PTD Meeting Notes

Date of 14 April 2011 meeting Meeting Location:

Attendees DWP: REDACTED] Serco: REDACTED]) Record of discussion REDACTED] opened the meeting and outlined the role of the Commercial Sourcing Team in getting to contract signature, prior to handover to REDACTED] team who will manage the contract. REDACTED] explained how she will act as the main conduit and requested that both herself and REDACTED] are copied in to any correspondence to ensure they are both sighted on any other elements/activity taking place prior to contract signature e.g. T&Cs and Implementations Plans. REDACTED] stated that a note of the meeting will be issued within 2-3 working days and also copied to REDACTED] team for information. PTD Purpose and Process REDACTED] outlined the purpose of the PTD process, and stated that the next PTD meeting would focus more on CPA specific elements, involving JCP from both CPAs and a walkthrough of the delivery model. REDACTED] mentioned that they have a different relationship with the West Midlands as this will be carrying on what is already being delivered. REDACTED] mentioned that a meeting is arranged for 10th May in this CPA, but nothing yet has been arranged in South Yorkshire. REDACTED] stated that our goal is to get order forms signed by 31 May and that this will be challenging given Bank Holidays. REDACTED] confirmed that this date was good for them, the sooner the better as their subcontractors are dependent on them signing the order form with us. REDACTED] confirmed that there are elements in the T&Cs that they wish to discuss. REDACTED] stated that discussions around T&Cs would take place outside of this meeting and that our position is that the current T&Cs is a final document, and REDACTED] in Birmingham will be taking this forward. Next Meeting REDACTED] stated that the next meeting(s) will be more detailed, allowing DWP to understand the implementations plans, identify gaps/issues and look at how it all fits together. REDACTED] also mentioned that any written response from Serco to questions raised by DWP through PTD discussions must have the following paragraph inserted at the beginning: I would like to clarify minor aspects of my offer to deliver the Work Programme in CPA [insert no] submitted in tender document of [insert date]. I agree should my clarification be accepted by DWP, I will be

Supplier Name:

Serco

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bound by all details contained in the original proposal pack and to the additional point below. Finance Meeting REDACTED] confirmed that a finance meeting was arranged for 27 th April to pick up any issues, and areas for discussion were briefly discussed. Post Tender Discussion Charter REDACTED] said that we were hoping to sign the PTD Charter at this meeting if possible. REDACTED] requested time to look at this to check with Sercos commercial people; to ensure that signing this does not impact on their ability to discuss the T&Cs. He anticipated being able to get back to us quickly. Feedback REDACTED] briefly outlined the areas in the tender where Serco had not scored an 8, and some discussion took place, in particular, around TUPE. Overall, from a qualitative perspective the bid was excellent, with no comments raised by JCP, however, cost had impacted the final decision. Merlin Standard There was discussion over the involvement of REDACTED] in the development of the Merlin standard. REDACTED] stated that mandatory accreditation of Merlin Standard is required within the first 12 months and that costs of accreditation would be borne by the supplier. Accreditation readiness was not tested at the evaluation stage. REDACTED] stated that it was a shame that evaluators did not have the ability to consider the level of investment made in quality. REDACTED] stated that DWP are always looking at lessons learned from procurement and this could be fed into this process. REDACTED] asked whether DWP would remove a contract where a provider failed to gain Merlin accreditation. REDACTED] replied that we need to have an improvement process in place before we go to the extent of removing contracts for something major, but that this was our stance and we must follow through. REDACTED] confirmed that once it has been agreed how the process will be managed we will let them know. Amendments to the Tender REDACTED] stated that the current tender was written on the basis of a Welfare-to-Work base of a certain size and that the structure and scale will now be significantly different as revenue generated will be smaller. This will impact on details in the bid regarding the management structure and the proposed new IT system, which will now not be built. REDACTED] provided assurance that they would still deliver what was stated in the tender, using the existing system, and subcontractors and implementation plans will be the same. REDACTED] asked if they could provide a table of amendments to append to the tender and confirmed that they would have this completed by 31 May. REDACTED] suggested that in light of this, we should consider postponing the date of the next meeting until beginning of May and work with them on the amendments. REDACTED] also mentioned that security specialists would need assurance

