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 Serco Limited Lot 8: Yorkshire and The Humber CPA 17: South Yorkshire

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: Serco Limited Serco Welfare to Work 242246 Serco House 16 Bartley Wood Business Park Bartley Way Hook Hampshire RG27 9UY n/a GB 207 5233 88 www.serco.com

Head Office Address, if different: VAT Registration Number: Website Address (if any):

Name, address and company registration number Serco Group PLC of parent company, where applicable: Serco House 16 Bartley Wood Business Park Bartley Way Hook Hampshire RG27 9UY Name and Job Title of main contact: Address: Registration Number: 2048608 [redacted] Business Development Director Serco Welfare to Work Serco Welfare to Work Portland House Bressenden Place London SW1E 5RS [redacted] [redacted] [redacted]

Telephone no: Mobile telephone no: Fax no:

E-mail address: Alternative contact Name and Job Title: Address (if different from above): Telephone no: Mobile telephone no: Contact e-mail:

[redacted] [redacted] Bid Director Serco Welfare to Work n/a [redacted] [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: Job Title: 13th February 2011 [redacted] Chief Executive Officer Serco Civil Government

Duly authorised to sign Tenders on behalf of: Name of Organisation: Serco Limited

Serco 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 We fully support and are excited by the opportunity to participate in DWPs further development of services using the payment by results model. However, we do remain slightly concerned that the contractual terms have not been changed to reflect this payment by results model and the risk transfer that such a model creates. We currently subcontract with over 70 organisations and are proposing subcontracting with many more if we are successful in this mini-competition. In accordance with the notes in the Invitation to Tender Form we have not proposed amendments to the Standard Call-off Terms and Conditions, however given that the details of the mini-competition were published after the Standard Terms of the Call-Off Contract were agreed, we have been asked by our subcontractors to discuss with the DWP a number of additional areas of risk which relate to the Standard Call-Off Terms And Conditions. These areas for further discussion include the relationship with the Framework Agreement, termination triggers, consequences, general liability and employment issues

including TUPE costs associated with transition provisions. We are awaiting clarification from the DWP on this latter point. Where concerns might exist regarding any contractual terms, we believe the approach taken for FND, with a review of terms and conditions undertaken jointly by ERSA, Serco and the Department, proved very successful. In all cases, any amendments and additional risk areas we would like to discuss are intended to help us achieve the principles that are outlined in the Work Programme Prospectus. From a procedural perspective, please note that we consider this bid as capable of acceptance by DWP in accordance with the declaration set out in Part 2 of this Invitation to Tender Form, subject to agreement on the proposed amendments and guidance from DWP with respect to the Standard Call-Off Terms And Conditions. 2.13 In general terms, we would request that practicality is considered in relation to all Performance Improvement Plan clauses. The Work Programme will deliver in many areas (and exclusively under Serco) through extended supply chains, with at least one third of services delivered by the voluntary sector. We believe that response times should be considered, given the chains of communication and the nature of the organisations who will be responding. There is always a lag in the impact of any performance improvement plans, as a result of the time that must elapse between interventions and job entries. The Work Programme is also focused on job outcomes that are achieved between 13 and 26 weeks after a job entry is achieved - this key measure will always have a lag of many months between an agreed plan and any improvement being delivered. With this in mind a reasonable remedy period for all service failures is requested. 2.13.2 We request insertion of the phrase, but in any event no less than ten (10) Working Days for PIP submission from a Performance Improvement Notice. 2.13.4. We request that the unilateral right to require a shorter period of time for submission of the Performance Improvement Plan is removed or changed to 10 working days as 2.13.2. We request that notified in the second sentence is replaced with agreed, and to is replaced by and.

2.13.6. We request that the right to terminate for nonagreement of the PIP is either deleted or referred to Dispute Resolution. This is an outcome-based contract and as such performance failures have other contractual mechanisms that allow termination. 2.13.7. We suggest that the rights to termination should be limited to circumstances when the fault in question has not been remedied and is material, and request this clause is amended to reflect this. All other rights for termination are provided elsewhere in the contract. 2.13.9. We appreciate the repeat failure termination right DWP seeks here but request a higher threshold to allow providers a reasonable period to remedy the service failure. Given the time period for outcomes to be achieved, we request that the threshold is changed from one Performance Improvement Plan in three months to two Performance Improvement Plans in six months. 7.1.1. We request that this clause is returned to the position in the Standard Call-Off Terms including deletion of sub-clause (k). 7.1.3. We request that the limits of liability are amended to be consistent with the risks specifically relating to each call-off contract and also to reflect the rewards of that contract. For example, a small Work Programme contract has an expected lifetime value of c45m, yet with limits of liability of 20m per year total liability is limited to 140m this would appear to be inequitable and is also unenforceable with many potential primes, as such limits would materially exceed their total annual profits leading to almost certain insolvency. Other than those provisions identified above, Serco 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.

7.1

[redacted] Name: Scanned Signature: [redacted]

Position: Telephone No: Date:

Chief Executive Officer, Serco Civil Government [redacted] 13th February 2011

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 five 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 Sercos Work Programme is designed to meet the needs of all Customers in order to achieve the optimum number of sustained Job Outcomes. Customers experience an individually-tailored journey built on an in-depth needs assessment, potentially progressing through three distinct Phases of interventions: Engage (16 weeks) Enable (44 weeks) and Empower (44 weeks). Sercos Specialist Journey runs alongside the main Customer Journey and has been designed for Customers with the highest support needs, such as learning disabilities or sensory impairments. A rich mix of Providers delivers personalised support at each Phase, with Customers matched to Providers best placed to support them into suitable employment. Sercos directory of Integrated Support Services (ISS) wraps specialist assistance around our core provision of supported work preparation and jobsearch. Mandatory Referrals Serco works with Jobcentre Plus (JCP) to implement and manage our warm handover process in South Yorkshire, which will be adapted to meet local constraints. Wherever possible, Engage Providers are co-located with Jobcentres to meet the Customer for an initial discussion after a JCP referral. Alternatively, the JCP Adviser telephones the Provider when the Customer is with them to arrange their first appointment. Where warm handovers are not possible, Providers contact Customers directly. During the initial discussion Providers address any personal issues that may impact on the Customers attendance, such as transport, health and caring responsibilities, and identify any communication or accessibility needs so that appropriate arrangements can be made. Marketing to voluntary Customers Serco works alongside our Engage Providers and our Specialist Providers to market provision to voluntary Customers, including: Customers from the ESA Support Group lone parents with children under five and carers from the ESA Work Related Activity Group and IB and IS claimants eligible to volunteer under ESF funding. Serco will produce bespoke Work Programme marketing materials on behalf of our network, ensuring that all materials meet JCP and ESF requirements and are available in alternative formats and languages on request. Where possible, we will coordinate marketing activity with the other Prime to increase the impact of our joint activities. Marketing materials will be displayed in key locations, including local GP surgeries, day care services, Childrens Centres, nurseries and community centres. We will also market through the 20,000 member organisations of Involve Yorkshire & Humber. Sercos Subcontractors in South Yorkshire are able to build on their existing links with over 200 local, community-based organisations to deliver targeted marketing to potential voluntary Customers. For example, South Yorkshire Condition Management (Yes2Ventures) has developed links with over 240 GP practices in South Yorkshire through their delivery of Pathways to Work and North Doncaster Development Trust bring existing links with Childrens Centres across Doncaster. Our Provider network is additionally able to market provision from their 160 outreach sites across the region. Sercos development of a network of ISS generates additional referrals to the Work Programme from voluntary Customers. Once engaged, voluntary Customers are supported to refer to the Work Programme via their nearest JCP. All mandatory and voluntary referrals are facilitated via PRaP. Customers receive a welcome pack including confirmation of their first appointment, our unique Customer Charter, a map and local transport information. Customers receive a reminder phone call or text the day before their appointment. Engage Customers begin Sercos Work Programme in South Yorkshire on the Engage Phase: 16 weeks of comprehensive needs assessment and job brokerage. All Customers identify a Realistic Job Goal and the individual support needed to achieve it and keep it. Those closer to the labour market are supported into work quickly and efficiently; those further away are matched to the most suitable Enable provision following intensive

4.1 (continued) assessment. Interventions are fortnightly as a minimum. Initial face-to-face appointment If it has not already taken place at JCP as part of a warm handover, this takes place within seven days of referral to the Engage Provider. Our dedicated Business Processing Unit in Rhyl updates PRaP with the attachment activity via daily reports from Sercos Intelligent Milestone, Programme And Case Tracking system (IMPACT). Sercos Engage Providers deliver Welcome Sessions for all Customers to ensure they have a clear understanding of Sercos Work Programme. Welcome sessions provide: an overview of the programme an introduction to their Provider details of Sercos complaints procedure and data protection policy and a walk-through of our Customer Charter, outlining Customer rights and responsibilities, including continued attendance at fortnightly JCP Jobsearch reviews. Throughout all Phases, Sercos proactive Fail to Attend Process requires Providers to engage all mandatory and voluntary Customers who fail to attend meetings or interventions within three working days. Sanction doubts are raised for mandated Customers in line with JCP guidance, with quality assurance and tracking by Serco. Non-attendance of voluntary Customers is addressed during their one-to-one meetings as part of the review of their Personal Profile & Employment Plan (PPEP). Different Customer groups, including those funded by ESF, are separately coded on Sercos IMPACT system, allowing us to generate tailored reports on attendance and activity for each group. The Personal Adviser Customers benefit from a Personal Adviser at each of Sercos three programme Phases. They offer personalised jobsearch support; one-to-one advice, guidance, coaching; signposting/referral to ISS; and In-Work Support. Personal Profile and Employment Plan (PPEP) During the first three face-to-face meetings of Engage, all Customers participate in the development of a PPEP with their Personal Adviser. The PPEP is the tool that each Jobseeker uses to plan the actions that will prepare them to access and progress within employment. It drives all aspects of delivery, and travels with the Customer throughout their journey into sustained employment. Development of the PPEP begins with an in-depth assessment process that supports the Jobseeker to identify a Realistic Job Goal, building on their interests, competencies, skills and experience. This Realistic Job Goal is tested against a set of external factors, such as availability of vacancies and time-frame of the Work Programme, and internal factors, such as current skills levels and travel to work time. A Customers individual needs are identified in relation to their Realistic Job Goal ensuring a focus on constraints/barriers that are specifically relevant to that persons journey to work. These might include: health housing finances childcare and other caring responsibilities criminal record substance misuse transport personal presentation or motivation and ESOL or basic skills. As part of the PPEP assessment, future In-Work Support needs are also identified through our unique Sustainability Assessment. Customers review how moving into work could impact key personal areas such as health, finances, and relationships. Actions to address sustainability issues are agreed, ensuring In-Work Support is integral to the Programme from the outset. Serco aids the identification of complex, additional needs through our work with a range of specialist partners, including members of our Expert Reference Groups, such as Barnardos, the Centre for Mental Health, and Sercos Occupational Health Division, to develop, deploy and quality assure specialist diagnostic tools for use across our Provider network, for example, tools to diagnose dyslexia. Following the in-depth needs assessment, the Customer and their Personal Adviser work together to agree actions to address those needs and support the Customers journey into sustained employment. Voluntary Customers, including lone parents and carers, are supported to develop an in-work Care Plan that addresses their in-work childcare and care needs. All actions agreed are SMART (Specific, Measurable, Achievable, Realistic and Time-bound) and are captured in the PPEP. Where Advisers believe that actions are essential for progress they will mandate these within JCP

4.1 (continued) guidelines and according to Customer group. All Customers receive a copy of their PPEP which is accessible, clearly formatted and in plain language. Advisers are trained by partners from our delivery network, for example Rotherham Councils Joint Learning Disability Service, to promote understanding of what is required by Customers with a learning difficulty or health condition affecting cognition. All elements of the PPEP are recorded and tracked via IMPACT, including referrals to ISS and each Customers personalised package of In-Work Support. Tailored activities throughout all three Phases include: Job Brokerage Customers are supported to access sustainable jobs through reverse marketing, the internet, trade publications, and vacancies generated through employer engagement activity. All Customers will have access to vacancies coordinated on behalf of the network via Sercos bespoke Customer Job Portal, delivered in partnership with Monster Jobs UK. Customers are supported to develop a CV tailored to their Realistic Job Goal, complete application forms, and gain effective interview skills; Financial Advice and Support Serco ensures that Subcontractors have the facility to provide all Customers with a detailed Better Off In Work Calculation Sercos network-wide training (and subsequent assurance) ensures that Advisers are able to: highlight in-work benefits, including assisting with tax credit applications and provide access to bank accounts and advice agencies such as Credit Unions. Access to skills assessment and flexible skills training Sercos delivery network in South Yorkshire is uniquely aligned with local skills provision, enabling Customers to access a range of basic skills and vocational training provision on their journey into and within work, including through our specialist partner, the Yorkshire Colleges Consortium. 60% of our network delivers accredited skills training, and our network includes the largest local Provider of the SFA-funded Employability Skills Programme (Community Training Services). Subcontractors facilitate referrals to SFA funded Next Step provision, with Next Step Advisers supporting Customers to access online support to undertake Skills Health Checks and Career Planning tools and find training that supports their Realistic Job Goal. Work-Focused Training Our Subcontractors deliver a range of work-focused training that is responsive to local labour market need, and are well-equipped to support Customers into emerging local job opportunities across South Yorkshire. For example, the Source @ Meadowhall, the regional Retail Skills Academy, prepare Jobseekers for a range of retail opportunities across South Yorkshire, including jobs at Meadowhall shopping centre. Additional support When Customers undertake activities that require a transfer to a Training Allowance, their Adviser facilitates this with JCP. Providers meet their travel, childcare, replacement care costs and any additional support costs to promote full participation; this is all recorded, assured and analysed for its effectiveness through IMPACT. All activities are designed to be accessible to all Customer groups. The timing and location of delivery is flexible to account for caring responsibilities, disabilities, health and personal issues. Meetings and interventions take place at Provider premises, community locations, JCP, the Customers home, or by telephone/Skype, to promote accessibility. Methods of delivery are adapted for Customers with sensory disabilities, language or learning difficulties, mental health conditions, and other individual needs. Documents are written in plain language and are available in other languages on request. Voluntary Customers have access to all of the above activities throughout their journey. Activities for voluntary Customers are targeted to their individual needs to ensure active participation. For example, SCOOP Aid use a holistic approach to assist lone parents to return to work which includes home visits, welfare rights advice and confidence building. PPEP Reviews All mandatory and voluntary Customers are required and supported to regularly review their PPEP. Progress against the PPEP is assessed regularly during oneto-one appointments and formal Quarterly Progress Reviews, allowing continuous diagnostic feedback. Sercos IMPACT system requires Adviser and Customer to review

4.1 (continued) progress against each identified need, and Jobseekers are asked to selfassess the extent to which their needs have been addressed. Sanction doubts are raised with JCP if mandatory Customers fail to implement notified and mandated actions. Voluntary Customers who consistently fail to comply with agreed actions engage in reviews to identify and address any barriers to participation. PPEPs are also revisited during Transition Reviews, ensuring the subsequent Provider is able to build on progress made. Transition Reviews Transition Reviews take place within two weeks of the end of Engage and Enable for both mandatory and voluntary Customers. Jobseekers review progress with their Adviser and key next steps are identified. Following this review IMPACT matches the Customer to a next Phase Provider, based on the identified needs of the Customer and the expertise and experience of each Provider. For example, Customers with learning disabilities may be referred to Mencap, part of Disability Works UK, who have over 30 years experience of preparing this Customer group for sustained employment. Warm handovers coordinate the transfer between Phases via a three-way meeting or teleconference to promote effective engagement. The new Provider: books the Customers first face-to-face meeting; outlines transport routes; addresses accessibility, communication or other needs; sends confirmation of the appointment; and reviews the Customer Journey and PPEP via IMPACT before the initial meeting, facilitating a seamless transition. Enable Jobseekers in South Yorkshire who do not move into sustained work during Engage are supported to transition to the Enable Phase 44 weeks of individually-tailored support based on the needs identified, and building on the progress made during Engage. The right Customer-Provider match and increased investment at this Phase enables complex constraints to be addressed. Customers experience a minimum of fortnightly interventions, with levels continually reviewed to maintain effective progression. Additional activities and interventions during Enable include: specialist health and disability support such as condition management delivered by South Yorkshire Condition Management Programme (Yes2Ventures) and Cognitive Behavioural Therapy provided by WISE Ability. These specialist interventions are work-focused, targeted at addressing the health constraints faced by Customers when moving into employment. Providers concentrate on condition management and improving Customer confidence vocational training and work placements, such as those delivered by Phoenix Enterprises, who provide sector-based pre-employment training in Retail, Construction, Hospitality & Leisure and Transport. Voluntary Customers may particularly benefit from taster days and part-time activities to re-introduce them to the workplace. supported employment, such as Barnsley MBCs bespoke factory unit, Moorland Plastics Barnsley, which provides jobs for Customers with fluctuating health conditions and learning disabilities referrals to Integrated Support Services (ISS). Sercos ISS directory will provide wrap-around support to address specific Customer needs. For example, Compass support Customers with substance misuse problems and South Yorkshire Housing support Customers facing homelessness. Serco develops priority referral mechanisms with local ISS services to enable Customers to be referred, or self-refer, to ISS at any point, whilst maintaining contact with their Adviser. Empower Jobseekers in South Yorkshire, who do not move into sustained work during Enable are supported to transition to the 44-week Empower Phase, and are again matched to the most suitable Provider to meet their current needs. The focus of Empower is on self-directed jobsearch, with supported access to a range of resources, including: IT facilities group workshops peer-to-peer mentoring and community-based interventions such as Work Clubs. Customers experience a minimum of fortnightly

4.1 (continued) interventions, with levels tailored to ensure progression is maintained. Empower Providers deliver effective interventions in varied formats, such as: BESTs group workshops on debt management networks and business clubs targeted at BAME communities, delivered by Urbanbiz and North Doncaster Development Trusts First Steps 2 Fitness scheme, which provides free access to community-based fitness facilities alongside healthy living and diet advice. The Specialist Journey Sercos Specialist Journey runs alongside the main Customer Journey, providing the same minimum service levels. It is accessible to both mandatory and voluntary Customers. It has been designed for those with the highest support needs that are best met by expert Providers. Specialist Provision also includes self-employment support and support to access creative industries. Customers on the Specialist Journey receive tailored support via in-house delivery and access to external services. For example: Urban Biz and South Yorkshire Chambers Consortium deliver selfemployment support Armstrong Learning provide specialist support in the creative industries Northern Refugee Centre support refugees to re-enter employment the Regular Armed Forces Employment Association support ex-service personnel and Jobsteps support Customers with learning and other disabilities. Customers are referred to Specialist Providers directly from JCP, ensuring they receive the most suitable provision from day one. Additionally, Customers identified as suitable for this provision during Engage can be transferred at any point. Customers participate in a Transition Review by week 60, at which point they may transfer to a Provider delivering Empower, or remain with their current Provider for the whole programme. In-Work Support Serco has designed a Customer Journey that prioritises in-work sustainability from day one. Following the initial Sustainability Assessment, Advisers help Customers to develop long-term strategies to deal with issues that may impact on job sustainability, such as caring responsibilities and fluctuating health conditions. They agree objectives relating to pre-employment activity and In-Work Support requirements from the outset. Once a Customer is offered a job, the PPEP Sustainability Assessment is updated to address areas such as company analysis, including the employer support mechanisms available match to the job, including suitability of working hours, skills and abilities fit the Customers ability to manage change, such as a new transport routine or changes to childcare arrangements and specific needs, such as health needs that must be addressed in work. In-Work Support is delivered by the Adviser/Provider who assisted the Customer into work. An In-Work Action Plan is agreed, and recorded on IMPACT, including a contact plan and additional measures such as: condition management professional development work-based learning coordinated contact with wider agencies ongoing jobsearch, for example where work is seasonal and Access to Work to fund aids and adaptations for disabled Customers. An Employment Assistance Helpline, brokered by Serco, further provides a professional 24/7 service that is available to both Customer and employer, with advice available on a wide range of work-related and personal issues. Employers supporting Customers with disabilities can also access our Employers Forum on Disability Helpline for specialist advice. Where employment is not sustained, steps are taken to match Customers to alternative employment. Those re-entering the programme return to their Provider to review progress, identify issues affecting sustainability, update the PPEP, and receive support to return to work. Completion: Customers not sustaining work by the end of their Allotted Time will be asked for feedback on the service received in order to inform their personal next steps and also the continuous improvement of the programme. Their Adviser will finalise the PPEP during weeks 102-104; this informs the Exit Report generated by IMPACT to be sent to JCP at programme completion.

