Archived decisions
HAMPSHIRE COUNTY COUNCIL
Decision Report
Decision Maker: |
Executive Member for Adult Social Care | ||||
Date of Decision: |
9 October 2009 | ||||
Decision Title: |
Supporting People Approach to Procurement | ||||
Decision Reference: |
904 | ||||
Report From: |
Director of Adult Services | ||||
Contact name: |
Peter Rush | ||||
Tel: |
01962 832162 |
Email: |
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1. Executive Summary
1.1. This report sets out the revised procurement procedure to be used in respect of services funded through the Supporting People programme. The procedure outlined is a continuation of the current arrangements that have existed since 2003. This report develops and extends these arrangements to include those services where support and care is jointly contracted for and seeks approval from the Executive Member for Adult Social Care for its use.
1.2 This paper provides:
· the background to the Supporting People programme
· details of the two stage procurement procedure proposed
· identifies the benefits obtained by adopting this approach.
2. Contextual information
2.1. The Supporting People (SP) programme has been in existence since 2003. Since that time services have been procured according to the procedure agreed by the then Executive Member for Social Care in May 2003.
2.2. The programme is based on close partnership working, with the County Council acting as administering authority on behalf of a partnership of the County Council, the eleven District, Borough and City Councils contained within its boundaries, the Hampshire Probation Service and Hampshire NHS. The direction and policies of the partnership are determined by the County Core Group which brings together these partners along with representatives of the Third Sector and Service Users. This partnership was recognised by the Audit Commission in their 2007 report as providing "an excellent service that has excellent prospects for improvement". This is the highest possible rating from the Audit Commission and Hampshire is the only two tier authority to have received it.
2.3. The programme delivers housing support services to some 14,000 individuals across Hampshire. Services are commissioned from third party providers that meet the strategic objectives of the partnership. Services are commissioned according to need within the context of the overall financial allocation. Budget management is carried out over a three year cycle with contracts being awarded for a similar period.
2.4. Funding for these services is received from Communities and Local Government (CLG) under Section 31 of the Local Government Act 2003 (in 2010/11 it is proposed that this become a named grant within the Area Based Grant). Funding received for the programme for 2009/10 is £31.01m with a provisional allocation from CLG for 2010/11 of £30.12m. By value 85% of SP contracts are with Third Sector organisations.
2.5. Whilst the nature of the programme has remained the same throughout this period, the process by which services are commissioned and procured has developed and become more refined, as the programme has become more established.
2.6. Additionally, building on good practice in improving the way services are delivered to users, a number of services have been commissioned where both support and care are delivered by the same provider. As opportunities arise it is intended that the number of such jointly contracted services will increase.
2.7. Whilst the procurement of housing and social services are not required to be subjected to the full rigours of the EU procurement regulation, the process's adopted by authorities must be fair, open and transparent. In addition there is a requirement on all public authorities to ensure that they have mechanisms in place that enable them to assess that contracted services deliver value for money. For Hampshire these rules are set out in Standing Orders on Contract.
2.8. The SP programme at £1.6bn nationally represents one of the largest sources for Third Sector organisations, a position replicated in Hampshire.
3. Overall Procurement Procedure
3.1. The procurement process developed by Supporting People in Hampshire has been based on close partnership working with both statutory stakeholders and Third Sector organisations. It has been recognised as best practice by the Audit Commission (Inspection report February 2007).
3.2. As the Administering Authority, the development and administration of a robust procurement strategy is the responsibility of Hampshire County Council. As an inclusive partnership Supporting People has involved both statutory and Third Sector providers in developing the process as outlined. The process developed accords with the One Compact for Hampshire.
3.3. It is based on the need to ensure adequate protection and service continuity to the vulnerable people who access Supporting People funded services, and on ensuring value for money, customer focussed quality services for Hampshire County Council, whilst at the same time offering a degree of security and continuity for service providers.
3.4. The procurement process itself is divided into two parts. Firstly the process establishes the competency and fitness of the prospective organisation to hold a contract with Hampshire County Council by inclusion on an `Approved Register of Providers', in accordance with Council Standing Orders (Section 4 below). The Supporting People team then assess the capacity and ability of potential providers to deliver a specific service and procure them accordingly. (Section 5 below).
3.5. At Appendix C is a list of the Supporting People County Core Group Membership. This list indicates those partners who are also on the Register of Approved Providers.
