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 Ingeus UK Limited 10 CPA 8 Scotland

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: Ingeus UK Limited

Ingeus UK (referred to in bid as Ingeus-Deloitte) 4320853 29 Ludgate Hill London EC4M 7JE

Head Office Address, if different:

VAT Registration Number: Website Address (if any): Name, address and company registration number of parent company, where applicable:

The Registry 3 Royal Mint Court London EC3N 4QN Ingeus UK Ltd 799246858 www.ingeus.co.uk 1) Ingeus Ltd GPO Box 3208 Brisbane Queensland Australia, Registration number ABN 46 010 948 731 2) Deloitte LLP 2 New Street Square London EC4A 3BZ LLP Registered number OC303675 [REDACTED] Director of Business Development The Registry 3 Royal Mint Court London EC3N 4QN [REDACTED]

Name and Job Title of main contact: Address:

Telephone no:

Mobile telephone no: Fax no: E-mail address: Alternative contact Name and Job Title:

[REDACTED] [REDACTED] [REDACTED] [REDACTED] Chief Operating Officer

Address (if different from above): Telephone no: Mobile telephone no: Contact e-mail: [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:

12/02/11 [REDACTED]

Job Title:

Ingeus UK Limited - CEO

Duly authorised to sign Tenders on behalf of: Name of Organisation: Ingeus UK ltd

Ingeus UK Limited

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 Clause 2.13.7 (Performance We are content with the performance improvement Improvement Process) process specified, and would welcome further clarification from the Department regarding presumed management escalation prior to termination

Clause 3.1.10 (Fees and Payment)

Clause 6.1.9 (Transfer and Sub-Contracting)

Could the Department confirm that the grossing-up provisions in clause 3.1.10 relate to those checks carried out under clause 3.1.9, and also provide some clarification on what opportunity there may be for a Prime Contractor to submit additional evidence as part of this process? Could the Department clarify that any breach of clause 6.1.9 would be treated the same as other breaches, for the purposes of determining whether or not it is material? We would like to propose an amendment to this provision to introduce a liability cap, in line with the other liability caps in the contract.

Clause 7.1.1(k) (Liability, Indemnity and Insurance)

We would like to propose an amendment to this provision to introduce a liability cap, in line with the other liability

caps in the contract. Clause 8.8 (Business Continuity) We would welcome an opportunity to discuss with the Department how management escalation processes would operate, prior to the Department choosing to exercise its rights under 8.8.4

Other than those provisions identified above, Ingeus UK Limited 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:

[REDACTED] [REDACTED]

Scanned Signature: Position: Telephone No: CEO Ingeus UK Limited [REDACTED]

Date:

12/02/11

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 four 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 Ingeus-Deloittes Every Day Counts delivery model will provide every Work Programme customer in Scotland with a tailored and intensive package of support, designed to quickly address complex barriers to work and provide a fast and effective route to sustained employment. Every Day Counts will harness the knowledge and expertise of a range of local providers and will prioritise high levels of intensive activity to increase speed to placement. Every Day Counts is designed for all customer groups including those on Jobseekers Allowance (JSA) and Employment Support Allowance (ESA). The intensity of support and choice of interventions will be tailored to each customers individual needs. Appropriate levels of mandatory activity will apply to key steps and JSA customers will experience increasing conditionality throughout the programme. All customers will receive holistic support to tackle their barriers to employment. Our core model has been adapted to meet the particular requirements of customers across the whole of Scotland. Every Day Counts incorporates four specially developed stages: Diagnostics, Intensive Support, Skills Plus and Breakthrough, during which customers can enter employment at any time. On entering employment, customers will automatically graduate to the Careers Academy, where they will receive tailored support to help them remain in employment and build a sustainable career path. Each stage will be underpinned by: the personal support of an Employment Advisor (EA); intensive job-searching activities; employer engagement; work placement services; a range of skills options; practical faceto-face assistance from specialists in our Health & Wellbeing service; advice and support on issues such as debt and substance misuse from our Accessible Community Experts (ACE) Network; and access to our innovative online job-search and matching support tool, Invisage. EAs will perform in-work benefits calculations to assist clients to understand the financial benefits of work. Every stage on the programme is focused on the employment outcome, and customers will be encouraged to find work at the earliest and most appropriate opportunity. Transitions between stages will be marked by a Review & Refresh appointment which will assess progress made and identify next steps. Stage 1 - Diagnostics (weeks 1 to 4) Prior to their first appointment, customers will be sent a Welcome Pack that includes: travel directions; our Customer Pledge outlining our minimum service levels; and a Rights and Responsibilities leaflet. To maximise speed to placement we will undertake thorough diagnostics with every customer to identify barriers to employment and ensure they are actively engaged. At their first appointment, each customer will be introduced to their EA. Customers will be given support from their EA to complete our AWARE online selfdiagnosis assessment, which assesses confidence and motivation levels and, where relevant, our Health Assessment, which is designed to assess functional, vocational and psychosocial workplace capabilities and which builds on ESA customers Work Capability Assessment reports. Together, they will build an Action Plan based on: the customers employment and skills history; job goals; basic skills levels; and personal circumstances. The Action Plan will be reviewed and updated at least once every eight weeks to ensure our support reflects the customers changing needs. Diagnostics will be underpinned by job-searching activity from day one and customers ready to enter employment will be given a priority mock interview and immediately matched to a suitable vacancy. Diagnostics may take up to four weeks for customers with multiple and severe barriers to employment, such as those who have been claiming IB for more than five years. Customers identified as having low basic skills may be fast-tracked to Stage 3 and then return to Stage 2 if required. All other customers will progress to Stage 2. During Diagnostics, all customers will attend our induction session to gain an overview of our programme, the support available and health and safety practices.

4.1 (continued) Stage 2 - Intensive Support (weeks 5 to 16) At the beginning of Stage 2, each customer will enter into one of the following 12 week modules based on the results of their Diagnostics: Boost, Enterprise, Engage or Steps to Work. These modules either: fast-track them to employment (Boost); assist them to enter self-employment (Enterprise); provide holistic support to address their psychosocial barriers to work (Engage); or improve their health and wellbeing in preparation for work (Steps to Work). A full list of Intensive Support interventions is available in Annex 1. Boost a high intensity approach to job-searching which enables customers to improve the quality and quantity of their job-seeking activities in order to move into sustainable work at the earliest opportunity. We expect the majority of JSA customers to access Boost, as well as any other customer immediately able to work. Key activities under Boost include: priority access to local vacancies sourced through our Employer Services Team (EST); Employer Routeways (consisting of vocational training and guaranteed interviews); Interview Skills workshops and mock interviews; help with speculative applications; basic skills support; updating and improving CVs and cover letters; IT training workshops to undertake effective online applications and use our online portal Invisage; and reverse marketing (where EAs proactively market customers to prospective employers). 18-24 year old customers will be referred to our Step Ahead two week motivational course. Enterprise a comprehensive package of support for customers wishing to pursue selfemployment. This will be delivered by self-employment specialists DHP who will work alongside Chambers of Commerce, Business Gateway and organisations such as the Princes Scottish Youth Business Trust to provide support with business planning and workshops on book-keeping, tax advice and marketing. This will be supplemented by support from Ingeus-Deloitte such as help in accessing funding and an online Community of Practice. Deloitte supports the Entrepreneurial Exchange Entrepreneur of the Year awards, which place a particular emphasis on the importance of women in business. We will encourage all suitable customers to become self employed, and promote it to those from disadvantaged groups. Customers will be able to test trade their business for up to 26 weeks and extend Enterprise into Stage 3. We expect self-employment to be a suitable outcome for a wide range of customer groups, particularly ESA customers who may require greater flexibility in their employment to accommodate a health condition. Engage provides holistic support to tackle multiple and complex barriers to ensure hardest to help customers move closer to and into work. Interventions are based on: psychosocial solutions such as Cognitive Behavioural Therapy (CBT) based workshops; workshops covering family topics such as budgeting and healthy eating; techniques to address low levels of motivation and self-esteem common in customers from areas of severe deprivation and intergenerational worklessness such as the Breich Valley in West Lothian and Port Glasgow in Inverclyde; raising aspirations and levels of self-confidence; encouraging customers to travel to areas of higher employment such as Edinburgh and Glasgow; and undertaking activities to address specific barriers to work including debt and substance misuse. Customers requiring additional support will be referred to our ACE Network and local support services. Throughout Engage, customers will be provided with intensive vacancy searching and matching support through one-to-one and group activities to maintain consistent focus on securing work. Customers accessing Engage will include JSA Early Access customers who are more likely to have complex barriers. Steps to Work provides integrated health and employability support for customers for whom health is the main barrier to employment. This module has been specifically designed for ESA Flow, ESA Volunteers and ESA ex-IB customers to help them prepare for a return to job-seeking activity and work. Over 49% of all benefit claimants in Scotland are claiming due to a health condition and in many urban parts of the Central Belt, poor health remains the most significant barrier to work. Steps to Work contains particular

4.1 (continued) emphasis on pain management, improving mobility and tackling root causes of depression in order to enter employment. Specialist Health Advisors will meet customers on a regular basis to provide one-to-one employment support and refer them to specialist provision offered through our ACE Network and Health & Wellbeing service (described below). Our EST will source suitable vacancies with flexible hours and will advise employers on making any necessary workplace adjustments through Access to Work funding. Customers who become able to undertake more intensive job-seeking activity can move to another Stage at any point. Steps to Work continues until customers are able to undertake mainstream job-seeking activity. Transition points will be marked by regular review and refresh appointments. Stage 3 Skills Plus (weeks 17 to 52) The purpose of Stage 3 is to address customers skills needs and/or lack of recent work experience, and to build on job-search skills developed in the previous two Stages. Customers identified as having low basic skills will be fast-tracked to this Stage following diagnostics. During this Stage, every customer will participate in an 18 week sector-specific vocational training course and/or tailored work placement. The Vocational Routeway will be supplemented by job-search activity and one-to-one support will be provided by their EA throughout the rest of the Stage. Customers will choose from a range of Vocational Routeways provided by subcontractors that are experienced at delivering training and apprenticeships and have close employer links. These providers include Capital City Partnership, the Lennox Partnership and Remploy. Vocational Routeways have been informed by our work with local employers including Royal Bank of Scotland, beCogent and Scottish Water to take into account local skills gaps, particularly at Foundation and Level 1 and 2 in the food and drink, care, business services and emerging energy and environmental sectors. One-to-one jobsearch activities will underpin this Stage throughout. Stage 4 Breakthrough (weeks 53 to 104) Stage 4 is designed to provide additional support and increased conditionality for those who are still searching for work after a year on the programme. Customers will be introduced to a group of peers who will meet at least once per week to support one another with job-search activities and to maintain focus. At each weekly meeting (led by a Group Facilitator) customers will jointly review progress and plan activities for the next seven days. In addition, our Placement Broker Team and subcontractors will utilise their employer links and those with local volunteer bureaux to source a six month community work placement (mandatory for JSA customers) that fits with each customers job goal and aspirations. During this stage, continued support will be provided by the ACE Network and EAs to address the reasons why customers have not previously entered employment. If customers reach the end of the programme, they will have a Final Interview with their EA and together they will plan the next three months job-searching activity and complete a final Action Plan which will be shared with Jobcentre Plus. In-Work Support - the Careers Academy When customers secure work, they will automatically gain membership of the Careers Academy which provides comprehensive in-work support and career development advice. Upon an offer of employment, and typically during the first six months in employment, customers will be supported by their designated EA. Before starting work, the customer and the EA will work together to draw up an in-work Action Plan and undertake the necessary preparatory activities including completing Working Tax Credits and Housing Benefit forms, sourcing childcare and arranging travel passes. All customers will be encouraged to attend our Flying Start workshop to find out about the in-work benefits available to them and to get advice on

4.1 (continued) managing the first few weeks in work and common issues that may arise. Through the Careers Academy customers will have access to the following support: 1) In-Work Advisor Support - Customer Support Co-ordinators will provide support for customers six days a week via a freephone number, text and email from our Customer Contact Centre in Oban. Staff will regularly contact in-work customers and provide immediate responses to queries and requests for support on issues such as budgeting and in-work benefits. JSA Early Access, ESA Flow, ESA Volunteer, ESA ex-IB and JSA ex-IB customers will be tracked more intensively, as higher support needs may make it more likely that they fall out of work. Customers needing more attention will have their case escalated for a same day response from Specialist Support. 2) Specialist Support - specialist In-Work Advisors provide advice over the phone and in person on complex issues such as amending child maintenance payments and inwork dispute resolution. Advisors will refer customers to community based experts where appropriate such as local tax professionals and housing Support Workers. 3) Career Development Support - after six months in employment, customers will be referred to an IAG qualified team of Advisors who will offer a telephone based appointment to advise customers on progression opportunities. 4) Rapid Response Team (RRT) - any customer who is likely to or who has fallen out of work will be referred immediately to the local RRT who will work closely with our EST to source viable alternative employment as quickly as possible. The model recognises that a quick response is critical to help customers sustain employment. Any customer who does not find employment within four weeks will return to the core programme. Cross Programme Services: Throughout Every Day Counts, customers will be able to access the following services when appropriate: Health & Wellbeing our integrated Health & Wellbeing service is delivered by our team of Specialist Health Advisors and incorporates CBT based interventions, workshops on Relaxation Techniques and Healthy Eating and weekly walking groups. One-to-one counselling and support is also available. Invisage - our online customer portal Invisage enables customers to job-search freely from any internet enabled computer and undertake a range of e-learning modules. Each customer will be provided with an Invisage account, training in how to make the most of its functions, with support for those with limited IT skills. Key features include: intelligent job-scraping software which filters suitable job vacancies from multiple websites; Working In... podcasts; and a suite of online training packages. We will make effective use of telephony, web and SMS text media for contact, reminders and notification of jobs. learndirect Scotland skills packages customers will be able to access a variety of learndirect Scotland online training packages through our fully equipped Job Stations. These include English for Speakers of Other Languages and Keyboard Skills. The ACE Network a pool of third sector providers who will work from core delivery sites to offer specialist support that customers can access whilst on Every Day Counts. These include Clarion (for the aurally impaired); Action for Blind People (for the visually impaired) and Apex (ex-offenders). The ACE Network will support all customers, but particularly those with multiple and severe barriers to employment such as those in the JSA Early Access, ESA ex-IB and JSA ex-IB groups. Employer Services Team our dedicated team of Employer Account Managers will be embedded within our delivery sites across Scotland. Each year, they will source thousands of vacancies to which Work Programme customers in Scotland will have priority access.

[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 three sides of A4.

