Content

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2006-09
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Content
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• WfD offers a range of group activities or
  individual placements organised by CWC.
• WfD CW approve MO activities for some
  participants.
• Also open to voluntary participants.
• Operate in not-for-profit organisations
  without displacing existing or potential paid
  employees.

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What is WfD?

• Work experience that builds positive work habits
• A variety of structured activities or placements
  that increase participants motivation and
  employment prospects
• Activities that benefit local communities and are
  of value for money and
• Opportunities for a variety of participant groups
  to engage with, and be valued by their community.

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• Administer two programmes- Work for the Dole
  (WfD) and - Community Work (CW).
• Work with local community to provide work
  experience opportunities.
• Administer Training Credits.

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What are the key differences ?
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Key differences in 2006-09 contract

• A new payment model that rewards high
  performance.
• Measures to ensure that CWCs are not
  disadvantaged for employment exits in star
  ratings.

• Work Experience Funding (WEF) training limits to
  be raised from 10 to 20 of activity budget.
• Equitable distribution of referrals from JNMs
  enforced through IT arrangements.

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Key differences continued
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Service Requirements
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• Manage WfD activities
• identify and work with Sponsors to develop
  activity proposals
• assessing and approving suitable activities
• monitoring activities and making Work Experience
  Funding (WEF) payments to Sponsors
• acquitting WEF payments and
• reporting to DEWR.

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Managing WfD activities
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• Processing referrals and managing WfD
  participants
• interviewing potential participants
• matching to appropriate activities or placements
  
• ensure participants are supervised and
• notifying Centrelink and relevant service
  providers of unsatisfactory attendance.

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• Processing referrals and managing CW
  participants
• promoting CW opportunities to potential
  participants and the community
• provide potential participants with access to
  internet sites to identify voluntary work
  opportunities
• check eligibility of volunteer organisations
  (where not already established recorded on DEWR
  systems)
• registering CW placements and
• monitoring participants attendance.

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Participant Groups Mutual Obligation
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Participant Groups Mutual Obligation
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Participant Groups Full time WfD

• JNMs will maintain contact with job seekers at
  least every two months.
• Job seekers will be reviewed at the completion of
  1100 hours over 10 months of full-time Work for
  the Dole.

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Full Time WfD

• Capped at 16,500 per year for the first three
  years.
• 10,000 places per year thereafter.
• Data on the distribution of VLTU job seekers will
  be provided in the final Request for Tender.
• CWCs will be paid 2.5 times the standard Service
  Fee for Full-Time WfD participants.

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Participant Groups Volunteers
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Flexible Servicing

• Offer a variety of activities and flexible
  arrangements to accommodate the needs of
  different participant groups.
• Recognition of the barriers to participation
• School hours (for parents)
• Activities for people with medical constraints
• /disabilities (e.g. DOES participants/job
• seekers with a restricted work capacity).
• Banking of participant hours.

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Performance Management
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CWC Performance

• CWC performance will be assessed via Key
  Performance Indicators (KPIs).
• KPIs will be formed around each of the core
  programme objectives.
• KPIs will be used to form a single score for each
  CWC (Star Rating).
• This rating will be comparable nationally.

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CWC Performance

• The ratings will be used to adjust business.
• Business adjustment principles in line with JN
  Star Ratings.
• First star ratings discussed as soon as
  sufficient data available.
• Rewards and sanctions through business adjustment
  will not commence until 12 months into the
  contract.
• In the first instance sanctions will be limited
  to 10.

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Three KPIs underpin the contract
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KPI Measures
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KPIs and CWC Star Rating Model

• KPIs are used to determine market share
  adjustments.

• Labour market conditions
• Jobseeker characteristics
• Employment exits
• Normalised across ESA

Measure 1
KPI 1
Regression analysis
Perform. score moderated
Rank
Rating
Measure 2
Measure 1
KPI 2
Measure 2
Market share adjustments are determined on
ratings
KPI 3 Quality
Pass or Fail
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Employment Exits

• CWCs will not be disadvantaged if participants
  exit WfD due to employment.
• Employment exits will be considered as part of
  CWC Star Ratings model.
• Employment exits must be of 13 weeks duration.
• Employment exits will be measured through
  Departmental data sources.

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Skills Demand/Activity Agreement Concordance

• CWCs develops activities around skills in demand
  in the local labour market.
• CWCs places participants into activities that
  complements their Activity Agreement.

• JNMs identify the skills in demand in each ESA
• JNMs develop Activity Agreement and identify
  skill(s) in demand for the jobseeker.

DEWR will collate JNM lists of skills in demand
and input into DEWRs IT system. DEWR will also
examine activities during performance discussions.
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Payment Model

• Key Principles
• Driven by on-going business demand.
• High performing CWCs rewarded through regular
  adjustment to business levels.
• CWCs paid 80 of Service Fees and Allocated
  Places at beginning of each Milestone.

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Payment Model

• Milestone 1
• DEWR estimates the number of Completed Places
  required in each ESA for Milestone 1 only.
• Completed Places distributed according to CWCs
  market share.
• CWCs paid 80 of fees and places upfront.
• 85 utilisation factor is applied during
  Milestone.
• Top-up Allocated Places available if required.

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80K
Time
Milestone 1
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All advanced money committed

A closer look
and so on
80K
20 Places _at_ 2,500
50 Places _at_ 1,000
Time
Milestone 1
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if utilisation lt 85
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80K
andso on
Time
Milestone 1
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but if utilisation gt 85
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100K
80K
andso on
Time
Milestone 1
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High/Low Performance

100K
High Performer
80K
Low Performer
Time
Milestone 1
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Top-ups
High performing ESA
Top-up 3
M6
Top-up 2
100 ESA
M1
M2
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Top-ups
Lower performing ESA
M6
100 ESA
70 achieved
M1
M2
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Bidding for business and Selection Criteria
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Bidding for business

• Bids will be
• at the ESA level
• for a percentage range of available business
• based on the indicative data provided by DEWR for
  Milestone One and
• able to be made on a conditional basis.

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Selection Criteria

• Tenderers will be assessed on three selection
• criteria in addition to tendered service fee. A
• summary of selection criteria includes
• experience in delivery of CWC or similar services
  (LMR basis)
• proposed strategies to achieve positive outcomes
  (LMR basis)
• proposed local strategies targeted at particular
  ESAs where business is sought (ESA basis) and
• In addition DEWR will consider the tendered
  Service Fee (for each ESA).

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Funding Structure
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Work Experience Funding

• Work Experience Funding
• Average differs according to nature of the LMR.

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Tendered service fee

• Tenderers will submit a single price (combined
  management and admin fee) for delivering services
  to volunteers and full and part-time Mutual
  Obligation participants. This is a standard WfD
  service fee.
• Full-time WfD price 2.5 x standard tendered
  service fee.
• The indicative service fees are

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Questions Feedback Website www.workplace.gov.a
u/ESpurchasing Tender Enquiry Line 1300 733
514 E-mail ESPurchasing_at_dewr.gov.au By 16
September 2005