4. Approved Register of Providers
4.1. Applications to join the Approved Register of Providers are invited annually by means of public advertisements on appropriate websites (Hampshire County Council procurement, Communities & Local Government SP, Hampshire SP, and local Third Sector representative group) and in local and trade press (Hampshire Chronicle, Community Care, Inside Housing). Additionally current providers of care services in Hampshire have been invited to apply.
4.2. Applicants for inclusion are then assessed on the following five criteria:
· Financial viability
· Competent administrative procedures
· Effective employment practices
· Robust management procedures
· Track record & competence
Each of the above is assessed against a series of published criteria. Organisations can apply to be `passported' through one or more of the above criteria on the basis of national standards identified as acceptable by CLG.
4.3. Once accepted onto the Approved Register of Providers, an organisation remains so for three years, and is notified of all services to be tendered by Hampshire SP, including those where support and care are to be jointly provided.
4.4. There are currently 184 organisations on the Hampshire Supporting People Approved Register of Providers of whom 134 currently have live contracts.
4.5. By assessing the capacity of potential service providers at this stage, the tender process itself can be made more focused and streamlined, reducing the bureaucratic burden on providers, in line with the Governments Office of the Third Sectors' National programme for Third Sector Commissioning.
5. Procurement of Individual Services
5.1. Contracts for individual Supporting People services, including those for both support and care, are issued for a fixed period, normally of three years. Each contract contains a Service Specification which sets out the outcome targets and performance standards against which the service will be measured.
5.2. During the life of the contract each service is subject to a rigorous process of quarterly performance monitoring against the set targets. In addition service quality is assessed annually through a nationally developed Quality Assessment Framework. Before the expiry of each contract a more in depth review is conducted where all services are assessed against the following five criteria:
· Strategic Relevance
· Demand & Need as evidenced over the live of the contract
· Quality delivered during the life of the contract
· Performance as assessed over the life of the contract
· Value for money
5.3. The process by which services are assessed against these criteria has been agreed by the Supporting People Partnership Board following extensive discussion with stakeholders service providers, and service users.
5.4. Assessment against these criteria is undertaken by using a range of approaches; including face to face meetings with stakeholders, providers and service users; analysis of historic quality and performance data; and benchmarking of financial data against other similar services within Hampshire and other authorities across the South East region
5.5. By assessing all services in this way assurance is given that they are meeting their stated objectives and are delivering quality services to clients in a cost effective manner.
5.6. By developing a partnership approach to reviewing services, a long term relationship has been built up with the Third Sector which offers a stable environment in which services can develop and improve.
5.7. Once a service has been reviewed as set out above, one of the options set out below at 5.7.1 to 5.7.6 will be adopted:
5.7.1 Where, having applied the published guidance, a service is assessed as fully meeting all of the above criteria, and the intention is to re-commission the service as it is, a new three year contract is offered to the existing provider. This would be an exception to the Standing Order requirement to competitively tender the service, and approval for such single tender awards of contract is sought on the basis that this option represents the best value for money following a service review which was based on having obtained the views of service users.
5.7.2 Where the strategic relevance of a service, or demand or need for a service are not demonstrated the service is de-commissioned and the resources directed to meet other areas of need.
5.7.3 Where a service provider does not meet an acceptable level of performance with regard to quality, performance or value for money the service is advertised for open tender to all providers on the Approved provider list.
5.7.4 Where two or more services are merged together the service is advertised for open tender to all providers on the Approved provider list.
5.7.5 Where it is proposed to substantially change the nature of a service it is advertised for open tender to all providers on the Approved provider list.
5.7.6 In other circumstances where no service of a particular type has been subject to an open tender Hampshire CC will periodically test the market through an open tender exercise.
5.8. By adopting this approach, mechanisms are in place to minimise disruption to vulnerable service users, ensure standards are maintained throughout the life of all contracts, continuing value for money is maintained, and service providers are provided with an incentive to invest and continually improve the quality of the services they deliver.
5.9. Evidence of the improvement in service quality can be seen from the improvement in scores achieved by services in their annual Quality Assessment Framework. Whilst in 2004/05 only 0.07% of services achieved a level A (the highest standard), 14.5% level A or B, and 29% were recording level D (the lowest standard), by 2008/09 14.1% were achieving level A, 52.3% level A or B, and only 0.86% level D.