4.1a Our customer journey brings together the experience and highest performing practices from Ingeus 21 years experience in delivering welfare-to-work contracts with Deloittes expertise in designing customer journeys. For example, Deloitte has recently worked with Jobcentre Plus and NHS Scotland to streamline the journeys of their respective customers. Every Day Counts is based on the fact that speed to placement is key the longer a customer is out of work, the harder it is to return. Every Day Counts has been designed to meet the needs of JSA, ESA , IB and IS customers and has been tailored to meet the specific needs of customers in Scotland. The model brings together proven techniques as well as innovative new features designed specifically for the Work Programme. Every Day Counts is based on the findings of a six month research project undertaken by Ingeus and Deloittes Operations Excellence practice. The project combined an analysis of Ingeus existing operating models, a study of over 100,000 Ingeus customer records and feedback from over 500 customers. We conducted consultations with local stakeholders and tailored our core delivery model to achieve key objectives of the Scottish Government including empowering people, supporting employers and strengthening partnerships between the public, private and third sectors. We identified the following overarching principles which have been embedded throughout: Every Day Counts Our research demonstrated that customers must undertake meaningful activity every day in order to best progress towards employment. Customers who become inactive tend to drift and disengage, while those who are set structured activity in between appointments are substantially more likely to enter employment. For customers who are furthest from work, the key is that activity should be focused on constant progress. Our model therefore encourages high levels of activity throughout. Immediate engagement - Reducing the time from customer referral to programme start is key to maximising speed to placement. The importance of immediate engagement is supported by Australian DEEWR research that demonstrates the negative effect on job outcome rates of long lag times between referral and first appointment. We will therefore aim to conduct first appointments within five days of each customers PRaP referral. Integrated health support Our experience of helping over 3,700 ESA and IB customers in Scotland into employment shows us that they benefit from integrated employability and health services. Every Day Counts offers an in-house Steps to Work module and Health & Wellbeing service that provides customers with access to trained health professionals who will support customers in the ESA and ex-IB groups in managing their health conditions. Holistic support - Over 50% of long-term unemployed customers and those on health benefits face multiple barriers to work common in areas of chronic intergenerational unemployment, such as Whitfield in Dundee and Ferguslie Park in Paisley. We know that these customers are unlikely to find work without holistic support that meets all their needs. We have therefore designed Every Day Counts as a one-stop-shop where customers can access a range of specialist support from our Accessible Community Experts (ACE) who will offer interventions to tackle barriers such as substance dependency and offending behaviour. Although all customers are likely to face at least one barrier to work, we expect JSA Early Access, JSA ex-IB and ESA ex-IB groups to have particularly acute constraints and therefore benefit most from this approach. Personalised support - Our research found that central to every customers journey back to work is a consistent relationship with an Employment Advisor (EA). All customer groups demonstrate a greater ability to effect positive change if they have developed a trust based relationship with their EA. This is principally because EAs are able to encourage customers to access different interventions and deliver difficult messages. Furthermore, we found that EAs who specialise in supporting a particular customer group

4.1a (continued) perform better than generalist EAs. For example, we witnessed a 67% performance uplift on our Employment Zone contracts when we introduced specialist lone parent Advisors. Every Day Counts will therefore incorporate specialist EAs for the following customer groups: those on health benefits; lone parents; and the hardest to help (more than three years out of work and experiencing multiple barriers). Fresh momentum for changing needs - Evidence from New Deal (ND) delivery has shown that job outcome rates increase by 35% around transitions between different stages of the programme. This is due to the fresh ideas and changes in momentum that transition points create. Therefore, all modules in Every Day Counts are time limited. At the end of every Stage there will be a Review & Refresh session, where the customer and EA assess progress and set fresh objectives. Employer-focused delivery Since the expansion of our Employer Services Team in Scotland our job outcome performance improved by over 20% as we are able to immediately match customers with local vacancies using our ADAPT recruitment software. For example, by working with Sainsburys for their new store opening in Livingston we were able to fill 85 jobs through the rigorous preparation, training and selection of our customers. Rationale for each Stage of the Customer Journey Stage One Diagnostics (identifying appropriate interventions): Thorough and engaging diagnostics are critical in identifying targeted interventions for each customer and need to be underpinned by job-search from day one. They help to provide a personalised journey back to employment and increase customer engagement. Our Flexible New Deal (FND) delivery demonstrates that high quality diagnostics at the beginning of the customer journey increase conversion rates by over 5% in the first four weeks of the programme. Performance on subsequent stages also improves. All the elements of the Diagnostics Stage, such as the AWARE online tool, are custom-built to form a total picture of every customers support needs. Stage Two Intensive Support (maintaining high activity levels throughout): Our experience from Flexible New Deal and Pathways to Work shows that programmes with high levels of activity deliver the strongest job outcome performance. Our Performance and Analysis Team looked at the number of appointments attended during the first two months on FND. Conversion rates were 20% higher throughout the programme for customers who had attended over three EA sessions per week during the first two months. Both Boost and Engage therefore develop intensive activity and job-searching habits early on in the customer journey. To address psychosocial barriers, the Engage stream also provides specialist Cognitive Behavioural Therapy (CBT) support. This will be particularly important for the JSA Early Access, JSA ex-IB and ESA ex-IB customer groups who will often be further from the labour market. Our Enterprise module has been designed to stimulate entrepreneurism and drive up levels of self-employment. Stage Three Skills Plus (skills, training and work experience): Scotland has several concentrations of low skill areas and long term claimants. In Motherwell, for example, 19% of working age residents possess no qualifications against a UK average of 12%. The Skills Plus stage provides each customer with a tailored programme of vocational training, work experience and advice on working in particular sectors. Ingeus and our subcontractors will offer Routeways in growth sectors, such as food and drink and health. Stage Four Breakthrough (combining work placements and peer support): Breakthrough is based on evidence from our ND and FND contracts that fixed activity elements increase job outcome performance. We see spikes in job entries before and during full time activity elements. Breakthrough therefore incorporates a six month work placement which is mandatory for JSA customers and encouraged for all others. Customers will be supported by a group of peers through a weekly group session this

4.1a (continued) is based on the group element of our New Deal Gateway to Work programme which has proven effective at changing ingrained behaviours. This will help customers build on the skills they have developed to make the final step into employment. The Careers Academy (ongoing personal support and career development): Ingeus Centre for Policy & Researchs (ICPR) Sustainability Project discovered that 81% of sustained job outcomes were due to three core factors - the right job fit and work environment, appropriate support in the first three months, and appropriate attitudes and behaviour. The Careers Academy has therefore been designed with the explicit objectives of providing: meaningful support through the transition phase; opportunities for customers to progress within the workplace; help in increasing earning potential and support to develop appropriate in-work attitudes. Our IAG qualified In-Work Advisors will break career goals down into achievable milestones and help customers plan the necessary steps to achieve their goals. Benefits to individual customer groups Young people There are high numbers of JSA 18-24 customers across Scotland, who often lack basic employability skills. Our Step Ahead goal setting course will help younger customers in their career planning. We will commission the services of specialist providers, such as Street League, who will specialise in motivating young people through sport. We will also work with our supply chain to help source apprenticeships and appropriate training opportunities. Customers with health and lifestyle barriers Our two Pathways to Work contracts are ranked in the top four out of 34 contracts in the UK. Our in-house Health & Wellbeing service provides on-site access to trained Physiotherapists and Psychologists and is critical to our success. Health & Wellbeing will be of particular relevance in areas such as Glasgow, where 13% of the citys population claim ESA/IB. Customers living in areas with high rates of seasonal employment Many rural parts of Scotland feature seasonal industries such as agriculture and tourism. We will support individuals to secure permanent employment by balancing a portfolio of seasonal jobs. On the contracts we currently deliver in the Borders, for example, some customers work in agriculture during the peak season, in holiday parks for the summer and then progress to retail positions or work for Royal Mail for the Christmas period. Families, including parents and carers To address the needs of customers in areas such as Glasgow and Dundee where the rate of lone parent claimants is more than double the national average, we will provide dedicated EAs with specialist knowledge in childcare, relevant benefits, and securing work with family friendly hours. We will also work with organisations who are part of local Family Information Services in Scotland who provide access to term time training and run workshops on relevant benefit entitlements. Rural isolation Residents of rural and island communities will benefit from over 65 outreach sites and appointments via the telephone and Invisage, our online portal. To address the impact of the migration of the younger population from island areas Third Sector Hebrides will encourage social integration for 50+ customers and support younger customers through job-matching to emerging local industries. Self-employment ventures Below average rates of entrepreneurship (7% in Eilean Siar and 5% in Fife) and a lack of employer vacancies in rural and island areas will be addressed through our dedicated Enterprise scheme (delivered by DHP) and by providing mentoring through Deloitte and local business experts from local Chambers of Commerce, who will help customers develop and test robust business plans. Black & Minority Ethnic (BME) Customers Although Scotland has a relatively low BME population, there BME populations in Glasgow have lower that average employment rates . We have partnered with the Scottish Refugee Council and Big Word Translation who work with BME groups by providing ESOL and culturally sensitive engagement.

[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 Ingeus has an outstanding reputation for providing high levels of customer service in its welfare-to-work provision. In our recent Customer Satisfaction Survey, 83.2% of customers described the service they received at Ingeus as Excellent or Very Good. HMIe commented in their 2010 inspection of our Scottish Pathways to Work provision that our work with disadvantaged customers was having a positive impact on participants confidence and work readiness. For the Work Programme in Scotland, we have agreed exacting minimum service levels that will apply across our whole supply chain to drive strong performance and customer satisfaction. These service levels are outlined in our Customer Pledge which will be displayed prominently in all delivery sites. Every customer will also be sent a copy of the Pledge before their first appointment detailing our commitments. Performance against these minimum service levels will be measured for every subcontractor and Ingeus-Deloitte delivery site and will be shared with our customers at their initial appointment. Our Pledge contains five commitments that all customers can expect and others that have been designed to meet the needs of particular customer groups. Ingeus-Deloitte is committed to providing service excellence with integrity. Our customers will be entitled to expect: 1) A flexible service that is convenient and accessible. As a minimum this will include: convenient office locations which are close to public transport; a freephone number to contact us; web access at all delivery sites; outreach services for those who cannot reach our premises; access to learndirect Scotland sites and online training content; flexible appointment times for customers with family or caring commitments; outreach; online and telephone support services for geographically isolated customers; and programme literature available in community languages. Rationale: Our experience across much of Scotland has shown that motivation and customer engagement increase significantly when offices are convenient and accessible and access to Advisors is made easy. This leads to more frequent attendance, higher levels of job-search activity and better outcomes for customers, especially for those with disabilities and/or mobility issues including ESA and IB customer groups. 2) A personalised package of support that is tailored to individual needs. This will include: a carefully selected and trained Employment Advisor (EA); a tailored CV, cover letter and benefit calculation (all completed within the first four weeks of the programme); a personally-tailored Action Plan outlining the support we will provide; access to support at least once every two weeks for the duration of the programme; and a choice of over 70 interventions such as tailored pre-employment routeways and specialist health and wellbeing advice. Rationale: Our experience indicates that, to meet the needs of diverse customer groups, it is essential to provide a service that is tailored to the unique personal circumstances of each customer. This is particularly true of Scotland which features a variety of geographies including customers living in isolated rural locations and others in deprived urban communities where multiple barriers to work are common. These customer groups, and those from the ESA ex-IB, JSA ex-IB and JSA Early Access customer groups, tend to have higher support needs and require a greater degree of personalisation. 3) A professional Careers Academy and in-work support service which will help customers develop and progress in the workplace. This will include: ongoing support from an EA to help manage the transition into employment; an in-work benefits calculation; a freephone in-work helpline; access to learndirect Scotland; online advice through Invisage; and careers guidance from an IAG-qualified In-Work Advisor. Rationale: The Ingeus Centre for Policy & Researchs sustainability study supports the findings of the Joseph Rowntree Foundation and the Centre for Social Justice, that two key conditions behind sustainable employment are: support during the transition from

4.1b (continued) benefits to employment and jobs that offer rewarding prospects. Our minimum service levels for in-work support will ensure all customers receive help in managing the transition to employment and advice to develop sustainable careers. 4) Priority access to exclusive job vacancies and up to date labour market information. Vacancies will be displayed in receptions and on electronic job boards and promoted by EAs through our ADAPT recruitment software. Customers will be supplied with accurate information about the relevance of their skills in the local labour market. Rationale: Customers who have been out of work for a prolonged period find the gap on their CV to be a disadvantage. Our Employer Services Team will work with Deloittes Practice in Scotland to help them overcome this by providing priority access to the vacancies of over 5,000 employers. 5) Treating customers with respect at all times and encouraging them to be active participants in setting their own goals. Customers will be supported to take control of their journey back to work and shape the best course of action at every stage. We will provide easily accessible information on rights and responsibilities and a widely advertised feedback procedure. All feedback will receive a response within one week. Rationale: This approach is essential to providing a service that supports high levels of motivation and engagement amongst customers and provides us with critical information to support performance improvement. In addition to these core service levels that all customers are entitled to expect, we will meet the needs of customer groups in Scotland that have specific support needs. Young people - We will provide careers guidance support from a trained professional to help customers plan their career path and our Step Ahead motivational programme. Rationale - There are high levels of youth unemployment across Scotland - 27% of JSA customers in Scotland are aged 18-24. Customers with skills needs EAs will advise on local training provision including basic skills and English language training. Customers will be able to access learndirect Scotland courses as well as a range of Vocational Routeways. Rationale A key reason for unemployment in this CPA is that 13% of Scotlands population have no qualifications, rising to nearly 20% in areas such as Glasgow and 19% in Clackmannanshire. Customers with family and/or caring responsibilities we will provide information about local childcare provision, flexible appointment times to fit around family commitments, advice on part-time and flexible working and work placements for those who have a significant gap on their CV due to caring responsibilities. Rationale - Over 120,000 customers in Scotland have children or caring commitments. Customers with health-related barriers to work We will offer all customers access to our in-house Health & Wellbeing service and advice from trained professionals. Rationale - 8.3% of Scotlands working age population claims ESA or IB, and many customers on JSA suffer from minor health concerns. Customers with complex barriers to work referral to our ACE Network of providers who will provide specialist support such as debt advice and criminal disclosure services. Rationale - many customers in Scotland face complex barriers to work, and areas such as Raploch in Stirling and Onthank in Kilmarnock face particular issues with substance misuse and offending. Customers facing rural isolation for customers in isolated locations we will provide remote appointments and support, access to outreach sites, learndirect Scotland services and, where necessary, home visits. Rationale over 12% of Scottish customers live in rural/island communities.

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 Ingeus-Deloittes delivery strategy has been designed to meet the unique challenges of providing services in Scotland. These include providing coverage across a large area to a high volume of customers and delivering in some of the most deprived urban areas and most isolated rural communities in the UK. Ingeus-Deloitte offers a unique combination of expertise that will enable us to address these challenges. Ingeus has a track record of successful delivery in Scotland and helped more local customers into employment last year than any other provider. Deloitte is one of Scotlands largest professional services firms. Through their audit, tax and corporate finance and consulting work they have relationships with major employers and public sector stakeholders across Scotland. Our delivery strategy for Scotland has been designed following a six month research project which incorporated: consultations with Ingeus operational staff; analysis of over 40,000 customer records in Scotland; focus groups with customers; labour market analysis undertaken by Deloitte economists; engagement with employers; and meetings with development agencies, including Scottish Development International, Scottish Enterprise and Highlands & Islands Enterprise. Using our experience and research, we have concluded that a successful delivery strategy for Scotland should include: providers with a strong track record of delivery in the area; comprehensive geographical coverage, especially in the Highlands, Islands and Borders where customer volumes are dispersed; specialist support for customers with multiple barriers to work; and a focus on developing skills in areas of projected growth, such as renewable energy and shared service centres. Summary of delivery strategy Ingeus-Deloitte will act as Prime Contractor and will drive the overall performance of the provision across the whole country. We will also deliver as Lead Provider in areas where we currently deliver services under FND and Pathways to Work, as well as opening new sites in Paisley, Glasgow, Dumbarton, Aberdeen and Oban. We will be supported by six other Lead Providers who will each cover different geographical areas. Our Lead Providers (Triage, LifeSkills, Regenerate Glasgow, Third Sector Hebrides, Argyll & Bute Council and The Shirlie Project) will deliver all core elements of the Every Day Counts model including: Diagnostics, Intensive Support, Skills Plus and Breakthrough, in-work support and Health & Wellbeing interventions. Ingeus-Deloitte and our Lead Providers will be supported by two further types of subcontractors: ACE (Accessible Community Experts) Network - The ACE Network will enable Lead Providers to draw on the expertise of specialist providers to support customers with complex barriers to work. These include Phoenix Futures (substance misuse counselling there are an estimated 15,000 problem users in Glasgow alone), Citizens Advice Scotland (financial advice) and SAMH (support for those with mental health issues and learning disabilities). Members of the ACE Network will work from the premises of our Lead Providers so that customers receive a convenient and consistent service. Vocational Routeway providers - Our 19 Vocational Routeway providers (listed in Annex 3) will assist us to address skills shortages in Scotland. They will provide tailored vocational training, work placements and basic skills support. We have selected providers who offer Routeways in the following local growth industries: Retail (CEIS Ayrshire); Leisure and Hospitality (Microcom); Business Administration (Forward Training) and Care (WEA Scotland). These Routeways have been designed following discussions with local employer and skills stakeholders, including Tesco, to reflect local skills needs. The best approach for customers in Scotland Our strategy draws upon our expertise and experience in Scotland and has been designed to address local issues and the needs of all customers. Key strengths include: Understanding the needs of customers in Scotland Ingeus and our Lead Providers offer local experience in providing welfare-to-work services. In total we have helped more