[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 four sides of A4.

4.1a Rationale Sercos Customer Journey is designed to identify and meet the jobseeking needs of all Customers to support the maximum number into sustained employment. It has been developed in consultation with a wide range of specialist partners as well as different claimant groups via a series of tailored focus groups. It has also been tested against DWPs Critical Success Factors. Our Customer Journey is best placed to meet the needs of all individuals in all Customer groups because it: Creates three distinct Phases Through a Customer Journey with three distinct Phases (detailed in 4.1) our model: reflects the evolving needs of Customers as they move through the two-year programme mitigates parking of Customers, with successive Providers incentivised to optimise performance and maximises Jobseekers opportunity to find work by introducing them to up to three different Provider approaches. Engage provides an up-front, in-depth assessment and supports those closest to the labour market into work quickly and effectively. Evidence from previous programmes shows that 16 weeks is the optimum length of time to support these Customers into work. For example, 60% of Sercos Job Outcomes are achieved during the first 15 weeks of a Customers FND provision. Customers who do not find work during Engage are supported to move to Enable. Enable provides 44 weeks of individually-tailored support based on the needs identified in the Personal Profile & Employment Plan (PPEP), and building on the progress made during Engage. The right Customer-Provider match and increased time and investment allows complex constraints to be addressed. Our Empower Phase reflects the fact that, by week 60 of Sercos Work Programme, Customers proximity to work will have increased as a result of the significant investment and support already received. This Phase draws on the Customers improved employability to provide a focused environment for the Customer to use their enhanced skills and confidence to jobsearch. Customers continue to participate in regular one-to-one and group-based interventions, with the frequency based on individual need; Introduces transitions to drive performance Previous employment programmes have demonstrated that introducing transitions can help to create an uplift in performance. For example, Sercos FND delivery has seen up to a 40% uplift in Job Outcomes at the end of our programme Steps. Evidence suggests that transitions are effective in challenging comfort zones, introducing a new Adviser with a fresh approach and keeping Jobseekers focused on the objective of sustained employment. This extra impetus is lost when a single Provider delivers an end-to-end service; Delivers in-depth Customer diagnostics Serco has introduced a PPEP that drives each Customers personalised journey through Sercos Work Programme. Described in 4.1, the PPEP employs an unprecedented level and quality of assessment to evaluate each Customers needs in relation to their Realistic Job Goal. This determines the subsequent support that the Customer receives. During each review, Customers are supported by their Adviser to review progress against identified needs; Ensures a strong Customer-Provider match Sercos Work Programme is delivered through a diverse network of the best local and national welfare-to-work providers with a wide range of specialist expertise and experience. For example, Providers in South Yorkshire include: SCOOP Aid, who specialise in supporting lone parents into employment SOVA, specialists in supporting ex-offenders into work and UrbanBiz, who deliver targeted outreach and employment support for Customers from BAME groups, and have achieved job outcome rates of up to 60% with this group. At each Phase, informed by the PPEP, Serco ensures that all Jobseekers are matched to a Provider with the right expertise to support them to access and sustain employment; Provides Customers with the highest support needs with targeted support from day one Our extensive consultation with industry experts has identified that Jobseekers with the highest support needs are best served by Specialist Providers with the expertise to support them into work, such as Mencap and Action for Blind People, both members of

4.1a (continued) Disability Works UK. For this reason, Customers with severe learning disabilities or visual impairments can be fast-tracked to Sercos Specialist Journey from day one (detailed in 4.1); Targets support to voluntary Customers, including IB/IS Customers Serco coordinates marketing activity across our supply chain to target voluntary (including ESF) Customers. Our use of local Providers with existing community links enables us to raise awareness of the Work Programme provision for voluntary Customers. For example, North Doncaster Development Trust bring links to all GP surgeries in Doncaster, through the Better Workplace, Better Mental Health Project, that will enable us to attract IB Customers. Once an Attachment has been registered, Serco ensures the active participation of voluntary Customers by: monitoring sample PPEPs to ensure that the needs of voluntary Customers are accurately identified and addressed and that individual progress is made requiring our Subcontractors to follow up non-attendance of voluntary Customers within three working days, with significant levels of non-attendance highlighted during monthly Subcontractor performance meetings providing access to our network of Integrated Support Services (ISS), including specialist services for IB and IS Customers, such as The Sheffield Carers Centre and tailoring In-Work Support to meet individual needs in-work; Provides a strong focus on in-work sustainability Analysis of our FND delivery identified that Customers In-Work Support needs were often addressed at the point of job offer. Sercos Customer focus groups reinforced the need to identify In-Work Support requirements earlier, enabling any potential issues to be addressed throughout the Customer Journey. In response, we have introduced a sustainability assessment into our PPEP that identifies in-work risk factors at the start of the programme. Sercos analysis of the reasons why Customers fail to sustain work has revealed that it is often personal issues and life changes, such as caring responsibilities and fluctuating health conditions, that are the root cause. To address this, Serco has brokered an Employment Assistance Helpline which Customers and Employers can access. This provides 24/7 advice and counselling on a range of work-related and personal issues. It is delivered by Care First: 80% of their current service users report that the service helped to prevent job loss; Addresses complex and diverse needs Many Work Programme Customers will face a wide range of complex needs that impact on their ability to access and sustain work. Customers on Sercos Work Programme are supported by their Adviser to access our network of ISS to address these needs. By aligning delivery with wider support services, Serco ensures that each Customers needs are addressed holistically, whilst also delivering value for money by avoiding service duplication. Referrals to ISS are tracked and managed via Sercos Intelligent Milestone, Programme And Case Tracking system (IMPACT). Benefits to individual Customer groups Serco has designed a Work Programme solution that maximises the benefits to all Customer groups in South Yorkshire. It has been developed in consultation with our Expert Reference Group, attended by a wide range of specialist partners, including Barnardos, Crisis and the Centre for Mental Health. The Group has provided critical feedback on the development of our evolving solution, with a particular focus on the needs of diverse Customers. We have also established a Disability Expert Reference Group that has informed our solution specifically in relation to the needs of disabled Jobseekers. Our delivery solution has been locally tailored. Our dedicated Partnership Manager has spent the last 6 months engaging with over 50 existing local providers and 30 local and regional stakeholders, identifying and addressing the diverse needs of local Jobseekers. Serco has drawn together a network of established Providers from the public, private and third sectors, whose diverse range of expertise and experience makes them best placed to meet the diverse needs of Jobseekers in South

4.1a (continued) Yorkshire. Serco adds to this local expertise by facilitating training to all frontline staff in a range of specialist areas to enable them to address the needs. Our localised model is uniquely able to benefit the following Customer groups: JSA 25+: South Yorkshires JSA levels are above the national average of 3.5% in every Local Authority area, with the highest proportion of claimants living in Doncaster (4.6%) and Rotherham (4.5%). Wards such as Doncaster Central have JSA rates as high as 9.2%. JSA Customers in South Yorkshire face a range of challenges in accessing the labour market, including: low skills levels. For example, 16.6% of people in Doncaster have no formal qualification intergenerational unemployment as a result of the decline of the manufacturing sector and financial exclusion in Rotherham, where 14,680 adults have no bank account. Sercos provision benefits JSA Customers through: subcontracting to five current FND Providers, including CTS, who achieved up to 45% job entry rates in their first year of FND delivery the 40% of our Providers who deliver debt advice the 60% of our Providers who deliver accredited skills training and ISS Providers such as Doncaster West Development Trust and Rotherham CAB, who provide free financial advice; JSA 18-24: 31.8% of JSA claimants in South Yorkshire are aged 18-24 (3% above the UK average). All of our Providers are experienced in supporting young people into work, including Groundwork, who have close links with local Connexions services and deliver bespoke programmes for NEETs. Serco will pilot the ReSync online mentoring programme in areas with a high proportion of 18-24 year olds, such as Barnsley. This flexible, on-demand support by professional counsellors, and provides access to trained peer-mentors to tackle barriers to work and deliver In-Work Support for young people; All groups within ESA and Ex-IB: South Yorkshire has IB/ESA rates that are above the national average, with over 40,000 people claiming in the region. Dearne Thurnscoe ward in the Dearne Valley has over double the regional average proportion of claimants at 17.2%. These Customers face a range of challenges in accessing the labour market, including: intergenerational unemployment in the ex-coalfield areas of Deane Valley, Barnsley and Rotherham mental health issues, prominent in Sheffield and musculoskeletal problems, prominent in Barnsley. The increased investment and time during the Enable Phase of our model provides access where required to health services such as Cognitive Behavioural Therapy (CBT), vocational rehabilitation and confidence building. The emphasis of all such interventions is on condition management, with Customers empowered to self-manage their condition. Sercos provision benefits ESA and ex-IB Customers through: subcontracting to experienced Providers with a strong track record of supporting Customers with health needs. For example: South Yorkshire Condition Management Programme (Yes2Ventures) has delivered the Condition Management element of the Jobcentre-led Pathways to Work contract in South Yorkshire for the last 5 years 26% of our providers deliver CBT 90% of our network are experienced in assisting people with mental health needs 58% deliver specialist disability support services Disability Works UK and Jobsteps deliver Specialist Provision to disabled Customers and ISS Provider, Clouds Community Counselling, provides mental health support on a one-to-one and group basis. Serco ensures that supported referral mechanisms are in place for voluntary Customers. Our unique Employers Forum on Disability Helpline further assures support for these Customers; IB Customers: Voluntary IB Customers have equal access to the health-based and condition management interventions available for ex-IB and ESA Customers. Serco

4.1a (continued) needs holistically. For example, South Yorkshire Condition Management (Yes2Ventures) works with 104 GP practices across Sheffield. These links enable them to both engage with the high number of IB claimants living in the Sheffield wards of Firth Park and Burngreave, and to address their employment and healthcare needs in tandem. Serco brokers links with existing national and local initiatives in place for IB Customers on behalf of our network, for example, Improving Access to Psychological Therapy and Barnsley Fit for the Future. Our Providers bring expertise in engaging with IB Customers and supporting them back into sustained employment, for example: WISE Ability deliver a personal mentoring programme for Customers with mental health needs and Barnsley MBC has over 40 years experience supporting Customers with severe health conditions into work, providing supported employment through Moorlands Plastics Barnsley; Early Access Customers: Serco facilitates supported referral mechanisms for Early Access Customers and provides them with tailored support, including: the 5,000 ex-offenders on probation in South Yorkshire every year. These Customers face a range of needs including low skills levels, housing needs and lack of confidence that are addressed by our Specialist Provider, SOVA, who are experts in supporting ex-offenders into sustained employment. SOVA have assisted over 8,000 ex-offenders into work in the last three years. and homeless Jobseekers Sheffield has 97,818 families awaiting social housing and over 3,000 homeless people. Our Providers bring existing links to address housing needs, such as CTS, who work proactively with Sheffield City Councils Housing Solutions team; IS Customers: Serco markets our Work Programme provision to IS claimants in South Yorkshire, including to the 16,110 lone parents and the 5,055 carers. We will focus particularly on the areas with the highest numbers of IS claimants, for example, the wards of Firth Park, Burngreave and Rotherham Central. Our Subcontractors bring links to local services that enable us to both engage with these Customers and address their needs holistically. For example, Barnsley Metropolitan Borough Council/Barnsley Development Agency (BMBC) has close links with all 19 Childrens Centres in Barnsley, enabling them to both engage with the high number of lone parents living in Barnsley, and to address their employment and childcare needs. Our Subcontractors also bring links to Doncaster Partnership for Carers and Crossroads Care, who are able to provide additional support to carers returning to work. Serco will work in partnership with Carers UK to identify additional support for carers who volunteer for the programme. Support for carers is coordinated with significant other family members where possible. Prior to work, all IS Customers are supported to agree a Care Plan that identifies and addresses their in-work care or childcare needs, reviewed as part of their In-Work Support package. Sercos Child Poverty Expert Reference Group, whose membership includes Gingerbread, Daycare Trust and Family Action, will provide external scrutiny to ensure that our Customer journey benefits parents and families and addresses their needs fully; Customers from BAME groups: The employment gap between BAME groups and their white counterparts in Sheffield is 24%. BAME communities in South Yorkshire face challenges to accessing the labour market, including ESOL needs and low skills levels. Serco subcontracts to organisations who specialise in supporting Customers from BAME groups across South Yorkshire, including CFFE, Phoenix Enterprises, BEST and Urbanbiz, who have achieved up to 64% into sustained employment with BAME groups; Inter-generational worklessness affects disadvantaged ex-mining communities across South Yorkshire. For example, in Barnsley 26.2% of households are workless compared to the national average of 18.7%. Serco

[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 Sercos minimum service levels Serco has developed a unique Customer Charter that details our minimum service levels and is explained to all mandatory and voluntary Customers at the start of their journey. The Charter is advertised at all delivery sites and on our bespoke Jobseeker website and is made available in alternative formats on request to ensure accessibility for all. Customers are invited to assess the service that they receive against our minimum service levels through our regular Customer feedback mechanisms. Serco monitors parity of outcomes to ensure that our minimum service levels deliver equality of access and opportunity to all Customer groups. Our minimum service levels are as follows: Engagement & Attendance We target our Providers to: ensure that referrals are attached to the programme within 7 days of the referral date deliver a full, assured induction to Customers within 14 days of initial referral. Throughout the programme, Providers are required to follow up any Customer non-attendance within three working days and to refer all Customers eligible for sanction activity to Jobcentre Plus. Serco defines strong minimum levels of Customer attendance, with all mandatory and voluntary Customers required to attend at least fortnightly interventions throughout Sercos programme. As detailed in 4.1, group-based interventions increase during the Empower Phase, except for those with the highest level of need, such as ex-IB Customers or the ESA Support Group, who engage in a higher proportion of one-to-one appointments. Customers with complex needs such as learning disabilities and autism, and those pursuing self-employment, are supported to access our Specialist Journey from day one. All Customers are supported by a Personal Adviser, who coordinates engagement with wider support agencies, including referrals to our Integrated Support Services (ISS). Personal Profile & Employment Plan (PPEP) Customers on Sercos Work Programme work alongside their Adviser to agree an initial PPEP by the end of their third appointment, which is then progressively developed throughout their time on the programme. The PPEP includes an in-depth needs assessment that identifies each persons Realistic Job Goal and their individual needs in relation to that Job Goal. Customers agree actions to achieve their Job Goal and are supported to create a tailored CV. The PPEP is updated during one-to-one appointments and formal Quarterly Progress Reviews. Transitions Customers due to transfer to a new Phase of provision on Sercos Work Programme participate in a Transition Review and are supported through a warm handover to the new Provider. The Customers PPEP travels with them to the next Phase. The quality of information transferred with each person must be formally reviewed (and reported) as acceptable or unacceptable by the receiving Provider. Sustained Job Outcomes The PPEP uniquely includes a Sustainability Assessment that evaluates previous patterns of in-work sustainability. All Customers agree a tailored package of long term In-Work Support with their Adviser that includes planned inwork contact and an in-work benefit calculation. Rationale The rationale for our minimum service levels is built from: the experience of Serco and our Subcontractors of the activities that are most likely to support an individual into sustained employment our FND teams have conducted on-site observations and analysed Management Information to identify the activities that correspond to high levels of Sustained Job Outcomes analysis of Customer priorities and concerns, gained via our Customer focus groups and existing feedback procedures and the input of our unique Expert Reference Groups. These groups include specialist partners (such as the Employers Forum on Disability, Crisis and Barnardos) and have shaped our minimum service levels in relation to the diverse needs of Customers. Our minimum service levels mitigate the risk of Customers with more complex needs receiving a lower standard of service by: requiring Subcontractors to engage with Customers fortnightly throughout the programme introducing the PPEP to ensure Jobseeker progression and giving Subcontractors a fixed period of time at each Phase to achieve an outcome with each Customer. Our minimum service levels have been tested with our Subcontractors to ensure that they are affordable and deliverable.

