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n 4 JUL 2 016 \ f\ .• l: . • Department Tel: for Transport Fax: E-Mail: From the Permanent Secretary Web site: www.dft.gov.uk 29 June 2016 Meg Hillier MP Chair of Public Accounts Committee :, .:-; fi~'. «~ 1r~; fi 'M1 [F. rR· l House of Commons \I ,'.._ ...J, [..:;·, ' Y• ll L~ • I:-::, London 11 ( , . . .. - ! SW1AOAA i-- Doo"~s- __._ / Dear Ms Hillier, Twenty First Report of Session 2015-16 - Reform of the Rail Franchising Programme I am writing to provide you with an update on recommendation three of the Twenty First Report of Session 2015-16 (published 28 April 2016), addressing the requirement to report to the Committee in June 2016 on progress made with the external recruitment campaign and pay flexibility. Since the launch of Passenger Services in November 2014, the Department has established integrated market teams. The creation of market teams has brought together units working on franchise competitions, and direct awards, with franchise management teams under the leadership of a single Market Lead. Processes have been introduced to create more robust approaches to the integration of specification, procurement and management of franchises. For example, the updated Mobilisation Guide improves knowledge sharing and our approach to succession planning. Recruitment continues and we are filling vacancies and backfilling roles, following internal promotions and staff leaving the organisation. We have successfully recruited into franchise procurement roles, franchise and in-life finance roles, rail technical roles, specification roles, PPM and franchise policy and design roles. Our riew Markets and Design Policy structure supports the importance of all of these positions and their interaction both as a programme and within the wider organisation. In order to create and maintain an appropriate and relevant workforce, we have recruited our team from both the wider Civil Service and external markets. The latter including backgrounds in the rail, motoring and aviation industries, major consultancies, telecoms, banking and finance. We have built a robust wider team comprising experienced civil servants in the fields of policy, contract management, PPM and business support. The Committee asked that the Department fill its remaining vacancies with appropriately qualified individuals as soon as possible and I am pleased to report that significant progress has been made.