Contact: Tracey Sanders, 01962 813872, [email protected] ;

Tracey Messer, 01962 813887, [email protected]

1 Summary

1.1 This report seeks the approval from the Executive Member for Children and Families for the Early Education and Childcare Unit (EECU) to implement a commissioning strategy for the next three years.

1.2 It is also proposed that an extension and variation, by up to 12 months, is negotiated for the current contracts for childcare support services and training services, which are due to end on 31 March 2008.

1.3 By extending the current contracts a review of the requirements for the commissioned support services and training services can take place. Contracts service specifications can be reconfigured to take account of future funding and legislative changes. The services can be linked to the early years development and childcare's new strategic plan and contracts can be tendered at the right value.

1.4 A variation of the current contracts for childcare support services will enable these services to fall within budget and to deliver towards the new strategic plan.

1.5 The time gained through the extension will allow the EECU to ensure best value by raising market interest in the service provision and review of the number of potential organisations available to provide childcare support and training services.

1.6 Childcare support services and training services commissioned by Hampshire County Council enable organisations delivering early education and childcare to improve delivery of services to meet all five Every Child Matters outcomes for children (Staying Safe; Being Healthy; Enjoying and Achieving, Economic Wellbeing and Positive contribution) and, thereby, the commissioned services work towards the first two priorities of Hampshire County Council, i.e. Hampshire safer and more secure for all and maximising well-being.

2 Recommendation

2.1 It is recommended that the Executive Member for Children & Families approves that the EECU implements the three year commissioning strategy for support services and training services to childcare providers from 2008-09 to 2010-11.

2.2 It is also recommended that the Executive Member for Children & Families Services approves negotiation of the extension and variation by up to 12 months, of current contracts for childcare support services and training services, which are due to end 31 March 2008.

3 Background: support services

3.1 The EECU currently commissions support services for childminders, pre-schools, nurseries, and parent and toddler groups from the following providers:

3.2 The two contracts will end on 31 March 2008. The combined price of the contracts for 2007-08 is £1.4m.

3.3 The NCMA and the PLA offer support to early years education and childcare providers to ensure that there is sufficient high quality provision across Hampshire working alongside other EECU members in the five Local Development Teams. The NCMA and the PLA are members of the Early Years Development and Childcare Partnership (EYDCP) and contribute to its sub-groups when required.

3.4 On 21 July 2006, the Executive Member gave approval to commission childcare support services to childminders, pre-schools, nurseries and parent and toddler groups through single tender contracts with the NCMA and the PLA to allow the service providers a period of adjustment from receiving a grant to engaging in a contract. These services are now delivered through two contracts, which are due to end 31 March 2008.

3.5 Since the contract was awarded the EECU has considered that the specification for the service delivery needed to be more outcome focussed, with performance measures more accurately defined to aid a common understanding.

3.6 The EECU and its providers have revised the monthly monitoring processes to continuously assess service delivery, performance indicators and outcomes.

3.7 Support for out-of-school childcare is currently delivered in partnership with district and borough councils and one voluntary organisation. It is envisaged that these partnership agreements will continue for 2008/09.

4 Background: training services

4.1 The EECU currently commissions the following training courses through competitive tenders:

4.2 All training services were commissioned through a restricted tender process, choosing the most economically advantageous tender. Contracts (a) to (f) will end 31 March 2008, namely the Paediatric First Aid contracts, the Food Hygiene, Health and Safety, and Initial Child Protection training contracts. The combined annual value of these contracts is £0.45m. Contracts (g) to (j) will end 31 March 2009, their combined annual value is £0.14m.

4.3 Further vocational and degree level training is provided to childcare workers who are able to access bursaries. Currently, this is agreed with colleges and universities through a Memorandum of Understandings, however, the EECU is considering creating a "Select List" of approved training providers.

4.4 These training services are essential in enabling childcare providers to meet the legal Welfare Requirements of the Statutory Framework for Early Years Foundation Stage, and satisfy Ofsted registration and inspection requirements. They also support inclusive practice and the extended schools agenda.

4.5 Evaluation received from trainees and inspections conducted by EECU staff have confirmed that the training providers deliver services of the required quality. Recent price comparisons in July 2007 with other providers demonstrated that the current contracts deliver best value.

4.6 It is the view of the EECU that extending the current arrangements for a period of up to 12 months represents a low risk for the Council in determining value for money and continuous training services for childcare providers.

5 Implementing the three year commissioning strategy for early years education and childcare support services and training providers

5.1 The EECU has received early notification on their indicative General Sure Start Grant (GSSG) budget allocation for 2008/09 to 2010/11. The process of developing the plan for expenditure over these years has been started through the EECU and the EYDCP. Further work on defining the priorities and targets will continue through September to December 2007, which will include consideration of joint commissioning within Children's Services. A revised Early Education and Childcare strategic plan will be in place for April 2008; and confirmation of the budget will be given in Autumn 2007.

5.2 The Executive Members report of 17 July 2007 "The Childcare Act 2006" outlined the County's priorities implementing services to meet the requirements of this Act. This has a significant impact on how the EECU configures the appropriate advice, guidance and support, including training, offered to the childcare providers in order to meet these changed priorities and targets.

5.3 The EECU will work closely with the current providers of childcare support services, if permission to negotiate an extension and variation of the contracts is given, to move the support services towards the priorities of the new strategic plan and within budget.

5.4 The EECU Senior Development Officers for Training are working closely with other Children's Services teams in reviewing joint training opportunities. This may result in changes needed to be undertaken to the training services that the EECU currently commissions.

5.5 In order to review the requirements for the commissioned support services and training services to providers. The following implementation plan is followed.

5.6 Timeline:

5.7 Major risks for the commissioning of the support services and training services following this time line have been identified together with ways on how to mitigate them.

5.8 Major risks for the commissioning of the support services are:

5.9 To allow for greater competition, potential providers will be approached to explore levels of interest and to gain an understanding of the way support services could be delivered. Additionally, the service specification will allow potential providers to bid for clearly defined parts of the contract either by, for example, type of childcare provider or by geographic area.

5.10 The EECU will continue to work with officers within Property Business and Regulatory Services (PBRS) corporate procurement team, regarding the best way to achieve appropriate service contract and within budget. Consultations with potential providers before final specification drafting will assist in understanding any contract service delivery difficulties, and enable the EECU to prioritise service delivery, increase efficiency, and work collaboratively to reach the shared outcomes.

5.11 Colleagues from other unitary authorities have been contacted to identify best practice with regard to procuring support services. However, it should be noted that many councils deliver these services in-house to keep the strategic overview, or through the same providers (the NCMA and the PLA) as Hampshire County Council (HCC).

5.12 Major risks for the commissioning of training tenders are:

5.13 A robust tender procedure for tendering training services is already in place at the EECU. Past experience has shown that for most contracts there is sufficient competition between providers to enable best value principles to be applied.

5.14 The tenders will be advertised giving a value range. The service specification will address the risks within these contracts (such as cancelled courses due to low
take-up and how these will be shared, where appropriate, between the EECU and the provider to allow tenderers to price correctly.

6 Strategic Implications

6.1 The services support HCC's priority of "Making Hampshire safer and more secure for all" and "Maximising well-being" by supporting early education and childcare providers for children aged 0-14 (16 with disabilities). Thus the services contribute towards the Every Child Matters outcomes "stay safe", "be healthy", "enjoy and achieve", "make a positive contribution" and "achieve economic well-being".

7 Consultation

7.1 For the support services' contracts and training contracts, there is an on-going consultation with relevant staff within the EECU, Children's Services, the corporate procurement team and colleagues from other unitary authorities. The EECU intends to undertake market testing and to consult with potential providers with regard to how services can be delivered.

8 Legal implications

8.1 European Union guidelines on procurement will be followed where required. Contract standing orders will always be followed. Legal guidance has been and will be sought throughout the process.

9 Financial implications

9.1 The cost of the service delivery will be within the GSSG revenue budget and HCC's budget for grants and contracts with the voluntary sector.

9.2 Costs incurred through the tender process are already budgeted for in 2007-08 and will be budgeted for the contract duration, which can be determined by the GSSG revenue financial period end date of March 2011.

10 Personnel implications

10.1 No personnel implications have been identified for HCC staff. Issues around the Transfer of Undertakings (Protection of Employment) Regulations 2006 need to be considered for the support services if these are delivered by a new provider.

10.2 Contractors will be responsible for securing appropriately trained personnel and provide professional indemnity to meet the requirements of the contracts' service specification.

11 Impact assessment

11.1 All potential providers will be made aware of HCC's duty towards equal opportunity, disability and race. Potential providers will have to send their equal opportunity and race relations policies to prove that they share the same high standards as HCC. Tenderers will be questioned at the tender interview about how they understand this issue and implement their policies. Monitoring information will be collected to ensure services are accessible.

12 Crime prevention issues

12.1 Support services to early education and childcare providers will enable these providers to improve their policies and procedures for safeguarding children.

12.2 Contractors, through the tender process, will need to satisfy the EECU that there are appropriate staff checks in place to ensure that vulnerable adults and children are not put at risk by the employment of unsuitable adults.

13 Conclusion

13.1 It is recommended that the Executive Member for Children's Services approves that the EECU implements the three year commissioning strategy for support services and training services to childcare providers from 2008-09 to 2010-11.

13.2 It is also recommended that the Executive Member for Children's Services approves negotiation of the extension and variation, by up to 12 months of current contracts for childcare support services and training services, which are due to end 31 March 2008.

Section 100 D - Local Government Act 1972 - background documents

The following documents discuss facts or matters on which this report, or an important part of it, is based and have been relied upon to a material extent in the preparation of this report.

Contract monitoring information for the current support services and training services contracts

Information gained from colleagues of other unitary authorities

NB: the list excludes

1. Published works

2. Documents which disclose exempt or confidential information as defined in the Act.