Procurement of support through Framework Agreements

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Procurement of support through Framework
Agreements

• Sitra briefing for providers in
• Redbridge and Waltham Forest
• July 2009

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Sitra

• Our mission
• Sitra believes all individuals have a right to
  the housing, support and personal care services
  appropriate to their needs, delivered according
  to their own personal preferences. Such services
  should be easy to access, of the highest possible
  quality and equitable reflect the diversity of
  user needs.
• Our services
• policy and representation
• advice, information, publications
• training public programme and in-house
• consultancy service development, finance, HR

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Sitras service

• Sitras commission to provide independent,
  impartial advice and information to providers and
  potential providers on the framework process to
  be used by LB Redbridge and LB Waltham Forest
  through
• Helpline rwfprovideradvice_at_sitra.org
• Web-page on www.sitra.org
• Question and answer mailings
• Briefing meetings
• Written guidance
• Training events

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Procurement of support services
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EU Procurement Regulations 1

• EU Principles Directives implemented into UK by
  Regulations
• Apply to the acquisition by public bodies of
  goods, services utilities
• Principles apply to all procurement - but
  financial thresholds type of service determine
  whether Directives also apply
• Principles non-discrimination, equal treatment,
  transparency, mutual recognition, proportionality

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EU Procurement Regulations 2

• Financial threshold updated periodically at Jan
  08 206,000 (was approx 139,893)
• Services divided into two categories Part A
  Part B
• Part A Service Principles full Directives
  apply (examples Refuse Collection, IT systems,
  Property Management)
• Part B Service Principles from Directives -
  specifications contract award notices (lighter
  touch) (examples Health Social Services
  includes care and support)
• Support defined as welfare / social service so
  classed as Part B service (Principles light
  touch Directives)
• No automatic requirement for competitive
  tendering Part B services, but Government
  assumption that some form of advertising
  competition required to demonstrate principle of
  transparency achieve value for money

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Local Authority Procurement

• Commissioners set strategy to meet needs,
  procurement implements commissioning plans
• Local Authority (LA) Standing Orders must comply
  with regulations will reflect LAs own
  interpretation of law, political stance and
  decision-making structure
• LAs Standing Orders and procedures will enable
  use of discretion through waivers and exemptions
  but no blanket exemptions and must account for
  decisions
• Overall aim to achieve Value for Money and
  deliver efficiency savings or efficiency gains
• LA decides which procurement method, where to
  advertise, what timescales etc

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Competitive procurement options

• Open tendering
• Restricted tendering
• Pre Qualification Questionnaires (PQQs)
• Approved Lists
• Competitive dialogue
• Framework agreement

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Framework Agreement (1)

• an agreement between one or more commissioning
  authorities and a number (usual minimum three) of
  providers of goods or services
• establishes the terms (e.g. price and quality)
  under which specific purchases (awards of
  contracts) can be made for the duration of the
  agreement
• competitive tendering procedures are followed to
  set up the agreement - regulatory requirement for
  Part A, at discretion of LA for Part B

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Framework Agreement (2)

• Agreement should set out quality criteria and a
  pricing mechanism
• For Redbridge Waltham Forest Framework
• the ratio used in the tender evaluations to get
  on the framework will be Quality 70 price 30
• The ratio to be used when calling-off contracts
  using mini-competition will be Quality 60
  price 40
• Agreement period expected to be no longer than
  four years, but lengths of individual contracts
  may extend beyond term of framework

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Framework Agreement (3)

• Regulations set no obligation to purchase or to
  provide, although LA may add contract clause to
  ensure compliance
• During period of agreement, purchases can be
  called off or can be subject to mini-competition
• Agreement should set out circumstances and
  criteria for call-offs and mini-competitions
• Redbridge and Waltham Forest plan to mostly use
  mini-competition at call-off stage
• Principles of fairness, transparency, etc
  continue to apply

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R WF framework proposals (1)

• Framework for majority of LB Redbridge support
  services and LD services for LB Waltham Forest
• Framework specifications will be for service
  category
• Examples of categories
• ex offenders floating support services
• ex offenders accommodation based services
• Each service category may contain several
  contracts
• Each contract may contain several services
• Approximate total value of each contract (but not
  each service) will be provided
• See service categories schedules

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R WF framework proposals (2)

• Stage 1 Expressions of interest and Pre
  Qualification Questionnaire (PQQ) this stage
  completed
• Stage 2 Invitation to tender for specific
  categories for specific service user groups
  within framework tender submission 3rd
  September
• Call-off The award of call-off contracts will
  follow a mini-competition amongst providers
  appointed to category from March 2010

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R WF framework proposals (3)

• Specifications will include information about
  level of provision required for each service
  category
• Appendices will give basic breakdown of support
  hours and out of hours cover for each service
• Applicants will need to submit
• indicative price for service category as part of
  framework process
• method statement for each category they are
  invited to tender for

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R WF framework proposals (4)

• Selected applicants will be shortlisted for
  interview
• Assessment at interview for quality
• Scores from method statement and interview
  combined
• Highest scoring applicants appointed to framework

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R WF framework proposals (5)

• At call-off stage providers on the framework will
  be given more specific information and will then
  be asked for actual price
• Mini-competition includes written submission and
  interview
• TUPE expected to apply and details will be
  provided

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R WF framework proposals (6)

• Open to bids by consortia or main /
  sub-contractors
• Pricing mechanism to be determined
• Timetable for call-offs / mini-competition to be
  set up
• Redbridge services except older people
  immediate mini-competition / call-off contracts
  start after 1st April 2010
• Redbridge services for older people 2011
  mini-competition / call-off contracts start
  October 2011
• Waltham Forest services 2010 to 2012
  mini-competition / call-off
• 3 year contracts and potential extensions up to 2
  years

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R WF tender timetable 2009/10
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Provider preparation

• Make business decision
• Prepare project plan identify project team
• Review your strengths weaknesses
• Consider how you will evidence your value
• Consider collaboration options
• Monitor emerging information on framework to
  prepare for next stage of process

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Questions?

• Clarification from Redbridge and Waltham Forest
  on specific issues?
• How was the PQQ? consultation and opportunity
  to feedback to commissioners on process so far
• What are your questions?

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Further information

• www.sitra.org
• dedicated web-page for the Redbridge and Waltham
  Forest Framework Advice Service
• Publications section for the Providers Guide to
  Procurement
• www.redbridge.gov.uk or www.walthamforest.gov.uk
• for strategies, policies and commissioning plans
• www.spkweb.org.uk
• Capacity Building section for Guide to Procuring
  Care Support Services for local authorities
• www.ogc.gov.uk - for public procurement
  regulations guidance
• www.hact.org.uk - for the Collaborate information
  pack
• www.ncvo-vol.org.uk - for their Collaborative
  Working Unit information

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Contact Sitra

• Email rwfprovideradvice_at_sitra.org
• Website www.sitra.org
• 3rd Floor, 55 Bondway, London, SW8 1SJ
• Phone [phone]
• Fax [phone]