Code of Conduct - the Merlin Standard

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Code of Conduct - the Merlin Standard
Lucy Williams and Simon Shimmens
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AGENDA

• Commissioning Strategy and the Code of Conduct
  DWP perspective
• Code of Conduct provider viewpoint
• Merlin Standard pilot activity benefits
• Ombudsman service how will it work
• Shared information update
• Future considerations and next steps

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Commissioning Strategy

• prime contract model is fundamental to the
  rollout of future contracts
• supply chain dynamics require changed behaviours
  expectations at every level
• in pursuing its strategy DWP is mindful of the
  importance of its stewardship role
• each major contracting round helps identify
  issues and challenges

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Prime Contract supply chains
DWP
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Code of Conduct provider view

• from lessons learnt review
• develop code of conduct assessment process
• - to address the following
• code has no teeth
• ombudsman required
• standard formats required for shared information

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Code of Conduct

• Values acting with integrity
• Pre-awarding of contract supply chain set-up
• Post-awarding of contract commitments
  honoured
• Equality and diversity - policies and promotion
• TUPE application and sharing of information
• DWP undertaking upholding standards
  monitoring and enforcing the Code of Conduct

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Code of Conduct no teeth

• contractual requirement and expectations are part
  of contract terms
• tier 2 (subcontractors) also have status, being
  formally part of the bid document
• some non-primes remain nervous and evidence needs
  to demonstrate positive prime contracting
  behaviours

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no teeth - opportunities

• to identify and publish positive behaviours to
  help establish recognised norms within supply
  chains
• for the assessment process to be developed with
  direct involvement of providers and
  representative bodies, with ongoing
  involvement/ownership at the end of the two year
  pilot

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Why will Merlin pilot help?

• flexible pilot co-regulation with DWP to
  develop supply chain behaviours
• smaller provider voice will be heard via 360
  degree feedback of primes and of DWP as
  commissioner
• ensure compliance with the Code and recognise
  other standards e.g. star rating
• focus on sharing best practice will help to raise
  standards of behavioural norms

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How will Merlin work?

• assessment visit - duration and fees based on
  highest tier of operation
• self-assessment highlighting best practice
• assessment visit independent assessors
• results and best practice posted on Merlin web
  portal
• access to web portal and information services
  via annual subscription

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Benefits for providers

• web portal will be a valuable shop window for
  the sector
• who, where and doing what
• positive prime behaviours will be more openly
  advertised, including to DWP
• smaller providers will directly influence the
  status of primes and higher tiers reflecting
  not least on their track record of supporting and
  capacity building

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Benefits for providers (cont)

• primes who invest in the development of healthy,
  high performing supply chains will be openly
  recognised by their supply chain partners
• new entrants at every level will find it easier
  to navigate the sector
• primes requiring additional delivery capacity and
  expertise will have another communication channel
  open to them

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Benefits for DWP

• co-regulation helps to develop the prime
  contracting model
• providers at every level influence what is
  important in supply chain dynamics
• in line with the Commissioning Strategy DWP is
  able to step further back from supply chain
  management
• DWP receives regular 360 degree feedback on its
  role as commissioner

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Ombudsman service why?

• lack of trust that primes will honour commitments
  to work in line with code
• lack of confidence that DWP is equipped to deal
  with supply chain disputes
• DWP may be complicit in supply chain problems
  that arise so must be separate
• an independent body can help to establish
  acceptable and unacceptable behaviour over time

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Ombudsman service - process

• providers submit a case if dispute resolution
  procedures fail
• administration part of the service will ensure
  cases meet criteria and have sufficient
  supporting information
• panel convened to consider the case and make a
  judgement
• result notified to providers and DWP

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Sharing standard information

• subcontracting area of DWP website includes a
  draft standard form for information sharing
  between providers
• Merlin pilot activity will help to develop such
  standard templates to enhance efficiency within
  procurement rounds
• The Merlin web portal will progress to provide a
  range of useful downloads

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Future considerations for Merlin

• pilot activity will need to establish what supply
  chain tiers will require certification against
  the standard
• Merlin services must carefully dovetail with
  existing interfaces with providers
• how will innovation be encouraged over and above
  the sharing of best practice?

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Future opportunities for Merlin

• feedback on the success of the standard plus the
  requirements of future contracts will mean the
  standard will need to evolve over time
• the standard will potentially be able to adapt to
  co-commissioned contracts other government
  departments are already involved

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Next steps

• pilot support contract in place to develop and
  test Merlin services
• standard information being used for forthcoming
  contracts
• Advisory Group of providers and representative
  groups working with DWP
• DWP working group to align internal interfaces
  and help develop
  co-commissioning opportunities

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Expected outcomes

• co-regulation of supply chain behaviours in the
  future
• independent ombudsman service in place for
  future supply chain disputes
• improved and independent sharing of best
  practice and key information
• DWP achieve further development of the
  Commissioning Strategy in true partnership with
  providers

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Contact details

• Lucy Williams
• Merlin Pilot Project Manager
• lucy.williams_at_dwp.gsi.gov.uk
• Simon Shimmens
• Merlin Pilot Advisor
• simon.shimmens_at_dwp.gsi.gov.uk

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