5.10. The Supporting People Programme has adopted a robust approach to safeguarding. In 2009 a revised Quality Assessment Framework was implemented nationally across the Supporting People Programme. This includes a new criteria (C 1.3; Safeguarding and Protection from Abuse) against which all providers are assessed, for assessment requirement across. Hampshire Supporting People are focussing closely on this new criteria for assessment to ensure a high level of compliance by all providers.
5. Financial Implications
6.1 This report sets out the process to be adopted with regard to services procured within the Supporting People funding allocation (£31.01m for 09/10). There are no wider financial implications as decisions regarding the level of Supporting People funding available are not considered here.
6.2 Services in the Homeless cluster are required to be will expire on 31st March 2010.
6. Legal Implications
7.1 These proposals are compliant with both EU procurement regulations and County Council Standing Orders. This process has been developed over the last six years in close collaboration with legal services.
7. Risk Assessment
8.1 The procedure outlined has been developed and continually refined in conjunction with service providers since the inception of the Supporting People programme. During the course of this process the following key risks have been assessed on an ongoing basis
8.2 Risk: That poor quality services are re-commissioned to the detriment of their vulnerable clients:
Resolution: Services are monitored on an ongoing basis to ensure their quality through the annual Quality Assessment Framework, which places client engagement and involvement at its heart. Supporting People has established complaints and whistle blowing procedures. Clients are represented on the Supporting People County Core Group, and all tender panels. The views of clients are considered in all service reviews.
8.3 Risk: That value for money is not adequately ensured.
Resolution: Value for money is assessed in all services every three years. A maximum hourly rate payable and a minimum % delivered on front line staff have been established. All services are benchmarked against all other similar services within Hampshire, and a range of services across the South East. All new services are subject to open tenders, with periodic testing of other services by this method. A comparative study undertaken in December 2006 indicated that hourly rates were reduced by 4.8% following negotiations with existing service providers as opposed to 0.9% reduction when services were subject to a competitive tender exercise. Whilst overall SP funding has reduced 20% in real terms since 2003, adoption of this process has been instrumental in increasing overall service capacity.
8.4 Risk: That entry barriers are placed in the way of new service providers wishing to deliver Supporting People services in Hampshire.
Resolution: The Approved Register of Providers is open for new applicants annually, and fully refreshed every three years. Applicants to join the list are sought by advertising both locally and nationally. Since it's establishment the number of Approved Providers has increased from 126 to its current 184.
8.5 Risk: That three year contracts will discourage innovation and high quality providers.
Resolution: Provide long term security and environment to innovate for high performing services, by renewing contracts without an open tender.
8.6 Risk: Loss of diversity amongst service providers
Resolution: Maintain locally based services where ever possible and economically viable. Ensure range of local stakeholder and clients views considered when reviewing services.
8 Recommendations
It is recommended that the Executive Member for Adult Social Care:
8.1 Approve the Supporting People procurement process as outlined.
8.2 Approve the maintenance of an Approved Register of Providers in accordance with Council Standing Orders.
8.3 Approve the criteria and procedure outlined for the awarding of contracts.
CORPORATE OR LEGAL INFORMATION:
Links to the Corporate Strategy
Hampshire safer and more secure for all: |
yes |
Maximising well-being: |
yes |
Enhancing our quality of place: |
yes |
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. (NB: the list excludes published works and any documents which disclose exempt or confidential information as defined in the Act.) | |
Document |
Location |
IMPACT ASSESSMENTS:
1. Equalities Impact Assessment:
a) In developing this approach to the procurement of Supporting People funded services, full account has been taken of all legal requirements, the 2009 Equality Bill, and the principles set out in Hampshire County Council, Single Equality Scheme "Breaking down barriers - improving choice for all" January 2009 - April 2012. Compliance is assessed at all stages of the process as set out below.
Stage 1: Application for inclusion on Approved Register of providers
In order to be included on the Approved Register of Providers it is a requirement that an organisation evidences that it operates an equal opportunities policy that covers discrimination on grounds of gender, age, religion, race, disability, nationality and sexuality and applies to both staff and service users.
Stage 2: When tendering for a service.
