MD3562 Procurement of workforce delivery services

1.1.    The GLA currently accesses contingent labour and recruitment services through arrangements established under the Recruitment Services Framework Agreement with Reed Specialist Recruitment Ltd.

1.2.    Mayoral Decision 3435 approved extending these arrangements until September 2027. This was to ensure continuity of service while Transport for London (TfL), as the framework contracting authority, reviewed possible procurement routes to establish replacement arrangements.

1.3.    TfL identified the Government Commercial Agency Workforce Solutions (GCAWS) framework as a possible route to market. The GCA framework is a single-supplier framework, with Alexander Mann Solutions Ltd (AMS) as the sole supplier. Following due diligence on the framework, in consultation with the GLA, TfL has recommended it as a suitable procurement route for the GLA’s requirements. TfL expects to enter into a contract with AMS in October 2026. 

1.4.    The proposed arrangement moves beyond a traditional recruitment-agency model, and provides a more strategic approach to meeting workforce needs. Rather than defaulting to contingent labour, the GLA can – under the total talent management (TTM) model – consider the full range of options available to address resourcing requirements. This includes permanent recruitment; temporary staffing; consultancy; and professional services. As such, workforce decisions will be based on organisational need, value for money and long-term capability requirements. 

1.5.    The model also introduces enhanced workforce technology through the SAP Fieldglass vendor management system. This will improve workforce visibility; management information; compliance controls; and reporting capability. 

1.6.    For hiring managers, the new model will provide a more integrated and advisory service. Rather than being presented with a single recruitment solution, managers will be supported to assess the nature of their requirement and identify the most appropriate option – whether that is permanent recruitment; contingent labour; a consultancy solution; a statement-of-work arrangement; or another workforce intervention. This is intended to improve the speed and quality of workforce decisions; provide greater transparency over costs; and ensure resourcing approaches align with business need and longer-term workforce plans.

1.7.    Managers should also benefit from a more streamlined experience, via access to a single service that coordinates workforce solutions across multiple channels. This will reduce the need to engage separately with various suppliers or processes.

1.8.    This decision seeks approval for the GLA to call off the AMS agreement; and move from the current Reed arrangements to the new workforce-delivery services model.
 

2.1.    The objectives of this proposal are to: 

•    secure continuity of workforce-delivery services, after the current arrangements expire
•     implement a more strategic workforce-management model
•    improve workforce transparency, governance and compliance
•    support better workforce planning and decision-making, through enhanced management information
•    streamline workforce-sourcing and recruitment processes 
•    align with wider shared-services workforce arrangements across participating organisations. 

2.2.    The TTM model offers several strategic benefits that the current arrangements do not. These include: 

•    centralised workforce reporting and management information
•    enhanced workforce visibility and planning capability
•    improved compliance with requirements around worker classification, IR35, Agency Worker Regulations and data protection
•    streamlined procure-to-pay processes
•    improved access to labour market intelligence and talent pools
•    reduced administration through greater automation
•    more flexibility in sourcing workforce requirements through the most appropriate route. 

2.3.    TfL’s cost-benefit analysis concluded that the AMS TTM model provides the lowest estimated net cost to the GLA when compared to alternative delivery models. The analysis estimates: 

•    implementation costs of approximately £75,000
•    a four-year net cost of £39.1 million, compared to £43.4 million under the existing Reed model
•    estimated net savings of approximately £4.3 million over the life of the agreement
•    total quantified benefits of £9.4 million
•    risk-adjusted benefits of £3.1 million. 

2.4.    If this decision is approved, implementation will begin once the contract is awarded. The new service is expected to go live in April 2027. 
 

3.1.    Under section 149 of the Equality Act 2010, the Mayor and the GLA must have due regard to the need to eliminate discrimination; and advance equality of opportunity, and foster good relations, between people who share protected characteristics and those who do not.

3.2.    The decision concerns the procurement and delivery of workforce services and does not directly impact persons with protected characteristics. The proposal has been reviewed, and no adverse equality impacts have been identified. Under the provisions of the Agency Workers Regulations 2010, agency workers’ pay rates are aligned to those of GLA employees from day one of their assignment. 

