Market Engagement

Performance framework and

payment mechanism

Probation ProgrammeDynamic Framework

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Please note the following:

MoJ

• is not liable for any costs incurred by anyone who chooses to participate in this ME;

• may choose and/or be obliged to disclose information submitted to it as part of this ME; in particular please note MoJ is subject to the Freedom of Information Act 2000 (as amended) and the Public Contracts Regulations 2015 (as amended);

• makes no guarantee, representation nor warranty (express or implied) with respect to any information disclosed as part of this ME;

• MoJ shall not be liable for any loss or damage arising as a result of reliance on information disclosed as part of this ME and/or from any participation in the ME; and

• is not committed to any course of action as a result of this ME.

Performance framework

Sue Rex

Market Engagement – Performance measures

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Agenda

Session objectives

Overarching objectives for performance

Key principles for performance framework

Proposed performance measures for dynamic framework

Outcomes related to core interventions

Questions

Session objectives

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We want to get your views on a performance framework which supports the

dynamic framework

We will share our current thinking and would like to hear your views about what

will work

We would welcome your ideas about alternative approaches as well as on

specific questions

We are particularly interested to hear about models you currently use to monitor

outputs/outcomes

We don’t expect you to have detailed views on all of the questions yet, and we

would like any additional feedback.

Overarching Objectives for performance framework

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§ Focus on Quality ~ secure quality in service delivery

§ Secure rehabilitative outcomes ~ support reduced offending and harm, backed up by meaningful incentives

§ Get the Basics Right ~ hold providers to account on sentence delivery and protecting the public, so probation commands public and sentencerconfidence

Principles for new Performance Framework

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Informed by good practice, the evidence base including findings from external and

internal scrutiny, and experience under existing contracts:

Quality: focus on quality rather than processes, applying Quality Measures based on Authority operational assurance audits, and strong provider QA

Outcomes: promote positive outcomes (and related outputs) linked to reducing reoffending and harm

Targets: transparent target setting, using baselines where possible

Financial incentives: proportionality in setting deductions for performance failure linked to paymech principles

Oversight: awareness of the overall oversight demands and avoiding duplication (consistent with our MoU with HMI Probation)

Alignment: across probation system, reflecting consistent standards between contractual requirements, instructions and other guidance

Data: improved provider awareness and access to the data necessary to track performance, and an ability to use provider data

Potential measures for dynamic framework

Measure

Quality measure

Time to start intervention

Number of interventions/sessions provided

Proportion of referred service users who complete the intervention

(and reasons for non-completion)

Proportion of service users reporting satisfaction

Proportion of service users achieving desired outcomes (see slides 8-

9)

Delivery of intervention: whether provision enables service users to

make progress in addressing their offending related needs to build a

crime free life

Timeliness/quality of recording and notification of failure to attend/

unacceptable behaviour/risk issues (Liaison with RO)

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Core Interventions: outcomes and success measures

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Need Areas Minimum Outcomes to be Met Possible success measures

Accommodation Accommodation is obtained/

sustained. Homelessness is

prevented.

• Transient housing becomes settled

• Rough sleeper gains supported

accommodation

• LA accepts referral to prevent homelessness

• Short terms prisoner maintains prior

accommodation on release

Employment/

Training/

Education

Suitable employment/ training/

education obtained/ sustained.

Barriers removed and skills increased.

• Gains/improves employment skills

• Starts education/training course leading to

recognised qualification

• Starts/maintains employment

• Achieves qualification

• Short term prisoner maintains prior

employment on release

Finance/

Benefits / Debt

Stable and lawful income, debt

reduced, skills to manage finances

improved.

• Stable employment

• Reduced debt

Attitudes/

Thinking/

Behaviour

Ability to identify triggers and skills and

strategies to respond to challenging

situations.

• Reduced risky/offending related behaviour

• Reduced recalls to prison

Core Interventions: outcomes and success measures

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Need Areas Minimum Outcomes to be Met Possible success measures

Family and

significant

others

Safe and positive intimate

relationships. Improved family

relationships/ parenting capacity

• Improved/maintained relationships with

partner, children• Reduced abusive behaviour

Lifestyle and

Associates

Pro-social support and interests.