Guidance on tendering issued to all organisations on the Approved Register of Providers at the time of tendering for individual services outlines the requirement of Hampshire County Council that all tenders fully comply with relevant equalities legislation and that providers meet their responsibilities in this area. All organisations wishing to tender for a service are required to sign a statement indicating their agreement to the terms set out in the standard Supporting People contract.
Stage 3: On being awarded a contract
The standard SP contract, issued in respect of all funded services, includes a requirement not to discriminate `against any person with respect to opportunity for employment or conditions of employment, because of age, culture, disability, gender, marital status, race, religion or sexual orientation, except where this is expressly allowed for in law' (Clause 14.1) and to `comply with the provisions of the Disability Discrimination Act 1995 and any regulations made there under' (Clause 14.2). Additionally it includes a requirement that the service provider must have a complaints policy (Clause 12) and a whistle-blowing policy (Clause 13.3)
Stage 4: Whilst delivering services
Compliance is monitored by requiring all services to complete an annual Quality Assessment Framework (QAF).
In completing this service providers have to demonstrate that there is 'Fair access, fair exit, diversity and inclusion are embedded within the culture of the service and there is demonstrable promotion and implementation of the policies.' (Standard 4). Additionally there is a requirement that all equality and diversity polices and procedures should meet the requirements of the following legislation: Equal Pay Act 1970; Sex Discrimination Act 1975; Race Relations Act 1976 (as amended 2000 and 2003); Disability Discrimination Act 1995 (as amended 2005);Human Rights Act 1998; Employment Equality (Sexual Orientation) Regulations 2003; Employment Equality (Religion or Belief) Regulations 2003; Gender Recognition Act 2004; Civil Partnerships Act 2004; Employment Equality (Sex Discrimination) Regulations 2005; Equality Act 2006; Race and Religious Hatred Act 2006; Employment Equality (Age) Regulations 2006, and should cover discrimination on the grounds of age, gender, race, disability, religion/belief, sexual orientation, and also for any other reason that does not pertain to membership of one of these groups, for example, appearance or dress.
Service providers also have to demonstrate in completing the QAF that `There is a commitment to empowering clients and supporting their independence. Clients are well informed so that they can communicate their needs and views and make informed choices. Clients are consulted about the services provided and are offered opportunities to be involved in their running. Clients are empowered in their engagement in the wider community and the development of social networks. (Standard 5)
All Quality Assessment Frameworks submitted are subject to a desktop assessment by Supporting People, with a minimum 10% sample each year being subject to an intensive on site validation visit.
Stage 5: Ongoing monitoring
At the time of accepting a new client into a Supporting People funded service (in all cases apart from sheltered housing) the service provider is required to record and report their ethnicity and client group, by completing the Supporting People Client Record Form. Service providers also record clients ethnicity and nature of any disability on their leaving of a short term services, and on a sample basis in long term services, by completing the Supporting People Outcomes Form. Information collected from these sources is used by Supporting People in their annual monitoring of all contracts, to check both that fair access arrangements are in place and also to ensure that there is no discrimination in outcome.
2. Impact on Crime and Disorder:
a) The County Council has a legal obligation under Section 17 of the Crime and Disorder Act 1998 to consider the impact of all decisions it makes on the prevention of crime.
3. Climate Change:
a) How does what is being proposed impact on our carbon footprint / energy consumption?
All services commissioned by Supporting People are required to be accessible to, and located in the area of the clients they are serving, with accommodation based services identifying their proximity to public transport. New accommodation based services are only commissioned where they are fully accessible to clients by means of public transport. The increasing move towards non accommodation based services, further reduces the needs for clients to travel, in line with Aalborg principle 6.5
b) How does what is being proposed consider the need to adapt to climate change, and be resilient to its longer term impacts?
Discussions with service providers will commence shortly on proposed revisions to the Supporting People contract, consideration is being given to including a clause concerning the contribution that can be made towards NI185 CO2 reduction from local authority operations.
Appendix C: County Core Group Membership
*Hampshire County Council
Hampshire NHS
Hampshire Probation Service
Basingstoke and Deane Borough Council
Eastleigh Borough Council
East Hants Borough Council
*Fareham Borough Council
*Gosport Borough Council
Hart District Council
Havant Borough Council
*New Forest Borough Council
Rushmoor Borough Council
Test Valley Borough Council
Winchester City Council
* Listed on Supporting People Register of Approved Providers