Code of Conduct - the Merlin StandardLucy 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

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DWP

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 opportunities19

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 providers20

Contact details:

Lucy Williams

Merlin Pilot Project Manager

lucy.williams@dwp.gsi.gov.uk

Simon Shimmens

Merlin Pilot Advisor

simon.shimmens@dwp.gsi.gov.uk

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