4.1b (continued) They are built on our detailed financial modelling of what is affordable for Subcontractors to deliver at each Phase, underpinned by our detailed understanding of the Provider cost base gained during FND. Our financial models take into account: the number of Customer interventions to be delivered at each Phase the length of each intervention the performance outcomes to be achieved by frontline staff members at each Phase and the resources required to deliver effective In-Work Support. These assumptions have informed our Subcontractor payment terms, ensuring that they are sustainable. Our payment terms include both start-up and outcome-based fees, providing the right level of cash flow and resource to deliver our minimum service levels and achieve performance outcomes. The commitments in our Customer Charter are underpinned by KPIs for Subcontractors to ensure that these standards are met or exceeded. We have also developed contractual Standards of Excellence, emphasising our commitment to exceptional Customer service. Addressing needs by Customer group Sercos Quality Assurance (QA) Team is responsible for auditing and continuously improving the capacity of our supply chain to meet the diverse needs of all Customer groups, including: ensuring activity to raise awareness among voluntary groups of the service available monitoring sample PPEPs and CVs during monthly compliance checks to ensure that they are tailored to each persons identified needs monitoring the match between a Customer and their Provider at each Phase, ensuring it is based on needs identified in the PPEP and conducting premises audits to evaluate accessibility. Sercos QA team further monitor services as follows for each Customer group: All groups within ESA and Ex-IB reasonable adjustments to services to enable full participation for Customers with disabilities, including varying communication methods and appointment times appropriate referrals to ISS and our Specialist Providers, such as Jobsteps and Disability Works UK appropriate use of discretionary spend to fund interventions such as condition management and vocational rehabilitation and specialist In-Work Support, including the provision of workplace aids and adaptations. Serco has factored higher numbers of interventions for ESA and ex-IB Customers into our financial models and Subcontractor payment terms to reflect their anticipated level of need. Existing IB Customers equal access to the services available for ex-IB and ESA Customers targeted marketing via GP surgeries and health centres discretionary spend to fund interventions such as chronic disease self management courses access to Specialist Providers such as South Yorkshire Condition Management (Yes2Ventures) and stream-lined referral mechanisms to ensure those volunteering receive tailored support to start the programme. JSA 18-24 alignment with existing local provision such as apprenticeships, delivered by our Providers CTS and BEST ISS support from specialists such as Youth Development Barnsley and access to bespoke provision such as the Retail Routeway programme delivered by our Subcontractor, The Source @ Meadowhall. JSA 25+ appropriate access to ISS, such as The Age & Employment Network for Jobseekers over 50 in Sheffield access to skills support from the 60% of our Providers who deliver accredited skills training targeted discretionary spend, for example to buy interview clothing information and services in alternative community languages on request and access to our 160 local outreach services for those living in rural areas, such as the Dearne Valley. JSA Early Access stream-lined, supported referral mechanisms coordination of PPEP activities with wider agencies, such as the persons Offender Manager or housing Key Worker and cross-referrals with ISS, such as Sheffield Futures, specialists in supporting Customers with substance misuse needs IS Customers targeted marketing via Childrens Centres and carers agencies supported referral mechanisms support through Specialist lone parent Provider, SCOOP Aid and the development of a Care Plan to address in-work childcare and care needs.

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 Sercos strategy for delivering the Work Programme in South Yorkshire is to subcontract all front-line delivery to a structured, diverse network of Subcontractors from all sectors, drawing on the best welfare-to-work Providers already operating in the region and bringing in new capacity as required. Through this network we can ensure geographical reach, the best possible coverage for diverse Customer needs, whilst driving the maximum number of sustained Job Outcomes. Our Subcontractors are contracted, then managed, within Sercos unique three-Phase Work Programme delivery model. Sercos experienced local Contract Management Team supports, assures and challenges this supply chain, and its associated partnership network, to extend performance. Customers engage in three Phases of provision, with all Customers on the core journey moving to a new Provider at each Phase. Engage 16 weeks of intensive needs-assessment and job brokerage. Those Jobseekers who are closest to the labour market are supported into sustainable employment as quickly as possible. Those who do not find employment are supported by a uniquely extended and in-depth diagnostic process. All Customers are helped to identify a Realistic Job Goal and their individual support needs to achieve it. Engage is delivered in South Yorkshire by: BEST Community Training Services (CTS) Centre for Full Employment (CFFE) and North Doncaster Development Trust (NDDT). These Providers were selected based on their strong track record of engaging and supporting a wide range of mandatory and voluntary Customer groups into employment and their ability to deliver in-depth diagnostics. Enable 44 weeks of personalised, tailored support. As a result of in-depth diagnostics in Engage, each individual can now be matched with the Enable Provider best equipped to address their personal needs. Increased time and investment at this Phase allows for a focus on more complex solutions for Customers further from the labour market. The Enable Phase is delivered by: WISE Ability Phoenix Enterprises SOVA Source @ Meadowhall Groundwork Barnsley Metropolitan Borough Council/Barnsley Development Agency (BMBC) NDDT South Yorkshire Condition Management Programme (Yes2Ventures) Urbanbiz and SCOOP Aid. Providers were selected based on their proven ability to support Jobseekers in each locality with overcoming significant barriers into work. Empower 44 weeks of a different type of intervention encouraging increased selfsufficiency. This Phase draws on the Customers improved employability following the interventions provided in the previous two Phases. A focused environment and appropriate resources are provided for the Customer to use their enhanced skills and confidence to jobsearch. Empower is delivered by: BEST Source @ Meadowhall WISE Ability Urbanbiz Phoenix Enterprises NDDT and CTS. These Providers deliver a range of innovative, group-based jobsearch support, including aligning with wider local community initiatives such as Work Clubs. Our Specialist Journey runs alongside the main journey for Customers with specific, complex needs that are best met by these expert local Providers. This Specialist Journey allows Customers with the highest support needs to be fast-tracked from day one. Delivering the Specialist Journey are: Barnsley MBC Jobsteps Disability Works local self-employment Providers, Urbanbiz and South Yorkshire Chambers of Commerce creative and performing arts specialists, Armstrong Learning refugee employment specialists, Northern Refugee Council and the Regular Forces Employment Association. Customers assessed as suitable for this provision will be cross-referred from Engage. All Providers are contracted in four geographical clusters Sheffield, Rotherham, Barnsley and Doncaster - with multiple Providers delivering each Phase in each cluster. This assures geographical coverage, a rich mix of Providers at each Phase and better alignment with local initiatives. Sercos directory of Integrated Support Services (ISS) comprises: statutory services such as Sheffield Asperger Syndrome Service Providers

5.1 (continued) offering supplementary services that can be purchased by Subcontractors as required, including South Yorkshires Wheels to Work Scheme and specialist organisations to advise Sercos delivery network on how best to support specific Customer groups, including SCOOP Aid, nationally recognised experts on the challenges faced by lone parents. Serco acts as a broker between our Subcontractors and ISS Providers, negotiating payment terms where applicable and facilitating cross-referral mechanisms. As Prime Contractor, Serco is responsible for: timely and accurate processing of referrals from Jobcentre Plus setting, tracking and reporting transparently against KPIs and minimum standards coordinating marketing to potential voluntary Customers coordinating employer engagement activity coordinating strategic partnership working to ensure alignment of the Work Programme with wider regional initiatives and funding the roll-out and management of our bespoke Intelligent Milestone Programme And Case Tracking (IMPACT), which drives performance and is used by all Providers in our network Customer progression and timely and accurate transfers sharing best practice across the supply chain, continually driving improvements in compliance, performance, quality and impact and overall responsibility for performance, including the management of flows between Providers and management of financial risk. Delivery strategy rationale Serco has drawn on our expertise across a depth and breadth of service delivery to design a strategy that maximises the potential outcomes of the Work Programme. We have gained input from our Expert Reference and Customer focus groups, to ensure that our delivery model meets the needs of all Jobseekers including the hardest to help. We have also learnt lessons from our experience in supply chain sourcing and management particularly from 18 months as a welfare-to-work Prime Contractor delivering in CPAs with similar demographics to South Yorkshire. Serco's Work Programme delivery strategy is the best approach because: Subcontracting all front-line delivery enhances efficiency and effectiveness. By combining our strength as a Prime Contractor with the experience and expertise of the best local and national welfare-to-work organisations, we will support more people into sustained employment than has been achieved before. Serco has selected organisations with a proven track record of delivering high-performing services, similar in scope to that delivered under the Work Programme. For example, last year alone our Subcontractors collectively supported more than 32,800 economically inactive Jobseekers into employment. Our proven approach to contract management, continuous improvement and capacity building will help our Subcontractors to develop further and build on what they do best. Breaking up the programme into three Phases will support more Customers into work than end-to-end provision. Previous employment programmes have demonstrated that introducing transitions can help to create an uplift in performance. For example, our FND delivery has seen a surge in performance of up to 40% before the end of each of our three programme Steps. Progression to the next Phase also brings a new Adviser with a fresh approach, and allows each successive Provider to represent a closer match using an updated analysis of each Customers needs. Our payment terms for Providers facilitate the model, with up front/attachment payments paid to Providers of all three Phases. This, combined with limited delivery periods, supports our Subcontractors cash flow, ensuring the sustainability of the smaller and voluntary sector Providers in our network. A multiple Provider model drives higher performance than a single Provider model. Subcontracting to multiple Providers at each programme Phase drives performance by fostering competition. Open performance reporting on our FND has demonstrated how Subcontractors benchmark their performance against one another,

5.1 (continued) driving up standards. Multiple Providers also mitigate risk to performance. Should one Provider under-perform or cease trading, there is an alternative Provider in the network already delivering the same service who can take over the contract. A diverse network maximises our capacity to help more Customers into sustained employment. Experienced welfare-to-work Providers, such as BEST and Community Training Services, are particularly strong in terms of job brokerage and supporting large numbers of Jobseekers who are closest to the labour market into work quickly and efficiently. Smaller, specialist Providers, such as SCOOP Aid and Northern Refugee Centre, are more effective in meeting the specific needs of Customers with more complex constraints to work. With the right blend of expertise in our network, Customers can be matched to the best Provider to meet their individual needs. Subcontracting to local Providers better enables Serco's Work Programme to meet the region's specific needs. Our Subcontractors collectively have 322 years experience of delivering in South Yorkshire. They understand and are best placed to address regional and local worklessness issues, including: rural isolation outside the main conurbations, particularly the Dearne Valley high rates of IB claimants in excoalfield towns and villages skills shortages across the region, with 14.6% of people possessing no formal qualification and cultural barriers to employment in ethnic minority communities of Doncaster and Sheffield. Our Providers have well-established links with employers and stakeholders in the region and are already facilitating referrals to existing regeneration activity, including the Doncaster Sheffield Airport growth corridor. By subcontracting to local Providers with existing infrastructure we ensure at a reduced cost: more specialist responses more community-based solutions and greater alignment with local objectives. It also ensures as smooth as possible a transition from outgoing contracts such as FND and Pathways to Work. Subcontracting to local Providers also enables Sercos Work Programme to benefit from their extensive partnership networks throughout the region, which will facilitate referrals of voluntary Customers from day one of contract delivery. As a learning organisation, Serco may alter our delivery model in response to local need, stakeholder consultation, and continuous improvement, to optimise network performance. Our approach to working with Subcontractors is driven by the objective of meeting the needs of all Customers in South Yorkshire and aligns with the Merlin Standard and DWPs Code of Conduct. In selecting our Subcontractors, Serco identified and evaluated those organisations who could best meet the requirements of the Customer groups in this region including the hardest to help. This was done in consultation with Customer representative groups and community organisations, potential Subcontractors and key stakeholders such as the four Local Authorities and South Yorkshire Probation Trust. In some cases, we selected organisations who scored less highly against certain criteria but who demonstrated specialist expertise and the potential to develop. This approach has resulted in a diverse network of Providers, including 53% from the voluntary sector. Sercos supportive pricing regime with multiple staged payments facilitates the inclusion of smaller, voluntary sector organisations, whilst our proven ability to build capacity supports their performance and growth. Sercos robust performance management system is designed to continually drive the right behaviours in our Providers. This is achieved through our KPIs and corresponding Standards of Excellence, which underpin performance and ensure a minimum level of service to all Customers, as set out in our Customer Charter. Sercos quality assurance and audit activities focus on assuring the quality of the Customer journey, ensuring that interventions are tailored to Jobseeker need. Serco deploys a Continuous Improvement Manager who works alongside a SWOT team to address any specific Provider capacity issues and to develop sustainable solutions. Sercos Trainer supports Subcontractors to identify and address the skills needs of their Advisers to ensure that they are equipped to meet all Customer needs.

[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 Sercos Welfare to Work (W2W) business operates within the Civil Government Division of Serco Group. The W2W Managing Director, [redacted], reports to [redacted], Chief Executive of Civil Government, who in turn reports to Sercos Global Management Board. The Civil Government Executive Team evaluates the W2W business monthly against our contractual targets, financial forecasts and risk assurance objectives. Every Serco contract has a Contract Board that assures effective contractual delivery and provides resilient upwards accountability. Our Work Programme Boards will include Senior Managers from across Serco, with DWP and JCP also represented. Responsibilities and Reporting Lines Sercos W2W National Performance Director is responsible for ensuring the achievement of our contractual targets. They manage a Regional Performance Director for South Yorkshire who in turn manages a team of regional Performance Managers. This team is responsible for: setting, monitoring and managing Subcontractor performance against agreed KPIs anticipating and mitigating any risks to under-performance managing the effective flow of volumes across the network to drive performance and reporting monthly on regional performance. Our central Senior Employer Engagement Manager reports to the National Performance Director and manages a team of regional Employer Engagement Managers. This team is responsible for increasing the number of vacancies brokered by our network. Sercos IS & Business Process Manager also reports to the National Performance Director and is responsible for managing: our dedicated Business Processing Unit in Rhyl and the effective roll-out of our Intelligent Milestone, Programme And Case Tracking system (IMPACT). Sercos National Delivery Assurance Director is responsible for ensuring that our Work Programme delivery meets DWP contractual standards, legislative requirements and Sercos best practice standards. Their direct reports include our: Head of Quality Compliance Manager Safety, Health & Environment Lead MI Manager Continuous Improvement (CI) & Training Manager and Information Security Manager. Our Head of Quality manages a Complaints & Investigations Manager and regional teams of Quality Assurance (QA) Managers, who are responsible for assuring the quality of our provision across our delivery networks, supported by QA Assistants. The Compliance Manager is responsible for compliance and fraud prevention across our networks. Sercos Continuous Improvement (CI) & Training Manager oversees both a CI Manager and a Trainer in South Yorkshire. The CI Manager works alongside Subcontractor Senior Management Teams to identify any critical underlying issues impacting on performance and co-develop sustainable solutions. The Trainer works alongside Subcontractor HR leads to identify and address the skills needs of frontline teams. Sercos Strategic Director for England is responsible for establishing our Mutual Management Board in South Yorkshire. Our Business Development & Enterprise Director manages: regional Business Development & Enterprise Managers, responsible for aligning our delivery with wider local services and brokering additional investment into the network and our Head of Communications, who oversees and coordinates communications in each CPA, supported by central Communications Managers. Our Senior Finance & Commercial Manager manages regional Finance Managers, responsible for financial forecasting against contract profiles. Serco has identified the required management skills and expertise for our Contract Management Teams through our: analysis of the core competencies required to both drive the achievement of optimum outcomes across our supply chains and assure the quality of our frontline delivery, gained through our 18 months experience as the only Prime Contractor in welfare-to-work delivering entirely through local Subcontractor networks management of contracts in the local region, including HMP Doncaster and consultation with local stakeholders. Serco delivers these required skills and expertise

5.2 (continued) through targeted recruitment activity. We recruit locally where possible, drawing on local management skills and expertise, and create secondment opportunities for local organisations such as JCP. Serco has identified the management skills required within our Subcontractors through: our Subcontractor Questionnaire, which asked Providers to identify the skills that they require in their management teams and their existing stakeholder relationships and local consultation conducted by our Partnership Manager for South Yorkshire, [redacted]. She has met with the management teams of over 50 local Providers over the last six months to determine the management skills required to support effective delivery in the region. We will ensure that these identified management skills are delivered through our rigorous, assured selection of the best local Subcontractors, drawing together a rich mix of Providers from a range of sectors. We continue to ensure that the required management skills are in place through our Due Diligence process and ongoing resource planning with Providers. Working with our supply chain and delivery partners Serco works with the management teams of our Subcontractors to create a learning, integrated network using: our online TOOLKIT to share best practice networking events regular communication coordinated by our Head of Communications and award and celebration ceremonies. Every Subcontractor has its own management structure and internal reporting lines, and Serco requires Providers to identify leads for: operations and performance management quality assurance HR & staff development finance and data security. Sercos Contract Management Team interface with the relevant Subcontractor lead during structured interventions, defined by our KPI regime and Delivery Assurance Framework as follows: Performance Managers support and challenge Subcontractor achievement of their agreed KPIs. Subcontractor Operations Managers participate in weekly telekits and monthly face-to-face meetings with their Performance Manager to review and analyse performance, including reasons for any under-performance. Quality Assurance (QA) Managers work with Subcontractors to monitor the qualitative aspects of their delivery, ensuring compliance with DWPs contractual requirements and Sercos minimum service levels. Our Quality Improvement Framework informs a series of mandatory QA and compliance activities, including monitoring sample claims and observing Customer interactions, conducted by our QA Assistants. The Regional Performance Director meets with Subcontractor Senior Management Teams during quarterly strategic reviews to take a high-level view of performance. The previous quarters performance is analysed and priorities agreed for the quarter ahead. The Employer Engagement Managers (EEM) supports Subcontractors to assess and continuously improve the effectiveness of their employer engagement activity and to maximise its impact on performance. The EEM hosts monthly meetings with Provider employer engagement leads to share best practice and coordinate engagement in response to forthcoming regeneration opportunities. The CI Manager works at a strategic level with the Senior Management Teams of underperforming Providers to identify any critical underlying issues preventing optimum performance. They are supported by a virtual SWOT team (Strengths, Weaknesses, Opportunities, Threats) on a case-by-case basis to address any critical systematic challenges faced by a Provider. The regional Trainer supports Subcontractor HR leads to continuously assess the skills needs of their delivery teams. Ongoing needs analysis feeds into the development of bespoke training modules facilitated by Serco and our specialist partners. Sercos Mutual Management Board (MMB) provides a clear interface with our local delivery partners in South Yorkshire. MMB members are responsible for identifying the Executives within their organisations who will be accountable for partnerships with our supply chain. The nominated service lead and a Subcontractor representative agree a Partnership Plan identifying, as appropriate: robust cross-referral

5.2 (continued) mechanisms co-location agreements joint events and joint staff training. Sercos management structure is appropriate to South Yorkshire because it: Builds the capacity of local Providers Serco has drawn together a rich mix of Providers to meet the diverse needs of Customers in South Yorkshire, identified through our extensive stakeholder consultation and mapping exercise. We have created a diverse supply chain of organisations of varying sizes, structures and experience. Such diversity requires flexible contract management, able to respond to the needs and capacity of each organisation. Our performance management can be flexed to address the specific needs of Subcontractors, such as the 53% of third sector Providers in our network. For example, SCOOP Aid may require more intensive support to understand the commercial drivers impacting on performance than experienced welfare-to-work Providers, BEST and WISE Ability. Sercos Provider Maturity Model allows us to identify and build Provider capability in a range of areas. This ongoing investment in Providers capacity offers long-term, sustainable benefits to the region; Draws on local management expertise As part of our Subcontractor selection process, Sercos regional Partnership Manager has spent six months meeting with the management teams of potential Subcontractors. This process has enabled us to identify those local Providers whose management teams are best equipped to deliver highperforming provision that addresses the needs of the regions Jobseekers. For example, Business Development Manager at the Source, [redacted], was previously the HR Director at Meadowhall Shopping Centre and a senior manager at JCP. She brings extensive insight into both the local labour market in South Yorkshire and the needs of Jobseekers across the region. [redacted], Adult Operations Manager at CTS, brings experience of supporting the organisations implementation of their large FND subcontract in South Yorkshire, which has achieved 45% Sustained Job Outcome rates; Ensures alignment with local services Sercos management structure provides resources to maximise the local impact of the Work Programme. Our Business Development & Enterprise Manager develops and promotes our network of local Integrated Support Services. They also oversee the local allocation of our Innovation, Enterprise and Investment Initiative, which invests in demand-led initiatives that stimulate the local economy and create job opportunities. For example, this could include matchfunding a local bus service to enable Jobseekers in rural parts of Barnsley to access the 1,000 jobs created by the re-location of ASOS to the area. Sercos Employer Engagement Manager ensures that our delivery network is strategically placed to respond to forthcoming job opportunities as a result of local regeneration, for example, the continued development of the Doncaster Sheffield Airport growth corridor, expected to create 10,000 jobs; Provides local accountability through our Mutual Management Board (MMB) Sercos Strategic Director for England, [redacted], former Chair of the Commission for Racial Equality oversees the set up of an MMB in South Yorkshire. Gurbux brings experience of leading the roll-out and implementation of our FND contracts in Greater Manchester and the West Midlands. The MMB provides stakeholders with an opportunity to genuinely shape our local Work Programme delivery. It draws together stakeholders to develop shared objectives relating to local worklessness and provides a mechanism to address these objectives through a gain-share agreement, which sees Serco committing to channel a percentage of funds over an agreed profit level into the MMB. MMB partners are responsible for agreeing how the funding should be invested in the community to create the maximum local impact through innovation.

[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 Serco has designed a Customer Charter that will ensure a consistently high standard of delivery across our Provider network, meeting and exceeding our minimum standards. Our Charter is underpinned by a set of bespoke Key Performance Indicators (KPIs) and Standards of Excellence (SOEs) for Subcontractors. Our KPIs reflect DWPs contractual requirements and provide the appropriate commercial challenges and incentives to drive Subcontractor achievement of performance outcomes. Our SOEs relate to Serco-defined best practice and are designed to assure the quality of all Jobseeker interventions by influencing the right Provider behaviours. Monitoring the quality of delivery All frontline staff across Sercos supply chain network will be required and trained to use our Intelligent Milestone, Programme And Case Tracking system (IMPACT). IMPACT will monitor information in real time and provide the following functionalities: a case management system, accurately capturing performance against all contractual KPIs a case tracking system that follows each Customers personalised journey and records the activities that support the achievement of KPIs and SOEs and a reporting tool. Serco will use IMPACT to: report on performance against contractual KPIs and SOEs, including by Subcontractor and frontline staff member design tailored reports, such as outcomes by Jobseeker demographic and generate exception reports to pre-empt or analyse any under-performance. The quality of Jobseeker interventions monitored via IMPACT will include: the development and continuous review of a Personal Profile & Employment Plan (PPEP) adherence to an agreed frequency of contact referrals to our network of Integrated Support Services and each persons tailored package of In-Work Support. IMPACT will issue proactive reminders to frontline staff to underpin the agreed minimum service levels to Customers. For example, it will mandate Advisers to follow up all non-attendance. Serco monitors the impact of each Subcontractors policies and procedures through our bespoke online TOOLKIT system, which requires Providers to self-assess their capabilities in a range of areas, including data security, equal opportunities and health & safety. Serco conducts monitoring activities in line with our Quality Improvement Framework, including: regular audits of Subcontractor systems and processes, including systems for fraud prevention, to inform a risk rating for each Provider monthly compliance checks, where at least 10% of Provider claims are monitored, with the sample size increasing for Providers with a higher risk rating quarterly Customer feedback loops, including focus groups and sample-based surveys and on-site observations. Managing the quality of delivery Serco contractually requires and supports all Subcontractors to develop a robust Quality Management (QM) System following contract signature that comprises: robust quality management and continuous improvement procedures auditing arrangements performance management systems Customer feedback mechanisms financial management systems, including fraud prevention and Equal Opportunities, Health & Safety, Safeguarding and Whistle-Blowing policies and procedures. Each Subcontractor has a named Serco QA Manager who conducts quarterly gap analysis of their QM System. Subcontractors are given 30 days to address any areas for improvement, captured and reviewed in their Quality Improvement Plan. Our Safety, Health & Environment lead works with the regional Contract Management Team to ensure that Provider delivery premises and facilities are equipped to meet the needs of all Jobseekers, including those with disabilities. Serco adds value as a Prime Contractor through the application of our Provider Maturity Model, which helps to evaluate and grow Provider capacity in a number of key areas, including: leadership and management performance management Customer experience and HR & training. Ensuring provision is of a consistently high standard Building on lessons learnt from our FND delivery, Serco deploys a regional Continuous Improvement (CI) Manager to work in South Yorkshire in addition to our Performance and QA Managers. The CI

5.3 (continued) Manager works at a strategic level with the Senior Management Teams of underperforming Providers to identify any critical (and often subtle) underlying issues preventing optimum performance. Issues addressed could include, for example, the alignment of resources, organisational culture or management prioritisation of operational issues. The CI Manager works with Sercos Communications Team to facilitate best practice sharing across the network. Additionally, we deploy a SWOT team on a temporary, case-by-case basis to address any critical systemic challenges faced by a Provider. The SWOT team draws on the best resource from our Serco Contract Management Teams to deliver targeted support in the relevant functional area, such as data security, fraud or performance management. Sercos regional Trainer assesses network-wide skills needs, working with Provider HR leads to enable them to assess the training needs of their frontline teams. Ongoing training needs analysis feeds into Sercos development of tailored modules. Providers can access training through a range of delivery modes, including through Sercos Train the Trainer model. Serco is additionally developing accredited industry standards for welfare-to-work delivery and management staff through our sponsorship of Inclusions POWER Group (Professionalisation Of Welfare Expert Reference Group). Ensuring provision meets our minimum service levels Customers have our minimum service levels explained to them at the start of their journey and are regularly invited to give feedback on the service that they receive. Serco designs a suite of tailored exception reports in IMPACT that analyse each Providers adherence to our minimum service levels, including: reporting on overdue actions by frontline staff member and analysing the delivery of our service levels for specific Customer groups (such as those living in rural areas or those from BAME groups). Serco has developed a set of best practice toolkits that support Provider frontline teams to deliver our minimum service levels effectively, including toolkits for: inductions initial appointments assessing Customer Realistic Job Goals effective jobsearch caseload management and InWork Support. Additional assurance that our minimum service levels are being delivered to all Customer groups is provided by our Equality & Diversity Steering Group, which meets bi-annually and is chaired by our Strategic Director for England, [redacted], who is the former Chair of the Commission for Racial Equality. Approach to performance improvement Serco has designed a KPI system for the Work Programme that provides both the right commercial drivers to incentivise Subcontractor performance and assures the quality of the entire Customer journey. Learning lessons from FND, we have devised a points-based KPI regime that drives the achievement of targeted outputs, imposing financial penalties where appropriate for under-performance. All Providers must achieve our KPIs, which mirror DWPs contractual requirements of maximising: Jobseeker Attachments Job Outcomes and Sustainment Outcomes. Our KPIs and SOEs additionally reflect the Provider behaviours that we seek to drive, including: upholding our Customer Charter maximising Jobseeker engagement ensuring that each Customer receives a tailored service and progresses throughout the programme, including those with complex needs and raising the visibility and effectiveness of In-Work Support. Serco will establish a Provider Expert Panel, made up of representatives from our network, which will provide ongoing feedback on our KPI regime, enabling us to continuously hone its effectiveness. IMPACT will be used to report on the quantitative elements of all KPI measures, supported by qualitative input on service delivery from our QA team. Our Performance Managers use TOOLKIT to capture each Providers journey and to calculate their performance score using our points-based system. Every quarter, the Performance Manager summarises the Providers scores for the previous three months to determine

5.3 (continued) the payment schedule that will apply for the next three month period. Determining payments in this way allows Providers to earn back any points lost as a result of poor performance in a previous month. If a Subcontractor falls below a certain points threshold for a number of consecutive months, a contract Terms and Conditions review will be triggered. Subcontractors participate in weekly performance telekits and monthly face-toface meetings with their named Performance Manager. Performance meetings are used to identify and address the factors impacting on performance, including: resourcing staff performance management systems staff training needs anticipated programme volumes caseload management, including in response to volume fluctuations and analysis of the quality of Customer interventions, including In-Work Support. Our Performance Managers challenge and support Providers to achieve optimum performance and drive change at both an operational and strategic level. They utilise coaching and consulting tools to do so, drawing on expertise from within the wider Serco team. Quarterly strategic reviews take place with all Subcontractors in addition to monthly meetings, involving both Serco and Subcontractor Senior Management Teams. Sercos approach to performance management is transparent: we were the first welfare-to-work Prime Contractor in the UK to openly publish the performance of our network on a weekly basis. Subcontractor over-performance is rewarded through: letters of recognition awards ceremonies and the opportunity to increase market share, including as a result of any DWP market shift. Acting on the findings of monitoring activity Sercos Regional Performance Director is responsible for the overall performance of the supply chain, including: ensuring that actions identified through DWP performance management activity are implemented within the agreed timescales building effective partnerships with Jobcentre Plus (JCP), including District Managers and Third Party Provision Managers, to monitor and continuously improve processes for joint working managing any disputes within the supply chain, utilising our dispute resolution procedure where issues cannot be resolved by mediation working alongside Finance Managers to monitor Provider financial robustness and drawing in the virtual SWOT team to address specific issues within the supply chain identified by monitoring activity. Our Head of Quality monitors the supply chain from a quality assurance perspective. She supports all monitoring activity carried out by DWPs Commercial Employment Provision Provider Assurance Team (CEP PAT), from initial preparation of the Provider Systems Questionnaire and pre-audit activities, through to the implementation of resultant actions and weekly follow-up contact. Sercos regional Contract Board, which we invite JCP to attend at a District Manager level, is responsible for signing off actions as a result of external monitoring activity. Subcontractor actions identified as a result of monitoring (by either Serco or other auditing bodies) are captured in Subcontractor Quality Improvement Plans and must be addressed within the agreed timescale (usually 30 days). Issues outside of the supply chain Sercos IMPACT system will host our live directory of Integrated Support Services that our Providers can use to make cross-referrals to wider agencies. Providers will be able to use IMPACT to flag any issues identified, for example, if a specialist service has specific eligibility criteria. The effectiveness of this iterative directory will be reviewed monthly by our regional Business Development & Enterprise Manager. Sercos Mutual Management Board (MMB) for South Yorkshire is responsible for identifying and resolving any issues that arise outside of our supply chain, for example as the result of a change in policy or provision. MMB partners, including health commissioning bodies, Local Authorities and voluntary sector representatives, will act on any issues identified by: developing a joint approach to issue resolution aligning funds where appropriate to implement follow-up actions and mitigating any risks to Work Programme delivery.

[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 The sites shown on this map are the confirmed main and outreach delivery sites for Sercos Subcontractors in South Yorkshire.

5.4 (continued) As the map illustrates, Sercos Work Programme in South Yorkshire reaches across the entire region, ensuring every Customer has complete access to our services in urban, semi-urban and rural locations. Delivery of the service is organised across the region into 4 clusters Barnsley, Sheffield, Doncaster and Rotherham to ensure both geographical coverage and alignment with local priorities and targets. We have achieved full geographical coverage in South Yorkshire by: using our Subcontractor selection process to ensure the right blend of Providers with a broad geographical reach ensuring that the distribution of sites across the region is representative of the anticipated Customer flows (e.g. 37 sites in Sheffield to reflect high volumes) ensuring that all 3 of our programme Phases are represented in all 4 of the clusters utilising a vast range of outreach locations, many of which are in areas such as Askern where Customer volumes do not warrant fixed sites. Sercos Providers deliver outreach services from over 160 locations and numerous community centres throughout South Yorkshire utilising Sercos network of Integrated Support Services who have infrastructure throughout the region, providing additional coverage and further complementing our fixed delivery and outreach sites with flexible contact arrangements and innovative outreach mechanisms such as North Doncaster Development Trusts mobile gym. Sercos network of Subcontractors, experienced at delivering in the region, ensures provision achieves optimal coverage and makes best use of current resources. This directs funding to service provision instead of creating new costly facilities. Serco has 96 confirmed delivery sites, with an average of 24 per cluster. Collectively the premises provide over 300 rooms with 180 training rooms, ICT suites and meeting rooms, and 150 small rooms which are used as 1-1 interview rooms, offices and prayer rooms. This includes numerous community centres and village halls in rural places such as Penistone, and community hubs such as Mexborough. Serco has actively sought Providers with the resources and experience to deliver the Work Programme in rurally isolated areas such as West Barnsley and North West Sheffield to ensure full access to all Customers. We have secured locations with good transport links, with all delivery sites being within 10 minutes of public transport. We have addressed transport issues for Customers in the Dearne Valley who require local delivery due to poor transport links. Serco additionally subcontracts with Disability Works UK, a consortium of third sector organisations including Mencap and Scope. As a consortium they provide access to the full range of members premises across the region. The multiple sites available to Disability Works UK organisations are in addition to those outlined above and provide full regional coverage. WISE Ability is the only Provider opening new delivery sites, and has agreed expansion plans to open up new sites in Barnsley. They have experience of setting up new premises at short notice under FND in South Yorkshire. Details of our key delivery sites in each cluster are provided below showing coverage across all parts of the CPA geography. Full postcodes are available on request. Sheffield 37 confirmed premises provided by BEST, Community Training Services (CTS), Centre for Full Employment (CFFE), Groundwork, Source @ Meadowhall, South Yorkshire Condition Management (Yes2Ventures), Northern Refugee Centre and Jobsteps. There are multiple premises in Sheffield city centre, 2 of which are within a 5 minute walk from the JCP offices on Bank Street. A further site on West Street is 2 minutes from the West Street JCP office. Further central premises are on Scotland Street, Orchard Street, Division Street and Leadmill Road, all of which are within 5 minutes of the

5.4 (continued) nearest bus stop. There are also premises on East Bank Road within a 10 minute walk of the JCP office on Eastern Avenue. Further surrounding premises include 2 in Heeley, one in Gleadless, one in Hackenthorpe, one in Bradway and one on Maltraves Crescent. To the north of Sheffield centre there are 3 sites in Burngreave with 2 on Savile Street East within 2 minutes of a bus stop and a further one on Lyons Street. 2 delivery sites are also in Tinsley, with one on Meadowhall and another on Bawtry Road, with an additional site in Darnall. To the north of Sheffield City Centre, delivery sites are located in Wadsley Bridge and Longley Park. In Stocksbridge there is a delivery site on Coal Pit Lane within 5 minutes of a bus stop. Rotherham 26 confirmed sites provided by BEST, CTS, Groundwork and Phoenix Enterprises. There are 5 delivery sites in central Rotherham, 3 of which are within a 5 minute walk of the JCP offices. A further site is on the High Street and another within 3 minutes of the train station. Further from the centre are sites on Rawmarsh Road, which is within 10 minutes of the train station and 5 minutes from the nearest bus stop, and another 2 sites on Erskine Road. There are additional sites near Barkers Park and in Greasbrough and the 2 premises in Rawmarsh are on Dale Road within 2 minutes of the nearest bus stop. South of Rotherham centre there are 2 premises on Moorgate Road near Rotherham District General Hospital. Rotherham East also has 2 delivery sites close to Fitzwilliam Road. Barnsley 16 confirmed sites provided by BEST, Groundwork, and Barnsley Metropolitan Borough Council/Barnsley Development Agency (BMBC). Central Barnsley has 5 delivery sites with one within a 3 minute walk of the JCP offices. The others, all of which are within 5 minutes of a bus stop, include a site on Kendray Street, one on Church Street and a further 2 on Summer Lane and Churchfield. Further south there are 2 sites, with one near Worsbrough Common and one on Thornton Road. To the west there are 2 premises in Penistone. There are 3 sites, one of which is 2 minutes from JCP offices, in the rural town of Goldthorpe. To the north, Cudworth, Grimethorpe and New Lodge all have delivery premises within five minutes of a bus stop. Other towns with premises include Wath-upon Dearne, Hoyland, Brampton Bierlow and Thurnscoe. Doncaster 17 confirmed sites provided by BEST, Groundwork, Urbanbiz and North Doncaster Development Trust. Of our 3 premises in central Doncaster all have a bus stop within a 5 minute walk. One site is on Princegate, less than 3 minutes from JCP offices while another is on Market Street. A further site will be delivered from Doncaster College. Outside of the centre there is a site in Bentley close to the High Street and one in Intake on Montrose Avenue. Further north there are 4 premises across Askern, Stainforth, Thorne and Moorends. New Rossington has a delivery site on Grange Lane within 3 minutes of a bus stop. South west of Doncaster, Edlington has a delivery site and Conisbrough has 2 premises on Castle Avenue and St. Peters Road. Mexbrough is served by 2 premises, one on Dolcliffe Road and the other near Wath Road. Facilities Serco has evaluated the suitability of Provider delivery sites as part of the Subcontractor selection process and provides assurance that premises contain: an area for confidential interaction between Advisers and Customers training rooms private interview rooms jobsearch facilities (including broadband internet and telephones) and toilets with disabled access. Premises all open between 9am and 5pm, Monday-Friday, with 15 sites additionally providing evening opening and 8 providing weekend openings. Meeting the needs of all Customer groups Sercos strategy for organising delivery of the Work Programme has been informed by our in-depth understanding of the needs of Customers in South Yorkshire, built up over 6 months of research and consultation in the

5.4 (continued) region. Our robust Subcontractor selection process included an evaluation of the geographical coverage and quality of Provider premises, addressing factors such as: accessibility of premises for all Customers transport routes access to childcare facilities and jobsearch resources. Throughout this process, Serco considered the needs of: Customers experiencing a disconnection from services Serco ensures access for Customers in rural areas, such as Penistone, which has infrequent trains to Barnsley town centre. Our approach is to ensure equality of access to all Customers in less wellconnected areas through Providers such as BMBC, who have access to outreach locations across the district including Penistone Library; Customers who find it difficult to leave their home for health reasons Our outreach solution provides extended coverage for all Customers and where necessary we will offer home visits; Customers with disabilities Serco will support all Subcontractors follow best practice guidelines as outlined in the Equalities Act. We will ensure that all Customers accessibility and support needs are met, which may include: access to a disabled toilet; lifts or alternative ground-floor venues; facilities such as hearing induction loops, Braille and large key keyboards; and disabled parking. Our Providers have access to an exclusive package of support and guidance from our partner, the Employers Forum on Disability, to support them in delivering the best possible service to this Customer group; Customers with children Serco supports our Subcontractors to ensure their premises are child friendly and feature toilets with baby changing facilities. 24% of local offices have onsite childcare facilities and 70% of locations have access to a crche within a 30 minute walk. If requested, a Customer can choose to attend a Provider near to his or her childs school. Serco will gain up-to-date information on local childcare services through our partnerships with Local Authority Childrens Information Services; Customers who require a prayer room 90% of our Subcontractor premises have private rooms that can be used as prayer rooms; Customers from BAME groups All instructions regarding travel to a Providers offices are given to Customers in a clear format and are available in a range of community languages on request; IB/IS Customers. Our Subcontractors work from a range of community venues that will enable us to market to voluntary IB and IS Customers, including 98 Childrens Centres and 240 GP surgeries and Health Centres across South Yorkshire. Sercos Quality Assurance Managers work alongside our Subcontractors to assure the quality and accessibility of all Provider premises and facilities, including outreach sites, with input from our Health, Safety & Environment lead. This includes reviewing: compliance of facilities within the Equalities Act and Health and Safety Act; and cleanliness and overall physical maintenance of premises. Serco's experience in delivering Facilities Management contracts across the UK, including for Local Authorities, gives us a unique insight into best practice. Recommendations as a result of Provider premises assessments feed into Provider Quality Improvement Plans. Serco's Quality Assurance Managers utilise Customer feedback to inform the quality-assurance of Provider premises and facilities, including on accessibility issues. Best practice in adjusting facilities to meet Customer need (including those with physical disabilities) is shared at Provider Best Practice Forums and disseminated across the network by our central Communications Team.

[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 Sercos Work Programme model is best-placed to maintain minimum performance levels and service delivery in the instance of changes to the number or type of Customers because it: mitigates risk to performance by having multiple Providers delivering in each area draws on the widest possible range of professional job brokerage and specialist skills utilises existing infrastructure in all locations and provides complete geographical coverage. Sercos Common Operating Platform (COP) supports the delivery of our welfare-to-work contracts and defines the core components of our delivery model. The COP maintains strong common standards, mitigating the risk of a reduced quality of service or performance as a result of a change in the number or type of Customers. The COP provides a replicable approach and delivers both scalability (to cope with fluctuating volumes) and flexibility (to adapt to new contractual requirements). Maintaining performance in the event of fluctuating volumes Serco is experienced in managing fluctuating Customer volumes. Our monitoring of FND volumes enabled us to anticipate increased referrals of 70% between January and March 2010, and to manage them effectively to achieve a 183% increase in Job Starts during the same period. We will manage fluctuations by: working closely with Jobcentre Plus (JCP) to predict and stimulate referrals, including monitoring and forecasting referrals from Early Access and voluntary Customers analysing volumes via our Intelligent Milestone, Programme And Case Tracking system (IMPACT), used by all Providers in our network and conducting extensive labour market analysis from a range of sources including NOMIS and Inclusion data. Our Subcontractors additionally bring experience of managing volume fluctuations on FND and other contracts. Serco maintains performance across the network in the event of fluctuations in Customer volumes by: aligning Subcontractor funding with Customer volumes disseminating predicted Jobseeker volumes weekly evaluating the impact of anticipated volume fluctuations during weekly Subcontractor performance telekits supporting Subcontractors to develop and maintain Resource Plans that address their current and future staffing demands based on contract need and anticipated volumes formulating contingency plans with Providers that can be executed quickly in the event of higher or lower volumes monitoring Subcontractor caseload sizes as Customer numbers vary, ensuring the right Customer-Adviser ratio to achieve optimum performance and training frontline teams to manage both small and large caseloads. Serco uses the flow of Jobseekers through a Subcontractor as a performance management tool: reducing the flow temporarily reduces caseload sizes and increases Customer interactions. Similarly, a reduction in flows can free up time to focus on qualitative aspects of delivery. We support our Subcontractors to maintain performance in response to decreased volumes by: removing consistently under-performing Subcontractors from our supply chain, reducing over-capacity and increasing performance facilitating premises-sharing agreements where Subcontractor leases are not viable based on flows and supporting Subcontractors to manage natural staff attrition, ensuring that staff are not unnecessarily replaced. We maintain performance in the event of increased volumes by: increasing the flow of Jobseekers to high-performing Subcontractors who have the financial and staff resource to increase their capacity bringing additional Subcontractors into the network where required capacity-building Subcontractors to increase group-based interventions in response to higher flows and coordinating recruitment drives and utilising our purchasing power to secure additional serviced offices in response to sustained increases. The measures above are also used to respond effectively to shifting market share. Maintaining performance in the event of changing Customer groups Serco and our supply chain will maintain performance in response to changing Customer groups, including as a result of the Future Services Schedule. We will achieve this by: working

5.5 (continued) closely with DWP and JCP to understand the impact of such changes drawing on the specialist expertise of our Subcontractors in working with diverse Customer groups. For example, Subcontractors such as Barnsley MBC are experienced in tackling intergenerational unemployment, preparing them to respond to changes such as the extension of the joint claim offer to the adult children of parents in workless households amending our Key Performance Indicators and minimum service levels to reflect the needs of new Customer groups modifying our IMPACT system to capture changes in contractual requirements, Customer groups and/or eligibility criteria planning for and monitoring the impact of changing Customer groups on performance during monthly performance meetings continuously monitoring the scope and composition of our supply chain to ensure that we have the right mix of Specialist Providers to respond effectively to new requirements and selecting new Providers with the required expertise where this is not already in place within our supply chain. We will adopt our Train the Trainer model to upskill frontline teams to respond to the needs of new Customer groups or policy changes. This could include training frontline teams to understand the impact of the introduction of the Universal Credit or changes to current conditionality or sanction regimes. We will respond to the potential Ministry of Justice top-up funding for ex-offenders by working with our Specialist Provider, SOVA, to develop additional measures to support these Customers. Managing expanding or contracting business as a result of shifting market share or economic factors Sercos network is well placed to manage expanding and contracting business resulting from shifting market share or economic factors without an adverse effect on service delivery or performance. We continuously analyse our own performance and that of the other Prime Contractor (where information is available), enabling us to forecast and plan for any shift in market share. We monitor the impact of any economic factors through our extensive labour market analysis outlined above. Additionally, our Employer Engagement Manager consults with the wider business community and relevant stakeholders, enabling us to predict expanding or contracting business as a result of changes to the local or national economy. Serco has the financial capability to manage any financial risk posed by contracting or expanding business. We are a FTSE 100 company with an annual turnover of 4bn, drawn from diverse revenue streams, with cash reserves in excess of 185m. We additionally monitor the financial viability of our Subcontractors, including the diversity and sustainability of their revenue streams. Financial monitoring has formed part of our Subcontractor selection process and will continue throughout Due Diligence. During the contract life, we conduct quarterly checks on Subcontractor financial strength and liquidity based on Dunn and Bradstreet analysis. If we identify a likely market shift or expanded or contracted business as a result of economic factors, Sercos Performance Managers begin to plan how flows will be redirected across the network. Our multiple Provider model enables us to direct increased market share to high performing Providers and/or remove market share from those with lower outcome rates. Decisions on how to re-direct market share are additionally informed by our audited view of Subcontractor: capacity to expand their operations scope and scale of services in other areas under contract to other funding bodies and financial robustness. Our Performance Managers then support Subcontractors to plan for and manage fluctuating Customer volumes, using the measures outlined above. Bespoke workshops are delivered with Providers to address our specific, staged response to a shift in market share to ensure that performance outcomes and service delivery are maintained. Serco is able to draw in additional management resource from across the wider business to respond to market shift, including in Finance, IT, HR and Transition.

[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 Evaluating and monitoring the quality of provision Serco has designed a set of Key Performance Indicators (KPIs) and Standards of Excellence (SOEs) for Subcontractors, to ensure that each Customer on Sercos Work Programme receives a tailored, work-focused service that addresses their individual needs. Our SOEs relate to Serco-defined best practice and are designed to assure the quality of all Jobseeker interventions, from initial engagement through to In-Work Support, by influencing the right Provider behaviours. Sercos contractual Delivery Assurance Framework defines the quality assurance and audit activities that Serco conducts to evaluate and monitor Provider compliance with our KPIs and SOEs. Our Quality Assurance (QA) Managers conduct observations at Provider sites to monitor the quality of interventions delivered (such as face-to-face meetings and cross-referrals to Integrated Support Services). They also conduct monthly compliance visits, during which they review: a minimum 10% of Provider claims, reviewing the evidence for Job Outcomes and Sustainment Payments claimed Customer CVs and Personal Profile & Employment Plans (PPEPs), ensuring that they address each Customers identified needs in relation to their Realistic Job Goal. All Customer interventions are recorded on Sercos Intelligent Monitoring, Programme And Case Tracking system (IMPACT), enabling us to report on Provider compliance with our minimum service levels. Exception reports highlight any non-compliance with KPIs and SOEs, such as identifying where a Provider is not meeting with a Customer twice a month. IMPACT records are checked against supporting documentation during compliance visits. Serco uses IMPACT reports and Customer focus groups to monitor parity of outcomes to ensure that our minimum service levels deliver equality of access and opportunity to all Customer groups. Additional assurance that our provision meets the needs of all Customers is provided by our: audits of Subcontractor financial systems premises and facilities audits to monitor accessibility, with input from our national Safety, Health & Environment Lead and monthly Customer feedback mechanisms. Serco requires and supports our Subcontractors to establish a robust Quality Management System and to continuously evaluate its impact, including through self-assessment. Serco monitors the impact of each Subcontractors policies and procedures through our bespoke online TOOLKIT system, which requires Providers to self-assess their capabilities in a range of areas, including data security, equal opportunities and health & safety. Serco additionally asks our Expert Reference Groups to evaluate and monitor the efficacy and capacity of our Work Programme provision to meet the needs of all Customers groups. Our Expert Reference Group members provide expertise in relation to specific Customer groups and include, for example, Crisis, the Centre for Mental Health and the Employers Forum on Disability. Procedures for Customer feedback and complaints Serco recognises that Customer satisfaction is a key indicator of the quality of our provision and will introduce a Customer Satisfaction KPI for Subcontractors to reflect this. Sercos Customer Charter sets out what Customers can expect from our service and what to do if the service fails to meet these standards. We will actively seek feedback via: a web-form on our Customer website regular focus groups looking at the experience of individual Customer groups, including JSA, ESA, IS and IB claimants, Customers with disabilities and those from BAME groups sample based surveys conducted by an independent external organisation and monthly snapshot surveys facilitated via our website, which enable us to capture feedback about specific aspects of our service, including the overall standard of provision. Subcontractors are required to establish Customer feedback systems as part of their Quality Management System, and to regularly review their effectiveness. Serco requires all Subcontractors in our network to use our robust complaints process. The process is displayed at all delivery sites, explained to Jobseekers at the start of the programme and available via our Customer website. It is available in different languages, Braille or other

5.6 (continued) formats on request. As a result of lessons learnt through our FND delivery, Serco has strengthened our management system by recruiting a Complaints & Investigations Manager who is responsible for: logging Customer complaints on Assure, our bespoke complaints management system assigning ownership to the relevant Subcontractor or Serco Manager proactively managing progress to ensure complaints are responded to satisfactorily within five days coordinating investigation with wider members of the Serco Contract Management Team where required consulting our Expert Reference Group and other specialists to support issue resolution and provide support for Customers as appropriate updating Assure with progress and resolution details signing off complaints and informing Jobcentre Plus (JCP) of progress and outcomes as required. Sercos four-stage process offers a clear escalation route. Whilst we are committed to resolving all complaints at every stage, Customers may progress their complaint if they are dissatisfied with the outcome. Stage 1: The complaint is raised with the person concerned or with the Subcontractor Operations Manager in person, in writing, via email, or by telephone. Stage 2: Customers contact the relevant Serco Performance Manager who will meet with them within five days. Customer complaints received via JCP are directed to the Performance Manager, who liaises with JCP throughout the resolution process. Stage 3: Customers contact Sercos Complaints & Investigations Manager, who will telephone or meet them as appropriate. Stage 4: Customers are invited to follow the JCP complaints process, from District Manager to Independent Case Examiner (ICE) level. Stage 4 complaints are assigned to Sercos Head of Quality, who provides a single point of contact for JCP. Acting on Findings Sercos QA Managers support and challenge our Subcontractors to act on the findings of monitoring activity, including issues arising as a result of Customer complaints or feedback, enabling us to continuously improve the Customer experience. We support our Subcontractors to agree actions to address issues identified, including by sharing best practice from elsewhere within the network. Actions are agreed and captured in Subcontractor Quality Improvement Plans, with clear timescales agreed for implementation (usually 30 days). Where more systematic and complex issues are identified, the QA Manager works alongside the Continuous Improvement (CI) Manager to agree a focused, strategic response. They assemble and deploy a SWOT team, which draws on the best resource from our Serco Contract Management Team to deliver targeted support in the relevant functional area, such as our Data Security Manager or Safety, Health & Environment Lead. The CI Manager and SWOT team work with Provider Senior Management Teams on a temporary, case-by-case basis to identify and address any critical (and often subtle) underlying issues that are impacting on the quality of provision. Serco facilitates network-wide staff training and coaching activity using a Train the Trainer model. Training is developed in response to specific needs identified through our monitoring activity, including Customer feedback and complaints. We develop Best Practice Toolkits for each stage of the Customer journey, which identify activities that provide a positive service for Customers and enhance their prospects of achieving sustained employment. These are updated quarterly based on best practice gained from across the network and Customer feedback. Sercos Assure system is used to produce analytical reports on the nature, location, and speed of resolution of Customer complaints received, as well as the demographics of complainants. Trends and themes are identified and addressed, highlighting issues at a network, Provider and individual staff member level. A quarterly report highlighting trends identified is produced and reviewed by our regional Contract Board. Sercos Head of Quality is responsible for implementing actions to address any network-wide issues.

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 five sides of A4. Note: Format requirement and page limit does not apply to the resource plan which you must insert as Annex 5.

[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 Serco provides assurance that all TUPE issues will be effectively managed within the implementation period and throughout the duration of the contract. Serco evidences this assurance with some of the most extensive TUPE experience in the UK, along with our successful management of TUPE on our three FND contracts. Our approach minimises disruption to the employees, to employers both incoming and outgoing, and to service users, while maximising the opportunity to utilise the expertise of an existing workforce. Feedback from FND reinforces this: The support I have received has been great, having 100% of my questions answered. I am more settled with my new employer (Adviser, transferred under FND ). The fear of TUPE was turned into an opportunity when we learned of the skills and knowledge the transferees brought with them (FND Subcontractor, Wales ). Our understanding and experience of TUPE regulations and the EC Acquired Rights Directive is unique in the welfare-to-work industry. We have transferred over 47,000 employees under TUPE. We draw directly on this expertise and experience for the Work Programme through the design and delivery of our four-stage TUPE implementation model: 1) Empowerment, 2) Coordination, 3) Improvement, 4) Mitigation. Sercos Work Programme model assumes that all staff who are identified as in scope to transfer, will transfer to the Subcontractor with responsibility for the direct delivery of that part of the service. Within this model, Serco proposes to manage the entire transition process for staff between the incumbent Providers and the Serco network. Serco will require, support and audit Subcontractors to ensure they fulfil their obligations under TUPE, the Code of Practice on Workforce Matters in Public Sector Service Contracts and A Fair Deal for Staff Pensions. This builds on our successful FND approach, where we transitioned nearly 500 individuals from existing incumbents to new Subcontractors (including to Serco, as final mitigant for provision in North Wales). Empowerment Serco has already held Subcontractor briefing events in every Work Programme region where we are bidding. These events have started to raise the level of local awareness regarding TUPE and how it will apply in the Serco Network. Our two-way TUPE Communications Plan, which has been devised by our HR TUPE specialist and our experienced Head of Communications, describes how we will build on this awareness and share information throughout the TUPE transfer process. The Plan outlines the following activities: Serco TUPE Leads to host a seminar, open to all potential Subcontractors, existing employers and the other Prime Contractor in South Yorkshire, exploring the legal, commercial and employment best practice related to TUPE transfer (March/April 2011) Serco to disseminate our unique TUPE Information Pack, made available to all Subcontractors, all potentially affected employees and all incumbent employers. The TUPE Information Pack is a set of toolkits that raises awareness and understanding of TUPE, clearly sets out its application in the CPA and defines a timetable for activity, with frameworks, guidance notes and templates (March 2011) Serco to broker early engagement between our Subcontractors and Employee Representative Groups, including election of staff representatives where this has not already been done for existing providers (May 2011). Our e-news bulletin provides regular communication updates to our network and staff and Serco to hold one-to-one meetings with all Subcontractors as soon as Preferred Bidder status is confirmed, with regular updates on progress provided. Coordination Through our initial Due Diligence processes, we have started to assess the capability and capacity of our Subcontractors in relation to TUPE. We have modelled their current staffing and required Work Programme staffing and have mapped it against the likely staffing in scope on relevant DWP and Jobcentre Plus contracts. This modelling has informed us of any risks and our consequent financial assumptions (to be discussed further during post-tender negotiations with DWP, particularly in relation to current public sector employees). On contract award, Serco and our Subcontractors will work with DWP, incumbent providers and the other Prime Contractor to construct a definitive TUPE list. A

6.2a (continued) toolkit is available in our TUPE Information Pack to assist all transferors in meeting their statutory requirements. Another toolkit guides our Subcontractors through their side of the subsequent evaluation of posts against scope, including a framework for any individual interviews. Serco brokers consultation with the employee representatives or Trade Unions of all affected staff, drawing on the partnerships we have already developed with over 20 unions. Serco and our Subcontractors jointly arrange and deliver group presentations to all transferring staff and their representatives. The TUPE Information Pack contains templates for measures letters. Serco tracks the exchange of measures letters between incoming and outgoing employers. We also arrange for the relevant payroll departments to meet and transfer payroll data. Our Subcontractors positive participation in the process is a condition of their contract with Serco. No Subcontractor can progress to go-live on Sercos Work Programme unless our TUPE Leads have signed off their TUPE delivery. Each milestone is clearly set out and tracked against our implementation plan. Improvement Sercos TUPE Information Pack sets out both mandatory and best practice elements of a six-month induction and development programme, to be delivered to transferring staff by Subcontractors. The focus of the induction programme is on cultural transfer: it addresses fears that individuals often encounter in periods of change; enables transferred staff to gain new skills; and creates a coherent culture with the emphasis on performance outcomes. Serco audits the experience of new employees and Subcontractors to feed into further continuous improvement, with sample surveys at point of transfer, at three months and at six months. As a result of our mapping of South Yorkshire, and confirming our experience in FND, we have identified potential salary fluctuations of up to 11,000 for similar roles in organisations currently delivering welfareto-work provision. In order to manage any potential TUPE impact, it is important to introduce, and insist on, transparency between Subcontractors on relative terms and conditions. Serco also works with incoming Subcontractors to understand the financial model underpinning our Work Programme proposal, including staff ratios and costs per headcount per input and per outcome we provide this in open group seminars as well as in one-to-one mentoring. Serco is in a unique position to improve on employment disparity between Providers. In our overarching contract management role we: conduct an equal pay audit across our regions audit minimum standards in HR practice and standardise best practice in HR. Mitigation Sercos model for the Work Programme utilises the expertise and experience of local Subcontractors, most of which are already delivering services in the area. This approach is the most cost-effective solution and ensures the smoothest handover to the Work Programme. In some of cases, this direct transfer to Subcontractors may not be possible, most likely because of the pension liabilities that may follow someone from a public sector employer that an incoming small third sector Provider may be unable to carry. In these circumstances, we will step in to employ any staff in scope and then second them to the Subcontractor. It is likely that there will be redundancies over the contract life for organisational, technical or economic reasons. Serco has evaluated this aspect of TUPE risk and it is reflected in our proposed unit price. It is also possible that some outgoing Providers will make staff redundant because they are outside of scope for transfer and the Provider chooses not to redeploy them. As Prime Contractor for a network of regional and local Subcontractors, Serco is in the strongest position to mitigate these risks. We will support individuals made redundant to secure a new position within the industry by: allocating them one of our Employer Engagement Managers arranging for access to pre-application advice and guidance sending their details to the HR teams of all Subcontractors and providing access to wider Serco vacancies.

[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 Sercos experience of managing TUPE is unique in the welfare-to-work industry. We have transferred over 47,000 employees under TUPE and our industrial relations record is exemplary. Sercos particular expertise is in managing and facilitating rapid change management economically, with minimum disturbance to Customers and the least possible stress to staff. For example, on Sercos Northern Rail contract, we seamlessly transferred 4,500 staff on 50 differing sets of terms and conditions in one day. This process involved: harmonising terms and conditions; working with four Trade Unions to consolidate offices across the country; ensuring the protection of final salary pension provision for Northern Rail staff; and implementing a cultural change programme. Implementation of Sercos FND involved the transfer of nearly 500 staff with the transfer of service, to and from multiple Subcontractors. This was conducted across three contract areas, with no impact to ongoing activity or risk to DWP. The process was facilitated by Sercos dedicated TUPE specialist leading in each region, reporting to our central HR Director. The main issues, and how they were managed, include: Empowering Subcontractors Sercos delivery strategy for FND meant that all staff identified as in scope to transfer, transferred to the Subcontractor with responsibility for direct delivery of that part of the service. Awareness of TUPE obligations was variable across our Subcontractor network. Serco held a series of TUPE information seminars in all three regions, followed by meetings with each incoming Subcontractor. A TUPE Information Pack (now updated for the Work Programme) was made available to all Subcontractors, potentially affected employees and incumbent employers; this defined a timetable for activity (up to six months beyond go-live), with frameworks, guidance notes and templates. Open group seminars and one-to-one mentoring was provided to ensure incoming Subcontractors understanding of the financial model underpinning our FND proposal, including staff ratios and costs per headcount, per input and per outcome Coordinating the process Serco was responsible for ensuring that all Subcontractors met their TUPE obligations and had the right staff in place in time for go-live. Serco mapped Subcontractors current and required FND staffing, comparing this to the capacity of existing New Deal programmes Cooperation with other Prime Contractors in the West Midlands, we coordinated this process with the other Prime Contractor for that CPA. Serco engaged from the start with the other incoming Prime, holding joint meetings with all incoming Subcontractors and outgoing providers in our respective networks Cultural transfer Serco drew up guidelines for Subcontractors to deliver induction programmes for TUPE staff, focused on addressing the fears individuals often encounter in a period of change. Feedback demonstrates the success of our approach: The support I have received has been great, having 100% of my questions answered. Im more settled with my new employer (Adviser, transferred for FND). Key lessons learned from FND relate to the importance of early planning, communication at every stage of the process and providing ongoing support to our Subcontractors. This has influenced our TUPE model for the Work Programme, which presents identical challenges in terms of: the transfer of staff from a number of different employers from the public, private and voluntary sectors multiple Prime Contractors in South Yorkshire and staff transferring to a diverse network of Subcontractors with varying levels of TUPE experience and understanding. Serco applies our four-stage model for successful TUPE transfer on the Work Programme: 1) Empowerment, 2) Coordination, 3) Improvement, 4) Mitigation (described in 6.2a). Leading Subcontractors through these four stages takes them through a process that: builds a high level of understanding; ensures legislative compliance; balances the interests of all stakeholders; and grows best practice across our networks. Supporting this process is an exceptional communications strategy tailored locally to affected staff, Subcontractors and existing employers.

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

7.1 Engaging with local stakeholders Serco will establish a Mutual Management Board (MMB) in South Yorkshire that provides stakeholders with an opportunity to genuinely shape and enhance the local supply chains delivery of the Work Programme. The MMB will be a legally constituted body, with the exact legal structure to be determined by its partners, starting out as an unincorporated mutual. The MMB will draw together local stakeholders, including third sector representation, to develop shared objectives relating to local worklessness and its associated challenges. Sercos MMB uniquely provides a mechanism to address these shared objectives through a gain-share agreement: Serco will commit a percentage of funds over an agreed profit level into the MMB. MMB partners are responsible for agreeing how the funding should be invested in the community to create the maximum local impact through innovation. Funds are targeted to achieve both Work Programme outcomes and the aligned service outcomes of MMB stakeholders (for example Sheffield City Regions vision to secure Sheffield as an internationally recognised effective and efficient centre for new industries and new jobs). The MMBs influence will be greater than that of a stakeholder or partnership board because it will become a legally constituted body with access to a real budget to deliver innovation and shape local delivery. We will create a structure that incentivises MMB members to positively impact our performance by maximising the reach of their own services for Work Programme Customers. The set-up of the MMB is resourced by Serco and led by our Strategic Director for England, [redacted]. Serco commenced stakeholder engagement in South Yorkshire six months ago as part of our preparation for the Work Programme. Our Partnership Team has consulted with over 30 regional and local stakeholders to identify how the Work Programme can best support the achievement of their local priorities and vice versa. We already have in principle agreement from MMB partners including the Skills Funding Agency, South Yorkshire Probation Trust and the four Local Authorities in the region. Through support from [redacted], Deputy Chair of Yorkshire Forward, Serco will be hosting a dinner to discuss our MMB proposals with prospective partners including inviting representation from the business sector and Sheffield City Region Local Enterprise Partnership. Ensuring effective working relationships and supporting delivery across the whole supply chain The MMB in South Yorkshire will agree its own: terms of reference articles of memorandum and five-year Strategic Plan, from which annual plans will be developed. The MMB will provide independent scrutiny of Work Programme delivery to ensure that it meets the needs of all Jobseekers. MMB members will receive and review Management Information about the performance of all Subcontractors. The Board will submit annual reports to Serco's Senior Management Team, who will evaluate our local Contract Management Teams effectiveness in ensuring the supply chain delivers the outcomes expected by our stakeholders. MMB members are responsible for identifying Senior Executives within their own organisations to be tasked with developing working relationships with the supply chain. These nominated service leads work alongside our Subcontractors to agree a local Partnership Plan that identifies, as appropriate: robust cross-referral mechanisms premises sharing agreements joint events joint staff training and action learning sets to support the sharing of best practice. Customers who are cross-referred to our stakeholders services are tracked and monitored via our Intelligent Milestone, Programme And Case Tracking system (IMPACT). Partnership Plans will build on the existing stakeholder links that our Subcontractors already have in place in South Yorkshire. The MMB reviews the impact of the Partnership Plans on Work Programme performance and identifies how supply chain alignment can be further improved. Subcontractors are additionally invited to attend the MMB on a rotational basis to provide feedback on the delivery challenges and opportunities presented by the Work Programme. Serco commits to working transparently with our MMB partners and wider

7.1 (continued) stakeholders. As on FND, Serco will share our weekly Work Programme Performance Report with all stakeholders and members of the supply chain. This transparent approach to sharing performance information has set a precedent in the UK welfare-to-work industry. Our central Communications Team also consult stakeholders in the development of our regional Communications Plan. Working with DWP Serco works with our key stakeholder, DWP, to support the effective delivery of the Work Programme, inform the future of welfare-towork commissioning and enable DWP to achieve its long-term policy aims. Both DWP and Jobcentre Plus are invited to sit on our regional Contract Board for South Yorkshire alongside Serco's Senior Management Team. We work effectively with DWP Supplier Management and Provider Assurance Teams to develop and share best practice in contract delivery, and commit to transparent reporting and dissemination of Serco performance data and evaluation reports. Serco additionally participates proactively in the Key Supplier Engagement Forum, Provision Forum and Merlin Adviser Group. Working with Jobcentre Plus (JCP) Serco ensures a successful partnership with JCP, building on our experience of delivering FND, by: inviting senior JCP representation onto our MMB attending monthly meetings with District Manager [redacted]and Third Party Provision Managers to address performance, priorities and contractual issues disseminating our weekly performance reports facilitating contact between our Business Processing Unit and JCP to resolve any process queries sharing information on an ongoing basis facilitating secondments, where appropriate, between JCP and our Contract Management Teams co-hosting Customer focus groups coordinating employer engagement and supporting effective links with our Subcontractors, all of whom work with JCP at a local level. Serco and our Subcontractors work with MMB members and their membership bodies across the following areas to maintain effective partnerships and support our delivery: Sheffield City Region Local Employment Partnership (LEP) Serco has attended presentations from the LEP and will invite the Partnership to be represented on our MMB. We will build and maintain an effective partnership between Serco, the LEP and our supply chain, focused on the LEPs objectives of: building the growth industries of advanced manufacturing, low carbon industries, creative and digital and health care industries our Employer Engagement Manager will engage at a strategic level with employers in these growth industries, building on the links of our Subcontractors with over 11,000 local employers increasing business competitiveness and productivity Serco draws on the expertise of our Subcontractor, the South Yorkshire Chambers of Commerce, who bring unrivalled links to the business community and have a membership of 5,000 local businesses attracting private investment and creating 27,000 new jobs Sercos Innovation, Enterprise & Investment Initiative will enable us to pool funds into emerging regeneration activity to create additional local job opportunities; Local Authorities Serco has in-principle agreement from all four Local Authorities to sit on our MMB. Serco has met with [redacted], Senior Policy & Partnerships Officer at Doncaster MBC, and welcome the Councils offer to co-locate Work Programme services at their eight Opportunity Centres across Doncaster. Our Subcontractor, North Doncaster Development Trust (NDDT), bring strong links with Doncaster Council gained through their delivery of the Success Doncaster initiative. We have consulted extensively with Barnsley Council, including meeting with Regeneration Director, [redacted], and will support the Councils aims of better joining up of local services and building on the legacy of Future Jobs Fund through the provision of work placements. We also met with [redacted], Manager of Barnsley Work & Skills Board (WSB), and will work alongside the Board to align Work Programme delivery with wider local services and share performance information. We ensure this by including

7.1 (continued) Barnsley MBC in our delivery network as a Specialist Subcontractor. Serco met [redacted], Regeneration Manager at Rotherham Council, and attended the Rotherham WSB. Many of our Subcontractors, including WISE Ability, sit on the Skills Board, and are well placed to support its aims. For example, all of our Providers bring experience of supporting young people into sustained employment, making them expertly placed to meet the Skills Boards aim of making young people more work ready. Serco met with [redacted], Head of Employment & Skills at Sheffield City Council. We will support their objective of aligning employer engagement through our use of local Subcontractors, many of whom deliver aspects of the Council-led employer engagement initiative, Opportunity Sheffield, including Centre for Full Employment and BEST; Voluntary & Community Sector (VCS) Serco has recently delivered a 3month project in preparation for the Work Programme to ensure effective engagement with the VCS. At both a strategic and local delivery level Serco engaged with over 80 VCS organisations, including 20 national and 25 regional umbrella bodies, and 35 delivery bodies. Based on this extensive consultation, Serco has developed key principles that will govern our engagement with the third sector, underpinned by DWPs Code of Conduct and the Merlin Standard. Through these relationships and subsequent regional partnership building, Serco has invited Involve Yorkshire & Humber to be part of our MMB in South Yorkshire to ensure that we retain ongoing relationships with the VCS. Serco adds value by commissioning Involve Yorkshire & Humber to deliver capacity-building support to the VCS, specifically focusing on how we can align our delivery with local voluntary services to the benefit of our Customers. In addition, 53% of our network in South Yorkshire is comprised of organisations from the voluntary and community sector; Skills Serco met with [redacted], Learner Services Manager of the Skills Funding Agency for Yorkshire & Humber, and have in-principle commitment from them to sit on our MMB. Changes currently under consultation through the Department for Business, Innovation & Skills, identify a clear role for FE Colleges, welfare-to-work Providers and Jobcentre Plus to ensure that skills and employment provision is aligned at a local level. Our Subcontractors are well placed to support this alignment: 60% deliver accredited skills training and all bring links with local skill Providers. This helps to ensure that Work Programme Customers access full fee remission for local skills provision; South Yorkshire Probation Trust (SYPT) Serco has met with [redacted]from SYPT, who have committed in principle to sit on our MMB both as a stakeholder and as the Prime Contractor for NOMS ESF Phase 2 in the region. Following a formal agreement between DWP and the Ministry of Justice, and where a Customer gives consent, Probation services are now able to identify ex-offenders with JCP, enabling them to fasttrack Customers to our Specialist Journey, delivered locally by SOVA. SOVA also deliver NOMS ESF provision on behalf of SYPT, further facilitating the alignment of through the gate services for ex-offenders; Housing - Serco has strong links with the National Housing Federation both nationally and regionally for Yorkshire & Humber. Through this partnership, we will facilitate links between our Subcontractors and local Registered Social Landlords. We build on the existing linkages of our Providers. For example, CTS work with Sheffield City Councils Housing Solutions team and housing support agencies Shelter and Roundabout; Health Serco will seek senior representation on our MMB from an appropriate regional stakeholder, enabling us to align services with GP commissioning bodies and local health initiatives. Our engagement with Rotherham, Doncaster and South Humber Mental Health Trust identified the need to align local health services with Work Programme provision. Our Specialist Provider, South Yorkshire Condition Management (Yes2Ventures) are uniquely placed to facilitate these links on behalf of our wider supply chain and work with 240 GPs and health services across the region. Additionally, BEST and NDDT bring links to the Improving Access to Psychological Therapies initiative.

