit from the strengths of existing providers, bringing both good practice and strong performance. Continuous performance improvement throughout the life of the contract: NCG will continue throughout the contract term to improve job outcomes and progression rates across the delivery structure by continuously refining, re-focusing and re-engineering our methodology. NCGs strategy for continuous performance improvement will be evidence-based and data-centric. Soft data will be collected through: (a) supplier and performance reviews at cluster, CPA and national levels; (b) informal feedback from customers; and (c) post-recruitment feedback from employers. This will be crossreferenced to hard MI on progression rates and job outcomes. In this way, we will develop a dynamic picture of the effectiveness of each intervention for each customer group. This bottom up process will be triangulated with top down findings from current research. The result will be an evidence-based, what works model of delivery offering continuously improving customer experiences and outcomes. In terms of suppliers, performance will be monitored on an ongoing basis against: (a) KPIs at cluster level through weekly performance /supplier reviews; (b) regional benchmarks at CPA level through monthly supply chain forums; and (c) national targets at multi-CPA level through the NCG National Operational Committee. Over-performing suppliers will be rewarded with increased market share, mirroring the DWP incentive system. Underperforming suppliers, and those lagging the rest of the supply chain, will receive voluntary then mandated support. Consistent underperformance will trigger a robust change control procedure. In this way, the entire delivery structure will continue to deliver continuously rising job outcomes and accelerating progression rates throughout the life of the contract.

PART 9:

IMPLEMENTATION

NOTE: MINIMUM SCORE APPLIES TO ALL QUESTIONS WITHIN THIS SECTION. BIDS SCORING 2 OR LESS ON ANY QUESTION WITHIN THIS SECTION WILL BE REMOVED FROM THE COMPETITION. PLEASE NOTE SCORES ATTAINED IN THIS SECTION MAY ALSO BE USED IN A TIE-BREAK SITUATION WHERE APPROPRIATE.

[9.1] Implementation Plan

Please provide: an Implementation Plan for the Work Programme in this CPA clearly stating the date on which you are proposing to commence delivery of the service. The plan, which must be in the form of a Gantt chart (insert as Annex 6), must include the key activities required to put provision into place by the service commencement date. It must include key milestones, timescales for activities including start and end dates and who is responsible for each activity including the expected start date for delivery. It will also show the critical path and interdependencies.

A narrative to expand on the implementation plan which must identify and address all the key risks, including the impact of winning multiple Work Programme contracts and how these shall be mitigated.

Insert your response in the pre-set, shaded space of the following pages. Your response MUST be limited to two sides of A4. Note: Format requirement and page limit does not apply to the Gantt chart which you must insert as Annex 6.

9.1 This Implementation Plan represents a summary of key actions which will be taken to ensure the Work Programme is delivered to high standards and meets clients needs. Our Plan is based on the assumption that the following critical path dates will be met: preimplementation from 21 February; preferred bidder status on 01 April; contract award on 02 May, and go live on 20 June 2011. In the interests of creating a start date as early as possible and reducing risk to the programme, we have indicated activity which can be undertaken at risk, i.e. before formal contracting and sub-contracting is complete in a pre-implementation period. Our analysis of implementation has demonstrated that five key issues will have top priority across North East Yorkshire and the Humber (NEYH) to

ensure we have a ready start on 20 June 2011. These are: The smooth transition to the Work Programme for existing customers. The availability of appropriately trained and operationally ready staff at all levels across the programme, most especially the need for a successful TUPE process. The availability of suitable premises to enable staff to operate and clients to receive the required levels of service from the outset. The Integration of new supply chain partners into our systems and processes and establishing close working relationships, and Carrying out the necessary due diligence and data security tests with our supply chain to meet the requirements of PRaP. Our experience of implementing multiple contracts simultaneously for programmes such as CTF has enabled us to evaluate the key risks thoroughly for NEYH and put in place activity to mitigate these. The key risks we have identified include: TUPE and staffing delays affecting contract delivery date. Our delivery model shows 33% of provision will be sub-contracted to providers with the majority remaining with NCG. Although this should reduce the risk within the supply chain, TUPE remains a particularly high risk due to the number of small, mostly local organisations which we will work in partnership with. We expect around 220 staff to TUPE into our supply and believe the integration of new staff into both the new employers and the programme itself poses many challenges, not least the effective management of the TUPE process so that job ready staff are available from day one. To support this we have established key activity in the Implementation plans that we expect all supply chain members to undertake to the same timescales to mitigate the risk. Implementation activity reduces the risk from TUPE and staffing by moving all administrative tasks to the pre-implementation stage to avoid impact on the short timescales within implementation. Assuming contract award by 02 May 2011 our TUPE action plan has been designed to help manage the effective transfer of staff within a six week period. Furthermore, we have designed implementation so that should contract award, TUPE, or any other staffing activity slip due to circumstances out of our control, we have a six week contingency period between our proposed start date of 20 June 2011 and the DWPs latest acceptable start date. The plan also reflects our assumption that referrals will commence from day one but a programme of induction and development will take place before contract start for existing staff and within the first five days of contract start for all transferring or new personnel. We will also put in place a number of events and workshops for our supply chain partners during the implementation stage to introduce and induct them into our delivery model and systems and offer practical support and advice on TUPE and staffing issues where required. Another risk related to the deployment of staff is that they are not sufficiently prepared to take on new working practices therefore affecting the quality of service delivery in the early stages during pre-implementation we intend to develop the project initiation documents and induction packs for staff while establishing the competency and skills framework for required job roles. This will allow us to utilise the implementation period more effectively to role match staff, induct individuals and design effective training sessions for ensuring job readiness across the staff resource. We have mitigated the risk associated with staff preparation for the new requirements of the Work Programme as well as the operating procedures and systems of NCG by designing a period within Implementation for training and induction of existing staff including a train the trainer programme for supply chain members. As we have a large supply chain in NEYH and a significant number of potential transferring staff we have also taken action to identify existing resource, re-deployed within NCG, who can be inducted prior to contract live date to ensure a service available to take referrals from day one, allowing new staff time for induction and training on essential operational systems such as Maytas. A key risk in implementing the programme is insufficient premises affecting ability to

