Department for Child Protection Procurement & Contracting Sector - - PowerPoint PPT Presentation

Department for Child Protection

Procurement & Contracting Sector Briefing 2

Friday 5 April 2019, 9am – 11am The Science Exchange (webex meeting 998 687 805)

Acknowledgement of Country

We would like to acknowledge this land that we meet on today is the traditional lands of the Kaurna people and that we respect their spiritual relationship with their country. We also acknowledge the Kaurna people as the custodians of the Adelaide region and that their cultural and heritage beliefs are still as important to the living Kaurna people today.

Child protection sector briefing 2

Contract Reform Update

Jennifer Browne, Chief Financial Officer Department for Child Protection

Contract reform Catalyst for Contract Management Reform

The scope of reform Contract reform

To deliver

Reform activities To deliver

Contract reform: Contract Management Governance and Frameworks

 A clear and standardised approach to managing and administering contracts  Commitments and obligations from buyers (DCP) and suppliers are effectively met  Value for money  Minimised risk to government and clients  Achievement of desired contract outcomes  Clear roles, responsibilities and actions throughout the contract management lifecycle  Sustainable and flexible contracting models that support sector development and emerging needs

Contract Management Framework (CMF) Procurement and Contract Management Governance Committee Clarification of Service Specifications and Service Provision Requirements Digital workspace record management integration

To deliver

Contract Management and Licensing System (CMLS)

Data warehousing, reporting, document creation & approval (docusign), workflow management

Online service provider portal Integration with financial and record management systems

Reform activities To deliver

Contract reform: Contract Management & Licensing System (CMLS)

 More efficient document creation, approval and management processes  Reduction in rework, effort, inconsistencies and potential for error through automated contract management and licensing workflows  Improved data quality, accuracy, transparency and sharing  Easier mechanisms to submit financial and performance acquittals through an online portal  Easier mechanisms to submit licence applications through an online portal

To deliver

Standardised Agreement templates

Not for Profit (NFP) Funded Agreement Goods and Services Agreement

Standardised unit pricing for family based care Standardised tools and templates Clarify roles, responsibilities and end to end processes relating to contract management

Contract reform: Policies, practices, tools and templates

Reform activities To deliver

 Improved quality of care for children and young people  Value for money service delivery  Contractual arrangements aligned to service and client needs  Agreed roles and responsibilities  Equitable, accountable & transparent relationships  Proactive planning approaches  Ability to identify and manage risk and opportunities for improvement  Improved decision making and processing response times  Reduction in rework, duplicated effort and administrative inefficiencies

To deliver

Service contracts organisational model to support service delivery Engagement mechanisms established to educate, inform, communicate

(e.g. briefings, email updates, DCP webpage)

Change and engagement model to support ongoing relationship and service delivery outcomes Stakeholders are supported and understand impacts of change

 Identification of impacted stakeholders  Areas of change to be known and proactively planned and managed  Appropriate mechanisms established to inform, communicate and support change  Targeted messaging, resources and support mechanisms available and accessible to impacted stakeholders to understand and adapt to change  Stakeholders are supported pre, post and during change

Reform activities To deliver

Contract reform: Change management and engagement

To deliver

Contract Performance Management Framework (CPMF) Contract management meetings & discussions Performance Measurement Specifications (PMS) Abatement guidelines, Growth principles, Placement utilisation policy, Performance recovery plan, Performance improvement plan

 Improved collaboration in delivery of safe quality care  Equitable, accountable & transparent relationships  Value for money in the expenditure of public money  Shared understanding of obligations, roles, responsibilities and accountabilities  Rule based approach to performance measurement, monitoring and reporting  Early identification of non-performance & intervention strategies  Service delivery contracts align to client, community and strategic expectations

Reform activities To deliver

Contract reform: Contract performance management

Anticipated key dates Contract reform

Sector feedback on Contract Performance Management & Performance Measurement Specifications