5.1 (continued) than 20,000 individuals into work in Scotland. Our 12 existing and 20 new subcontractors will bring knowledge of the needs of local customers and key stakeholders. All of our Lead Providers are headquartered in Scotland. Drawing on the expertise of specialist and third sector providers The ACE Network has been designed to utilise the expertise offered by small and third sector providers to meet the specific needs of customers in Scotland with complex barriers to work. This will be especially important in areas such as Glasgow and North Ayrshire, which at 12.5% and 9.8% have among the highest rates of ESA/IB claimants in the UK and high volumes of customers who experience multiple and severe barriers to employment. Supply chain management informed by frontline delivery experience IngeusDeloitte will be a Lead Provider and manager of the supply chain in Scotland. This will enable us to share best practice and ensure our providers can benefit from Ingeus experience. The majority of Ingeus-Deloittes Contract Managers will have frontline delivery experience to assist our practitioner approach which combines clear performance management processes with support from industry experts. Addressing local skills needs We have selected a range of 19 Vocational Routeway providers to help us address the issue of skills gaps in parts of Scotland. This is a particular problem in places such as East Ayrshire where 17.5% of residents have no qualifications. All our providers have the proven ability to address local skills needs. For example, JHP Group has delivered accredited training in sectors such as care and retail, and in-work skills development services to more than 350,000 people over 27 years. Convenient geographical coverage By utilising the existing infrastructure of our six Lead Providers and Ingeus-Deloittes new and existing premises, we will provide full geographical coverage across urban centres and isolated rural communities using 35 fixed premises, 38 outreach sites and mobile delivery. Our ACE Network of specialist providers will also deliver services from these premises, thereby affording customers coherent access to a wide range of services from a single location, which will be particularly important in places such as Lochgilphead, Turriff, Mallaig, Aviemore, Dornoch and Ullapool, where public transport is more limited. It will also be important for customers in the ESA Volunteer, ESA Flow and ESA ex-IB groups who may have mobility issues. Rapid implementation Ingeus-Deloitte and our supply chain are uniquely placed to implement the contract across a large area. We possess strong experience of rapidly rolling out delivery across Scottish regions through our Pathways and FND contracts and have a robust implementation timetable in place which will produce performance from day one. Our supply chain has significant existing infrastructure in Scotland. Of the 35 sites that will be used for delivery of the Work Programme, 29 are already being used to provide similar services, and our supply chain employs a total of over 120 experienced staff who have firsthand knowledge of the needs of customers and employers in Scotland. Rationale for our supply chain selection Ingeus-Deloitte conducted a wide-reaching selection process over a four month period. We received expressions of interest from more than 1,000 organisations nationwide, including more than 120 in Scotland. Subcontractors were assessed against criteria covering performance, capacity, quality standards and innovation. Each of our Lead Providers demonstrated the ability to work with all customer groups. For example, Triage has supported customers claiming JSA (New Deal) and ESA (Pathways to Work). In addition, we considered how and where Ingeus-Deloittes delivery could best be utilised. The information below outlines the rationale for inclusion of each of our Lead Providers: Ingeus-Deloitte Aberdeenshire, Ayrshire, Glasgow (excluding Drumchapel and Anniesland), Borders, Dunbartonshire, Edinburgh, Inverclyde, Lanarkshire (excluding Cumbernauld), Lothians, Oban and Renfrewshire. We will directly deliver services in the areas that complement our existing geographies. In 2010 we helped more

5.1 (continued) customers into work (over 4,000) in Scotland than any other provider. As an existing effective multiple contract provider in the area we will provide a service embedded with the expertise to tackle the areas pertinent issues, such as housing in Edinburgh, poor health in Paisley and employment deprivation in pockets of Galashiels. Triage Forth Valley, Fife (excluding Perth) and Tayside. Triages Forth Valley, Fife and Tayside Pathways to Work contract is the top ranked of the UKs 34 contracts. They regularly exceed targets as a valued member of the current Ingeus supply chain. Triage also maintains impressive performance on contracts for Skills Development Scotland (SDS) and Dundee City Strategy. Since 2000, Triage has assisted 16,700 local customers into work and is the largest provider of welfare-to-work services in this part of Scotland. LifeSkills Dumfries & Galloway, Perth, Moray and North/North East Highlands (including Orkneys and Shetlands). LifeSkills currently delivers 39 contracts for the DWP, SDS, the Learning Skills Council/Skills Funding Agency and NHS. They possess strong experience of providing employability services, health and wellbeing interventions, apprenticeships and basic skills training. LifeSkills works closely with Regional Transport Partnerships to address public transport barriers and isolation in rural areas. Regenerate Glasgow Drumchapel and Anniesland. Regenerate Glasgow will provide a community-based service for customers from the Drumchapel area where the unemployment rate is three times the national average. They have more than 20 years experience of working with people from the most deprived parts of the city and they help approximately 5,000 people into work each year. Argyll & Bute Council Argyll & Bute (excluding Oban). With ten years experience of delivering employability services, Argyll & Bute Council currently delivers New Deal, Jobcentre Plus Support and ESF contracts, and can cater for 4,000 customers annually. They are a proven employability services provider with a start to conversion rate of 43%. Third Sector Hebrides Eilean Siar. Third Sector Hebrides will operate from ten sites across the Western Isles and offer a minibus service in order to deliver services in the homes of hard to reach customers. They currently deliver contracts for SDS, Scottish Council for Voluntary Organisations, Argyll & Bute Council and the DWP. They have an extensive network with local stakeholders to provide customers with a joined-up service. The Shirlie Project West Highlands (including Skye). The Shirlie Project works with customers with diverse support needs in the West Highlands and provides a person centred service in rural locations on contracts for the DWP, NHS Scotland, Highland Council, SDS, Highlands & Islands Enterprise, and the Scottish Government. Similarly, members of our ACE Network were required to demonstrate experience of meeting the needs of hardest to help customers, e.g., Apex were selected because they provide support services for 4,000 ex-offenders every year, 52% of whom secure work or further training. Each of our Vocational Routeways providers was required to demonstrate a track record of providing quality skills support. Working with subcontractors (including the voluntary sector) Ingeus Deloitte will encourage joined-up working to drive consistent performance. We will work with our supply chain to: co-ordinate employer and stakeholder engagement strategies; provide subcontractors with access to key services such as IT and HR; share best practice across our supply chain through quarterly forums; and drive improvement through robust contract management. To ensure that we draw on the expertise third sector providers offer, Deloitte Senior Partner [REDACTED] , who leads Deloittes Third Sector Practice, will chair a Third Sector Advisory Panel, including [REDACTED] (CEO of leading Scottish charity Forth Sector) and [REDACTED] (Chief Executive of ACEVO), bringing together Chief Executives of leading charities to advise Ingeus-Deloitte throughout the lifetime of the contract.

[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 for Scotland combines Ingeus and our supply chains existing local capability and infrastructure with support from our corporate functions. The structure is based on Ingeus experience of delivering successful welfare-to-work programmes in Scotland, including Flexible New Deal and Pathways to Work, through which we moved more clients into work than any other provider in the last 12 months. Our experienced Human Resources Team, in partnership with our recruitment services provider AMS, have developed detailed competency-based job descriptions to identify internal and external candidates for all roles and we have identified those members of staff who will transfer from existing Ingeus provision in Scotland. Proposed management structure, skills and reporting lines Local staff Our Director for Scotland (DS), [REDACTED], possesses over 20 years experience of working in the welfare-to-work sector in Scotland and has worked in both the voluntary and private sectors. He will be responsible for all Ingeus and subcontractor performance across the country. He will provide strategic leadership, develop and maintain senior stakeholder relationships, develop co-commissioning proposals and work with JCP, key local employers and the 32 local authorities to ensure that our delivery addresses local issues, such as the severe economic downturn in Lanarkshire and the high percentage of young unemployed people in West Lothian. [REDACTED] will report to the Chief Operating Officer (COO). He will also oversee employer engagement with Deloittes Public Sector Lead Partner in Scotland, [REDACTED] , who is based in Glasgow and has extensive links with employers and stakeholders across Scotland. The management of Ingeus-Deloittes direct delivery in Scotland will be undertaken by three Operations Managers (OMs) [REDACTED] and [REDACTED] will report to [REDACTED] and will attend quarterly performance reviews. They will be responsible for: ensuring all performance and budgetary targets are met; leading their teams to deliver a quality and contractually compliant service; and developing effective working practices with stakeholder staff and local partners. [REDACTED] all have more than three years experience of managing welfare-to-work contracts and are skilled in: leadership, operational performance management, communication, stakeholder management and staff development. They will take active measures in addressing local issues such as the 9% lower employment rate for Pakistani and southern Asian groups in Glasgow and effective delivery solutions for areas of entrenched intergenerational unemployment and deprivation. The three OMs will be supported by 12 Deputy Operations Managers (DOMs), one of whom will have designated responsibility for each delivery site. They will directly manage frontline staff through a structured performance support system. DOMs will have exceptional management skills and an understanding of effective ways to work with local customers including those with drug and alcohol dependency and low levels of basic skills. The OMs and DOMs will also be responsible for maintaining effective relationships with local non-contracted providers such as local authority departments, Education providers, Health services, Housing Associations, and Community Mental Health and Addiction Teams. All of the OMs and DOMs required for the Work Programme will be drawn from our existing pool of 16 Managers in Scotland. Each subcontractor will be allocated a locally based Contract Manager (CM) or Senior Contract Manager who will provide subcontractors with regular support and manage performance against a range of KPIs. Each subcontractors management team will be responsible for the management of their frontline delivery staff. CMs will conduct monthly progress meetings and formal Quarterly Performance Reviews to set performance targets, review performance against KPIs and update the subcontractors Development

5.2 (continued) Plan (agreeing action points to achieve continuous improvement). There will be a number of other interfaces with our subcontractors: for example, practical advice and support to managers and frontline delivery staff by our OMs and DOMs in Scotland. Managing relationships with employers based in Scotland will be critical to performance. Our Head of Employer Partnerships in Scotland, [REDACTED], will continue to develop employer relationships (with support from Deloittes local practice) and co-ordinate closely with her opposite numbers in our subcontracted Lead Providers. Centrally based staff (which support local teams) Our Chief Executive Officer (CEO) [REDACTED] has over 20 years senior management experience with a track record of senior stakeholder engagement and of delivering complex, large scale programmes in the public and private sectors. He is responsible for setting overall objectives, developing strategies for successful delivery and maintaining key high level stakeholder relationships throughout the lifetime of the contract. Our COO, [REDACTED] , reports to the CEO and is responsible for driving UK wide standards and overall high performance of the Work Programme across all CPAs. [REDACTED] is highly experienced in managing welfare-towork contracts and has an exceptional track record of managing performance improvement and delivery. The Head of In-Work Support will report directly to the COO and will liaise closely with the Director for Scotland to ensure the needs of the CPA are being met. Our Supply Chain Team (described below) will be led by our newly appointed Commercial Director (CD), [REDACTED], who also reports to our CEO. [REDACTED] is responsible for our supply chain strategy and the performance of our subcontractors across all contracts. [REDACTED] has managed complex supply chains in a number of roles, including at Serco and other large suppliers to the public sector and brings extensive legal and financial expertise to our leadership to support the challenges of Work Programme delivery. Local teams will be supported by our corporate functions which include: Quality Performance; Human Resources; Learning and Development; IT; Marketing and Communications; and Finance. Further details for all senior roles are shown on pages 1-4 of Annex 4. How we will work with our supply chain and delivery partners Ingeus recognises its role in deepening the welfare-to-work supply chain in Scotland. Our approach to working with subcontractors is to balance a high performance expectation with support for building capability. In passing on risk to suppliers we will consider their differing abilities to manage risk. We will help specialist subcontractors to understand how well their interventions move customers closer to work and hence to improve their offerings. Page 6 of Annex 4 summarises key interfaces between Ingeus, subcontractors and stakeholders. Supply chain Pages 7-11 of Annex 4 show the detailed interfaces between Ingeus and each Lead Provider in Scotland. Day to day interactions with our subcontractors will be led by the local supply chain team of Contract Managers and Senior Contract Managers. They will be supported by our national Head of Contract Management (HCM), [REDACTED] , who reports to the CD and who will set and review performance benchmarks for subcontractors, maintain relationships with key suppliers and attend the Quarterly Performance Reviews of Lead Providers who are failing to achieve performance objectives. [REDACTED] has ten years experience in the welfare-to-work industry, of which five have been spent managing supply chains. Our Head of Partnership Development (HPD), [REDACTED], also reports to the CD. [REDACTED] is responsible for leading our subcontractor management teams through implementation and providing appropriate support - particularly to smaller and third sector organisations. has seven years experience in partner and contract management in the skills and welfare-to-work sectors. All managers in our supply chain will also be provided with support from experienced

5.2 (continued) managers across our corporate functions (outlined above). Delivery partners Our DS [REDACTED] will be the main point of contact for JCPs Director for Scotland and other senior Scottish stakeholders such as the Scottish Government Employability and Tackling Poverty Division. The OMs will be the key contact for local delivery partners in Ingeus-Deloitte delivery areas and will meet quarterly with each manager. [REDACTED] and the OMs will also meet with the four JCP District Managers quarterly or as required. Subcontractor managers will be responsible for working effectively with partners and stakeholders in their locality to support their delivery. Why our management structure is appropriate for Scotland Robust organisation design Deloittes Organisation Design experts contributed to the design of our structures by: consulting with staff and senior management in Ingeus and our suppliers; leveraging best practice from Ingeus international operations; and using template role profiles from Deloitte engagements in comparable organisations. Our HR Director has developed detailed competency-based job descriptions to identify internal and external staff for all roles and Alexander Mann Solutions have already appointed a dedicated Account Manager in Scotland to identify suitable candidates for management vacancies. All members of our senior management team are already in post and their expertise and proven skills will be integral to driving the successful delivery of the Work Programme. Additional management roles will be filled by experienced Ingeus-Deloitte staff and new personnel who meet our role requirements. Combining proven structures with innovation Our proposed structure is based on Ingeus existing management structures which have already resulted in high quality delivery across Scotland, where we have moved more than 6,000 customers into work since 2007. We have taken the best of what works today, but have included new elements (such as the dedicated in-work support team to manage the Careers Academy, and the new Continuous Improvement Team) to align with the requirements and expectations of the Work Programme. All of our subcontractors have a successful track record of managing welfare-to-work provision. Each will be delivering from existing sites where management infrastructure is already in place and successful working relationships are established. This will enable strong leadership and performance from day one of delivery. Nationally focused delivery supported by corporate capabilities All managers and staff from the DS down already have an in-depth understanding of local geography, labour market, communities, needs of customers and complementary services. We will build upon the expertise gained through our Pathways to Work and FND contracts in Scotland, as well as that of our Lead Providers established management teams, to tailor services to local needs and issues. Local managers will be supported by our corporate teams who will work across all CPAs to facilitate consistency of delivery, drive performance and innovation and support our supply chain where it is needed. Clear roles, responsibilities and interfaces All roles in our proposed structures are clear and do not overlap with other roles. They all have specific responsibilities and accountabilities which are clearly aligned at each level in our organisation and with counterparts in our supply chain and key stakeholders, to ensure effective joint working. Practitioner approach to contract management The balance in Scotland between subcontracted and in-house Ingeus-Deloitte delivery enables us to leverage our direct delivery experience to support our suppliers capability, rather than take a narrow contract management approach. We will work closely with our supply chain by holding regular best practice sharing forums, setting up buddying schemes between different organisations and ensuring joined-up employer engagement activity. We will seek to learn from our subcontractors and develop a culture of transparency and openness.

[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 Ingeus-Deloitte has a track record of delivering outstanding performance across complex supply chains. Ingeus has eight years experience in the UK of delivering 40 contracts and managing over 65 subcontractors and Deloittes award winning Supply Chain Practice has helped more than 400 businesses make supply chain improvements on programmes such as the 2012 Olympics. Our Delivery Management Framework (DMF) sets out performance and quality objectives, monitoring and evaluating activities, performance improvement approaches and remedial measures for our entire supply chain to enable continued achievement over the term of the contract. The Director for Scotland (DS), [REDACTED], will be accountable for applying the DMF across the CPA. The DMF has four key elements of activity: KPIs (Key Performance Indicators), Monitoring, Evaluation and Management and Performance Improvement. These quality systems are accredited to the Matrix standard and are in line with the principles of the Merlin Standard. KPIs We have set exacting targets based on our enhanced delivery model, which will be increased year on year. KPIs are set out on a performance dashboard for all members of the supply chain, in particular our Lead Providers Triage, LifeSkills, Argyll & Bute Council, Third Sector Hebrides, Regenerate Glasgow and The Shirlie Project. We will set KPIs using the QPARM methodology to measure: Quality: customer satisfaction, equality of outcome measures; Performance: job outcomes, sustainability, referral-to-start ratios; Assurance: compliance with contractual requirements, maintenance of accurate records, compliance with appropriate legislation (e.g. safeguarding); Responsiveness: process improvement, knowledge sharing, cost management; and Management: performance reporting, communications, risk management. Monitoring Central to our approach to managing delivery will be to gather a set of performance and management information and qualitative feedback. We will collect this through four sources: reports from our market leading ADAPT Management Information (MI) system; monthly analysis of key MI trends prepared by the Performance and Analysis Team; quarterly audit reports; and feedback from customers, JCP, employers and stakeholders. MI system The ADAPT system is used by 90% of the worlds largest recruitment agencies and will enable us to capture all key customer data including personal details, progress made and outcomes. It features a comprehensive and flexible range of MI reports which will provide frontline delivery staff and managers with instantaneous information to identify customer attendance rates, performance rates by customer group and the types and regularity of customer activities. These will be used by Employment Advisors to monitor the progress of individual customers and by managers to analyse the performance of individual Advisors and delivery sites as well as outcomes according to customer group. ADAPTs reporting software will be available across our supply chain. Monthly reporting Our Performance and Analysis Team will produce detailed monthly reports for all Operations Managers (Ingeus-Deloitte and Lead Providers) involved in delivery in Scotland. The reports will provide analysis of key performance deliverables including customer starts, job and sustained outcomes and leavers, broken down by individual delivery sites. These will be presented in a user-friendly format and will enable Operations Managers to identify key trends in data. Compliance and Audit Reports Our Quality Performance (QP) Team will conduct quarterly spot checks and annual or bi-annual (depending on risk level) audits of IngeusDeloitte and subcontractor delivery sites. The resulting reports will be used to allocate a risk level to each site. Audits will focus on compliance of delivery - substantive checks will be made on all customer paperwork and electronic records to ensure adherence to our Minimum Service Levels and contractual requirements. A deeper audit will be conducted with sites whose audits show a variance of greater than 5% against required standards.