deliver local services within the agreed timescales we have identified sufficient premises to deliver the volumes of customers across NEYH. As some large towns currently have no premises, a number of these centres will be new buildings requiring time to both secure leases and complete works to make them fit for purpose. In recognition of the time requirements to do this our estates strategy has moved negotiations on leases and planning for fit out to the pre-implementation stage so that on contract award we can sign legal documentation and commence small works immediately. In addition, we have allowed a two week period at the end of fit out for any remedial action and a minimum two week contingency following IT systems go live before occupation across both NCG and the supply chain partners. To ensure our supply chain partners are able to meet these challenging timescales we have already commenced visits to ensure centre compliance and will start the IS audits as soon as we receive notification of preferred bidder. While staffing and premises are critical to success in establishing the programme, information security and the integration of our MIS system Maytas across the supply chain will be a defining factor in whether DWP will allow us to take referrals on our proposed contract start date of 20 June 2011. In NEYH we have a number of existing large DWP providers, some of which have used and integrated Maytas previously. However, we remain aware that some of our new and smaller suppliers may need time to implement the requirements of our security plan. To facilitate this we intend to issue a draft of our security requirements to providers prior to award of preferred bidder and then commence initial audits and risk assessments in April following full approval of our plan by DWP. This will allow us to prioritise further audit visits for those suppliers who pose the greatest risk of not meeting the requirements or the go live date. Additionally, we have commenced work to secure additional resource to support on these audits and assessments if the event we were successful in more than one CPA. As a large volume of the delivery in NEYH will be through supply chain partners we are conscious of the significant risk posed by any one of these not prepared sufficiently to commence service delivery. The coordination and management of the Implementation stage will be undertaken by a dedicated mobilisation team with experience of successfully implementing large scale complex programmes. This team has already put in place implementation plans and risk mitigation strategies. They will also support supply chain partners in creating full implementation plans which will be integrated into the master implementation plan and monitored by the mobilisation team daily to identify any divergence from the critical path and any risks or issues that need immediate intervention and action. We believe this pro-active approach to risk management within this critical period will reduce the impact of delay on the start date and quality of the delivery for this programme. It will also enable us to take remedial action in the case of supply chain issues or instigate contingency arrangements described in section 9.2 in a timely and efficient manner. 9.2 Contingency Arrangements

Please describe: how your proposals for delivery of services within this CPA will be put in place without adversely affecting your organisations or your Sub-contractors ability to deliver existing and recently won contracts as well as other contracts you are bidding for.

in detail your contingency plan for maintaining the entire scope of your proposal within your bid should members of your supply chain withdraw prior to commencement of delivery of this contract.

Insert your response in the pre-set, shaded space of the following pages. Your response MUST be limited to two sides of A4.

9.2 NCG have experienced rapid and successful growth over the last decade, changing from a regional FE institution with a turnover of 32 million pa to a high performing national provider of employability and skills contracts with a turnover of 155 million pa.

