Lancashire CLA Agency Residential Provider Block Contract Market Engagement Event 12 th November 2018
Agenda • Welcome and introductions • Outline • Consultation and Feedback • Procurement • Any other business • Networking
Block Contract Proposal • Block purchase 24 beds from 3 providers: - 3 solo placements - 9 complex placements (in 2/3 bed homes) - 12 mainstream placements (in 4 to 6 bed homes) • Each provider to deliver: - 1 solo placement - 3 complex placements - 4 mainstream placements
Block Contract Proposal • At least 50% of beds to be available at the start of the contract (anticipated to be 1 st July 2019) : Mainstream beds within Lancashire and up to 10 miles outside of LCC boundaries Solo and complex beds within Lancashire and up to 20 miles outside of LCC boundaries • Remaining beds to be available within 12 months of start of the contract If looking to open new homes, then required to be within LCC boundaries
Block Contract Proposal • Block beds to be delivered as per core cost specification. Additional staffing, education or therapy to be agreed on an individual basis, based on need • Fees for solo, complex and mainstream provision to be determined by Provider. Fees will not be set or banded.
Block Contract Proposal • For an initial 2 year period with ability to extend for a further 3 years • Ability to increase the number of placements up to maximum of 50 block purchased beds • We will continue to source placements via Lancashire’s Residential Framework Agreement and Regional DPS
Key Principles • Proactive, collaborative, ‘can do’ approach • Close working between in-house and 3 providers • Matching determined through thorough impact risk assessment • Flexibility re. location of block bed • Priority given to child in block bed in the event of a placement breakdown
Provider Consultation • Electronic questionnaire inviting provider views (closing date 7 th November) • Hard copies available to complete today • 3 providers responded to date • Will go through feedback this afternoon and seek further comment • Keen to get this right – so please do tell us what you think!
Consultation Questions What requirements need to be in place for this to work? Previous challenges faced? What hasn’t worked? What should LCC avoid? What key principles need to be in place? Do you agree with LCC’s key principles? Views on LCC's current approach - Positive aspects? Aspects which cause issues? Any other comments
What requirements need to be in place? • Realistic pricing at the tender stage to avoid the contracts being non viable in the longer term. • Budgets need to be set sensibly to ensure that the contract provides both good value for the public purse and a realistic return for the provider • Agreement of the mechanism for accepting and rejecting referrals. • A true partnership for the benefit of both parties not a "we're paying you to deliver so get on with it" arrangement. • A clear specification of what is expected to be delivered under the contract • Close partnership working with the Local Authority, regulatory bodies and other organisations
What requirements need to be in place? • Strong communications need to be established at an early stage and a recognition that both parties are working towards the same objectives • Dedicated and consistent management resource in the case of both parties through implementation and operation of the contract • Highly collaborative working between commissioner and provider with clear lines of accountability and responsibility • Appropriate delegated authorities to key individuals in each party to ensure that decision making is transparent and speedy • Transparency and appropriate levels of trust
What requirements need to be in place? • Flexibility of approach, openness to change to meet the requirements of the specification and the needs of young people • Resilience in the face of inevitable problems arising particularly in implementation with an ability to think laterally to overcome obstacles. • Sufficient and realistic timescales being allowed in order to deliver on time and on plan • Longevity of contract. The contract needs to be of sufficient length to support the investment required • The selection of a provider with a clear commitment to delivering quality outcomes for young people and a track record of doing so.
Any comments so far?
Previous challenges faced? What hasn’t worked? What should LCC avoid? • Artificially low tender prices to get the contract • Placing too much weight on cost in the tender process. • Selecting a provider with limited experience of delivering complex projects • Insisting on keeping to original implementation dates where there have been delays in awarding the contract. The early months of any new contract are the most critical in achieving success over the longer term • Lack of appropriate investment (human resource, time and other) and commitment by both parties particularly during the implementation phase
Previous challenges faced? What hasn’t worked? What should LCC avoid? • Being "forced" into taking inappropriate placements • Matching of placements will always be a challenge under a block contract arrangement. The successful provider and the Local Authority will need to work closely to establish good working relationships to ensure this is managed for the benefit of the young people supported. • Failing to provide the relevant people with the appropriate delegated decision making authorities. • Ineffective partnership working
Any comments on this aspect?
What key principles need to be in place? Do you agree with LCC’s key principles? • It is a partnership not a contract • Open, honest and transparent relationships from the outset • Clear communication of needs and expectations right from the beginning to avoid misinterpretations • Regular meetings to identify any issues before they become problems • Commitment, resilience, flexibility and a common agenda to deliver the best outcomes for the young people being supported • Agreements on the principles of referral acceptance • Agreed levels of access to appropriate professionals to discuss any issues arising, especially support for education and health
Any comments?
Views on LCC's current approach? • Majority concur with approach • Block purchase can offer good value for the public purse and great outcomes for young people. • Unlikely that LAs are going to be able to re-establish significant in house provision within the next five years and that there doesn't appear to be any reasons why the numbers of LAC are going to decrease removing the need for the additional accommodation. • “Competition " with other LAs for the places means that at present being "out bid" and many homes in the region are taking young people from all over the country where the LAs are prepared to pay more.
Positive aspects? • Sound principles in relation to provision and delivery and will provide a solid foundation for collaborative working • For the provider it enables investment in provision of additional capacity knowing that the return would be worth while. • Enables providers to do longer term planning and look at staff development and recruitment programmes • More professional and permanent arrangement between the authority and provider • It would provide a significant number of guaranteed placements for Lancashire children at an agreed price, saving much time and effort in trying to find placements for complex young people.
Any comments?
Aspects which cause issues? • Initial two year contract seems very short as that would only give one more year after the initial 12 months to set up any new facility not in place. If not extended then that investment might not be cost effective. • This may mean that only large providers with existing homes would bid with the knowledge that they wouldn't have to develop new homes just allocate spaces in existing ones. • Suggest that LCC does not rule out the possibility of one provider delivering all three lots. • The fee rate expected once clarified would determine whether tender or not.
Aspects which cause issues? • We don't think this approach will work nor is it fair on smaller companies that don't have the ability to upscale so fast. LCC is driving out smaller business which can bring real quality and care. This needs to be given more thought.
Any comments?
Children and Young People Residential Service – Block Purchasing Agreement Procurement Guidance 07/09/2018
Part 1 – Procurement Guidance Part 2 – Oracle iSupplier Portal Q & A
Procurement Contacts Debbie Readfern Debbie.Readfern@Lancashire.gov.uk Category Manager (Care) Jig Parmar Jig.Parmar@Lancashire.gov.uk Category Manager (Care & Public Health) PIM@Lancashire.gov.uk Procurement Information Management Team
Introduction The purpose of this briefing is to support you through the tender process, ensuring fairness, transparency and equal treatment. The Council reserves the right to amend what is set out today and the procurement process will be conducted in accordance with the procurement documents published when this opportunity is advertised.
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