5.3 (continued) Customer and stakeholder feedback Feedback from customers will be collected through suggestion boxes, our customer portal Invisage, a formal complaints process, an annual survey and quarterly focus groups. Feedback from JCP, other stakeholders and employers will be collected by our management and Employer Services Teams for Scotland. All feedback will be passed to our Continuous Improvement Team for analysis. The complaints process for the supply chain will be managed by Ingeus-Deloitte. Evaluation Data will be evaluated against each subcontractor delivery site and staff member to assess performance against KPIs. Management (for Ingeus-Deloitte operations) and Contract Management teams (for subcontractors) will check that targets are being met weekly. For example, we will be able to identify the percentage of customers who have had action plans, CVs and benefits calculations completed within their first four weeks of the programme (as outlined in our minimum service levels) as well as the details of any who have not. Each subcontractor, Ingeus-Deloitte delivery site and member of staff will be rated against their KPIs on a quarterly basis as gold (exceeding objectives), green (meeting objectives), amber (below required levels) or red (well below required levels). Managers and Contract Managers will explore underlying reasons for any poor performance by examining individual efficiency rates, engagement rates, caseload numbers and the performance of particular cohorts. All MI will feed into our UK Performance Portal which contains a balanced score-card to benchmark each contracts performance. Our Continuous Improvement Team will analyse all customer feedback and complaints across our supply chain and report key findings quarterly to management teams. Management and performance improvement Our DMF outlines clear roles, responsibilities and review points to ensure that we act on the findings of our monitoring and evaluation activities. This will enable us to drive consistent performance and act on any cases of underperformance. Ingeus-Deloitte - All frontline staff will have monthly progress reviews and formal Quarterly Performance Reviews (QPRs) with their Deputy Operations Manager (DOM) to review performance against targets and examine areas for development. They will be encouraged to take up options from our Support Menu of developmental activities and training. These options include: observations and feedback on the quality of interactions; buddying schemes; caseload reviews; and activity plans. Staff will be expected to achieve green performance every quarter as a minimum. If performance is classed as red for one quarter or amber for two then our Performance Support Process (PSP) will be triggered and a Performance Improvement Plan drawn up. Frequent review meetings will take place and staff will be expected to take up options from our Support Menu. If their performance does not reach green or gold for a further two quarters, remedial action will be taken which may result in dismissal. These same principles will be applied when managing the performance of delivery sites. In each case, the DOM will have progress reviews and QPRs with their Operations Manager who will have the same with the DS. All managers will review their operation informally on a weekly basis as a minimum. DOMs will incorporate actions resulting from the meetings into a Development Plan. Performance trends across delivery sites will be addressed and sites which underperform for two or more quarters will be moved onto the PSP. Additional support will be directed to these including additional training for staff; more frequent senior management input; and the implementation of best practice methodologies from high-performing sites. Subcontractors - All subcontractors in Scotland will be responsible for managing the performance of their staff to achieve performance and quality targets. Each of our Lead Providers has provided evidence of their performance management systems as part of

5.3 (continued) our supplier selection. Each subcontractor will have a designated IngeusDeloitte Contract Manager who will hold monthly progress reviews and formal QPRs in addition to providing ongoing hands-on support. Subcontractors will be issued with a copy of our DMF which outlines our PSP and the improvement interventions available through our Support Menu. Subcontractors whose performance is classed as amber for two quarters or red for one will be moved onto the PSP. Together with their Contract Manager, they will update their Development Plan to incorporate interventions from our Support Menu. These will include (for staff and managers): buddying schemes; additional training; activity plans; observations; access to Deloittes Leadership Course; additional resource from Ingeus-Deloittes corporate functions; and more regular meetings with the Contract Manager. If there is no improvement within a six month period, after consulting with JCP, referrals may be reduced or a termination of contract notice served. Our Head of Contract Management will be responsible for ensuring that the management of subcontractors adheres to the DWP Code of Conduct and Merlin Standard at all times. Continuous improvement activities We have set ourselves stretching targets to improve performance on the Work Programme throughout its duration, which will be achieved using proven continuous improvement methodologies and pioneering new approaches. Each subcontractor, member of Ingeus-Deloitte staff and delivery site will have a Development Plan which will be updated on a quarterly basis to identify actions that will be taken to improve performance. In addition to this core approach, the following innovations will reinforce our approach to continuous improvement: Splash Customised software will enable members of Ingeus-Deloitte staff and subcontractors to contribute new ideas and to comment on others that have been suggested. The most effective ideas will be implemented every 6 months. Innovation Fund This is designed to enable members of our supply chain to bid for funding to enact new and innovative ideas that will enhance performance. Competitions will be advertised, calling for proposals for ideas that will improve our service for customers, especially those who are hardest to help. Osiris This cutting edge software will enable us to measure the impact of each type of intervention for each customer group. This will enable us to expand interventions that are successful and eliminate those that are not. Innovation Forum All members of our supply chain will be invited to attend a biannual national forum to discuss innovative ideas and share best practice. These will be hosted at Deloittes ground breaking iZone centre. This will be led by our new Continuous Improvement Team which has been introduced to drive innovation and significant performance improvement over the life of the contract. Resolving issues within our supply chain, partners or other bodies We have an excellent reputation for collaborative supply chain management and we receive consistently good feedback from our suppliers. In our 2010 subcontractor survey, [REDACTED] at Action for Blind People says Ingeus as a prime contractor are simply first class. The team of staff I work with are consistently efficient, responsive and supportive. We will actively seek feedback from subcontractors and partners through annual surveys and regular provider forums. If a subcontractor has a particular concern, they can use our dispute resolution process. Parties will first raise their concerns with their designated point of contact. If this does not reach a satisfactory conclusion, they should write to our Director for Scotland who will respond within seven days. If it is still not resolved then our CEO will meet with the relevant parties. If no resolution can be found, the issue will be referred to an external mediator. Material issues raised by other bodies will be escalated to the DS.

[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 Ingeus-Deloittes delivery strategy has been designed to meet the needs of customers across the whole of Scotland, from those living in urban parts of the Central Belt to those in isolated rural areas in The Highlands. The majority of services (including those provided by our Accessible Community Experts Network of specialist providers) will be provided from the premises of Ingeus-Deloitte and our six Lead Providers Triage, Regenerate Glasgow, Argyll & Bute Council, LifeSkills, Third Sector Hebrides and The Shirlie Project. Between us we have 35 key delivery locations, 38 designated outreach locations and a flexible approach to delivery for customers in more remote rural areas and for those who are unable to access our service due to health reasons. Support on managing our property strategy will be provided by Drivers Jonas Deloitte, one of the largest real estate advisory companies in Europe and winner of the Office Agency of the Year Award at the 2010 Property Week Awards. Office locations We identified these locations following the completion of a six month research project into the needs of customers in Scotland, which included: consultation with stakeholders such as the Scottish Governments Health Work and Wellbeing division and 18 local authorities; a subcontractor selection process which took into account providers existing infrastructure; analysis of our experience of delivery in three of the four new JCP districts; consideration of JCPs analysis of Scotland; mapping public transport travel times; and a property search conducted by Drivers Jonas Deloitte. Our strategy is based on the following key principles: (i) accessibility customer journey times should be minimised and all sites must be located close to public transport stops; (ii) close proximity to commercial locations where possible premises should be close to areas with readily available job vacancies; (iii) customers living in the most isolated areas should not be disadvantaged; (iv) each site must have the capacity to accommodate our ACE Network of specialist providers; and (v) sites need to be located near all areas of high customer concentration to reduce journey times for the greatest number of customers. The following sections provide details of our strategy for each of the four new JCP districts along with the referral job centres for each site. Addresses for premises can be found in Annex 2. West Delivery site Referral Jobcentres Outreach locations LifeSkills Annan and Dumfries Dumfries Lifeskills Stranraer Stranraer Ingeus Ayr Ayr and Girvan Girvan and Dalmellington Ingeus Irvine Irvine, Kilbirnie and Saltcoats Isle of Arran Ingeus Kilmarnock and Cumnock Cumnock Kilmarnock Ingeus Greenock and Port Glasgow Port Glasgow Greenock Ingeus Paisley Barrhead, Johnstone, Paisley and Barrhead Renfrew Ingeus Alexandria, Clydebank, Dumbarton Clydebank, Helensburgh Dumbarton and Helensburgh Argyll and Bute Dunoon, Rothesay and Dunoon, Rothesay, Tiree, Coll, Council Campbeltown Islay, Jura and Colonsay Campbeltown Ingeus Oban Oban Mull

This district includes areas such as Ayrshire, Inverclyde, Renfrewshire and West Dunbartonshire which have good transport links and significant customer volumes. It also includes Dumfries and Galloway and Argyll and Bute which are sparsely populated, have limited public transport infrastructure and which therefore require some outreach delivery. Our delivery in Ayrshire, Dumfries and Galloway and Inverclyde will utilise six existing offices that are used by Ingeus and Lifeskills for FND delivery. Ingeus-Deloitte will open sites in Paisley and Dumbarton to cover Renfrewshire and West Dunbartonshire. Argyll & Bute Council will use their extensive infrastructure of 31 properties to cover the South and central parts of the local authority area, supported by a new Ingeus-Deloitte hub office in Oban which will cover the North of the area including Mull. Central Delivery site Referral Jobcentres Outreach locations Ingeus Glasgow Glasgow, Springburn, Maryhill, Partick, Various (see below) Easterhouse, Langside, Rutherglen, Shettleston, Bridgeton, Shawlands, Govan, Castlemilk, Parkhead and Laurieston Regenerate Drumchapel and Anniesland Glasgow Drumchapel Ingeus Hamilton Cambuslang, Coatbridge, East Kilbride and Hamilton Ingeus Lanark, Motherwell, Bellshill Lanark Motherwell Triage Airdrie, Cumbernauld and Kirkintilloch Cumbernauld Population is relatively dense across the majority of this area and transport infrastructure is good, enabling convenient delivery from a relatively small number of hub offices. Services in Lanarkshire and East Dunbartonshire will be delivered from premises that are currently used by Ingeus and Triage for our FND contract. In addition, Ingeus-Deloitte will open a flagship delivery site in Central Glasgow. The citys excellent transport infrastructure means that the centre is accessible for the vast majority of customers. By delivering services from a single city centre location we will be able to offer customers the maximum choice of services (including more than 30 workshops, a regular presence from referral services such as the local Healthy Living Centres and Volunteer Centres) in one convenient location. In addition, Regenerate Glasgow will deliver as the Lead Provider in the Drumchapel district where 35% of residents claim out-of-work benefits. Regenerate Glasgow will also make the remainder of their 40 community-based delivery sites available to Ingeus for use on an outreach basis. East Delivery site Referral Jobcentres Outreach locations Ingeus Galashiels Galashiels, Eyemouth and Hawick Eyemouth, Hawick and Duns Ingeus Dalkeith, Musselburgh and Penicuik Dalkeith, Newbattle, Musselburgh Gilmerton and Penicuik Ingeus Edinburgh Edinburgh, Leith, High Riggs and Wester Hailes Wester Hailes Ingeus Livingston Bathgate, Broxburn and Livingston Bathgate and Fauldhouse Triage Falkirk Falkirk and Grangemouth Triage Stirling Stirling and Alloa Alloa Triage Kirkcaldy Kirkcaldy, Cupar, Glenrothes and Glenrothes, Leven and Leven Cupar Triage Dunfermline Cowdenbeath and Dunfermline

5.4 (continued) The majority of customers in Edinburgh and Lothian (Mid, West and East) are within 45 minutes travel of the existing Ingeus delivery sites in Edinburgh, Livingston and Musselburgh. The more rural areas of The Borders will be covered from our current site in Galashiels, along with outreach delivery from Eyemouth, Hawick and Duns. The Forth Valley area provides good transport links to Triages sites (currently used for Pathways to Work) in Falkirk and Stirling. The majority of customers in Fife are within easy reach of Triages offices in Dunfermline and Kirkcaldy, but outreach services will also be offered to those in the East of the area from sites in Leven and Cupar. North Delivery site Referral Jobcentres Outreach locations Lifeskills Perth Perth and Blairgowrie Triage Dundee Dundee Triage Arbroath Arbroath, Forfar and Montrose Montrose and Forfar Ingeus Aberdeen Chapel Street, Ebury, Braemar, Ballater, Macduff, Fraserburgh and Peterhead Fraserburgh and Peterhead LifeSkills Elgin Banff, Buckie, Elgin and Forres Public transport in Perth and Kinross, Dundee, Aberdeenshire, Moray and Angus will provide the majority of customers with convenient access to one of the permanent or outreach sites described above. However, in the Highlands, public transport is often very limited and many customers live in isolated locations. We have therefore selected subcontractors (LifeSkills, The Shirlie Project and Third Sector Hebrides) with excellent links to local community organisations and experience of delivering mobile services. Lifeskills will deliver services to all customers northwards from Inverness and Ullapool, including Orkney and Shetland. They already have delivery sites in Inverness, Invergordon, Lerwick and Kirkwall and will open a new site in Wick. Lifeskills will additionally operate a mobile service to provide support to customers in more remote areas such as Durness, Inchnadamph, Lochinver and outerlying Orkney and Shetland islands. The Shirlie Project will cover the North West area from Fort William to Ullapool, including Isle of Skye and other surrounding Inner Hebridean Islands. They have a permanent delivery site in Fort William and will deliver a mobile service to customers from locations including Gairloch and Kinlochewe where public transport links are limited. Third Sector Hebrides will work with all customers from the Western Isles referred through Stornoway Jobcentre. They have a permanent delivery sites in Stornoway, and access to community venues including Berneray Community Centre on North Uist, Breasclete Community Centre on Lewis, Lochboisdale Community Trust on South Uist, and Uig Community Centre, and further outreach on Barra and Benbecula. A fleet of ten minibuses will deliver services to customers in their homes who have mobility issues or where public transport is limited or nonexistent. Meeting the needs of all customer groups Our strategy for Scotland has been designed to meet the needs of all customers across the country. We have set clear minimum standards for all permanent delivery sites to ensure that the customer experience is of the highest possible standard. These minimum standards stipulate that all permanent premises must include: a wide range of free and available job-search facilities including computers with broadband access, fax machines, telephones, trade journals and newspapers; training rooms suitable for group work; private rooms for sensitive discussions; space to host staff from referral partners and members of our ACE Network; and disabled access. All the premises of our six Lead Providers are currently used to deliver similar services to the Work Programme and are therefore suitably equipped. Ingeus-Deloittes proposed new sites in Glasgow, Paisley,

5.4 (continued) Dumbarton, Oban and Aberdeen will be designed and fitted out according to our exacting standards that have been used in more than 80 locations across seven countries. We have also taken into consideration the particular needs of customer groups in Scotland who have specific requirements: Customers living in isolated locations - Outreach will be a fundamental part of our delivery in areas where public transport to office sites is limited or non-existent. We will utilise community and partner venues to deliver services in those areas. In the most isolated areas, we will conduct home visits or provide local minibus services. Additionally, customers will be able to access Invisage our online portal which enables customers to access job-search and training activities from home or community facilities, at their own convenience. In between face-to-face appointments, customers will be able to access support from their Employment Advisor through pre-booked teleconferences and informal catch-ups using a freephone number. All services offered through our ACE Network of specialist providers will also be available over the telephone if face-to-face delivery is not possible. Customers with complex barriers to work The range of specialist services provided by our ACE Network of providers will be co-located from the premises of Ingeus and our six Lead Providers. This will enable customers to access services conveniently from a single site. It will encourage joined-up working between supply chain members and offer a user-friendly service for customers. This will be particularly important in urban areas of the Central Belt where multiple and complex barriers to work are most common and for customers in the ESA ex-IB, JSA ex-IB and JSA Early Access customer groups. Customers with disabilities Our premises (and those of our supply chain) will all be accessible and appropriate for customers with disabilities. However, we recognise that for customers with mobility issues and/or mental health issues such as anxiety or stress it may be necessary to conduct appointments closer to where they live. Therefore, in addition to incorporating home visits into our delivery, we have identified 38 outreach sites throughout Scotland. We will continue to consult with members of the ACE Network and local disability advocacy groups to ensure that our premises meet the needs of all customers. These features will be particularly important for customers in the ESA Flow, ESA Volunteer and ESA ex-IB customer groups. Customers with caring responsibilities, including lone parents We will encourage parents to attend Work Programme provision by offering secure, child-friendly areas in each office. In addition, staff at each office will work in partnership with the nearest Sure Start Childrens Centre (where available) or a similar childcare facility to make it easier for parents to access our wide-ranging services. Continuous improvement Our premises strategy will be continuously reviewed and updated to ensure it meets the needs of all customer groups throughout the lifetime of the contract. Support from Drivers Jonas Deloitte will include advice for Ingeus-Deloitte and members of our supply chain on sourcing new premises, making adjustments for specific customer groups, negotiating leases and fitting out properties. In addition, we expect to improve our delivery premises options throughout the lifetime of the contract by exploring the potential for co-locating services with other delivery organisations and stakeholders in the area. This could involve Ingeus-Deloitte or Lead Provider staff working from stakeholder sites e.g. local authorities, or Ingeus-Deloitte hosting delivery staff from other local service providers e.g. childcare or housing advisory services. This approach is intended to encourage more convenient and user-friendly service delivery for customers. We already have an in-principle agreement from Renfrewshire Council to explore this possibility in future.