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that IT systems were relatively the same, if a decision was made that this needed penetration testing it would impact timescales. REDACTED] asked if the amendments will affect the proposed start date. REDACTED] stated that they could meet a go-live date of the 1st June in West Midlands; however, as ESG cannot meet this timescale Serco would prefer to aim for 1st July. REDACTED] confirmed that they will still be aiming for a start date of 1st July in South Yorkshire CPA even though A4E would prefer an earlier date. REDACTED stated that the Department is trying to align start dates in each CPA and Ministers are keen for go-live on 1 st June where possible. REDACTED] confirmed that we will feed REDACTED] comments into the discussion and get back to him on this. Prap REDACTED] referred to delay in the availability of Prap until May 2012 and asked if DWP will be covering additional costs associated with manual process, as the tender was costed on the basis of an automatic system. REDACTED] agreed to take this question away. Supply Chain REDACTED] asked if any overlap with named subcontractors had been explored for example, any contingency/exclusivity agreed. REDACTED] replied that this had not been looked at in detail. REDACTED] said that subcontractors have been asked what their plans are for working with both Primes and 1-2-1 conversations with them are about to commence. REDACTED] also said that they have multiple providers at each stage and reserve providers who can pick up referrals if required. REDACTED] also asked if subcontractors will be working out of the same premises for both Primes. REDACTED] replied that they are asking for detailed information regarding delivery areas, which would show this. REDACTED] added that there may be overlap in smaller areas, but didnt think it would be an issue. REDACTED] said they were putting together a document to ensure the quality of all delivery sites. REDACTED] agreed to update DWP once they knew what the situation was. Weekly Reporting REDACTED] discussed the requirement for completing the weekly reporting stencil and asked for sight of their Risk Log. This was agreed with the report fitting into Sercos Friday reporting cycle. PAT REDACTED] said that PAT team would be likely to look at some issues from the previous PAT prior to go live REDACTED confirmed that they had been working on some areas and had a high risk rating due to the size of the contract and some process issues. Transparency Agenda REDACTED] stated that to achieve transparency Government requires all contracts over 10,000 be published in full. REDACTED] will be contacting organisations to establish what they might wish to redact but we expect thie

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amount of redaction to be very limited. REDACTED] stated that this has his full support but would want a degree of consistency between suppliers. REDACTED] confirmed that we will look to get some consistency as to the level of information across all tenders.

Questions raised and Answers provided.

Q1: REDACTED] asked if DWP be providing a national walkthrough for JCP prior to go-live, as FND was problematic during the first three months. A1: REDACTED] said that we will raise this as a possibility and let them know. Q2: REDACTED] asked if DWP will be covering additional costs associated with manual process until Prap is available May 2012, as the tender was costed on the basis of an automatic system. A2: REDACTED] agreed to take this question away.

Q3: REDACTED] asked if any overlap with named subcontractors had been explored for example, any contingency/exclusivity agreed. A3: REDACTED] replied that this had not been looked at in detail. REDACTED] said that subcontractors have been asked what their plans are for working with both Primes and 1-2-1 conversations with them are about to commence. REDACTED] also said that they have multiple providers at each stage and reserve providers who can pick up referrals if required. REDACTED] will provide an update once the position is known. Q4: REDACTED] asked if they could provide a table of amendments to append to the tender due to the change in size and structure of their Welfareto-Work base. A4: REDACTED] agreed and suggested we should work with them on the amendments.

Action Points

AP 1: REDACTED] to raise the issue of a JCP walkthrough prior to go-live. AP 2: REDACTED] to work with REDACTED] on amendments and to have telephone discussions prior to next meetings beginning of May. AP 3: REDACTED] to contact REDACTED] to arrange next meeting (2 separate sessions). AP4: REDACTED] to ensure that REDACTED] and REDACTED] are copied in to any correspondence in respect of other activity during PTD period. AP5: REDACTED] to let preferred bidders know arrangements for managing the Merlin process once this is known.

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AP6: REDACTED] to consider the PTD charter and get back to us. AP7: REDACTED] confirmed that we will feed REDACTED] comments in respect of proposed start dates into the discussion and get back to him. AP8: REDACTED] to take forward the query regarding whether DWP will pick up costs for manual process until Prap is available. AP9: REDACTED] to update REDACTED] once the position with potential overlap of subcontractors and premises is known. AP10: REDACTED] to provide weekly implementation reports to REDACTED] (commencing Friday 15th April) and a copy of the Risk Log.

Action Point Owner Author Date Returned to generic Inbox

As indicated
REDACTED]

Date(s) for Clearance Date recorded

By next meeting 14/4/2011

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