Having implemented over 30m of new business in the last 18 months and managed more than 3,000 TUPE transfers in the last 6 years, following acquisition and integration of companies such as Carter and Carter, we recognise the inherent risks of implementing this type of programme. The impact that substantial new business activity can have on the existing resources of both the organisation and of the supply chain has not been underestimated. Seeking to mitigate risk we have addressed this in four ways through our Implementation Strategy and associated contingency arrangements: Establishing a dedicated mobilisation resource to manage the implementation activity across NCGRP and monitor and support activity within the supply chain Ongoing dialogue with suppliers across our supply chain to ensure issues affecting implementation are addressed quickly Recognising the opportunities available through late stage procurement which provide us with additional significant capacity prior to contract award if any suppliers withdraw, and Capacity building activity to support our supply chain in overcoming obstacles reducing the likelihood of withdrawal prior to commencement of the contract. Implementation is a critical period and to manage it NCG has invested in appointing a dedicated mobilisation resource. The Mobilisation Team members have managed in excess of 80m of contracts per annum both in the UK and overseas. All team members are PRINCE2 practitioners and have managed complex national and regional mobilisation for clients such as NCSL, BIS, DfE, DWP, LSIS and the MOD. In most cases they have managed many contracts simultaneously, putting in place project management and operational systems and processes and overseeing the timely recruitment of staff including TUPE. By investing in this resource we are able to deploy the necessary management capacity and dedicated project management expertise to deliver this time critical programme successfully and without impacting on existing programme management teams and their contracts. This team will be supported by additional interim team members and the corporate Shared Services, a centrally based team of business experts that provide continuous support across operations, HR, IT, procurement and legal. To date they have drawn up detailed implementation plans which identify all the activity necessary to hit the ground running by go live on 20 June 2011, which includes significant activity that will be undertaken prior to contract award . To ensure our supply chain partners can instigate the same robust approach we have undertaken detailed discussions. As part of those discussions, and the PQQ process, we gained significant information about the government contracts (and other activities) undertaken by each prospective sub-contractor, to judge whether or not they would become destabilised by the Work Programme activities and consequently the kinds of contingencies that they would implement to ensure effective delivery, to the required standards, across all of their contracts. This information was used in helping to determine the most appropriate sub-contractors for each CPA. In addition, our Mobilisation and Interim Teams will work with each sub-contractor during pre-implementation and post tender discussions to help them develop a robust implementation plan to ensure they have capacity to deliver the anticipated level of throughput by contract start date. These plans will be fully integrated into NCGs own master plan and monitored daily by the mobilisation team to ensure and risks or issues can be addressed quickly and efficiently. Maintaining capacity to deliver the full scope of services including any early increases in volumes have been considered as part of our proactive approach to risk management. Our contingency arrangements have been considered in response to a number of potential risks which may result in a supply chain member withdrawing prior to contract commencement.

Firstly, the impact of withdrawal and how to mitigate this, and Secondly, how to reduce the likelihood of withdrawal. In an attempt to reduce the risks associated with our supply chain we have worked on the assumptions that we will have more than 100% capacity in any CPA area from day one and in no area will we have any one supplier responsible for more than 33% of our service delivery. In the North East Yorkshire and the Humber (NEYH) we have a number of suppliers such as Skills for communities, Babcock Enterprise, and Igen who can take on substantial additional volumes across all areas of the CPA. This accounts for more than 230% more capacity than required presently. In addition we are maintaining a reserve list of suppliers which we have not allocated any work to at this time that we have already satisfied ourselves have the necessary skills and expertise to meet local need. These suppliers are also able to offer additional volumes across many of the CPA areas. Although we believe we have more than sufficient capacity across each area in the case of supplier withdrawal we also recognise that there are further suppliers in each CPA, who also meet our selection criteria, with whom we have not commenced dialogue at this stage. Many of these will be working with other contractors during this process and have limited their discussions at present. On notification of preferred bidder status we expect that some of these suppliers may approach us and we will work with them to identify any opportunities for working together. As part of our continuing commitment to quality delivery and our stringent performance management we intend to continue to build relationships with new suppliers both during implementation and beyond thus ensuring our service offer remains driven by local needs. Delivering a needs driven local service has been key to our strategy for securing supply chain partners. As such we believe we have a responsibility as a prime contractor to ensure we do not jeopardise the quality of delivery by loading excessive implementation risk on supply chain partners which could lead them to withdraw from the process. Therefore, we have already identified the key risks impacting on suppliers including timescales for delivery, their capacity, working capital, TUPE and information security. To support them in overcoming challenges arising we will provide a range of practical and financial assistance including support from the mobilisation team to develop robust implementation plans and risk management strategies. We are particularly aware of the needs of smaller providers and have committed to supporting their capacity building through the provision of centralised support, such as our HR or IT services, and working capital. A key strategy in this support is our partnership with the Third Sector Consortia, a not-for-profit delivery organisation who bring expertise in the delivery of a wide range of public services through a partnership approach. They support experienced smaller voluntary and not-for-profit delivery organisations and offer a unique approach to bidding for and managing the delivery public sector contracts. The support provided by NCG, the mobilisation team and the Third Sector Consortium will give them access to people, resources and training during the crucial implementation period. We believe this approach will help them to address or overcome any obstacles during Implementation and reduce the likelihood of our losing supply chain members prior to contract commencement.