[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 The Work Programme is likely to be characterised by significant fluctuations in customer volumes and changes in customer groups caused by factors including: economic circumstances; redundancies; the migration of Incapacity Benefit customers to JSA and ESA; market share shift; and the introduction of additional customer groups e.g., ex-offenders. Ingeus has significant experience in managing fluctuations and changes to customer groups. For example, lone parents were introduced as a new customer group onto our New Deal contracts and volumes on our Pathways to Work contracts have varied by more than 75% over the contract term. For the Work Programme in Scotland we will liaise with JCP, as well as conducting our own analysis, to estimate likely short and long term changes to customer groups and volumes. We have built flexibility into our delivery approach which will enable us to effectively manage significant volume fluctuations. Mechanisms for planning and anticipating changes to customer volumes Our Director for Scotland (DS), [REDACTED], will be responsible for anticipating volume fluctuations and customer group changes in Scotland throughout the lifetime of the contract. Each quarter he will forecast customer flows for the year ahead and highlight any implications particularly on staffing levels. This process will be informed by: evaluation of Management Information prepared by our Performance and Analysis Team (including anticipated referral numbers by contract, JCP district and each individual JCP office, as well as referrals by ethnic group, customer group, age and duration of unemployment); analysis undertaken by the Ingeus Centre for Policy and Research into the effects of policy changes (e.g. the move to Universal Credit); data from Ingeus Labour Market Portal; research undertaken by Deloitte economists into claimant counts and prevailing international, national and local economic and labour market trends; and highlevel discussions with key stakeholders such as JCP. Findings will be collated in a quarterly report and disseminated across our supply chain to enable managers to plan ahead. Maintaining minimum service levels in response to short term fluctuations The forecast profiles produced by our DS will be used to enable us to maintain minimum service levels in response to short-term fluctuations by flexing the appropriate staff, property and supply chain resources that will be required: Staff Ingeus-Deloitte and members of our supply chain will use profile forecasts to plan recruitment activity. We and our six Lead Providers (Triage, Lifeskills, Regenerate Glasgow, Argyll & Bute Council, Third Sector Hebrides, and The Shirlie Project) will conduct rolling recruitment activity throughout the life of the contract to ensure we have sufficient staffing levels at all times. This activity will be increased if customer flows are forecast to rise, and will be stopped if flows are expected to fall. For Ingeus-Deloitte this process will be managed by leading global recruitment services provider Alexander Mann Solutions (AMS). Their approach is to develop and maintain a pool of pre-vetted candidates that can be called upon to enter the final stage of the recruitment process at short notice, thereby offering us complete flexibility. AMS services will also be available to our Lead Providers who will have very similar recruitment requirements. To provide shortterm solutions in the event of sharp increases in volumes, for example as a result of redundancies (such as the 700 job losses recently announced by Diageo in Kilmarnock), we will be able to second Deloitte staff on a temporary basis. Deloitte staff could be in post within one week as Employment Advisors or to provide additional management resource. We have already placed Deloitte staff in operational roles on six month secondment programmes, demonstrating our ability to respond rapidly to short term resource needs using Deloitte staff. All subcontractors will be able to consult with Deloittes Workforce Planning Team to ensure that their recruitment plans are appropriate for the anticipated flows.

5.5 (continued) Property To enable us to manage fluctuations, Ingeus-Deloittes delivery premises will be designed to accommodate customer flows in excess of the peak volumes anticipated by the DWP. In addition, we have in-principle agreements with all members of our supply chain to co-locate from each others premises when required. For example, Remploy has several additional delivery sites that can be utilised when necessary. Ingeus Head of Property and Facilities will also maintain a comprehensive database of premises in each sub-region which can be ready for use within two weeks. Supply chain There are 77 preferred suppliers on Ingeus-Deloittes Partner Network of preferred suppliers in Scotland, 32 of which have been selected to support our Work Programme delivery. Therefore, another 45 members of the Network, with whom we have an established relationship, would be able to take on additional flows at short notice if necessary. We will not only be able to bring in a new provider if there is a significant increase in customer flows, but also if there is a change in the composition of the customer group. In cases of falling volumes we will re-distribute customer volumes across our supply chain to ensure that delivery remains viable for all subcontractors. Managing expanding/contracting volumes in the longer term The Ingeus-Deloitte joint venture (JV) has been formed to scale up and adapt Ingeus frontline delivery capability using Deloittes substantial financial and operational capacity. This JV is well placed to manage longer term changes to customer volumes through: Managing supply chain capacity As a provider on DWPs Framework Agreement, we have developed a long-term strategy to develop the capacity of our supply chain and other service providers in Scotland. We have established a Partner Network of 77 preferred suppliers with whom we communicate through regular networking events and a monthly newsletter. Regular opportunities to join the Network will be advertised to expand its capacity. To address long-term increases in customer volumes we will run minicompetitions to source members of the Network to take on additional flows. Where appropriate, we will discuss the utilisation of Ingeus-Deloittes financial strength to help subcontractors with the working capital requirements of increased volumes. Portfolio diversification Ingeus-Deloittes growth strategy for the next five years includes plans to expand into new areas of business including skills, working with offenders and careers guidance. Our Partner Network includes many organisations such as Forth Sector and TIGERS with expertise in these areas and with whom we anticipate working. This growth strategy will ensure that we, and members of our supply chain, are not dependent on Work Programme revenue streams and are therefore able to manage long-term reductions in customer volumes. Properties our commercial property agent Drivers Jonas Deloitte (DJD) is one of the UKs leading property firms and has already identified all of our proposed Work Programme premises. If increasing customer volumes require us to source one or more additional permanent delivery sites, we will commission DJD to do this. If customer volumes fall, we expect to be able to make use of any excess resource by securing new business through our diversification agenda and therefore spreading costs. Delivery Model Design To enable us to respond to changing customer groups (either through the introduction of new groups or shifts in the balance of benefit types), we have a clear delivery model design and innovation process which will be managed by our Continuous Improvement Team. When a change in customer groups is identified, the Team will conduct research, using international best practice from Ingeus delivery in seven countries and Deloittes experience of programme design. Solutions may involve the introduction of new programme features such as additional group activities or online tools. Where specialist expertise is required, we will commission services through The Partner Network which includes specialists in areas such as substance misuse (O.A.S.I.S) and mental health (LAMH Recycle).

[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 Ingeus-Deloitte is committed to ensuring that every customer on the Work Programme in Scotland receives a high quality service that meets their needs. Our commitment is reflected in our Customer Pledge, which incorporates our minimum service levels. Our Customer Pledge will be displayed in all Work Programme delivery sites (including subcontractors) across the country to enable all customers to see the standards of service they are entitled to expect, and will be available in community languages and Braille. To ensure we meet the needs of all individual customers throughout the duration of the programme, we have identified a clear two-stage process for monitoring service standards, dealing effectively with any complaints and identifying actions that will enhance the customer experience. Stage One Gather evidence and monitor Ingeus-Deloitte and our supply chain will utilise a range of mechanisms to gather evidence that will enable us to assess the quality of service all customers receive: Customer feedback This is the most important method of monitoring service levels and we will therefore adopt a proactive approach to obtaining feedback from all customers throughout their time on the programme. Customers will be encouraged to make comments or suggestions at any time in person, through a suggestions box, in writing, through our customer online portal Invisage, by telephone or email. We will also actively seek customers feedback through workshop evaluation forms and an online customer survey which is accessible through Invisage and can be completed by the customer at any time. Review & Refresh appointments will be held at the end of every Stage in the programme, during which customers will be asked to comment on how well the service is meeting their needs. We will also conduct an independent audit of customer service across all delivery sites which will ask customers to rate their satisfaction with different elements of our service. Stakeholder feedback On an annual basis we will ask all key stakeholders, including subcontractors and referral partners, to complete a feedback survey on their perceptions and experiences of our service. In particular we will seek feedback from organisations that are able to advocate on behalf of customers who are less likely or able to participate in Ingeus-Deloittes feedback processes e.g. those with mental health issues or learning disabilities. All local stakeholders will also have a designated point of contact at IngeusDeloitte (or in our supply chain) to facilitate ongoing feedback at any time. We have also established a Third Sector Advisory Panel (including [REDACTED], Chief Executive of Barnardos and [REDACTED], CEO of Mind) which will meet twice a year to advise Ingeus-Deloitte on issues including how to meet the needs of customers who are hardest to help. Regular feedback on performance from JCP will be sought in accordance with an agreed schedule. Monthly Management Information (MI) reporting Ingeus-Deloitte and all subcontractors will use our ADAPT MI system to capture key customer data including appointments, progress made and outcomes and to produce management reports that will enable us to monitor performance against our minimum service levels. Frontline delivery staff and managers will be able to produce instantaneous reports from the system to monitor the progress of individual clients and the performance of individual Employment Advisors. Data in our MI system will be reviewed by our Head of Performance and Analysis on a monthly basis. Data analytics Our pioneering Osiris software has been designed to measure the effectiveness of each type of intervention for each customer group. Using sophisticated algorithms and statistical techniques to analyse all previous customer records, we will be able to evaluate the impact of interventions and advise customers about which are most likely to work for them based on their personal profiles.

5.6 (continued) Procedures for handling complaints We are committed to ensuring that all customers receive a high quality of service. However, if an individual has a complaint about any aspect of the service, we have procedures in place to ensure that we respond effectively and learn from any breaches in service standards. Our four step complaints procedure will apply across Ingeus-Deloitte and all subcontractors. It will be publicised on our website, on prominently displayed posters throughout our delivery sites, and in Welcome Packs given to all customers when they join the programme. It will describe an escalation process informing customers of how they can make the complaint, who will deal with it and the timescales involved at each stage. Customers who wish to make a complaint will be asked to do so, in the first instance, with their Employment Advisor who will try to resolve the issue immediately. If the Advisor is unable to provide a response, or if the customer is not satisfied with the response given, it will be escalated to Step Two of the process which will be dealt with by the Operations Manager (OM) for Ingeus-Deloitte or Contract Manager for subcontractors. The OM/Contract Manager will meet with the customer within five working days and will provide written confirmation of the outcome of the meeting within five working days. If the customer is not happy with the response they will be given the option to escalate the complaint to Step Three of the process. This will be dealt with by our Director for Scotland, [REDACTED], who will investigate the matter and confirm the outcome in a written response within a further ten working days. At Step Four of the process, a customers complaint will be escalated to Ingeus Chief Executive Officer who will provide a written response within ten working days. At this point, customers will be informed that they have reached the end of our internal complaints procedure and we will send all relevant details onto the Independent Case Examiner for mediation and, if necessary, investigation. Our Internal Audit Team will be the point of contact for the Independent Case Examiner and will support them as appropriate to achieve a resolution. Stage Two Evaluation, action and review The results of our monitoring activities, including a summary of all complaints, will be reviewed on a quarterly basis at all levels to ensure that we continue to enhance the quality of the customer experience. This will start at the level of each delivery site, where the DOM will evaluate and summarise MI data and customer feedback. This will be discussed at Quarterly Performance Reviews (QPRs) by Operations Managers or Contract Managers in the case of subcontractors. Areas for improvement will be identified and clear, time-bound actions will be agreed to address them. Actions could include designing additional interventions or providing additional job-search facilities. These actions will be input into an operational Development Plan which will also identify clear review points and methods of evaluation to ensure that actions are followed up in full. On a quarterly basis the DS will review all operational Development Plans to identify trends across Scotland including any patterns of complaint. These will be fed into a contract Development Plan with performance improvement actions which could include sourcing additional subcontractors to meet the needs of specific customer groups, or re-training staff to cover any areas of weakness. At a national level, Ingeus-Deloittes Continuous Improvement Team will be responsible for analysing trends across all of our operations. Having identified an area for improvement they will design solutions, using methods such as staff or customer focus groups and researching best practice methods. They will then put forward a proposed solution which will be reviewed by Ingeus-Deloittes Chief Operating Officer and all Regional Directors. If they are agreed, they will first be piloted in one or more delivery sites, before being rolled out nationally if successful.

