§ Mr. Alan HowarthTo ask the Secretary of State for Social Security what steps he plans to take to ensure that the chairman and board members of each of the companies contracting for the Benefits Agency medical service are fit and proper people to undertake such a public function; if he will promulgate a code of conduct for staff; and if he will publish the advice he gives on the values and standards of probity and accountability he expects them to observe. [17164]
§ Mr. BurtThe companies chosen to negotiate with the Department for the provision of the medical service were shortlisted according to EC procurement regulations. The criteria applied included integrity, capacity to provide the services, financial and economic standing.
All shortlisted companies confirmed that none of the circumstances described in article 29 of directive 92/50/EEC—UK Public Service Contracts Regulations 1993, regulation 14—applied.
The successful contractor will be required to ensure that the staff undertaking delivery of the medical service must conform to present published principles of public service.
§ Mr. HowarthTo ask the Secretary of State for Social Security what plans he has to publish a performance review of the companies' efficiency strategies and financial plans of the companies running the Benefits Agency medical service. [17162]
§ Mr. HowarthTo ask the Secretary of State for Social Security (1) who will be the accounting officer for private sector companies contracting for the Benefits Agency medical service; [17176]
(2) what plans he has to ensure that the private companies which will run the Benefits Agency medical service are accountable to Parliament for the functions that they perform. [17156]
§ Mr. BurtThe contracting out of the Benefits Agency Medical Service will not change the nature of accountability in respect of its functions and finances. Ministers will remain accountable to Parliament and the chief executive of the Benefits Agency will continue to act as accounting officer.
§ Mr. HowarthTo ask the Secretary of State for Social Security (1) what methods he intends to use to follow up audit recommendations and requirements in respect of the private sector companies taking over the functions of the Benefits Agency medical service; and if the Comptroller and Auditor General will have a right of access to contractors; [17178]
(2) if he will make a statement on the role of the National Audit Office in relation to private companies contracting for the provision of medical services to the Benefits Agency. [17436]
§ Mr. BurtI refer the hon. Member to the reply that I gave him on 23 January,Official Report, columns 721–22.
Any audit recommendations will be followed up in line with departmental practice. In line with all Government contracts, full audit access provisions will be contained within the contract or contracts. The Comptroller and Auditor General will also have full right of access.
§ Mr. HowarthTo ask the Secretary of State for Social Security (1) what computer systems he will require to be used by companies contracting to provide medical services to the Benefits Agency in order to secure the confidentiality of the health records of benefit claimants; [17165]
(2) if the companies contracting for the Benefits Agency medical service which have other databases deriving from other contracts to provide public services will be able to match the information between databases used in the performance of these functions; and what principles concerning the transfer of information will apply. [17172]
§ Mr. BurtThere will be no requirement to use specific computer systems. However, the successful contractor(s) will have a mandatory requirement to take measures to ensure the confidentiality, correct use and security of all data held or transmitted electronically. They must ensure that any data passed to them by the Department or by a third party, in relation to, or revealed during the course of the contract, are used only for the purpose of delivering the medical service by the appropriate personnel, and that the provisions of the Data Protection Act 1984 are complied with.
All data obtained during the course of the contract will remain in the ownership of the Department.
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§ Mr. HowarthTo ask the Secretary of State for Social Security (1) what system of penalties for under-performance will be in place for contractors providing medical services for the Benefits Agency; [17167]
(2) what default procedure will be incorporated into contracts for the provision of medical services for the Benefits Agency for the notification of unsatisfactory performance. [17168]
§ Mr. BurtIn line with standard practice for Government contracts, a breach of contract including unsatisfactory performance or under-performance would result in a lower level of payment to the contractor(s). Continual unsatisfactory performance will entitle the Department to damages and may result in termination of the contract.
§ Mr. HowarthTo ask the Secretary of State for Social Security if copies of contracts agreed with public sector companies for the provision of medical services to the Benefits Agency will be placed in the Library. [17169]
§ Mr. BurtCopies of the contract(s) will not be placed in the Library as to do so would prejudice the effective conduct of contractual activities between the Department and the successful contractor(s). However, when the contract(s) are awarded, information regarding the services and targets for output performance that form part of the contract, the criteria for the award and the overall contract value will be published in the line with existing Government and EC procurement guidelines.
§ Mr. HowarthTo ask the Secretary of State for Social security who will evaluate the bids by contractors for the Benefits Agency medical service; and by what criteria. [17158]
§ Mr. BurtThe project team taking forward the contractorisation process responsible for carrying out the evaluation.
Evaluation of the bids will be based on financial risk and qualitative criteria which will be signed off by the appropriate authority within the Benefits Agency in line with best practice. Recommendations will then be put forward to the project steering group prior to submission to the Benefits Agency management team. The final decision will rest with Ministers.
