DWP Personal Independence Payments: early progress (2014) and Contracted-out Health & Disability Assessments (2016) - When contracting for health and disability assessment providers for its new Personal Independence Payment benefit, the department learned from experience and established a framework of providers to broaden the market. It then appointed Capita alongside Atos, the existing provider of other health and disability contracts. Following Atos's withdrawal from its contract to provide health and disability assessments for Employment Support Allowance, a third provider, Maximus, was appointed. The department has since sought to better understand the process by establishing an in-house health and disability assessment service and increasing contact with providers. However the department risks damaging market interest through tight timetables, inflexibility and lack of transparency. Its framework contract for providers has only been used once and will expire in 2016.
DfT Reform of the Rail Franchising Programme (2015) - This report highlights the risk to value for money which could result where there is insufficient market to generate intense competition for franchises, and notes some of the actions DfT is taking to try to encourage new market entrants. These include simplification of pre-qualification processes and review of the number and size of franchises. We recommended that the department develop alternatives to its current commercial approach, such as including more competitive negotiation and dialogue to help drive a better deal, in the absence of intense competition.
Government's Spending with SMEs (2016) - Government believes SMEs can potentially offer more flexibility, innovative approaches and better value for money that larger providers, as well as local investment and improved social outcomes. This report comments on the progress government has made removing barriers to SME participation in public service markets, and the risks that remain. It also recommends that government target those sectors and markets where SMEs can have the most impact.
Principles Paper: Managing Provider Failure (2015) - Our experience of auditing government over many years suggests that the way failure of providers is considered and managed leaves room for improvement. This paper draws together common findings from our work, to assist departments in meeting this challenge.