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 four 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 Measures we will take under Regulation 13 In line with Regulation 13, we will adopt three key principles during the TUPE process, as well as other measures set out below. We will: Ensure transparent processes are embedded throughout implementation and delivery allowing smooth transfer of staff to and from Ingeus-Deloitte and our supply chain; Present any options for agreeing to changed terms and conditions clearly and objectively to transferring staff to help them make informed choices; Monitor the compliance of all members of our supply chain with TUPE legislation including the Code of Practice on Workforce Matters, A Fair Deal for Staff Pensions and all other relevant codes of practice; and Seek to avoid redundancies by committing that redundancies will only occur in material economic, technical or organisational circumstances. Our high-level plan of activity for working with existing employers to transfer staff In preparation for the likely transfer of staff under TUPE we have already conducted an assessment of potential liabilities using figures provided by DWP. We have consulted with members of our supply chain to forecast the implications for each organisation and received written confirmation that they are committed to meeting their obligations. In addition, our pension advisors, Capital Management Solutions, have identified pension schemes that are broadly comparable with those from the public sector, should this be required. Our plans for managing the transfer of staff under TUPE are outlined in a detailed plan, produced in consultation with Deloittes Human Capital Practice. Our plan has three key phases (pre, during and post transfer): Pre-transfer Immediately following announcement of Preferred Bidder Status, we will establish a TUPE Steering Committee. This will be chaired by the Ingeus-Deloitte HR Director and include representatives from Deloittes Human Capital and Pensions Practices. The Committee will meet on a fortnightly basis throughout the transfer period. Our HR Director will have overall responsibility for Ingeus-Deloitte and our supply chain meeting all relevant codes of practice. Within a week of contract award we will establish contact with all existing employers and provide them with a point of contact in our HR Team. Using information gathered from existing employers and our supply chain we will conduct a more detailed assessment of TUPE liabilities, including the potential liabilities for each of our Lead Providers (to whom we expect transfers to apply). We will provide all members of our supply chain with our TUPE toolkit, which includes a Guide to TUPE Information Pack. Within three weeks of contract award we will draw up individual TUPE Transition Plans (TTP) with all of our Lead Providers in Scotland in consultation with transferring providers. During transfer - Following notification of the names of individuals who may fall under TUPE, we will work with transferring employers to establish Consultation Groups for each. We will aim to set these Groups up within two weeks of contract award, and they will meet on a fortnightly basis to review progress on the TTP and gather feedback from affected staff. Each group will include elected employee representatives (including trade union representatives if appropriate); the existing employer; an Ingeus-Deloitte HR Manager; HR officers for the other prime provider in the CPA; and nominated representatives from each of our subcontractors. Each affected member of staff will be invited to a one-to-one meeting with their designated Ingeus-Deloitte HR Manager to discuss their current details of employment, and give them the opportunity to ask questions about the TUPE process. Representatives will also be provided with information about our delivery model, job descriptions and locations of our operational sites. In each case, all transferees will be asked to specify their preferred role and location. Where there are more individuals with appropriate skills for a role than the number of such roles in our delivery model, we will conduct a fair and open selection process and offer unsuccessful candidates alternative roles (with appropriate retraining) and investigate appropriate roles with our

6.2a (continued) subcontractors. In addition, a Pre-Start Orientation will offer transferees the opportunity to visit an Ingeus-Deloitte site before their transfer to address any anxiety. Post-transfer Ingeus and Deloittes previous experience of large scale TUPE transfers and organisational change has demonstrated that change management is critical to the successful transfer of staff. All new staff will therefore attend formal training on our Service Delivery Model, core delivery skills, Quality Standards and Performance Management approach. We will also implement a Cultural Integration Programme, delivered over the first two months post-transfer, that has been designed to integrate all new transferees into Ingeus-Deloitte through a range of informal and formal social events including: welcome groups; peer group meetings; active mentoring programmes; and social evenings. Transferring staff will also be able to access a designated TUPE helpline and webpage to help address frequently asked questions and other common issues. How we will communicate with staff and work with existing employers We have developed a robust communications plan to ensure that affected staff are informed and consulted with at all stages of the process. This plan includes: Presentations to all members of staff (held jointly with the transferring employer) within four weeks of contract award informing them of: their legal obligations and rights; the date of transfer; the consultation process; and measures it is envisaged the transferee will take. Non-affected staff members will be invited to attend the initial presentation we conduct with all potential transferees to ensure all those involved understand TUPE and its implications for colleagues; A commitment to communicating via Trade Union representatives as requested; A TUPE helpline and a dedicated Ingeus-Deloitte point of contact for all transferees to enable rapid responses to all queries; Formal fortnightly communications delivered via the Consultation Group, including the distribution of meeting minutes to all affected members of staff; Working with existing employers by appointing elected representatives to the IngeusDeloitte Consultation Group, demonstrating our commitment to providing consistent messages to all affected and non-affected staff; A TUPE Q&A log which will offer employees the opportunity to email queries to a dedicated email address, with answers distributed to all elected representatives for further distribution. How we will monitor subcontractors compliance with TUPE requirements All subcontractors complete a Partnership Information Form which asks them to set out their experience of handling TUPE transferees. This has been followed by a formal Risk Assessment. Ingeus-Deloitte has only agreed formal contracting arrangements with subcontractors who have confirmed they will adhere to TUPE regulations. In addition, all subcontracting prices have included an allowance for likely pension liabilities, estimated using information provided by DWP. Each subcontractor will be assisted by the joint Consultation Group in drawing up a TTP, against which progress will be reviewed by Ingeus-Deloittes HR Team and the Contract Management Team on a fortnightly basis. The TTP will include: how each subcontractor will consult with affected members of staff; their plans to meet the Code of Practice on Workforce Matters; and how they will engage with trade unions or other staff representatives in accordance with TUPE regulations 5 and 6. In addition, Ingeus-Deloittes legal advisors will provide legal advice on TUPE to our supply chain. All members of our supply chain will also have access to the pension scheme(s) identified by our pension advisers (Capital Management Solutions) as being broadly comparable to those accessed by individuals transferring from public sector schemes. We will also share information we have been given by contracting authorities and/or incumbent providers about members of staff that are expected to fall under TUPE.

[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 To date, Ingeus and Deloitte have successfully managed the TUPE transfers of more than 1,600 staff across a variety of different contracts. We have used this experience, Deloittes expertise in managing TUPE and major organisational change, and the experience of our Lead Providers to design our TUPE processes for the Work Programme. Key lessons learned include: Consult early with all staff members on the scope of TUPE. Pre-TUPE consultations on Ingeus Flexible New Deal (FND) contract in South Scotland took too long, which led to potential transferees receiving misinformation. To ensure this does not happen on the Work Programme, we will liaise with affected organisations at the earliest opportunity, deliver presentations to affected staff, consult with trade union representatives (if appropriate), communicate on a regular basis with each elected employee representative to provide updates and answer queries, conduct one-to-one meetings with affected staff, undertake skills/job matching and provide a Pre-Start Orientation day. Collaborate with the other incoming Prime to disseminate key messages. Upon notification of contract award for FND in Leicestershire, Northamptonshire and Nottinghamshire, Ingeus collaborated with Working Links (the other Prime) to disseminate information to potential transferees. This ensured all potential transferees received consistent messages which facilitated a smooth transfer process. For the Work Programme, we will invite a representative from the other incoming Prime to attend our Consultation Group to agree clear messages to be disseminated to potential transferees. Ensure all transferees participate in a robust Cultural Integration Programme (CIP). After the large-scale TUPE transfer of 1,500 staff from Arthur Andersen to Deloitte, a comprehensive review identified cultural integration as the key success criterion. Recognising this, we have developed a robust Change Management Framework which incorporates structured communications, an integration strategy and evaluation mechanisms. Our CIP for the Work Programme will include: welcome events; peer group meetings; mentoring programmes; training in our systems and performance management processes and access to a designated TUPE helpline. Informal social events will also help new employees integrate in a less formal environment. The success of this approach is reflected through Ingeus FND employee feedback 100% of TUPE transferees wrote that they were satisfied with the information and support received throughout the process and more than 80% responded that they were extremely happy. Lead and support members of our supply chain through the TUPE process. Previous experience confirms the importance of providing advice and support to our subcontractors (in particular smaller organisations) throughout the TUPE process. For the Work Programme we will: co-ordinate the sharing of information between existing employers and our supply chain; obtain independent legal advice which can be used to produce common interpretations of TUPE legislation; manage the high-level process of consultation with affected members of staff; assist our subcontractors with the identification of appropriate pension schemes for incoming staff; and ensure that all of our subcontractors adhere to their legal obligations and relevant statements of practice. Other lessons learned include ensuring dedicated resource, governance and programme management processes are in place to manage large scale change. Relevant aspects of TUPE - Based on advice from our lawyers and Deloittes Pensions Practice, we consider that many aspects of TUPE will be relevant to this procurement, notably: (i) potential TUPE transferees from existing providers where Ingeus wins contracts will need to be identified (and conversely, employees transferring out will need to be identified, should Ingeus-Deloitte not win a Work Programme contract); (ii) the requirement to inform and consult must be met in full including employee liability information; (iii) there will be specific issues related to the transfer of employees from the public sector, including but not limited to, public sector terms and conditions, pension requirements for GAD certification and redundancy payment requirements.

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

7.1 Ingeus-Deloittes Stakeholder Engagement Strategy (SES) for Scotland has been drawn up in consultation with Deloittes Local Public Services Partner for Scotland [REDACTED], with input from more than 25 stakeholders including: the Scottish Governments Health, Work & Wellbeing division; Glasgow, Edinburgh and Dundee City Strategies; Skills Development Scotland; a number of local employers; and members of our Partner Network of preferred suppliers. It also draws on Ingeus established relationships that have been developed through our delivery of Flexible New Deal and Pathways to Work in Scotland. Our analysis indicates that there are a number of key national stakeholders (e.g. Scottish Government, Skills Development Scotland, and Scottish Enterprise and Highlands and Islands Enterprise) and a large number of regional and local stakeholders including three city strategies, 32 local authorities and a wide range of smaller and third sector providers. Jobcentre Plus is a key stakeholder at both the national and local levels. Our SES has been designed to enable us to engage with this diverse range of stakeholders at all levels. We will work together with stakeholders, throughout the life of the contract to achieve common objectives around work, skills and health. Our aim is to reduce levels of unemployment, enhance skills levels to enable customers to move into work and progress their careers, and tackle other health and deprivation barriers to work. Ingeus-Deloittes Director for Scotland (DS), [REDACTED], has over 20 years experience of delivering welfare-to-work services in partnership with key stakeholders in Scotland and will lead on the evolution and execution of our strategy with support from Deloittes local public sector Practice and Ingeus-Deloittes Operations Managers in Scotland. In addition, each member of our supply chain has extensive relationships across the region, for example, Regenerate Glasgow leads five Strategic Employability Groups in Glasgow which include Skills Development Scotland and Glasgow City Council. A critical objective of our strategy is to keep abreast of changing needs, and ensure we remain responsive to the local environment throughout the lifetime of the contract. The principle mechanisms for engaging stakeholders in Scotland have been incorporated into our strategy and are set out below: Advisory Board for Scotland This will consist of senior personnel from major national stakeholders who will have an input into the ongoing design of our provision. The Advisory Board will meet on a quarterly basis to: consider performance and activity reports from Ingeus-Deloitte; provide updates on service provision; listen to stakeholders and share best practice of meeting delivery challenges based on stakeholders experiences of meeting customer needs; and explore opportunities to join up services through co-location, matched funding and/or cross referral arrangements. [REDACTED], Head of Innovation and Skills from Highlands and Islands Enterprise, has already agreed to join the Advisory Board, and further invitations will be made to representatives from JCP, employers and Scottish Development International. Stakeholder Network This has been established to encourage engagement at a more local level and to facilitate regular communication between Ingeus-Deloitte and a wide range of local stakeholders. We have consulted with more than 120 stakeholders in Scotland, to whom we will promote membership of the Network. A separate network will be formed for each of the four Jobcentre Plus districts to enable a local focus. Members will be invited to attend quarterly forums at which they will be able to network and receive updates on Work Programme performance and details of our latest operational activities. They will receive a quarterly newsletter featuring case studies from local providers and customer good news stories which demonstrate how we work in partnership to achieve positive outcomes. All local JCP sites will be invited to these meetings and will be sent the newsletter. We will also host local forums which will provide an opportunity for stakeholders to share best practice and inform our Work Programme delivery.

7.1 (continued) Stakeholder Charter To identify organisations that are committed to supporting the aims of the Work Programme and working collaboratively with IngeusDeloitte to achieve them, we have invited stakeholders in Scotland to sign up to our Stakeholder Charter. The document provides a clear statement of intent that outlines the ways in which we will work with stakeholders in Scotland including exploring the colocation of services and sharing performance information and best practice. To date, stakeholders including the Scottish Governments Employability and Health Department, Edinburgh and Renfrewshire Chambers of Commerce and CSV Scotland have all signed up. Our approach to engaging with individual stakeholders is set out below. City Strategies and local authorities (LAs): Scotlands three city strategies and 32 local authorities will be key stakeholders in enabling us to align our delivery with other local services such as housing advice, childcare information and benefits administration. Several local authorities (including Angus Council and East Ayrshire Council) have already signed our Stakeholder Charter which outlines a shared commitment to explore: co-location of services to enable convenient access for customers; and co-commissioning services to add value to core Work Programme delivery. We have met with 18 local authorities and each of the city strategies in Scotland to identify how we can best work with each. For example, [REDACTED], Employability Programme Manager at Dundee City Strategy, has extended an invitation to Ingeus-Deloitte to join their local Partnership should we be successful. We will draw on the local knowledge of Edinburgh Capital City Partnership as they will deliver the Vocational Routeways element of our delivery model. Scottish Government: Ingeus-Deloitte will build on our established relationship with the Scottish Governments Employability and Tackling Poverty, Health, Work & Wellbeing and Lifelong Learning divisions to align our services with national objectives. The Ingeus Centre for Policy & Research (ICPR) regularly contributes to White Papers that inform government policy on issues such as housing, health and wellbeing in the workplace, and the causes behind customers sustaining work. ICPR will continue to conduct research into issues relevant to employment policy in Scotland, such as the provision of employability services and job creation in rural areas. Ingeus is a member of the Employability Learning Network, and will promote services such as the Healthy Working Lives national advice helpline and Working Health Services Scotland to employers and customers. Skills Development Scotland (SDS): We will continue to engage with SDS to help improve the vocational and employability skills of customers in Scotland. We will help upskill customers whilst on our provision by providing learndirect Scotlands services from within our delivery sites and Vocational Routeways and making referrals to local SDS courses, where appropriate. To assist customers with higher skill levels to re-enter the job market, we will appoint Penna, the leading career transition and out-placement company in the UK, to deliver specialist services across Scotland. To address SDSs concern that smaller skills providers may be marginalised, Ingeus-Deloitte will subcontract 45% of its Vocational Routeways delivery to third sector organisations across the country. Our knowledge of Scotlands skills landscape is enhanced by Deloittes support for the University of Aberdeen and 15 of Scotlands FE Colleges to deliver the Deloitte Employability Initiative to young people, launched in Scotland in 2009. We will invite representation from Skills Development Scotland onto our Advisory Board for Scotland. Jobcentre Plus (JCP) [REDACTED] and his team of local Operations Managers will continue to engage with the four JCP District Managers and the JCP Director for Scotland to design an engagement strategy that will enable us to: provide a smooth transition for customers starting and completing the Work Programme; identify additional JCP provision that complements our delivery; share performance data effectively; and combine our employer partnerships to create more job opportunities for our customers. In particular we will work closely with the District Manager in Scotland Central to understand how their participation in the Delegated Flexibilities Pilot may create opportunities for innovative

7.1 (continued) partnership work. Our OMs will attend regular Provider Engagement Meetings with JCP to maintain clear lines of communication, share information on new employment initiatives and local labour market changes, disseminate best practice and pre-empt any fluctuations in customer volumes. We will continue to offer JCP office space and will work from their premises if required. This approach has worked well on our delivery of Pathways to Work where we saw an increase in engagement rates at initial appointments following staff co-location. We will provide all JCP staff with a quarterly newsletter detailing recent performance, customer case studies, our Partner Network directory and updates on new services. Smaller and third sector organisations Scotland has more than 23,000 charities, many of which provide unique value as: members of our supply chain; referral partners that provide services for customers that complement our own through other funding streams; and as organisations that understand the needs of a range of customer groups including those who are hardest to help. 45% of our proposed supply chain is from the third sector including Inverclyde Community Trust, the Lennox Partnership and Apex. At least one member of our Advisory Board will be from a third sector organisation. Through our Stakeholder Network, we have established referral relationships with organisations that provide services such as counselling, housing advice and mental health support. Our operations teams will be responsible for drawing up Service Level Agreements with each delivery partner outlining the referral process, service expectations and designated points of contact. Our national Third Sector Advisory Panel brings together senior representatives from some of the UKs leading third sector organisations, such as Forth Sector who will advise us on issues such as capacity-building support, effective working between the private and third sector and how the third sector can deliver most value. Health providers We will work with health providers including GP surgeries and Community Mental Health Teams to enhance the support we offer to customers with health issues and provide them with a joined up service. We already have extensive relationships with health providers such as Penumbra and The Ability Centre through our delivery of Pathways to Work in Edinburgh, Lothian and Borders. In addition both the Scottish Association for Mental Health and the Scottish Mental Health Co-operative have been selected as part of our ACE Network of specialist providers. They will help tackle the fact that 8.3% of working age residents in Scotland are in receipt of IB/ESA, with mental health being particularly prevalent. We consulted with [REDACTED] from the Scottish Government who indicated that the Healthy Working Lives national advice-line would provide additional support for customers with health issues. We will build on our experience of delivering Fit for Work services in Nottingham and Birmingham, which help people to stay in, or return to work more quickly after illness or when they develop a health condition to roll-out co-commissioned in-work support services where appropriate. Subcontractors - Ingeus-Deloitte has created a Partner Network of more than 75 preferred suppliers in Scotland to enable us to engage with the provider base. Members of the Partner Network were identified following a rigorous selection process in response to more than 200 applications. Members receive monthly newsletters providing subcontractor case studies, policy updates, Ingeus-Deloitte performance figures and forthcoming tender opportunities. They are also invited to regular networking events where they will be able to share best practice and contribute to our approach to delivery. In addition they will be able to access our online interactive Partner Network Portal. Via the Portal, frontline staff will be able to share best practice on how to motivate customers and the best sources of local job vacancies, Employer Account Managers will ensure that employer engagement activity is co-ordinated across Scotland to provide a single employer offer, and Managers will share details of strategic and delivery partnerships and best practice on performance management across our supply chain.

