Archived decisions

12 Value for Money Assessment

12.1 Examination of evidence in the form of comparative charges from other agencies and independent indexation of costs in the IT industry does confirm that the daily rates for consultants/contractors is reasonable for the level and quality of staff provided, using this method of supply.

12.2 Some discounting to reflect the longer term contract was negotiated in respect of Consultant A but such agencies usually mark-up daily rates by between 15 and 20% and these costs could have been avoided with a successful advertisement and tendering exercise leading to a direct contract between the County Council and a consultant.

12.3 Even better value might have been possible if original plans to advertise the fixed-term development posts internally and externally (based on the role profile and job evaluation) had been carried out and attracted suitable candidates on an employment contract. The decision not to take this route reflects the perception of the project's senior managers that availability of suitably experienced candidates in the market was in short supply and time had been lost during the approval process.

12.4 Where an external consultant has been assigned to a role for which there is an evaluated role profile, the rates paid to that consultant are generally significantly in excess of the evaluated salary grade that would have applied had a person been recruited to that role as an employee. Although this may, on the face of it, suggest poor value for money, there may have been difficulties in attracting suitable candidates at that grade. We have enquired whether any consideration was given to the payment of market supplements which would have been determined with regard to comparative evidence of what similar roles were being paid elsewhere in the marketplace. This would also have provided evidence that payment at enhanced levels was necessary to deliver the project. However, no consideration was given to recruiting specialist staff with the offer of market supplements.