Further reflections on the Work programme

The much anticipated outcome of the Work Programme competition has now been revealed. 18 different Framework providers have been rewarded with contracts. Ingeus UK have been named as preferred bidder in 7 Contract Package Areas, with A4e winning 5, and Seetec, Avanta and Working Links winning 3 contracts each. The voluntary sector was represented on the preferred bidder’s list by CDG and Rehab Jobfit. The earlier suggestion that FND providers might do well in their existing territories didn’t hold true. More importantly, Grayling’s assertion last month that every bidder would have a bite of the cherry proved to be unfounded. In other words, he lied. Three FND contractors (Remploy, The Wise Group, and Skills Training UK) were not named as preferred bidders, whilst several other primes missed out in areas where they are currently delivering FND, but picked up wins in other parts of the country. Framework bidders who were not named as preferred bidders included Atos Origin, BBWR, Eaga, PeopleServe, and Shaw Trust. As successful bidders and their subcontractors try to digest the result, attention will inevitably turn to the ramifications these results presents, the working capital requirements, and how long term return on investment might be achieved in practice. One can only speculate how Ingeus will finance their activity in 7CPAs!! Dean James, Chief Executive of Ingeus UK, said: “Ingeus is committed to successful delivery of this critical programme, to help transform people’s lives through lasting employment and to make a positive impact on society and the economy.” Andrew Dutton, Chief Executive of A4e, said: “The results today build on our strong track record of partnership working: more than 52% of our existing welfare to work supply chain partners and 68% of our total proposed Work Programme supply chain are public or third sector organisations, many of them small and specialised. A4e is delighted this news allows us to build on these important relationships to deliver our core purpose – improving people’s lives.” Michelle Manson, Managing Director at BEST, said: “I am absolutely thrilled that BEST has secured a Work Programme contract in West Yorkshire, as one of the smallest providers on the Framework we are particularly pleased with the outcome!” Kirsty McHugh, Chief Executive of ERSA, said: “ERSA welcomes the government’s early announcement of the successful Work Programme bidders and congratulates all those who have been successful in their bids. This is the culmination of a rapid and demanding procurement process, which has tested the mettle of private and voluntary sector providers alike.” What none of them will answer is how many redundancies we can anticipate within the sector as Primes prepare for delivery of the new programme on 1st June, 2011.