WHEREAS the transfer of Employment Insurance funds from the federal government to the provincial government under the Labour Market Development Agreement and the related business transformation process currently underway will result in a significant restructuring of the procurement and delivery of employment and training services for clients; AND WHEREAS the delivery of employment and training services in communities is most effectively delivered by community-based agencies that have an understanding of the challenges and opportunities of the local labour market; AND WHEREAS the proposed contract payment model proposed by the Ministry of Housing and Social Development in the Business Transformation Project Stakeholder Information Package released on May 11, 2010 will make it difficult or impossible for many community based agencies to secure the financing required to manage the contract start-up costs without severely affecting other services delivered by those agencies: THEREFORE BE IT RESOLVED that the UBCM lobby the provincial government to alter the proposed contract payment and financing structure to allow for advances to be paid to the successful proponents that will be selected to manage the community-based Employment Service Centres across the province.
Ministry of Social Development The Ministry released its Public Information Package on BC Bid www.bcbid.gov.bc.ca in the Spring 2010, and Ministry representatives toured the province and learned some of the issues from Service Providers. As a result of Service Providers expressing concerns about their ability to access financing, we approached financial institutions. We wanted to determine: - Whether the contract and financial structure were barriers to financing; - Whether financial institutions would lend money for start up and other costs, to be amortized over the five year life of the Contract, based on the Contract and payment structure; and - Whether they were concerned in principle with lending based on a government contract. All of these were concerns raised by our Service Providers in the consultation sessions the Ministry held. All of the financial institutions informed the Ministry that there were no barriers to financing based on the contract and payment structure, that financial institutes would certainly lend money for start up costs amortized over the five years of the Contract, and that financial institutes were not concerned with lending based on a government contract. They all clarified that they would certainly have to analyze the financial position of the particular Service Provider and do a risk analysis based on their individual application. Some financial institutions agreed to provide the Ministry contact information so that Service Providers would understand the programs available and be able to more easily understand what financial institutions have to offer. That information is posted on our website: http:www.labourmarketservices.gov.bc.cacommunityorganizationsservicepro…. The Ministry of Social Development released the Draft Request for Proposals RFP on October 22, 2010. This document, available on BC Bid www.bcbid.gov.bc.ca, details the payment structure for the new Employment Program of British Columbia. The Ministry is committed to encouraging the participation of our experienced community-based Service Providers in the provision of employment services. The Ministry has refined the payment structure to more effectively address the needs of smaller community-based agencies. While the Contracts for the Employment Program of British Columbia are subject to an open competitive process, the Ministry wants to ensure that there are no systemic barriers to qualified and experienced Service Providers bidding on a Contract, or participating as a partner in a bid. The payment structure, described in Appendix K of the draft RFP, includes operating funding for the ESC including storefront, satellite, outreach and itinerant services to cover the basic infrastructure. In addition, variable service fees are provided for actual services delivered and outcome fees are available for a successful outcome Labour Market Attachment established in the Client Action Plan and the timeliness of achieving the outcome. Direct cost reimbursements are for financial supports provided to Clients to support their Program participation and to reimburse for services purchased from independent third parties e.g. tuition fees. To support the Contractors ability to maintain cash flow, high cost Financial Supports and Purchased Services may be advanced prepaid based on the forecasted requirement. Service Providers are encouraged to consider non-exclusive partnership arrangements with multiple Proponents wishing to take on the role of the Contractor. The successful Proponent will need to demonstrate their ability, experience and expertise to deliver all of the Core Services and in serving all Clients, including Specialized Populations, in the Contracts Catchment Area. In order to provide all of these services to the diverse Client base, it is expected that Contractors will leverage existing infrastructure, resources, and Service Providers within the community. It is expected that Contractors will form partnerships with a network of Service Providers who know the community being served, and understand and have experience in providing services to Specialized Populations. Whatever partnership is identified in the proposal will be embedded within the Contract. Contracts will be monitored to ensure that Contractors are delivering on their commitments.