3.3.    The TTM model is expected to improve workforce data, workforce visibility and access to talent pools. Improved market intelligence and recruitment processes may support the GLA’s broader workforce diversity and inclusion objectives. 

3.4.    The new framework agreement with AMS adheres to the Agency Workers Regulations 2010. These give agency workers the right to equal treatment with permanent staff from day one in the same role – entitling them to the same basic terms and conditions, such as pay and working time. From their first day, agency workers also have a right to equal access to shared facilities such as canteens and creches, and to information about job vacancies at the GLA’s sites. 

3.5.    The contract provision therefore meets the obligations of the Public Sector Equality Duty.

3.6.    Officers will ensure that implementation of the new arrangements complies with the GLA’s equality duties and recruitment policies.
 

Link to Mayoral strategies and priorities

4.1.    The proposal supports the GLA’s objective of operating efficient, compliant and value-for-money workforce and corporate services. It also aligns with wider workforce and Shared Services strategies being implemented across participating organisations. 

Key risks and mitigations

4.2.    The key risks and issues are shown in the table below: 

Data protection

4.3.    The supplier will process workforce and recruitment-related personal data. Appropriate contractual provisions, data-sharing arrangements and security measures will be put in place before implementation, to ensure compliance with the UK General Data Protection Regulation, and data protection legislation.

Conflicts of interest

4.4.    Officers involved in the drafting and clearance of this proposal have confirmed that they are not aware of any conflicts of interest relating to this decision.

5.1.    Approval is sought to spend up to £75,000 on system-integration and transition activities. This will be funded by the Group Collaboration budget. 

5.2.    The business case, developed as part of TfL’s procurement exercise, estimates a four-year net cost of £39.1 million for the GLA under the AMS model. This compares with £43.4 million under the current Reed arrangements and so represents an estimated saving of £4.3 million over the life of the agreement. Savings are expected due to lowering consultancy spend, and transitioning existing and engaging new contingent labour at a lower mark-up compared to the current contract.

5.3.    Actual costs and benefits will depend on future workforce demand and use of the service. More work is required to understand whether these estimated savings are cashable or not. It should be noted that the cost of interim workers is not explicitly budgeted for. The GLA budgets for permanent staff members; and assumes interims are used as short-term solutions to staffing challenges or for time-limited projects. 
 

6.1.    The foregoing sections of this report indicate that the decisions requested of the Mayor concern the exercise of the GLA’s general powers – falling within the GLA’s statutory powers to do such things considered to further or that are facilitative of, or conducive or incidental to, the promotion of economic development and wealth creation, social development and the improvement of the environment in Greater London. In formulating the proposals in respect of which a decision is sought, officers have complied with the GLA’s related statutory duties to:

•    pay due regard to the principle that there should be equality of opportunity for all people
•    consider how the proposals will promote the improvement of health of persons, health inequalities between persons and contribute towards the achievement of sustainable development in the UK
•    consult with appropriate bodies.

6.2.    In taking the decisions requested, the Mayor must have due regard to the Public Sector Equality Duty – namely, the need to eliminate discrimination, harassment, victimisation and any other conduct prohibited by the Equality Act 2010; and to advance equality of opportunity, and foster good relations, between persons who share a relevant protected characteristic (age; disability; gender reassignment; marriage and civil partnership; pregnancy and maternity; race; religion or belief; sex; sexual orientation) and persons who do not share it (section 149 of the Equality Act 2010). To this end, the Mayor should have particular regard to section 3 of this report.

6.3.    Officers have indicated in paragraph 1.3 of this report that TfL has undertaken due diligence on the framework in consultation with the GLA, and officers are satisfied that the framework is a suitable procurement route for the GLA’s requirements. Officers have indicated that: 

•    the framework under which it is proposed the services required are to be “called off” can be used by the GLA, by virtue of its procurement by the Government Commercial Agency, in accordance with relevant procurement law
•    the services required have been procured fully in accordance with the requirements of that framework. 

6.4.    Officers must ensure that: 

•    appropriate “call-off” documentation is put in place, and executed by the supplier and the GLA, before the services begin in April 2027
•    before requesting services from the supplier, an assessment of the scale, value and complexity of the proposed services is undertaken, to ensure that the framework is suitable.
 

7.1.    Next steps are as follows: