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1 Request for Tender for Employment Services 2015-2020 Information Session

2 Overview of Presentation The new approach to employment services Changes from the Exposure Draft Services to be tendered Purchasing arrangements

3 Disclaimer Tenderers must: make independent assessments seek independent business advice if necessary This session provides information only: no statement varies the RFT unless confirmed on AusTender variations will be posted on the AusTender website

4 Employment Services 2015 Promote stronger workforce participation by people of working age and help more job seekers move from welfare to work

5 What is being purchased? Services in non remote parts of Australia: – Employment Provider services – Work for the Dole Coordinators – New Enterprise Incentive Scheme Harvest Labour Services National Harvest Labour Information Service

6 What has changed since the Exposure Draft? Job search requirements Job seeker compliance Provider partnerships and group tendering Services to job seeker cohorts Regional Loading

7 Employment Provider Services

8 Employment Provider service objectives Meet needs of employers Increase job seeker activation and stronger Mutual Obligation Increase job outcomes Cut red tape Section 2.2

9 51 Employment Regions Access to larger pools of job seekers and employers Based on Australian Bureau of Statistics areas and labour market features Eligibility for regional loading Coverage Section 7.8.1

10 Employment Providers Employment Providers will: – conduct an initial interview and negotiate a Job Plan – assist job seekers to be work ready – manage job seekers so they fulfil their Mutual Obligation – report non-compliance to the Department of Human Services – refer job seekers to jobs and engage with employers – provide post placement support Chapter 2

11 How job seekers access services Most job seekers will be referred by the Department of Human Services Eligibility is generally based on receipt of Income Support Job seekers will be classified into three Streams Stream A are the most job competitive Stream B require assistance to be work ready Stream C have a combination of serious job and non-job issues Some job seekers can volunteer Change providers after 2 or 3 years Sections 2.6 and 2.7

12 Stronger Participation Incentives for Job Seekers Under 30 Stream A and some Stream B job seekers Monthly contacts with an Employment Provider to: – refer to jobs – monitor job search and Work for the Dole participation Wage subsidies and relocation assistance Related income support changes subject to legislation Section 2.5.1

13 Initial Interview Comprehensive and face to face Focus on available jobs for Stream A Identify job seeker strengths and work ready strategies for Streams B and C Section 2.9.4

14 Job Plan Individual plan Includes activities to satisfy Mutual Obligation requirements Flexible, living document Section 2.9.5

15 Employment Fund Pool of funds so job seekers meet the needs of employers and get and keep a job $990 credit for Long Term Unemployed Wage Subsidy StreamEmployment Fund Credit (Credited once only for each new job seeker) Stream A$300 Stream B$850 Stream C$1200 Section 2.9.7

16 Additional tools Wage Subsidies: – Restart (mature age 50 years plus) – Youth – Long term unemployed people – Indigenous – Tasmanian Jobs Programme Relocation Assistance Job Commitment Bonus Sections 2.5, 2.9.9, 2.9.10 and 2.9.11

17 Mutual Obligation Requirements under Social Security law Attend appointments Comply with Job Plan Undertake job search Annual Activity requirement Section 2.10

18 Annual Activity requirement StreamRequirement Stream AAfter six months of Employment Provider assistance Streams B and CAfter 12 months of Employment Provider assistance AgeNumber of hours Under 30 yearsUsually 650 hours over 26 weeks (25 hours per week) 30 to under 60*Usually 390 hours over 26 weeks (15 hours per week) Section 2.10 *Requirements for people aged 55-59 are subject to legislation

19 Managing job seeker compliance Report non-compliance to the Department of Human Services The Department of Human Services will be the decision maker on all compliance matters Section 2.15

20 Payments to Providers Administration fees Work for the Dole places Outcome Payments Mid Deed adjustment Regional Loading Section 2.16

21 Administration Fees Fee Fee with Regional Loading Six Monthly Administration Fee Youth under 30 Streams A and B $350$438 All other job seekers Streams A, B and C $250$313 Section 2.16.2

22 Work for the Dole places Fee Individual Hosted Place$1000 Place in a Group based activity Up to $3500 Section 2.11 and Table 2.6

23 Outcome payments Full: Payable for cessation of income support at 4, 12 and 26 weeks of employment Partial: Payable for 60 per cent reduction of income support at 4 and 12 weeks of employment Verified through earnings declarations to the Department of Human Services where possible Education outcome for 15-17 year olds Section 2.16

24 Employers Job seekers with the right skills Job seekers with the right attributes Wage subsidies Post placement support Collaboration between Employment Providers Section 2.13

