The Merlin Standard: Improving Work Programme Supply Chains

2. The Merlin Standard:Improving Work Programme Supply Chains Chris Higgs Jane Malbasa Department for Work & Pensions

3. The Merlin Standard Aims & Objectives Background Vision Exploring the Standard, expectations & implications National roll out of the Standard Questions & Discussion Contents

4. The Merlin Standard • A DWP and W2W industry developed Standard of Excellence in supply chain management • Aims to ensure fair treatment of partners and subcontractors by Prime Contractors. • Achieved through process of self assessment, independent evidence based assessment & accreditation by assessment body, validation of evidence by sub-contractors

5. Origins are DWP’s Commissioning Strategy and Code of Conduct Development & piloting of the Merlin Standard National roll out- A requirement of Primes within 12 months of contract let from the Framework Vision for the future Progress to date and future aspirations

6. 4 key Principles: Supply chain Design Elements Criteria Commitment Conduct Review Principles, Elements & Criteria

7. The Merlin Standard – Version 10 Merlin Assessment & Accreditation Service & Assessment Guidance Merlin Web Portal Merlin Mediation Service Merlin Products

8. Assessment & accreditation by appointed body Site visits Validation with prime & subs Assessment Guidance Scoring ranges Excellent 85% + Good 70 – 84% Compliant 55 – 69% Unsatisfactory 0 – 54% Merlin Assessment & Accreditation Service

9. Web Portal launched in November 2010 Focal point for all Merlin activity A practical tool to support prime & prime contractor engagement - potential Sub-contractors can register and upload profiles User friendly design based on consultation www.themerlinstandard.co.uk The Merlin Web Portal

10. A developing service that is part of a disputes handling process Independent service positioned to mediate in cases that have failed dispute resolution The Mediation Service will be delivered by the Independent Case Examiner (ICE) and be available from summer 2011 Merlin Mediation Service

11. Strategic monitoring and advisory body that will support DWP in providing leadership for The Merlin Standard DWP, Cabinet Office, Welfare to Work industry, & independent representation Terms of Reference: Oversee the Standard, providing assurance that the core Merlin products of Assessment & Accreditation, and Monitoring & Arbitration, and supporting Guidance and Merlin Web Portal, are delivered and developed to a high standard and in the spirit of the DWP Commissioning Strategy Code of Conduct. The Merlin Advisory Board

12. Rigorous measurement of supply chain working Illustrations of requirements to achieve and maintain the Standard Penalties for non – compliance Publication of Assessment reports Suspend eligibility to benefit from ‘market shift’ Action on breach of contract Expectations & Implications

13. Scope & variety in supply chain design Communicate proactively with supply chain @ all stages of procurement Consultation with supply chain to inform decisions Culture of openness & honesty Development of staff within Supply Chains Assisting SCPs access funding & support Fair & transparent procurement processes & selection of SCPs Funding arrangements fair & not causing financial risk to SCPs Contracts defining obligations Negotiated volume, funding & performance expectations Rationale for market share Requirements of SPCs taken into account Merlin criteria – illustrating the expectations of Prime providers

14. Management fees discussed and agreed Mutually agreed core principles Clear TUPE strategies SC updated re- legislation & contractual requirements Policies to maintain security of data and assets Maintain healthy & safe environment Post contract funding & arrangements reflect pre-contract agreements Dispute resolution processes for SCPs Bound by mediation service decisions Evolving Supply Chains Further details of the Standard - Expectations of Prime providers

15. Supply Chain Design: ‘Innovative supply chain examples had wide scope and variety, targeted resource towards hardest to help groups, explored and utilised alternative funding sources, and up-skilled internal resources to address local gaps in provision.’ Commitment: ‘Some Primes provided excellent examples of capacity building and development of supply chain partners, including provision of front loaded funding, interest free loans, shared infrastructure, support in achieving security compliance, and provision of staff training and development activities. ..engendering a one team ethos across the entire supply chain, and a sense of shared ownership’ Conduct: ‘Good practice included evidence of holistic approaches, incorporating regular supply chain feedback, robust and supportive quality assurance, and positive focus, embedded throughout the supply chain’. Review: ‘Best practice examples include development of corporate strategies for reviewing and evolving the supply chain as customer needs are reviewed and reassessed’ Pilot Assessments - Examples of best practice

16. From Pilots ……. • We are at a juncture • Merlin Pilots have informed the design and progression of Merlin Standard model • Lessons from pilots adopted in national design

17. …….to National Implementation Version 10 of the Standard available, & Assessment Guidance to be released The Merlin Standard co-regulated by Government and Industry through a representative Advisory Board Procurement for an independent Assessment & Accreditation Service, & Web Portal maintenance to commence shortly, scheduled to be launched in Autumn 2011 Mandatory requirement for Prime providers to be accredited under the ‘Merlin Standard’ within 12 months of contract award, from introduction of the Work Programme Penalties will applied for non – compliance A new Mediation service delivered by Independent Case Examiner provides a route for complaints from sub-contractors

18. For further information contact: Jane.malbasa@dwp.gsi.gov.uk Monya.ladipo@dwp.gsi.gov.uk Visit Exhibition Stand 9 www.themerlinstandard.co.uk

19. Questions & Discussion