[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 Engagement of employers in South Yorkshire is coordinated by Serco, acting as a broker between our Subcontractors and the business community. Serco identifies business needs through ongoing consultation and research. We engage employers through the extensive connections of our local Subcontractors and through our Employer Engagement Manager. Serco builds sustainable relationships with employers based upon a clear understanding of their requirements. We then ensure that tailored staffing solutions are delivered by coordinating, educating and professionalising our Subcontractors to effectively meet the needs of employers. Underpinning our approach is Sercos Work Programme Employer Strategy, driven by the objective of meeting local labour market needs in order to maximise Job Outcomes for our Customers. It is informed by: local labour market analysis; consultation with local and national employers; Sercos Business Link experience, through which we service over 100,000 small and medium sized businesses; and our experience of what works from 18 months of employer engagement activity on FND. Sercos Employer Strategy sets out our methodology for: 1) Understanding the needs of the local business community Our extensive local labour market analysis comprised six months of research and consultation with key strategic stakeholders, including: South Yorkshire Chambers of Commerce the four Local Authorities Sheffield City Region Barnsley Development Agency (BDA) and Yorkshire Forward. This has highlighted the following distinctive characteristics of the labour market in South Yorkshire: employment growth is forecast in advanced manufacturing, retail, creative & digital industries and healthcare an under-developed skills base with 14.6% of people in South Yorkshire having no formal qualification a legacy of decline in the mining industry and manufacturing resulting in high numbers of economically inactive people requiring up-skilling to re-enter the labour market large employers including PlusNet and Ventura who employ over 2,500 people, and those who are re-locating to the region, including ASOS and BSkyB and a large number of regeneration projects, including the continued development of the Doncaster Sheffield Airport Growth Corridor, expected to create up to 10,000 jobs, and Dearne Valley Ecovision, including housing and low carbon developments, expected to create thousands of jobs. Serco has also consulted with a large number of the 1,500 employers with whom we have strong links in our current FND regions and the Employers Forum on Disability whose members employ over 20% of the UK workforce. We asked how our Work Programme model could best meet their needs and what challenges they might face when employing different Customer groups. This highlighted the need for a number of measures, including: the right Customer-vacancy match a single point of contact for employers ongoing support in the first few months of a Customer starting their job communicating the business case for recruiting from a diverse pool of talent and raising awareness of adaptations employers may need to make for disabled employees. 2) Ensuring demand-led delivery Sercos appreciation of the local labour market and employers needs has informed the design of our network, including: Subcontractors who deliver a range of pre-employment and vocational training to prepare our Customers for jobs in key employment sectors, including Retail, Construction, Security, Health & Social Care, Manufacturing, Hospitality & Leisure, Financial Services and Business Administration and specialist self-employment Providers to meet the increased need for enterprise in the region, delivered by Urbanbiz and South Yorkshire Chambers of Commerce, whose membership includes over 5,000 local businesses. Collectively these organisations support over 1,000 new business start-ups every year. Sercos Providers bring extensive links to local employers and experience of preparing Customers for emerging labour market opportunities. For example: BDA have established strong links with ASOS who are relocating to Barnsley and are recruiting for over 1,000 positions and BEST monitor emerging opportunities through their Local Labour Market

7.2 (continued) Intelligence Researcher and as a result have forged relationships with Tesco Express, who have employed over 100 BEST Customers. Throughout our Work Programme delivery we will ensure ongoing local labour market analysis and employer consultation through: employer representation on the Mutual Management Board membership of employer forums including the Employers Forum on Disability (of which we are a Gold Member) linking with strategic agencies including Sheffield City Regions Local Enterprise Partnership, Yorkshire & Humber Chamber of Commerce, the four Local Authorities and regeneration agency, Creativesheffield, who will be a source of information on local regeneration initiatives and employment opportunities. 3) Pro-actively engaging employers Sercos approach to employer engagement is to build on the best practice from across our network. Sercos Subcontractors have established links with more than 11,000 local employers and have a proven ability to meet the needs of both the local labour market and the needs of our Customers. For example, our network includes: The Source @ Meadowhall, the Retail Academy for South Yorkshire, who meet all recruitment demands of Meadowhall Shopping Centre and employ a dedicated employer engagement team to work with the retail, finance and business sectors. North Doncaster Development Trust, who have supported Amazon to recruit over 1,000 local jobs through their job profiling and pre-screening activities and the South Yorkshire Chambers of Commerce, included in our model as a consortium, who have supported over 3,000 Customers to set up their own business. Serco builds on the relationships established in South Yorkshire through our dedicated Employer Engagement Manager (EEM). The EEM builds strong relationships by engaging large employers at a national level and maximising opportunities for the network. Serco already has established links with more than 1,500 national employers through which we secure repeat vacancies for our network, including Royal Mail, ASDA, Lloyds Banking Group and CareUK. Moving forward we see our relationship with Serco as a key part of our recruitment strategic plan for 2011 (CareUK, employer of 14,000 staff). The service provided is tailored to the needs of each employer, but could include: agreements to interview pre-screened Serco Jobseekers offering group interview days co-developing bespoke pre-employment training courses facilitating work taster days enabling employers to upload vacancies directly onto our exclusive Monster Jobs co-hosted online portal and our Intelligent Milestone Programme, And Case Tracking (IMPACT) system, which are accessed by our entire network and drawing on the opportunities afforded by Sercos contracts in the region, including jobs on our Northern Rail contract, which employs over 4,000 people. 4) Coordinating all employer engagement activity across the network. Sercos EEM maximises the effectiveness of existing relationships between our Subcontractors and employers by: acting as a broker between our network and key local stakeholders, including Jobcentre Plus and Opportunity Sheffield, to ensure that all employer activity is aligned with existing initiatives. For example, on Sercos FND our EEMs facilitated monthly meetings between our Providers and Jobcentre Pluss Labour Market Recruitment Advisers to share unfilled vacancies and jointly target large employers developing specific network-wide initiatives, enhancing Providers capacity to respond to local labour market needs. For example, on Sercos FND in Greater Manchester, Serco supported the network to respond to an identified skills shortage in the Call Centre industry by establishing an Institute for Customer Management (ICM) in partnership with AA, British Gas and BSkyB, the Skills Funding Agency, Stockport Council and Stockport College. The ICM offers fully accredited bespoke training and achieves a 60% Job Outcome rate. Serco will look to continue this relationship with BSkyB who are planning to set up new Sky TV call centre premises in Sheffield in July 2011, creating 500 jobs establishing an Account Management System across the network, providing a dedicated contact to employers with repeat vacancies who can then build an

7.2 (continued) understanding of their staffing needs. This prevents employer fatigue from multiple Providers pursuing the same vacancy and has been implemented successfully on FND. It is really useful to have Sercos services to organise providers and have one point of contact (Conduit) facilitating vacancy sharing throughout the network, with Providers encouraged to record vacancies onto Sercos IMPACT system. This provides equal access to sourced vacancies for all Providers and Customers; 5) Ensuring continuous engagement with employers. Sercos aim is to become the supplier of choice for the maximum number of employers, securing repeat business by professionalising the networks employer-facing function. To this end, Serco has established Minimum Standards for working with employers which our Providers are required to follow, including: Candidate Preparation All candidates are pre-screened to ensure a good match, maximising job take-up. We also develop employer-led training in response to specific labour market need, and in consultation with the business community and skills partners. For example, WISE Ability provide pre-employment training and pre-interview screening for Polestars Sheffield-based manufacturing plant on a regular basis. Post Placement Support Sercos Subcontractors deliver a personalised package of In-Work Support that includes: access to a dedicated Employment Assistance Helpline providing 24-hour support and professional advice for line managers and our Customers on any issues that may put the employees job at risk; our Employers Forum on Disability package, which includes: a dedicated EFD Helpline and an online employer toolkit; Train the Trainer sessions to equip our Providers employer facing staff with all the skills they need to successfully place disabled Customers with local employers; and support in applying for funding from schemes such as Access to Work. In Work Progression Support for employers to provide career progression to their new employee through: accessing in-work training grants; linking employers with apprenticeship schemes; and drawing on the expertise of our Subcontractors, such as Centre For Full Employment, who have safeguarded the jobs of 53 people in the last five months by sourcing appropriate training. All of these jobs were guaranteed for a minimum of 12 months as a result and would have resulted in redundancy without this training. Serco further capacity builds the employer functions of our Subcontractors. The EEM uses reports from IMPACT to assess the effectiveness of each Providers employer engagement strategy through a thorough assessment of: number of vacancies secured; vacancies converted into Job Outcomes; job sustainability performance; and repeat business secured from employers. Where best practice is identified, it is shared across the network. Where weaknesses are found, our EEM works with the employer-facing teams of Subcontractors, to develop long-term, sustainable improvements, including: promoting the use of pipeline tools for vacancy generation working with managers to develop sales-focused employer communications plans providing guidance on recruiting talented and effective employer engagement teams and organising training to up-skill Provider teams. All these methods have been successfully implemented and developed through 18 months of FND delivery, where Serco has seen the proportion of outcomes gained through employer engagement activity rise from 10% to 60% since the start of the programme. 6) Finding and funding innovative solutions Our EEM is equipped to create new solutions to meet employer and Customer needs. This might include, for example arranging jointly-funded buses to support Jobseekers from rural parts of Barnsley to access the 1,000 new jobs created by employer ASOS. Solutions are facilitated by Sercos unique Innovation, Enterprise, & Investment Initiative which invests in demand-led initiatives that stimulate the local economy and create job opportunities. Our Business Development & Enterprise Manager works alongside our EEM to identify opportunities for funding that will generate additional, sustainable Job Outcomes for Work Programme Customers in South Yorkshire.

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 two sides of A4.

8.1 Sercos delivery model optimises the sustained outcomes achieved within the funding available for the Work Programme, with resources targeted to address the needs of all Customers. Our minimum performance offer is evidence-based, fully-costed and deliverable. The table below shows Sercos minimum performance offer by Customer group over the life of the contract in South Yorkshire. Customer Group/ payment group JSA 25+ JSA 18-24 JSA Early Access JSA Ex-IB ESA flow ESA Ex-IB ESA Volunteer IB/IS Volunteer Job starts Number % of referrals 8,789 55% 4,383 70% 708 614 586 645 1,233 362 27% 40% 22% 20% 40% 42% Job Outcomes (as defined by DWP) Number % of referrals 5,515 34% 2,751 44% 528 668 481 788 1,417 258 20% 44% 18% 25% 46% 30% Maximum job sustainment Number % of referrals 3,340 21% 1,665 27% 241 209 199 174 419 121 9% 14% 8% 5% 14% 14%

Please note that the Job Starts in our model include multiple starts one Jobseeker may record more than one job entry. The outcomes are as defined by DWP. Sercos Work Programme will meet or exceed the Departments minimum performance levels for all Customer groups: Supporting more people into work. Over the life of the contract Serco will support a minimum of 34%, 44% and 18% of JSA 25+, JSA 18-24 and ESA flow Customers into work respectively. We expect this to rise to around 41% for JSA 25+, 52% for JSA 18-24 year olds, and 20% for ESA flow Customers by year 4. We have modelled (and costed) a Transformation Programme, taking account of an initial ramp up of programme starts, an early lag of first outcomes, followed by year-on-year increases in effectiveness and efficiency through continuous improvement. Supporting people into work more quickly, and with ongoing support for those furthest from work. We expect to achieve 42% of our total Job Outcomes from jobs that start in the first 16 weeks (our Engage Phase), 40% during the second Phase (Enable), and 18% in the final programme Phase (Empower). Exceeding DWPs expectations for sustainability. We commit to achieve unprecedented levels of sustainability, with at least 60% of Customers starting a job remaining in employment for at least 6 months, 55% sustaining employment for 9 months, around 50% sustaining work for at least 12 months, and around 40% sustaining work for 18 months.

8.1 (Continued) For voluntary IB and IS Customers, Sercos Work Programme will: Support at least 30% of referrals to achieve Job Outcomes (as defined by DWP) over the life of the contract. Sercos minimum performance offer for voluntary Incapacity Benefit (IB) and Income Support (IS) Customers mirrors that for ESA volunteers as analysis has shown that a similar profile may be applied to both Customer groups Support 42% of Customers into work within 16 weeks of referral

Achieve unprecedented levels of sustainability, with all Customer groups including IS and IB volunteers on average expected to follow our Sustainability Curve (below).

Job Sustainability Curve: All Customer Groups

Percentage of Job Starts Still Employed
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27

Months Elapsed Since Job Start

[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 four sides of A4.

8.1a Serco has designed a model for the delivery of the Work Programme which maximises the sustained employment outcomes achieved, within the funding available, mitigating creaming and parking to target resources as effectively as possible on individual needs. Just as we have demonstrated on Flexible New Deal (FND), our performance offer is evidence-based, fully-costed and deliverable. This design is informed by Sercos unique breadth of effective and efficient outsourced public service delivery. In particular, it is informed by our experience of supply chain and resource management, with an emphasis on system transformation, capacity building and performance management. Our Welfare to Work team also bring extensive experience of implementing and managing a large number of high performing, quality-assured welfare-to-work programmes, including FND, PSL New Deal and Employment Zones (EZs). Alongside this in-house capability, our fully outsourced, local model brings in the experience, resources, infrastructure and links of 20 local Providers. This experience is consolidated through lessons learned by Serco and our 72 FND Subcontractors in implementing and delivering three FND contracts. The national benchmark levels for performance set out in the Work Programme specification are challenging. Serco has conducted in-depth performance analysis to compare these benchmark levels against the current and historical performance of existing Providers in each of our 4 clusters within South Yorkshire. Our analysis included national comparisons of performance by Customer group on the mainstream programmes of New Deal for Young People, New Deal 25+, PSL New Deal, EZs, Future Jobs Fund, New Deal for Disabled People, Pathways to Work and Progress2Work. In order to understand potential patterns of sustainability, we have focused on our own FND data, as well as historical EZ performance and longitudinal studies of the Australian Job Network. We have further analysed the context for the delivery of welfare-to-work services over the next seven years, mapping the impact of onflows and off-flows of unemployment patterns and labour market fluctuations by Customer group and locality. Serco is bidding to deliver performance in line with the specified national benchmarks for each Customer group in each CPA (see 8.1). Serco commits to achieving these benchmark levels and will transform local welfare-to-work services to deliver the uplift in performance that they require. In our modelling for the Work Programme we have reverse-engineered our delivery from the perspective of a Provider, recognising the key performance and business drivers of: caseload sizes and performance targets for frontline staff the number and type of interventions required by each Customer group to achieve performance outcomes and the corresponding number of frontline staff required by each Provider. Building on our in-depth understanding of the Subcontractor cost-base gained during FND, we have ensured that the interventions underpinning our performance offer are fully costed and deliverable. These financial assumptions have informed our Subcontractor payment terms, ensuring that they both incentivise high performance and are sustainable for Providers. We have costed our delivery for all Customers at each point of the programme, with different assumptions for every Customer group and in different locations, in relation to: levels of engagement (including for voluntary Customers). Higher levels of engagement are modelled for those requiring more intensive support, such as ESA Support Group Customers drop out rates (higher amongst the younger Customers and those living in rural areas) Job Outcomes (including time taken to achieve) sustainability at each trigger point (higher for older Customers) cycling of people through different jobs (including local seasonality) and, unique to our model, the breakdown of these assumptions by Phase and in transition between Phases. Sercos model has the following ten key components. These components, when applied to our understanding of historical and current performance in South Yorkshire across each Customer group, create one or more of the following: performance uplift cost saving

8.1a (continued) improved sustainability and/or performance with new Customer groups. 1. Existing Infrastructure (cost-saving, performance uplift) by utilising existing infrastructure we: minimise start-up costs can achieve a quicker ramp-up in performance build on established local knowledge, expertise and links, including referral routes for voluntary Customers achieve performance outcomes across the region by organising our provision into 4 local clusters, providing full geographical coverage and flexing resources cost-effectively to match local needs. 2. Multiple Providers (performance uplift, performance with new Customer groups) with Sercos local supply chain of 20 Subcontractors, drawn from public, private and voluntary sectors, we: mitigate the risks of under-performance encourage innovation and development of best practice use competition to drive performance create an opportunity for shared resources and reduced costs and build a network that is better equipped to bring in alternative sources of funding. 3. Personalisation (performance uplift, performance with new Customer groups) with multiple Providers and extended coverage, we: offer Customers greater choice of location and scope of service increase performance through personalising the response and maximise the chances of meeting the individual needs of all Customers. 4. Three Phases (cost-saving and performance uplift) organising our provision into three successive Phases (Engage, Enable and Empower), we have a concrete, evidenced model for delivering higher performance than is possible from end-to-end delivery, because we: target funding and resources at those with the highest level of need provide a quick response to those closest to work and a more in-depth assessment of need for those further away (such as IB and IS Customers) free up funds to deliver more intensive support following this assessment build in greater choice, linked more closely to an individuals identified needs maintain a higher level of interaction for all Customers throughout the 24 months and use transitions between Providers to increase performance. Sercos FND delivery has seen up to a 40% uplift in Job Outcomes prior to Customer transitions between our programme Steps. 5. Specialist Journey (performance uplift, performance with new Customer groups) providing a Specialist Journey alongside the three Phases, to which Customers can be referred at any time or fast-tracked from the outset, we draw in specialist responses to particular disabilities or more complex constraints on employment (such as those experienced by ex-IB and ESA Customers). We also provide a self-employment route (an effective option for a wide range of Customers, from ex-offenders to graduates) and assistance for people with aspirations in the creative industries. 6. Local Alignment (cost-saving, performance uplift, performance with new Customer groups) building on our 6 months of local consultation and research, Serco will establish a Mutual Management Board for South Yorkshire that will: provide a unique structure for aligning the Work Programme with local services, to respond better to local need create a mechanism for local co-ownership and accountability reinvest funds derived from overperformance back into local provision open up referral routes for new Customers and respond to new funding opportunities. 7. Local Labour Market Intervention (cost-saving, performance uplift, performance with new Customer groups and improved sustainability) With coordinated employer engagement led by Sercos Employer Engagement Manager (EEM), we: provide a streamlined interface with large employers share vacancies between Providers, enhancing responsiveness to employers and offering more choice to Jobseekers broker vacancies targeting specific Customer groups (such as ESA and ex-IB Customers with disabilities) and use purchasing power to facilitate cost-effective workplace adjustments. Additionally, Sercos Business Development & Enterprise Manager manages our unique Innovation, Enterprise & Investment Initiative, working alongside local strategic and delivery organisations to identify opportunities to invest in demand-led initiatives to

8.1a (continued) stimulate the local economy and create job opportunities for Customers. 8. Sustainability (performance uplift, improved sustainability) higher levels of long-term sustainability are possible because we: gear our payment structure for Subcontractors to incentivise the right job placement and then ongoing in-work contact require that all Customers receive a tailored package of In-Work Support that is tracked and assured offer additional In-Work Support tools for Providers, Customers and employers, such as the Employment Assistance Helpline brokered by Serco. 9. Funding Structure (performance uplift, improved sustainability) Serco will not simply replicate the Prime Contractor funding structure down through the supply chain. Instead, through gearing the funding differently, we: target funding on different sorts of interventions through our three Phases and our Specialist Journey make the funding work harder to derive enhanced performance widen the scope of our service to address the needs of more Customers tailor our funding structure by Customer group, reflecting the higher level of resource that some Customers are likely to require remove incentives for parking create a flat payment profile for Subcontractors over the contract life to support business planning and viability create more money upfront, recognising Provider cash flow requirements and link Provider payments to sustained employment to drive the right behaviours, without creating long-term, unviable risks for them. 10. Transformation (performance uplift, performance with new Customer groups, improved sustainability) we will roll out a fully-costed Transformation Programme for the Work Programme, through which we: change the culture of Providers, supporting them to move towards a focus on outcomes manage and build the capacity of Providers, including their frontline staff skills base, their leadership and performance management skills, and their cash flow and deploy our bespoke points-based Work Programme KPI system, which provides the right commercial drivers to incentivise Provider performance. Achievement of performance outcomes is further enabled by our bespoke Intelligent Milestone, Programme And Case Tracking system (IMPACT), used by all Providers in our network. IMPACT monitors parity of outcomes for all Customer groups, with any disparity addressed during weekly Provider performance telekits. ESF Customers are colour-coded on IMPACT, ensuring that we monitor and achieve parity of outcomes for IS and IB Customers. Serco and our Subcontractors are able to achieve the performance benchmarks with each Customer group as follows: All groups within ESA and ex-IB Sercos Expert Reference Group for Disability including representation from Mencap, RNIB, RNID and MIND has been tasked with reviewing the impact of the Work Capability Assessment (WCA) on Customers migrating from IB onto JSA and ESA (Work Related Activity and Support Group) and consolidating best practice evidence about how to support this new Customer group into sustained employment. The group has also included representation from a member of Professor Harringtons team, who have led the Governments review of the WCA. Our consultation has highlighted the importance of Individualised Placement Support (IPS), a methodology that focuses on using sustained employment as a therapeutic tool to better manage a health condition, particularly a mental health condition. As a result, Serco has worked alongside the Employers Forum on Disability (EFD) to create a series of toolkits that provide an enhanced work-first plus approach for Customers on health-related benefits, including a dedicated EFD Helpline. Our Subcontractors bring experience and expertise of achieving performance outcomes for ex-IB and ESA Customers. For example, WISE Ability is an experienced Provider in Australias Job Network and have achieved a 4 (out of 5) Star Rating for their Disability Employment Network contract with an equivalent Customer group, bringing international expertise to our supply chain. Performance outcomes are optimised for ESA Volunteers through our Providers existing links with local GP and health services, which enable them to market to and support this group.