25 Performance framework Indigenous Outcome Targets Key Performance Indicators: – Efficiency – Effectiveness – Quality and Assurance Quality Assurance Framework Compliance Indicator Service Guarantee and Service Delivery Plan Business reallocation Section 2.18

26 Transition Principles: – Continuity of employment services – Job seekers: stay with their current provider where possible referred to Employment Provider services taking into account their individual circumstances – Continue to support connections between employers and job seekers where possible – Support future arrangements IT development Section 2.19

27 Work for the Dole Coordinators

28 Work for the Dole Coordinator Objectives Finding places that provide job seekers with – work-like experiences – skills that are in demand – relevant training Section 3.2

29 Work for the Dole Coordinators One per Employment Region Secure places Collaborate Risk Assessment – Undertaken by a Competent Person Media and Promotion Section 3.3

30 Payments Establishment Fee Six monthly Service Fee Place Fee Section 3.5

31 Performance Framework Key Performance Indicators: – Efficiency – Effectiveness – Quality and Assurance Contract reallocation Section 3.8

32 New Enterprise Incentive Scheme

33 NEIS objectives Help job seekers start-up their own small business Increase financial viability Increase off-benefit rates Cut red tape Section 4.2

34 NEIS Service Requirements Selecting eligible job seekers to undertake NEIS Training Assessing and approving business plans Monitoring the performance of the business Providing advice and mentor support Chapter 4.4

35 NEIS Payments and contracting Up to $5580 for each participant Up to three Providers per Employment Region Key Performance Indicators: – Efficiency – Effectiveness – Quality and Assurance Business Reallocation Sections 4.8, 4.10 and 4.11

36 Harvest Labour

37 Objective of Harvest Labour Services Supply labour to meet the needs of growers Mobilise workers from outside a Harvest Area Connect people on income support Section 5.2.1

38 Harvest Labour Services Identify, promote and refer job seekers Payments: – Service Fee of $53 900 per quarter – Placement fee of $49.50 Harvest Areas decided through the tender process. Annual performance assessment Chapter 5

39 Objectives of National Harvest Labour Information Service Develop and disseminate information about harvest related work Section 5.4.1

40 National Harvest Labour Information Service The Service will: – produce an electronic Harvest Guide – maintain information on the Harvest Trail website – deliver a free-call national telephone service Single provider Service Fees by competitive Tender Section 5

41 Employment Services 2015-2020 Purchasing Arrangements

42 Request for Tender Overview Probity Purchasing Process Tender Lodgement Selection Criteria Feedback Chapter 6 and 7

43 Probity Principles Fairness and impartiality Consistency and transparency Encouraging competition and participation Identifying and managing conflicts of interest Security and confidentiality Compliance with relevant legislative obligations and the Commonwealth Procurement Rules Establishing and maintaining a clear audit trail. Section 6.1

44 Purchasing Process This is a Procurement Commonwealth Procurement Rules apply Value for money principles Consideration of risk to Commonwealth Section 6.2

45 Communication Protocol Minimise risk Meetings with Ministers and the Department Questions about the RFT Appendix E

46 Eligibility to Tender Australian Government Departments Group tendering Competing entities Collusion and improper influence Conflict of interest Section 6.4.9

47 Selection Criteria

48 Referees Current employment services providers Tenderers that do not provide employment services Section 7.12.3

49 Electronic Tender Lodgement Electronic tender lodgement conditions Only with AusTender ( Application forms Corrections and additions Incomplete tenders or non competitive tenders Section 6.5.2

50 Late and non-conforming tenders Tenders will be excluded if:  Lodged incorrectly or late  Not written in English Section 6.5

51 Contracting with the Department of Employment Draft Deed Offer of business ABN required Training available Indigenous Opportunities Policy Section 6.9

52 Evaluation Process Registration and Conformance checks Evaluation of selection criteria Section 7.12.2

53 Evaluation Process Preliminary Allocation of Business Capacity to Deliver Capacity to Contract Decision by Delegate Section 7.12.4 to 7.12.8

54 Deed Offers Execution of Deeds of Standing Offer Gap filling Section 7.12.10

55 Feedback and contact details Feedback on implementation and purchasing Employment Services Purchasing Hotline – 1300 733 514 – procurement-information procurement-information

56 Key dates KEY DATES Release of the Employment Services 2015 Request for Tender 7 October 2014 Information Sessions10 to 14 October 2014 Closing time and date for the Request for Tender5.30 pm 17 November 2014 Announcement of tender resultsLate March 2015 Work for the Dole Coordinator Deed commencesMay 2015 New model commences1 July 2015

57 Questions

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