§ Mr. HowarthTo ask the Secretary of State for Social Security if he will place in the Library the financial memorandums setting out the terms and conditions attached to the funding of the Benefits Agency medial service following its contractorisation. [17160]
§ Mr. BurtThere will be no financial memoranda. Funding for the medical service provided by the successful contractor(s) will be provided by the Department.
§ Mr. HowarthTo ask the Secretary of State for Social Security if directors and other staff of the companies contracting for the Benefits Agency medical service will be required to declare any relevant interests; and where such information will be published. [17163]
§ Mr. BurtA formal declaration of interest will not be requested. However, staff will be required to sign a confidentiality undertaking and comply with any requirements regarding security of information and conflicts of interest.
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§ Mr. HowarthTo ask the Secretary of State for Social Security what standards of service he will require companies contracting to provide medical services for the Benefits Agency to achieve; and if he will list each area where a higher standard than that currently in force will apply. [17179]
§ Mr. BurtI refer the hon. Member to the reply that I gave him on 19 February,Official Report, columns 590–91.
§ Mr. HowarthTo ask the Secretary of State for Social Security (1) what plans he has for a code of practice covering(a) public access to information on, and (b) regular publication of key information from, private companies contracting for the Benefits Agency medical services. [17171]
(2) what statistics concerning the activity and performance of the companies contracting for the Benefits Agency medical service he intends to publish. [17161]
§ Mr. BurtThe successful contractors will have a mandatory contractual requirement to comply with legislation and policies which apply to this Department, including the open government code of practice on access to government information.
The arrangements for the provision and publication of statistical information are currently being developed as part of the system for contract monitoring.
§ Mr. HowarthTo ask the Secretary of State for Social Security what requirements of confidentiality he intends to include in(a) the contracts of employment and (b) the contracts for sessional staff working for the private contractors which will be operating the Benefits Agency medical service. [17173]
§ Mr. BurtThere will be no change to the current rules governing confidentiality of information.
Anyone working for, or on behalf of, the successful contractors will be subject to the provisions of section 123 of the Social Security Administration Act 1992 which makes it a criminal offence to disclose information acquired in the course of employment without lawful authority.
§ Mr. HowarthTo ask the Secretary of State for Social Security what mechanism he intends to establish for complaints against private companies running the Benefits Agency medical service. [17174]
§ Mr. BurtThe successful contractors will be subject to a mandatory contractual requirement to ensure that there is an effective procedure in place for all complaints received. The contract will not specify a mechanism for handling complaints. However, an effective procedure for handling all complaints will be a mandatory requirement.
§ Mr. HowarthTo ask the Secretary of State for Social Security if he will lay before Parliament the accounts of the private companies contracting for the Benefits Agency medical service in respect of this work. [17175]
§ Mr. BurtNo. The accounts of the shortlisted private sector companies, with the exception of Andersen Consulting, are available at Companies House. As a partnership, Andersen Consulting are not obliged to file accounts with Companies House. However, their 207W corporate report which was considered as part of the evaluation process to choose the shortlisted companies is available on request.
§ Mr. HowarthTo ask the Secretary of State for Social Security what audit requirements he intends to impose on the contractors taking over the Benefits Agency medical service; in what respects these will differ from the statutory requirements of audit in the private sector; and if he will list the specifications on which audit of the contractors will be based. [17177]
§ Mr. BurtIn line with standard practice for Government contracts, the contract(s) will include audit requirements which will be contained within the contract and will give the Department, and its statutory auditors, audit access provisions over and above the statutory requirements. The audit of the contractors will be based on the audit specifications contained in the contract.
§ Mr. HowarthTo ask the Secretary of State for Social Security what performance measurement systems will be included in contracts to provide medical services for the Benefits Agency. [17166]
§ Mr. BurtI refer the hon. Member to the reply that I gave him on 10 February,Official Report, column 75.
The performance of the successful contractors will be monitored rigorously. The system by which performance will be monitored is under discussion with the shortlisted contractors and the users of the present medical service.
§ Mr. HowarthTo ask the Secretary of State for Social Security what plans he has for the auditing of the Benefits Agency's performance of its responsibility to ensure that its obligations are met by the companies with which it contacts for medical services. [17170]
§ Mr. BurtContract management procedures will be set in place to ensure that companies meet their obligations under the contract. There will be regular reviews with the suppliers of the medical service.
Contract management will be subject to normal audit requirements.
§ Mr. HowarthTo ask the Secretary of State for Social Security what specifications and operating instructions he will give to the private contractors which will run the Benefits Agency medical service; and what are the minimum standards which he will require. [17157]
§ Mr. BurtThe successful service providers will have to meet a minimum set of mandatory requirements which will be as stringent as existing standards for the provision of the medical service.