Róisín Shortall (Dublin North West, Social Democrats)
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167. To ask the Tánaiste and Minister for Social Protection the remit and purpose of the study she commissioned the London-based Centre for Economic and Social Inclusion to carry out in 2012, at a cost of approximately €190,000 to the taxpayer; the impact of this study on the design of the JobPath programme; if she will publish the study. [42747/15]

Róisín Shortall (Dublin North West, Social Democrats)
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168. To ask the Tánaiste and Minister for Social Protection further to Parliamentary Question No. 89 of 17 November 2015, the details of the rigorous public procurement process that led to the awarding of the JobPath tenders; her plans to publish the successful bids submitted and the criteria she used in the procurement process to select the companies concerned; and if she will make a statement on the matter. [42748/15]

Róisín Shortall (Dublin North West, Social Democrats)
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169. To ask the Tánaiste and Minister for Social Protection her views that according to an investigation (details supplied) carried out in the United Kingdom, one of the bidders she selected was the worst performing out of all of the companies engaged in the provision of welfare to work programmes; the implications this has for the company’s operations; and if she was cognisant of this company’s performance when it was selected to operate the JobPath scheme. [42749/15]

Róisín Shortall (Dublin North West, Social Democrats)
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170. To ask the Tánaiste and Minister for Social Protection her views on the 2012 investigation in the United Kingdom into a company (details supplied), which forms part of one of the JobPath providers, and that alleges widespread and systemic fraud within that company; further to Parliamentary Question No. 89 of 17 November 2015, if she is aware that the investigations into fraud were carried out internally by the company that, according to testimony to the Public Accounts Committee in the United Kingdom, is characterised by unethical behaviour, mismanagement and inadequate corporate governance and risk management. [42750/15]

Joan Burton (Dublin West, Labour)
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I propose to take Questions Nos. 167 to 170, inclusive, together.

In November 2012, following a public procurement competition, the Centre for Economic and Social Inclusion (CESI) was appointed to provide the Department with expert advice and assistance relating to the design and delivery of an employment service model (“JobPath”). CESI is the UK’s leading not-for-profit company dedicated to tackling disadvantage and promoting social inclusion in the labour market. Based on its knowledge of how contracted employment services operate in other States CESI provided advice with regard to the design of the JobPath model including detailed financial modelling of a payment by results approach in Ireland. CESI also assisted with the preparation and delivery of presentations at open consultation fora prior to and during the procurement process for JobPath itself, with responding to queries from actual and potential tenderers during the procurement process and with the assessment of tenders, in particular the modelling of contract finances based on the prices and performance offers received from tenderers. Given the nature of the financial analysis I believe that publication of the CESI work would undermine the State’s ability to secure best outcomes from the existing contracts or indeed from any contracts that might be placed in future years. Accordingly I do not plan to publish the analyses provided by CESI.

With regard to the procurement process for JobPath the Department issued a Prior Information Notice (PIN) on 1 July 2013 in which it advised the market that it was considering the potential of contracting third party providers of employment services. The Department held 2 information sessions on 26 July 2013 at which it outlined its thinking in relation to how JobPath might operate and invited attendees to provide feedback. There were over 200 attendees at these sessions. On 7 November 2013 Enterprise Ireland hosted a capacity building and networking event for those interested in providing JobPath services. On 12 December 2013 the Department published a Request for Tenders (RFT). In conjunction with CESI the Department held a “technical information session” on 9 January 2014 at which a detailed explanation was provided to potential bidders on how to complete the “JobPath Tenderer Bid Spreadsheet” which was required to be submitted as part of a JobPath tender. Over 50 attendees were present. The closing date for receipt of tenders was 28 February 2014. Contracts were awarded on the basis of the most economically advantageous tender based on the following criteria (i) cost, (ii) implementation of services, (iii) delivery of services and (iv) contract management and governance. Full details of the JobPath procurement requirements and evaluation criteria used during the tender process are set out in the “Request for Tenders for the Provision of Employment Services (JobPath)”, which is available on the Department’s website at .

The procurement process was conducted in accordance with Irish and EU procurement rules. The procurement process was overseen by a board that was chaired at Assistant Secretary level and included an independent external member who was formerly a commissioner of a regulatory body. The board was advised by the Attorney General’s Office and the Chief State Solicitor’s Office as well as the National Development Finance Agency. The outcome of the process and the recommendation to award contracts were reviewed with D/PER and the final decision to proceed to contract was made by Government. The successful companies were Turas Nua and Seetec. As is the case with CESI analyses it is not intended to publish the successful tenders as they contain commercially sensitive information and the bid process is confidential. In any event, to do so would place the State at a disadvantage both in terms of the contracts now in place and any future procurement that may be undertaken.

Turas Nua is a new joint venture between FRS recruitment, based in Roscrea, and Working Links, a not for profit UK service provider. It has been acknowledged by Working Links that some members of its staff incorrectly recorded employment and training placement for jobseekers under the 'New Deal', the precursor programme in the UK to the Work Programme. However the Department of Work and Pension (DWP) has publicly stated that the errors occurred in 2008 as a consequence of its heavy reliance on paper-based transactions and that it is satisfied that these cases were investigated thoroughly by Working Links (the amount involved represented less than 0.05% of the payments at the time) and that appropriate actions were taken, with the associated amounts being repaid. DWP has subsequently awarded additional contracts to Working Links.

Seetec was accused of fraudulent activity by former staff members in 2013. This alleged fraud related to claims that Seetec inflated employment outcomes for people with disabilities under the 'Work Choices' programme in the UK (referenced in the May 2014 article). The DWP has publicly refuted these claims and advised the UK’s Public Accounts Committee that it has investigated the claims and found no wrongdoing. The Work Choice programme is designed for persons with disabilities - the clients selected for referral to JobPath do not include such clients.

It is important to note, that neither of the above companies has been sanctioned by the DWP for any fraudulent activity. The Department is however cognisant of experiences in other jurisdictions with regards to the provision of such services and these have influenced the design of JobPath. The Department is satisfied, for example, that the potential for the inflation of outcomes will be controlled in Ireland through the use of data matching with Revenue Commencement of Employment records and the Department’s own welfare payment systems.

Significant safeguards have been built into JobPath. These include a service guarantee to ensure that all participants receive a baseline level of service. Both companies will be subject to regular on-site inspections and audits (including examination of financial records) to ensure that JobPath is delivered in accordance with contractual obligations and the Department will undertake customer surveys to determine the level of jobseeker satisfaction with the services provided by the JobPath provides. As payments are linked to sustained employment outcomes (jobs must provide work of at least 30 hours per week for a period of at least 13 weeks with a maximum of four outcome fees being paid in arrears over a 52 month period) providers are incentivised not just to find, but also to sustain, employment for clients. As part of the bid process providers offered and committed to target employment placement rates and payment penalties can be applied if performance is less than the level committed. Payment penalties can also be applied if service quality, as assessed through Department audits or customer surveys, does not meet required standards. In addition payment rates are linked to employment levels in the economy with automatic discounts being applied if employment levels exceed defined levels set out in the RFT. I am satisfied that these safeguards, that were not a feature of the Work Programme model in Great Britain, protect the State’s interests.