JobPath is a payment by results model which means that companies will not be able to fully recover their cost until they place sufficient numbers of jobseekers into sustainable jobs. Therefore the overall cost of JobPath will be determined by the number of people who participate in the programme and the number who get sustainable jobs.
The payments made are in respect of registration fees, paid for clients who have engaged with the service, and fees paid for sustained employment outcomes of 13, 26, 39 and 52 weeks duration. The total amount paid in fees from the outset of the service in July 2015 up to the end of February 2017 is €37.6m.
The procurement process and the attendant costs and legal costs form part of my department’s normal business and as such would be included in the overall procurement budget.
In advance of developing the service the Department retained the services of the non-profit Centre for Economic and Social Inclusion (London) to advise on the JobPath model and the procurement process.
The Minister may terminate a JobPath contract by serving six months written notice on the contractor. In the event that the Agreement is terminated a payment will be made to the Contractor, the amount to be determined by the Contracting Authority, in respect of unavoidable losses which have been actually and reasonably incurred by the Contractor as a direct result of the early termination of the contract.
The Department also has the right to initiate reviews of the terms of the contract (including fees) in the event that contractor performance (including profitability of the contractor) provide reasonable cause for consideration of such a review.
I trust this clarifies the matters for the Deputy.