Decreased influence of negative

associates. Mentoring support and

advocacy.

• Engages with a mentor (e.g. 2 + meetings)

• More pro-social behaviour

• Participates in community

activities/volunteers

• Reduced risky/offending related behaviour

Emotional

Management

Improved coping skills and strategies.

Improved ability to comply with

treatment/ medication.

• Maintains treatment/prescription

• Reduced risky/offending related behaviour

Non-dependant

alcohol misuse

Improved ability to manage high-risk

situations.

• Accesses/maintains support

• Reduced use of alcohol

• Reduced risky/offending related behaviour

Questions for participants

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Do these look like the right measures

How could outcomes be demonstrated

What other ‘success measures’ could be considered

Do you use/know of other models for monitoring outcomes that

we should consider

Payment mechanism

Janet Phillipson

Agenda

Principles

Paymech options

Our questions to you

Your questions to us

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Session objectives

We want to get your views on how to design a payment

mechanism which supports the delivery of the services

We will share our current thinking but we have consciously not

developed any clear models at this stage as we want to hear your

ideas about what the most appropriate paymechs might be for

different services

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Principles

We have developed some guiding principles informed by the lessons learned

from the current contracts and best practice from across government

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Ensure sufficient funding to cover the reasonable costs of (efficiently)

providing a minimum acceptable level and standard of serviceEssential

Encourage and facilitate attainment of agreed performance, quality or

outcome measuresEssential

Reflect actual workload and respond easily to any workload changes (i.e.

minimal effort to assess or negotiate changes; minimal dispute risk)Essential

Be transparent and understandable for all parties Essential

Minimise the resource required to manage it for all parties and be

proportionate to the nature and value of the serviceEssential

Allow a reasonable but not excessive profit / surplus; but not guarantee any

minimum profit / surplus (e.g. if efficiency or performance is poor)Essential

Assign risk to the appropriate party Essential

Encourage partnering behaviours Desirable

Discourage perverse gaming behaviour during bidding or contract operation Desirable

Incentivise suppliers to find and share efficiencies Desirable

Paymech options

Framework contract needs to cover all possible types of call-off

contracts or grants, so will contain range of different paymech options

Each call-off competition and contract will then select appropriate

paymech for that call-off

Cabinet Office Model Services Contract provides four paymech models:

Time and materials

Fixed or firm

Volume based

Guaranteed maximum price with target cost (GMPTC)

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Paymech options

We think that the basic model will likely include:

a level of minimum spend, equating to our expected minimum

volume (but not dependent on us referring that level of volume);

above which there would be a unit cost or volume band pricing.

To do this, we want to understand your likely cost base and thus what

the paymech will need to cover, and your thoughts about possible

paymech models.

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Our questions to you - costs

We would welcome your initial views today on the following questions:

To what extent will you be incurring new fixed costs to deliver the expected

services? E.g. new estates/rooms, new ICT infrastructure, new frontline or

back-office permanent or sessional staff?

What is the likely mix of fixed, semi-variable and variable costs?

How easily can you flex up or down if volumes are uncertain?

For all of the above, are there different answers for different types of services

or cohorts?

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Our questions to you – payment model

We would welcome your initial views today on the following questions:

What do you think about having a minimum spend level plus unit-based/volume-

banded above a given volume level?

Would you expect to price the service in terms of individual service-users, group

sessions, hours or days, outcomes?

What paymech models would you suggest? On what other contracts or grants

have you used other suggested models?

What payment milestones (e.g. at referral, completion) would you expect?

For all of the above, are there different answers for different types of services or

cohorts?

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Your questions

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Next steps

The next paymech webinar will be on Monday 22 July and we will present

more detail on paymech options.

Therefore please send any feedback or any questions to by 5 July, so that we

have time to consider it, to ProbationDynamicFramework@justice.gov.uk

Thank you.

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