8.1a (continued) IB Customers Sercos three-Phase model creates a performance uplift for IB Customers: those diagnosed as requiring more intensive support during Engage (such as long-term IB claimants) are supported to transition to a Provider specialising in supporting this Customer group, such as Groundwork, who have achieved up to a 60% Job Outcome rate for long-term IB voluntary claimants from ex-mining towns in Yorkshire. IB Customers also benefit from our Specialist Journey, with Providers such as Disability Works UK delivering tailored, work-focused support for people with complex needs and disabilities. JSA 18-24 JSA Customers benefit from the performance uplift created through our local alignment, as we broker effective cross-referral mechanisms with services for young people, including apprenticeships and Connexions services. Our local labour market intervention includes a forecast of future vacancies and the skills required to access them. This feeds into employer-led pre-employment training (supported by Sercos EEM) that enables us to meet the long-term skills aspirations of younger Jobseekers, supporting inwork progression and sustainability. Performance is underpinned by the track record of our Providers in supporting 18-24 year olds into work: for example, our network includes the Source @ Meadowhall, who specialise in delivering vocational training and apprenticeships to young people and supported over 700 people into work last year. JSA 25+ Our three-Phase model drives performance for JSA Customers: the initial 16-week Engage Phase provides the right level of diagnostic and jobsearch support to achieve performance outcomes with those Customers who are closest to the labour market. Our model reflects the fact that previous programmes for this Customer group, including PSL New Deal and EZs, achieved the majority of performance outcomes during the first 16 weeks of provision. JSA Customers with more complex needs, such as those who have migrated from IB, progress to receive more intensive support from an Enable or Specialist Provider. Sercos network collectively supported 32,800 Jobseekers into work last year. This includes: BEST, who have supported over 5,000 Jobseekers into work through their delivery of the New Deal Prime Contract in neighbouring West Yorkshire and CTS, who have achieved up to 45% Sustained Job Outcome rates on their FND subcontract. JSA Customers benefit from our sustainability measures, including the Employment Assistance Helpline that provides 24-hour professional support to address any issues that may put a persons job at risk. It is delivered by Care First: 80% of their current service users report that the service helped to prevent job loss. JSA Early Access Through local alignment, we ensure that Early Access Customers can benefit from a range of Integrated Support Services such as housing and substance misuse support services that address their needs holistically, both prior to and in work. Our network includes Subcontractors who specialise in working with these Customers, including SOVA, who have supported 8,600 ex-offenders into work over the last 3 years through the delivery of their national ESF-funded PS Pluss contract. IS Customers Sercos funding structure and three-Phase model target resources at those with the highest level of need, including, for example, lone parents and carers on IS requiring replacement childcare costs for the early weeks in work. Support for lone parents builds on best practice evidence gained from programmes such as NDLP and Discovery Weeks, by integrating confidence-building activities early during the Engage Phase. Local alignment enables us to both market to and meet the needs of IS Customers, building on the local links of our Providers with Childrens Centres, schools, nurseries and carer and family support groups. Our Subcontractors bring experience of working with this group. For example, SCOOP Aid, lone parent specialists, have exceeded the Job Outcome target on their local Reaching Communities contract by 27%.

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 As a FTSE 100 company delivering a broad portfolio of public services, Serco is experienced at mobilising complex programmes within very tight timescales. We have successfully implemented over 2,000 Government contracts in total and transferred over 47,000 staff under TUPE. Utilising our proven implementation methodology (based on processes from the Office of Government Commerce Managing Successful Programmes and PRINCE 2), Serco provides full assurance that our Work Programme in South Yorkshire will move from go-live to fully operational by 31st July 2011. Sercos dedicated Transition Team is in place immediately upon Preferred Bidder announcement. Each member of the team is responsible for a particular area of transition that is commensurate with their expertise and reports to our experienced Transition Director, [redacted]. This Team led on the smooth termination of our FND contracts, ensuring maximum efficiency and coordination. Sercos Implementation Plan in Annex 6 outlines the key milestones and timescales for activities for mobilising the Work Programme in South Yorkshire. The milestones are set out across workstreams, each with an accountable workstream lead. This Plan is monitored and reported against by a specialist Programme Planner in the central Programme Office. Serco allocates a single specialist owner accountable for successful delivery of each key project task. The key activities for our successful implementation of the Work Programme are: Recruitment (management team by 2nd May, regional teams by 26th May) and training of Serco staff (by 16th May for critical competencies) to manage the contract Set up new Serco regional offices (by 28th April) economies of scale where geography allows Finalising the network of Subcontractors including conclusion of contractual arrangements (by 19th May) and delivery of readiness training for go-live (IS systems; KPI awareness) Support Provider TUPE obligations (March to go-live) Roll-out of the new Intelligent Milestone, Programme And Case Tracking system (IMPACT) to capture data, support all business processes and the performance management regime (commence roll-out July) and DWP approval of security plans (by 27th May). Implementing multiple contracts Sercos Implementation Plan for South Yorkshire will not vary if multiple CPAs are won. Serco have sufficient finance to manage all 11 CPAs for which we are bidding. Recruitment plans are in place for all contract win eventualities; advertisements have been placed for local candidates. Serco draws on specialist transition resources from across Serco Group that we can use on a call-off basis including CIPD-qualified HR professionals, accountants, IT consultants and commercial and legal experts supplemented by a bank of interim specialist consultants known to Serco. Key risks and mitigants Serco has identified key risks (and allocated a responsible owner with clear mitigation strategy) against each of the following workstreams. Legal and Commercial risks include: delay to subcontract signature, Subcontractors withdrawing from the network and lease negotiations stalling. Mitigating actions include: drafting in additional Serco Legal and Commercial consultants to assist the creation and signing of subcontracts holding regional road shows for Subcontractors to ensure understanding of the subcontracts having a reserve list of Subcontractors and identifying alternative serviced office space. People and HR risks include: being unable to recruit people of sufficient calibre, delays to recruitment or TUPE timetable, loss of existing regions and resultant TUPE of staff. Mitigating actions include: shortlisting and recruiting potential candidates prior to contract award (Serco has already received over 700 applications for a number of roles) working with a range of interim management service providers multiple-scenario TUPE modelling adequately resourcing our HR and TUPE functions and a documented Common Operating Platform to ensure important know-how is not lost from the business. Information Systems and Information Security risks include: IMPACT implementation after go-live, failure to adequately resource training on the system and inadequate Information Security controls

9.1 (continued) across the network, and delays to Sercos Security Plan sign off. Mitigating actions include: failsafe backups of all system data deploying a contingency version of Sercos current management system, iCMS prior purchase of user licenses web-based training materials in place for Subcontractors a dedicated Trainer in place to train the network using a Train the Trainer model a Data Security Plan (building on FND experience) that is reviewed and approved by our internal CLAS Consultants and DWP and early engagement with Subcontractors to support the drafting of robust individual Security Plans. Regional Set Up risks include: Subcontractors insufficiently resourced or with inadequate premises, and Subcontractors withdrawing from the network before golive. Mitigating actions include: supporting and auditing Subcontractors in production of Implementation Plans during Due Diligence Subcontractors sharing premises and Serco brokering sharing of human resource and having multiple Providers with 7 reserve Subcontractors. Sercos successful implementation of three FND contracts provides further assurance of our ability to manage implementation risks. These contracts went live on time despite some serious external challenges, including a three-month delay to Preferred Bidder announcement. Serco has demonstrated our ability to deliver contingencies in short timeframes. For example, following delayed clarification of highlevel referral processes of Customers to FND, Serco set up a Central Processing Team (in Rhyl, Wales) in just two weeks. Risks relating to winning multiple contracts fall into four key areas: 1) Financial Serco overcomes this challenge through: sufficient cash reserves to support the working capital requirements of delivering all 11 contracts for which we are tendering assessing the financial robustness of our Subcontractors as part of the selection process quarterly monitoring of the financial strength and liquidity of all of our Subcontractors based on Dunn and Bradstreet analysis and using local Subcontractors with existing infrastructure thereby minimising fixed and start-up costs associated with new contracts. 2) Management capacity Serco overcomes the impact of this challenge through: a recruitment drive already in place for key delivery staff our ability to draw on specialist resources from across the Division, Serco Group and specialist consultants flexible recruitment plans in place for all possible contract win outcomes providing a ring-fenced implementation budget for each contract structuring the mobilisation of each contract around a Common Operating Platform with a Regional Operating Model to facilitate regional variation and ensuring clear governance structures to manage the Work Programme through a Contract Board for each CPA. 3) TUPE We manage this challenge through: having a dedicated HR TUPE lead in each contract area, providing proactive support to our network to facilitate the smooth transfer of all affected employees and building on the experience and resources developed to successfully manage TUPE during FND. 4) Subcontractor capacity Serco mitigates this risk through: use of local Providers, whose existing infrastructure, experience and partnerships minimise the impact of contract implementation and delivery a multiple Provider model, which minimises the impact of winning multiple contracts on any sole Subcontractor different Subcontractor networks in each CPA auditing and assuring Subcontractors Implementation Plans to ensure they are realistic and properly resourced identifying opportunities to share resources from other Subcontractors, deploying Sercos resources and expertise to address identified gaps and cross-referencing and checking the stability of stated resources for these Subcontractors on the assumption that we win all contracts. Just 26% of Sercos Providers in South Yorkshire have signed up to deliver Sercos Work Programme in more than one CPA.

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 Sercos size and experience puts us is in a unique position to implement the Work Programme in South Yorkshire with no adverse effect on existing contracts or future opportunities. Last year alone, Serco implemented new business with an annual value of over 1.5bn whilst continuing to successfully deliver over 600 existing Government contracts. Serco will implement the Work Programme without impacting on our other business by: Ring-fencing Welfare to Work as an Operating Company within the Serco Civil Government Division. Serco Welfare to Work has its own management structure, Business Development and Transition Teams to ensure that implementing and delivering the Work Programme does not affect any of our other contracts, including FND, or any opportunities we may bid for in the future. The South Yorkshire contract will also have its own: ring-fenced budget for transition; dedicated Contract Management Team; and an independent Contract Board with a clear governance structure to oversee ongoing delivery of the contract Deploying a dedicated Transition Team in addition to the Termination Team already in place. Resources for the Transition Team have been identified for implementing up to 11 Work Programme contracts using existing Welfare to Work and Divisional Business Development staff and Sercos own consulting arm, ensuring that the team will not be overstretched by winning multiple contracts Only bidding for contracts that Serco can deliver without adverse impact on existing business our internal governance policy, the nine-Gate Business Lifecycle Process, rigorously tests our financial and operational capacity to deliver every contract that we tender for and ensures we develop a realistic performance offer for every bid Properly resourcing all opportunities that Serco pursues. Serco Welfare to Work currently has no plans to pursue additional business in 2011. When opportunities arise during the contract life, our capacity to bid for them will be unaffected by existing delivery. We have a ring-fenced budget for business development, covering the 42 staff currently bidding for the Work Programme, and a permanent team of staff allocated to new business beyond that. Serco provides additional assurance of the effectiveness of our approach through the successful implementation of our three FND contracts, conducted during a period of unprecedented growth and performance across the company. Despite the potential for disruption, Sercos FND performance has improved by 5 percentage points since the termination notice of contracts in June 2010. Serco ensures that the Work Programme will be implemented without adverse affect on our Subcontractors ability to deliver existing or new contracts by: Only subcontracting to organisations with sufficient, assured capacity to deliver . 75% of our provision in South Yorkshire will be delivered by Providers who are currently delivering similar services, such as FND subcontracts, which end in June 2011.This allows for a seamless transition of experienced and skilled staff to the Work Programme, without adversely affecting the remaining portfolio of programme delivery. Of the remaining Providers, Serco has audited Subcontractor plans that ensure existing contracts are not compromised as a result of the Work Programme. Our Due Diligence process examines Subcontractors existing contracts, newly won contracts, legal status, management and staffing structures, delivery practices, policies, procedures, premises and financial position. Serco ensures that each organisation has the necessary cash flow, resources and management bandwidth to implement the Work Programme without impacting on any other contracts. Once delivery commences, Serco monitors quarterly the financial strength and liquidity of our Subcontractors based on Dunn and Bradstreet analysis. Ensuring that Subcontractors have adequately resourced the Work Programme by auditing and assuring their Implementation Plans to ensure they are realistic and include: a ring-fenced implementation team; staff recruitment and training plans; data protection and data security plans; sufficient frontline staff to meet maximum caseload size requirements and Job Outcome targets; sufficient managers to meet our

9.2 staff-to-manager ratio requirements; and premises that meet our minimum standards. Serco builds the capacity of Subcontractors identified as requiring additional support through Subcontractor-specific Programme Workshops. Monthly progress meetings include reviews of performance on existing contracts to ensure that Work Programme implementation is not adversely impacting them. Facilitating sharing. Whilst volumes are low during programme ramp-up, Serco facilitates sharing of premises or staff between Subcontractors. Working with Subcontractors to identify synergies between the Work Programme and their existing contracts . Many of the contracts currently held by Subcontractors in Sercos network complement the Work Programme, such as the South Yorkshire Retail Skills Academy run by Source @ Meadowhall. Serco works with Subcontractors to map all their existing regional contracts to ensure efficiencies are gained. Contingency Plan Sercos multiple Provider model means that no part of our service proposal relies on a single Subcontractor, thus providing a series of contingency measures should one Subcontractor withdraw from the network. The entire scope of Sercos delivery proposal is underwritten as a result of this design and the following contingency options: 1) Reallocate Jobseekers to other Providers in the local network. Delivery of the three Phases in South Yorkshire is organised into geographical clusters, with an average of nine Providers delivering in each cluster. In the event of a Provider leaving the network, Customer volumes will be distributed across other Providers in that cluster to ensure the full scale and scope of our service is maintained. As part of our Subcontractor selection process, Serco asked each organisation to submit their capacity for Customer flows, listing the minimum and maximum numbers. These estimates were tested against the scope of their business, and against our best and worst case modelling on volumes. No Subcontractor is targeted on Customer volumes up to their full capacity on average, Subcontractors volumes total 75% of their evidenced capacity, so they are able to absorb additional Customer volumes if required. 2) Use a Provider from elsewhere within Sercos delivery network. Should a Subcontractor withdraw from the network in one cluster, we can bring in a Provider delivering the same type of provision in a different cluster. This might be necessary if, for example, the capacity of Providers in a cluster has been affected by even higher Customer referrals than the worst case forecast. This contingency was implemented on Sercos FND in Wales when a Provider withdrew from the network, and was replaced by BTCV, a Provider delivering the same service in the neighbouring cluster. 3) Widening the scope of an existing Subcontractor with spare capacity so they deliver across more than one Phase. 4) Subcontract with a Provider from Serco's reserve list. We have seven organisations suitable to join our delivery network in this CPA should the need arise. Serco implemented this contingency in the West Midlands by inviting Sarina Russo a Provider keen to establish a delivery presence in the region to deliver in Coventry and Warwickshire. 5) Assist the setup of a new Specialist Provider from Serco's ISS network. When BizFizz, our FND self-employment Provider in Greater Manchester, withdrew from the network Serco replaced them with an alternative Provider, Biscom, from our specialist network. If no appropriate Provider is available, Serco ensures that the entire scope of our proposal is maintained by: purchasing consultancy advice from specialist organisations to advise on delivery sourcing specialist training for frontline Subcontractor staff to equip them with the skills required to deliver the particular niche service and arranging for frontline staff from expert organisations to be seconded to Sercos Subcontractors. 6) Self deliver. If necessary, Serco has the capacity and capability to deliver ourselves, a contingency that we implemented when one of our FND Providers in Gwynedd withdrew from the network two weeks before go-live. When no suitable Provider was identified from the reserve list and other Providers had absorbed extra business to full capacity, Serco established our own delivery operation.