[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 Ingeus-Deloittes Employer Engagement Strategy (EES) draws on the combined experience of Ingeus and Deloitte in providing market-leading services to employers in Scotland. To support our delivery of Pathways to Work and FND in Scotland, Ingeus has existing accounts with a large number of local employers including beCogent, Interserve, Nandos, Wilkinsons and Compass Catering. Deloitte is recognised as a leader in business services in Scotland and has strong relationships with major employers in Scotlands key industries such as Energy, Food and Drink, Retail and Financial Services. In 2010, Deloittes team in Scotland worked with approximately 700 of Scotlands leading companies. Through our shared understanding of the needs of employers in Scotland, we have developed an EES that features: Targeted engagement of employers in growth sectors including: manufacturing (50% of local companies expect to recruit this year); energy; tourism; and food and drink; A co-ordinated approach to employer engagement in partnership with JCP and our supply chain to provide employers with a joined-up service and create the best outcomes for individuals and the Scottish economy; The Employer Network a high quality offer to employers that provides them with a professional recruitment service and regular consultation forums to help develop proposals that meet local needs; Tailored training packages to provide customers with the skills that local employers require, with a particular focus on basic and employability skills which are highlighted as of particular concern by Scottish Enterprise; A market leading in-work support offer to enhance employers job retention rates and provide sustainable employment for our customers. SME Business Mentoring Scheme local Deloitte staff volunteers will provide business advice and mentoring to SMEs located in areas of deprivation. [REDACTED], Ingeus-Deloittes Head of Employer Partnerships (HEP) for Scotland, will develop and implement our EES which will apply across our supply chain. She will manage a team of Employer Account Managers, each of whom will support employers within specific sectors. Each of our Lead Providers will also have employer services teams which will develop employer links in their service delivery locations. Our Lead Providers are all headquartered in Scotland and have relationships with more than 15,000 employers between them. Triage, for example, has worked with over 8,000 employers including Castle Guard Scotland and Toys r Us. Employers that cover multiple parts or all of the CPA will be given a single point of contact with Ingeus-Deloitte or one of our subcontractors. [REDACTED] will also liaise with JCP employer engagement teams to ensure our activities are aligned. These approaches will ensure that employers benefit from clear and consistent communication. All vacancies sourced by Ingeus-Deloitte or our supply chain will be shared on our industry-leading database, ADAPT, which is used by 90% of the worlds leading recruitment companies and will ensure access to a wider pool of candidates. Our team in Scotland will be supported by: Ingeus National Employer Services Team (EST) Our EST brokers relationships with large employers at a UK-wide level and develops vacancies for our local teams. They have national key accounts with more than 100 employers including Care UK, the Cooperative, Meallmore, and SecuriGroup who all have a significant presence in Scotland. Deloittes Practice in Scotland Deloitte has committed to making their extensive networks and development sessions open to any employer supporting the Work Programme. Of particular interest are likely to be our flagship development programmes for senior managers which are well regarded in the local business community. Deloitte is already actively engaging with employers to support Work Programme delivery. For example, they have the commitment of[REDACTED], Scottish & Southern (S&S) redacted, who has outlined expected growth in S&Ss renewables

7.2 (continued) business and an expansion in vacancies, particularly for skilled and semiskilled operators, call centre and direct sales staff and home services technicians. Deloittes extensive relationships have also enabled us to approach: [REDACTED], at Scottish Water, about potential customer service opportunities across their supply chain; and [REDACTED] of Wiseman Dairies, who is willing to explore opportunities to shape the service we provide to the needs of his business. Our EES outlines employer engagement activities to help us develop local proposals that meet their needs and generate opportunities for our customers. These will include: The Employer Network We have a network of employers in Scotland who will work with us to ensure our delivery objectives remain aligned with their requirements. Our Employer Services Team and Deloittes local Practice will promote the benefits of joining the Network which include: quarterly networking opportunities; free training on issues such as staff retention and workforce development (highlighted as a particular need for SMEs); access to our Invisage employer portal which includes e-training modules and the opportunity to advertise vacancies; and access to Deloitte developmental and networking events, research and insight. More than 30 employers in the area have already joined the Network including Becogent and Sainsburys, who employ more than 150,000 people in Scotland between them. At quarterly network forums we will consult with members to ensure we understand: which organisations are planning to recruit; how our service to employers could be improved; and any local skills shortages they have identified. Employer feedback Employers will be able to provide us with feedback on our service through their Account Manager and an annual employer survey. Our national Employer Services Team recently conducted a survey of 4,000 SME organisations which indicated that they would like to be better informed about the local economy. We have therefore included labour market updates in the design of the Employer Network. We will also gather regular feedback on the labour market from Deloittes Practice in Scotland. Employer representative bodies We will continue regular consultations with employer organisations as a means of understanding the views of a wide range of employers. This will be achieved through Deloittes memberships or partnerships with key employer organisations including Edinburgh, Glasgow and Aberdeen and Grampian Chambers of Commerce, Scottish Financial Enterprise, CBI Scotland, Institute of Chartered Accountants in Scotland, Chartered Institute of Bankers in Scotland (CIOBS), Scottish Life Sciences Association, Entrepreneurial Exchange, Scottish Oil Club and Oil and Gas UK. A number of senior business figures have agreed to support our delivery of the Work Programme in Scotland including [REDACTED], of CBI Scotland. The findings that emerged from our consultation activity will be used to inform our employer services offer and develop a number of specific proposals including: Vocational Routeways We will offer customised Routeways to address skills shortages and develop opportunities in growth sectors. These will be developed alongside members of the Employer Network and local sector skills councils. They will incorporate vocational training sourced through our local skills providers such as the Tell Organisation. The design of Routeways draws on Deloittes experience of delivering flagship programmes to improve the vocational course delivery in Further Education colleges led locally by the University of Aberdeen and Ingeus experience of running training courses for employers such as Wilkinsons and Travelodge. We have an existing partnership with the Sector Skills Council for Energy and Utility which we will leverage to investigate the development of Routeways in the renewables sector to provide job opportunities for our customers such as L2/ L3 Wind Turbine technicians. Rapid response Employers who inform us that they are expanding will be offered a rapid response service to provide them with suitable candidates at short notice. We will

7.2 (continued) undertake bulk CV sifting, screening activity and training for interested customers. This approach will be particularly relevant when new developments emerge such as the Forthside and Raploch regeneration programmes in Stirling and the Riverside Inverclyde redevelopment. Our approach has proven successful with a number of employers including Sainsburys, with whom we worked to resource their new store in Livingston by recruiting 85 customers within one month, in time for store opening. A tailored offer for SMEs - Over 75% of Ingeus job outcomes are with an SME and 93% of Scotlands businesses fall within this category. Our research and consultation activity indicate that the top three areas SMEs would like support with are promoting online vacancy advertisements, being able to access with HR issues when required, and help with CV sifting. We have therefore designed our employer offer to include specific interventions for SMEs, including training our Employer Account Managers in key HR and recruitment practices and the ability to advertise vacancies to customers through our online portal, Invisage. Deloitte volunteers will provide free periodic advice to support local SMEs to expand in areas of deprivation. Working collaboratively with employers to secure sustainable job outcomes Employers will be able to access a range of services to meet their recruitment needs and secure jobs for our customers. They will be able to choose from the following options: A professional, responsive and free recruitment service any employer who contacts us will be assigned a sector specific Employer Account Manager, who will contact them within 24 hours and provide a shortlist of candidates within 72 hours. Vacancies will be posted on Invisage and promoted to customers and our supply chain through ADAPT. The speed and flexibility of our service is designed to make Ingeus-Deloitte the recruitment provider of choice and give our customers priority access to vacancies. Funded training building on key Scottish priorities to develop skills at Level 2 and 3 in green industries, hospitality, leisure and tourism, and care, we will work with employers to fund pre-work and in-work QCF qualifications and Routeways in these areas. Employer portal Network members can access Invisage, our online portal. Through their personal account, employers will be able to: upload job specifications and podcasts; register vacancies and track progress; use skills matching and sifting software; download advice on issues such as reducing absenteeism; and undertake e-training modules. It will also include links to local labour market resources such as Glasgows Commonwealth Jobs Fund and Ingeus-Deloittes detailed Scottish Labour Market Information Portal. Workplace support All employers that recruit an Ingeus-Deloitte customer will be offered a free in-work support service to support sustainable outcomes. Account Managers will work with the employer and customer to: resolve any issues arising from transition; identify training gaps; and source Access to Work funding for customers with disabilities. For example, after placing 30 customers at Royal Mail, an Account Manager attended their office one day a week to provide support with three-way reviews and advice on in-work benefits. This resulted in a 100% sustainability rate for our customers. Health & Wellbeing Service: The main reasons for workplace sickness are stress and depression, often exacerbated by poorly trained managers who do not respond to these issues appropriately. Our Health Team, which comprises 37 professionally trained Psychologists, has designed a suite of training materials (developed through delivery of two Fit for Work contracts), to help managers identify and respond to the signs of stress. These will be made available to all employers in Scotland who assist us with vacancies. Creating opportunities for the hardest to help we will help employers to adapt their recruitment and workplace practices to make them more accessible for under-represented groups such as people with disabilities, lone parents or people from ethnic minority groups. We provided this service to Ocado, who we helped to develop flexible working practices to attract more women into their delivery driver roles.

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 one side of A4.

8.1 The table below outlines Ingeus-Deloittes performance offer represented as percentage conversion rates of job outcomes in the year, compared to referrals in the same year. It also illustrates the percentage point uplift that this represents against DWPs minimum performance expectations for core customer groups (ESA flow, JSA 1824 and JSA 25+) and against the illustrative figures (plus 10%) provided by DWP for all other customer groups (excluding IB/IS). As highlighted in the table, our performance offer is above these minimum performance levels for each year of the contract for each customer group. Year 1 (%) 5.54 0.04 5.51 0.01 6.35 0.85 8.31 2.81 3.32 1.12% 2.38 1.28 11.21 0.21 Year 2 (%) 33.04 0.04 31.89 4.39 17.13 0.63 29.36 12.86 14.59 3.59 9.39 3.89 30.9 3.4 Year 3 (%) 45.89 1.89 40.78 7.78 20.62 4.12 36.9 14.9 20.1 9.1 13.21 7.71 47.37 3.37 Year 4 (%) 45.09 1.09 41.25 8.25 21.11 4.61 37.25 15.25 61.83 17.83 31.65 15.15 77.17 0.17 Year 5 (%) 46.21 2.21 40.68 7.68 21.17 4.67 37.2 15.2 18.39 1.89 163.65 64.65 56.89 1.89 Year 6 (%) 36.41 3.41 31.72 4.22 14.71 3.71 25.27 14.27 1.94 0.84 28.96 12.46 31.5 4 Year 7 (%) 12.02 1.02 9.2 3.7 3.8 0.00 5.71 3.51 0 1.73 0.63 10.58 5.08

JSA 18-24 % uplift JSA 25+ % uplift ESA Flow % uplift JSA early access % uplift JSA ex-IB % uplift ESA ex-IB % uplift ESA volunteers % uplift

These performance figures were produced using a model constructed exclusively for the Work Programme, drawing on Ingeus experience of modelling performance on 40 welfare-to-work programmes. The model is built around cohorts of customers who are identified according to the month they start the programme and the customer group to which they belong. A conversion rate (from referrals to jobs) has been identified for each cohort along with the length of time it will, on average, take them to find work. The table below outlines the average number of sustained payments that we expect to be able to claim for each customer who qualifies for a job outcome payment. These figures build on the job outcome table outlined above and include assumptions about the sustainability of first jobs and an assessment of our ability to help people re-enter employment where necessary. Customer group JSA 18-24 JSA 25+ JSA early access JSA ex-IB ESA volunteers ESA flow ESA ex-IB Average number of weeks qualifying for sustainment payments (per job outcome) 43.6 43.2 58.8 57.6 59.2 58 70

[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 three sides of A4.

8.1a The Ingeus-Deloitte joint venture provides a new and unique combination of expertise to deliver an uplift in performance through the Work Programme. It combines Ingeus experience of helping more than 100,000 unemployed people into work in seven countries, with Deloittes expertise in employer services, supply chain management, programme management and continuous improvement. Our performance offer and our pioneering Every Day Counts delivery model reflect our commitment to achieving a step change in performance. They are informed by in-depth analysis and research undertaken over the past 12 months including: An assessment of the key features of the Work Programme specification that will enable an improvement in performance; A six month Operational Model Design and Innovation (OMDI) project undertaken with over 200 frontline delivery staff and Deloittes Operations Excellence Team to identify the most effective methodologies in our current operations; Analysis of performance on Ingeus existing UK welfare-to-work contracts; Detailed labour market reports undertaken by Deloitte Economists in partnership with Oxford Economics, a leading global forecasting practice; Analysis of the features of high performing international employment programmes; An assessment of the performance uplift we can expect to achieve through our systems of continuous improvement and innovation. The results of this analysis indicate that a significant uplift in performance (against DWPs baseline figures) can be achieved in the following three ways: (i) utilising performanceenabling features of the Work Programme specification; (ii) identifying best practice methodologies, enhancing them and implementing them consistently; and (iii) adopting market-leading methods of continuous improvement that will drive ongoing innovation and performance improvement throughout the lifetime of the contract. How the Work Programme design will enable higher levels of performance We have identified four elements of the Work Programme specification which we will leverage to achieve strong performance. Firstly, JSA customers aged 18-24 and those facing particular disadvantage (e.g. ex-offenders and people who are homeless) will be referred to the Work Programme earlier than has been the case on other provision. Our analysis of JSA off-flow rates and performance on current programmes, such as Employment Zones and FND, demonstrate that customers are on average 10% more likely to find work when referred early. Secondly, we expect a 15% performance uplift when compared to previous provision as a result of the increase in the maximum length of the customer journey to two years. Thirdly, the ESA ex-IB and ESA Flow customer groups will be closer to work than those currently referred to Pathways to Work as they have been identified as likely to be fit for work within three to six months. We expect that this will increase conversion ratios by 20% when compared to existing provision. Finally, increased maximum revenues of up to 14,000 for some customer groups will enable us to target the highest levels of investment in those who are hardest to help. In addition to these programme design elements, we have identified ten features of our Every Day Counts model that will drive performance improvement. Each feature combines proven methodologies with new innovations for the Work Programme. In each case the level of performance uplift it is expected to contribute has been quantified. Best practice and innovation - all customer groups Sequential delivery (+ 14%): Evidence from Ingeus New Deal (ND) and Flexible New Deal (FND) contracts in the UK and Job Network and Personal Support Programme in Australia, demonstrates that segmented delivery models achieve on average 15% higher performance than those with no changes of activity. We identified spikes in performance immediately before customers finish one module and within the first few weeks of the next. This is due to the additional momentum that is created when customers commence

8.1a (continued) and finish activities. Our Every Day Counts model therefore features four sequential stages, each separated by a Review and Refresh appointment to provide constant pace and purpose. A market leading employer offer (+20%): Since 2007, Ingeus has supported over 20,000 customers into vacancies sourced by our Employer Services Team. We provide tailored packages of support for every employer who recruits our customers, from micro through to major business, with a promise that we will help to generate savings off their bottom line. Our Employer Services function has enabled us to achieve a 22% uplift in outcomes across all our sites. This offer has been enhanced for the Work Programme to include the following innovations: a market-leading job-matching I.T. system - ADAPT; the extensive employer contacts provided by Deloittes Practice in Scotland; a unique business support offer for SMEs; and the Employer Network which will facilitate consultation with employers and drive continuous improvement of our employer offer. The Careers Academy and Rapid Response service (+16%): Ingeus Centre for Policy and Research conducted a sustainability survey using over 100,000 customer records, customer focus groups and interviews with frontline Advisors. It identified that for 81% of sustainable outcomes the following conditions existed: the right job fit and pay; personalised support in managing the transition back to work; and appropriate customer attitudes and behaviour. They also found that specialist in-work Advisors help achieve sustainability rates of over 85%, compared to 75% when generalist Advisors are used. The Careers Academy will build on the findings of this research by providing an enhanced package of in-work support which focuses on developing customers in-work skills and supporting them through transition. Our new Rapid Response service will target any customer who is in danger of, or who has already, fallen out of work to find an alternative, thereby increasing sustainable outcomes. We recognise that additional support will need to be allocated to certain customers who have a succession of jobs reflecting seasonality. The ACE Network (+15%): our innovative Accessible Community Expert Network will provide specialist support and targeted interventions for customers who are hardest-tohelp. They will work from the same sites as our Employment Advisors to provide a joinedup and holistic service and provide advice on key issues that customers face including debt, substance misuse and mental health issues. This will enable us to provide targeted investment to customers with the most severe barriers (particularly the JSA Early Access, JSA ex-IB and ESA ex-IB customer groups) into employment. Responding to local needs (+15%): Evidence from Ingeus existing delivery indicates that performance is highest when our delivery is joined up with other local provision. For example, performance on our City and East London Pathways to Work programme increased after we developed referral relationships with the local Improving Access to Psychological Therapies programme and the introduction of our Working English programme which was run in partnership with Tower Hamlets PCT. We have therefore developed a pioneering approach to stakeholder engagement which includes an Advisory Board for Scotland and the Stakeholder Network to facilitate joined-up delivery. Best practice and innovation Jobseekers Allowance customers Intensive activity (+8% - JSA customers): Ingeus delivery experience has demonstrated the importance of high levels of activity from day one. Analysis of our FND contracts highlighted a 20% increase in conversion rates for customers who attended most frequently in the first month of the programme. Every Day Counts therefore incorporates intensive levels of activity within each core stage and from day one. Increasing conditionality (7% - JSA customers): Cohort analysis of FND customers highlights that increasing levels of mandatory activity, such as the MWRA, helps to boost job outcomes by up to 5% within each three month stage when compared to similar programmes such as Employment Zones (EZs) which feature less structured activity. Our

