Case studies

The Department for Work & Pensions introduced the Work Programme (2014 report) quickly in 2011. The programme had a slow start and ramp-up. The Department recognised uncertainties within the programme and took a more active approach to changing its requirements and monitoring, including terminating some contracts, during the early stages.

For the Yarl's Wood Immigration Removal Centre (2016 report), some users' needs were not being fully met. We recommended that when designing contractual arrangements, departments should consider including arrangements to assess users' initial needs, and any that develop while using the service. They should ensure that there are mechanisms for varying the contract or buying more services if necessary.

In our 2016 report on contracted-out health and disability assessments, we recommended that the Department for Work & Pensions should set out realistic targets and follow clear principles for challenging assumptions. Otherwise, there is a risk that bidders will not be able to tell whether requirements are deliverable. We recommended that where assumptions are uncertain, the Department should develop its principles for using 'allowable assumptions' clauses and extend these beyond the initial stages of a contract.

Our 2016 report on Transforming Rehabilitation identified concerns about how uncertainties were managed. Outsourcing immature businesses within the wider context of a changing new probation system increased the risk and made the programme less attractive. We recommended that departments outsourcing complex transformed services should consider how to mitigate or reduce risk and uncertainty from concurrent changes, including through phasing changes to occur at different times.