Transcript Slide 1

Code of Conduct
- the Merlin Standard
Lucy Williams and Simon Shimmens
AGENDA
• Commissioning Strategy and the Code
of Conduct – DWP perspective
• Code of Conduct – provider viewpoint
• Merlin Standard – pilot activity & benefits
• Ombudsman service – how will it work
• Shared information – update
• Future considerations and next steps
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Commissioning Strategy
• prime contract model is fundamental to
the rollout of future contracts
• supply chain dynamics require changed
behaviours & expectations at every level
• in pursuing its strategy DWP is mindful
of the importance of its stewardship role
• each major contracting round helps
identify issues and challenges
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Prime Contract supply chains
DWP
Tier 1
prime contractor
Tier 2
subcontractor
Tier 3
delivery partner
Tier 4
specialist provider
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Code of Conduct – provider view
from lessons learnt review:
‘develop code of conduct assessment process’
- to address the following:
- code ‘has no teeth’
- ombudsman required
- standard formats required for shared
information
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Code of Conduct
• Values – acting with integrity
• Pre-awarding of contract – supply chain set-up
• Post-awarding of contract – commitments
honoured
• Equality and diversity - policies and promotion
• TUPE – application and sharing of information
• DWP undertaking – upholding standards +
monitoring and enforcing the Code of Conduct
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Code of Conduct – ‘no teeth’
• contractual requirement and
expectations are part of contract terms
• tier 2 (subcontractors) also have status,
being formally part of the bid document
• some non-primes remain nervous and
evidence needs to demonstrate positive
prime contracting behaviours
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‘no teeth’ - opportunities
• to identify and publish positive
behaviours to help establish recognised
norms within supply chains
• for the assessment process to be
developed with direct involvement of
providers and representative bodies,
with ongoing involvement/ownership at
the end of the two year pilot
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Why will Merlin pilot help?
• flexible pilot – co-regulation with DWP
to develop supply chain behaviours
• smaller provider ‘voice’ will be heard via
360 degree feedback of primes – and of
DWP as commissioner
• ensure compliance with the Code and
recognise other standards e.g. star rating
• focus on sharing best practice will help
to raise standards of behavioural norms
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How will Merlin work?
• assessment visit - duration and fees
based on highest tier of operation:
- self-assessment highlighting best practice
- assessment visit – independent assessors
- results and best practice posted on Merlin
web portal
• access to web portal and information
services –via annual subscription
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Benefits for providers
• web portal will be a valuable ‘shop
window’ for the sector :
- who, where and doing what
• positive prime behaviours will be more
openly advertised, including to DWP
• smaller providers will directly influence
the status of primes and higher tiers –
reflecting not least on their track record
of supporting and capacity building
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Benefits for providers (cont…)
• primes who invest in the development
of healthy, high performing supply
chains will be openly recognised by
their supply chain partners
• new entrants at every level will find it
easier to ‘navigate’ the sector
• primes requiring additional delivery
capacity and expertise will have another
communication channel open to them
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Benefits for DWP
• co-regulation helps to develop the prime
contracting model
• providers at every level influence what
is important in supply chain dynamics
• in line with the Commissioning Strategy
DWP is able to step further back from
supply chain management
• DWP receives regular 360 degree
feedback on its role as commissioner
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Ombudsman service – why?
• lack of trust that primes will honour
commitments to work in line with code
• lack of confidence that DWP is equipped
to deal with supply chain disputes
• DWP may be complicit in supply chain
problems that arise so must be separate
• an independent body can help to
establish acceptable and unacceptable
behaviour over time
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Ombudsman service - process
• providers submit a case if dispute
resolution procedures fail
• administration part of the service will
ensure cases meet criteria and have
sufficient supporting information
• panel convened to consider the case
and make a judgement
• result notified to providers and DWP
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Sharing standard information
• subcontracting area of DWP website
includes a draft standard form for
information sharing between providers
• Merlin pilot activity will help to develop
such standard templates to enhance
efficiency within procurement rounds
• The Merlin web portal will progress to
provide a range of useful downloads
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Future considerations for Merlin
• pilot activity will need to establish what
supply chain tiers will require
certification against the standard
• Merlin services must carefully ‘dovetail’
with existing interfaces with providers
• how will innovation be encouraged over
and above the sharing of best practice?
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Future opportunities for Merlin
• feedback on the success of the
standard plus the requirements of future
contracts will mean the standard will
need to evolve over time
• the standard will potentially be able to
adapt to co-commissioned contracts –
other government departments are
already involved
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Next steps:
• pilot support contract in place to
develop and test Merlin services
• standard information being used for
forthcoming contracts
• Advisory Group of providers and
representative groups working with DWP
• DWP working group to align internal
interfaces and help develop
co-commissioning opportunities
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Expected outcomes:
• co-regulation of supply chain
behaviours in the future
• independent ombudsman service in
place for future supply chain disputes
• improved and independent sharing of
best practice and key information
• DWP achieve further development of
the Commissioning Strategy in true
partnership with providers
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Contact details:
Lucy Williams
Merlin Pilot Project Manager
[email protected]
Simon Shimmens
Merlin Pilot Advisor
[email protected]
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