8.1a (continued) Work Programme delivery will include increasing levels of mandatory activity for JSA customers, culminating in mandatory full-time six month work placements for those who have been on the programme for more than a year without finding work. Structured activity for young people (+7% - JSA customers):18-24 year old JSA customers on our New Deal and Community Task Force (CTF) programmes have job outcome rates 70% higher than the same customer group on our EZ contracts. Our analysis suggests that this differential can be attributed to the fact that younger customers respond more positively to structured and group based activity. New Deal incorporates two week Gateway to Work programme and CTF provides a three month mandatory work placement. Additionally, Ingeus Suburbs of Hope contract in France provides training and employment support to over 10,500 16-25 year olds, 61% of whom enter employment against a national average of 39% on similar programmes. Young people accessing our Work Programme delivery will be able to choose from a range of options designed around their needs including: work placements to help customers understand the requirements of different jobs; and Step Ahead, a two-week engagement and goal setting course. Employment Support Allowance customers Effective engagement (+8% - ESA customers): Our six Pathways to Work and two NDDP contracts have supported over 19,000 ESA and IB customers into employment. This experience has shown us that effective initial engagement is essential. Many IB and ESA customers do not initially feel able to look for work, and as such need to be carefully supported to make the transition to job-seeking activity. The introduction of a dedicated Customer Engagement Advisor role for this purpose on our Pathways contracts helped increase our conversion rates of starts to jobs by 77%. The Steps to Work module in our delivery model builds on this experience by offering intensive one-to-one support and innovative new group activities to help customers engage in looking for work. Integrated health and employability services (+12%): Ingeus runs two of the top four performing Pathways contracts (out of 34) in the UK and our in-house health services, consisting of embedded Psychologists and Physiotherapists, are critical to supporting ESA customers into employment. Every Work Programme delivery site will feature a Health & Wellbeing service which includes proven interventions (e.g. Healthy Eating and Dealing with Stress workshops) as well as new features including a range of online resources through our customer portal Invisage. Innovations that will drive continuous improvement In addition we have developed a pioneering approach to continuous improvement that will enable us to drive efficiencies and performance improvement throughout the lifetime of the contract. The key features of this approach are provided below: Advanced analytics: Our bespoke Osiris data analytics software will track the effectiveness of each type of intervention for each customer group. This will assist Advisors in identifying the most appropriate intervention for each customer. It will also enable managers to evolve and refine our service delivery. Supply chain optimisation: To optimise subcontractor performance, Deloittes Supply Chain Practice will transfer methodologies used to enhance the performance of complex supply chains, including that of the London 2012 Olympic Games and locally supporting the establishment of Tesco Bank. This includes adopting our QPARM methodology which looks at quality, performance, assurance, responsiveness and management. Continuous Improvement Team (CIT): Our CIT is tasked with key performance improvement activity. They will conduct monthly balanced score card analysis to identify underperforming customer groups and will routinely collect evidence on the efficacy of particular interventions. Our Innovation Team will manage a fund to pilot innovative projects that pioneer new and more effective ways of working.

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 Ingeus-Deloittes key strengths in implementation include: Ingeus existing infrastructure across Scotland, including 12 sites and 186 operational staff; an experienced Programme Director, [REDACTED], who led Ingeus through the successful implementation of a Pathways to Work and Flexible New Deal (FND) contracts; and the ability to call on resources from Deloittes 100 strong Programme Leadership Practice, with its experience of supporting major programmes such as the implementation of Tesco Bank and the Scottish Government programme to deliver online planning applications. Implementation Plan, structure and governance Our Implementation Plan, shown in the Gantt chart at Annex 6, was drawn up by our Programme Management Office (PMO), with input and assurance from Deloittes Programme Leadership practice. It has been assessed as viable by senior operational staff and each of our corporate heads and endorsed by the Directors of the Joint Venture. It is designed for us to commence delivery of the Work Programme on 1 June 2011. The plan is based on the following key dependencies: supplier guidance issued 31 March; announcement of preferred bidder status 15 April; and contract award 6 May. The Implementation Plan is structured around operational, functional and change management workstreams, grouped into two major phases: Preparation (ID 2 to 106 on the Gantt) and Implementation (ID 116 to 761 on the Gantt). Preparation activities are those that will be undertaken prior to announcement of preferred bidder status to enable swift implementation and include I.T. systems design, property searches and advertising job vacancies through our recruitment partners Alexander Mann Solutions (AMS). Implementation activities include those that will be undertaken upon notification of preferred bidder status (e.g. negotiating heads of terms on properties and finalising terms with subcontractors), and those that will be dependent on contract signing such as issuing formal job offers and signing contracts with subcontractors. Implementation of all Ingeus-Deloitte Work Programme contracts will be led by our Work Programme Implementation Director, [REDACTED] who will chair a Programme Board made up of all departmental heads, Chief Operating Officer and Ingeus CEO. We have explicitly designed our implementation planning in anticipation of multiple contract awards: implementation activity across different regions will be managed by a centralised Implementation Team (led by our Work Programme Implementation Director) and local activities, including the engagement of key stakeholders and employers, will be project managed by a Project Manager for Scotland. Central and local implementation teams will be supported by expert practitioners from Deloittes Programme Leadership Practice. This structure is key to implementing in multiple CPAs in parallel and will enable the Project Manager for Scotland, [REDACTED], to assure local progress. It will also enable the Programme Board to have a broad understanding of progress and interdependencies and to be able to quickly resolve critical issues across all CPAs or within Scotland. The critical path is shown in red on the Gantt chart and is predicated on the dates for preferred bidder status, issuing of provider guidance and contract signing being met. The path runs through recruitment activity for members of staff required on the first day of delivery, and then moves through mobilisation of our subcontractors. Key risks Subcontractors (Task ID 84-97 Preparation and 332-380, 520-556 Implementation) Risk That one or more of our six Lead Providers are not ready to deliver on time. Mitigations Both Triage and Lifeskills are current Lead Providers for Ingeus on our delivery for FND and a significant proportion of our total supply chain for the Work Programme are existing subcontractors. All new subcontractors have existing infrastructure, require no new premises (with the exception of Lifeskills in Wick), require

9.1 (continued) minimal recruitment activity and have a track record of implementing new contracts on time. We will support our Lead Providers through implementation. Contingencies Commit additional Ingeus-Deloitte resources to implementation; replace the subcontractor with another member of our Partner Network (we have identified contingency providers to cover each Lead Provider); temporarily deliver the provision ourselves; or adjust customer flows to other subcontractors. Premises and fit out (Task ID 58-74 Preparation and 252-263, 416-448 Implementation) Risk That premises are not ready for fit out. Mitigations Ingeus currently deliver FND and Pathways to Work in Scotland and has 12 fully fitted offices already in place, ready for Work Programme delivery. Ingeus-Deloittes highly experienced Property and Facilities Team, with a track record of opening 12 fully fitted out offices in less than four months, will open five new offices with support from property consultants, Drivers Jonas Deloitte. Contingencies The Property and Facilities Team retains a database of suitable, serviced offices in the CPA and can arrange for staff to operate from a serviced office at two weeks notice. We have in-principle agreements in place with all members of our supply chain and a number of stakeholders to use their premises (which between them provide coverage across Scotland if necessary. Human resources (Task ID 75-83 Preparation and 264-331, 449-519 Implementation) Risk That insufficient, high-calibre, trained staff are ready for day one of delivery. Mitigations All existing Ingeus staff in Scotland (currently employed on FND and Pathways to Work) will transfer to Work Programme delivery. We have already received 50 Expression of Interests from interested applicants and we expect 10% who expressed an interest to be able to commence employment with us on the contract start date. Contingencies Second additional staff from Deloittes Practice into frontline roles (we have already successfully seconded Deloitte staff into operational roles in our London office). We will also be able to utilise our existing relationships with recruitment agencies such as Crone Corkhill and Hays to provide temporary staff at short notice. IT (Task ID 45-57 Preparation and 204-251, 392-415 Implementation) Risk That adequate IT infrastructure is not in place due to delay in installation/delivery of equipment or failure to meet IT security requirements. Mitigation IT infrastructure is already in place across 12 sites in Scotland and Ingeus received full DWP security accreditation on time for FND Phase One. Our IT Team will be supplemented by Deloittes 1,000 strong Technology Practice. Contingencies ADSL line with hub, mobile phones for staff and encrypted laptops with 3G wireless Internet connections can all be installed at short notice with permanent solutions being applied as soon as possible afterwards. Winning multiple Work Programme contracts Risk That delivery and leadership resources are stretched too thinly to address implementation issues as they arise. Mitigation The Ingeus-Deloitte Joint Venture has been formed to deliver multiple Work Programme contracts. Our Implementation Plans have been designed as an integrated programme and we have the resource, expertise and financial capacity to fully implement and deliver any combination of contracts on time. To mitigate for the risks associated with winning multiple contracts, we will be able to draw on Deloittes considerable resources in resource and supply chain management and property services at short notice. Further mitigation strategies include: a well structured governance model with clearly identified leads for each CPA and each functional area; an experienced Work Programme Implementation Director with support from Deloittes Programme Leadership Practice; and the Programme Board of the most senior members of Ingeus-Deloitte which will make clear, rapid decisions.

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 Implementing multiple Work Programme contracts whilst maintaining performance on other provision: The Ingeus-Deloitte joint venture is a key part of the business strategies of both Ingeus Ltd. and Deloitte LLP, reflected in the fact that the Managing Director of Ingeus and the Chief Executive of Deloitte both sit on the Joint Venture Board. We have planned for significant growth over the next two years including the implementation of multiple Work Programme contracts and diversification into areas of adjacent space such as working with offenders, skills provision and careers guidance. In planning for growth, Deloittes Organisation Design Practice has conducted a review of all governance structures, resource requirements and departmental capabilities to ensure they are equipped to manage the planned growth. We have also identified four key areas of focus that will enable us to implement multiple Work Programme contracts while maintaining and improving performance on other provision: Clear governance structures: Each Work Programme contract will have its own Implementation Plan which will be managed by a Project Manager for each region (in this case [REDACTED]) to enable a focus on local activities. These plans will be incorporated into an overall Implementation Plan which will be managed by our Work Programme Implementation Director. He will chair a fortnightly Programme Board attended by other project management staff and key heads of departments. The group will monitor progress against the Implementation Plan and direct resources to departments/contracts as required. This structure will provide dedicated resources for each region and the ability to direct central resources where they are needed. Strict separation of responsibilities: Strict separations will be adopted between members of staff involved in implementation and those working on existing operations. Key members of staff on existing contracts such as Operations Managers will not be involved in implementation activities and will focus on the performance of existing contracts. Implementation activities will be conducted by staff from corporate support functions and practitioners from Deloittes Programme Leadership Practice. Our Project Manager for Scotland, [REDACTED], will ensure appropriate attention is given to implementation. Using this method, we managed to increase performance on our existing Pathways contracts by 15% at the same time as implementing two FND contracts. Responsive resourcing: To manage the spike in resources required to implement multiple contracts (without impacting on existing provision) we will draw on the substantial resources of Deloittes Supply Chain, Programme Leadership, IT and Human Capital Practices. We will prioritise the deployment of Deloittes Scotland-based personnel. Deloitte has around 70 practitioners in their consulting team and many more in their audit, tax and corporate finance teams, approximately 10% of whom are available for new assignments at any time. Their main regional offices are located in Edinburgh, Glasgow and Aberdeen. This will enable us to resource the implementation of multiple Work Programme contracts without having to draw on staff from existing Ingeus contracts and thereby mitigating the risk to them. Supply chain capacity: Our supply chain for Scotland has been designed to mitigate any adverse impact of winning multiple contracts. Each of our six Lead Providers is locally headquartered and is primarily focused on delivery in Scotland. Each will be able to draw on resources from contracts that will be replaced by the Work Programme (FND for Triage and LifeSkills and New Deal for Argyll and Bute Council), enabling them to transfer staff and premises directly across rather than drawing on other contracts. Existing infrastructure: Implementation of the Work Programme in Scotland will build on Ingeus existing infrastructure of more than 120 members of staff and 12 offices. To implement the Work Programme in full and on time in Scotland, Ingeus-Deloitte already has more than two thirds of the offices required and does not envisage needing to recruit new staff. This will limit the impact of implementation activity on existing contracts.

9.2 Maintaining our supply chain in the event of subcontractor withdrawal Ingeus-Deloitte has developed a Partner Network of more than 75 preferred suppliers in Scotland to provide a robust and responsive supply chain. The opportunity to join the Network was advertised widely and attracted more than 1,000 expressions of interest, more than 200 of which were in Scotland. Providers were assessed against core criteria including performance, track record, quality and innovation. The result is a pool of prevetted suppliers with whom we have established relationships and which offers a breadth of expertise including job brokerage, skills provision, substance misuse support and specialist mental health services. This pool of preferred suppliers can be mobilised at short notice and provide a robust set of contingencies in the event of the withdrawal of any subcontractor withdrawing. We will maintain the Network throughout the term of the contract to ensure we have back-up suppliers for every year of delivery. Our supply chain for the Work Programme was selected from our Partner Network according to strict criteria which included the ability to implement new contracts to tight timescales, and to manage the opportunity for growth through sustainable business models. These steps were taken to limit the likelihood of their withdrawal prior to contract commencement. However, we have planned for this possibility, in particular by focusing on our six Lead Providers: Triage; Regenerate Glasgow; Argyll and Bute Council; The Shirlie Project; LifeSkills; and Third Sector Hebrides. They will provide approximately 38% of our Work Programme delivery between them and therefore represent the greatest risk to continuity of service. Should any Lead Provider withdraw, Ingeus-Deloittes Implementation Programme Board will immediately hold a contingency meeting to evaluate the options set out in our Business Continuity Plan and determine the best course of remedial action. We are able to mitigate the impact of subcontractor withdrawal through the following range of contingency options. Negotiate with the withdrawing subcontractor: our Head of Partnership Development will immediately ascertain the reasons for withdrawal through discussions with the provider. Depending on the reasons for withdrawal we will discuss further support that could be offered to make delivery viable for them. This could include additional support from our HR Team in managing TUPE transfers, or assistance in funding working capital requirements. Contingency providers: We have identified contingency suppliers from our Partner Network to cover each of our Lead Providers in the case of their withdrawal. Contingency providers have been identified based on their having the existing staff and premises required to deliver services at short notice. For example, in the unlikely event that Triage withdrew, a combination of LifeSkills and Ingeus-Deloitte would be able to take over Triages role in Forth Valley, Fife and Tayside. In each case in-principle agreements have been signed by proposed contingency providers. Introduction of a new subcontractor: our Partner Network comprises 77 pre-selected members across Scotland who offer a diverse pool of resource that can be accessed at short notice. Members of the Network will be invited to submit immediate proposals which will be assessed by our Head of Partnership Development to identify any viable solutions. Ingeus-Deloitte delivery: As a delivery organisation as well as a Prime Contractor, we have the ability to take on additional provision. This was one of the strategies we adopted when the Wise Group withdrew from our supply chain during the implementation of our FND contract in southern Scotland. We took on all of their customer volumes, opened an additional six offices and recruited an additional 28 staff in eight weeks and were ready to deliver from day one.