(5 April 2019 – 22 April 2019)

Launch of finalised Contract Performance Management & Performance Measurement Specifications

(End May 2019)

Service provision requirements and service specifications published online Introduction of contract arrangements using the new agreement templates Contract Management & Licensing System (CMLS) User Acceptance Testing (UAT) Contract Management & Licensing System (CMLS) Proposed go live

(subject to user acceptance testing)

May alter subject to approvals and completion of dependencies

Contract reform

Visit DCP’s Service Provider Webpage https://www.childprotection.sa.gov.au/service-providers Contact DCPServiceProviders@sa.gov.au Attend sector debrief sessions Refer to DCP newsletters and Service Contract Updates emailed to you

Contract reform

Child protection sector briefing 2

Contract Performance Management

Deborah Odgers, Manager Service Contracts and Licensing Department for Child Protection

What is Contract Performance Management? Contract Performance Management

The process of ensuring both parties to an agreement meet their obligations as effectively as possible in order to achieve agreed contractual outcomes. DCP’s Contract Performance Management Framework:

Will streamline reporting requirements for DCP’s contracted service providers and apply a consistent performance measurement and monitoring response across all DCP service contracts. Describes how DCP will administer, monitor, evaluate and reconcile the delivery of services as described in the contract between DCP and the service provider. Supports the delivery of safe quality care to children and young people in care.

The benefits of Contract Performance Management Contract Performance Management

Provides a methodical and evidence based approach to ensure:

Performance indicators in current agreements are standardised, and in some instances reduced Equitable, transparent and accountable relationships Shared understanding of roles, responsibilities and accountabilities A rule based approach to performance measurement, monitoring and reporting Early identification of non-performance and implementation of intervention strategies Ability to highlight and benchmark good performance Collaboration in the delivery of safe quality care to the children and young people in care DCP service delivery contracts align to client, community and stakeholder expectations

How performance management supports contract management Contract Performance Management

Supports a consistent approach to contract management. Describes the required responsibilities across the 3 phases

• f the contract lifecycle

(set up, management, close out)

Contract Management Framework Contract Performance Management Framework Performance Measurement Specification

Provides a consistent approach, methodology, tools to support phase 2 (management) and phase 3 (close out) of the CMF. Describes how DCP will administer, monitor, evaluate & reconcile the delivery of services. Supports the key activities required within the CPMF, specifically the measurement, monitoring and management of performance against service agreement. Defines Key Performance Indicators (KPIs) Drafted & seeking feedback

Contract Management Framework (CMF) Contract Performance Management

Supports a consistent approach to contract management. Describes the required responsibilities across the 3 phases

• f the contract lifecycle

(set up, management, close out)

Contract Management Framework

Available on DCP Service Provider Webpage, under Contract Reform

Contract Performance Management Framework (CPMF) Contract Performance Management

Contract Performance Management Framework

Provides a consistent approach, methodology, tools to support phase 2 (management) and phase 3 (close out) of the CMF. Describes how DCP will administer, monitor, evaluate & reconcile the delivery of services.

Contract Performance Management Framework (CPMF) Contract Performance Management

Relies on six key elements working together to support the delivery of safe quality care to children and young people in care:

1. Guiding principles (desired outcomes) 2. Oversight & governance 3. Contract 4. Measure (1st CPMF component) 5. Monitor (2nd CPMF component) 6. Manage (3rd CPMF component)

Contract Performance Management Framework - Measure Contract Performance Management

The first component of the CPMF that provides the technical specifications for measurement design, interpretation and action includes:

Performance measures grouped into four (4) performance domains

(Service delivery, Quality, Financial viability, Governance and Compliance)

Performance measurement specifications

(business rules for collection, collation & reporting)

Performance targets and thresholds

(Established targets for each indicator, with a set performance level to be achieved)

Contract Performance Management Framework - Monitor Contract Performance Management

The second component of the CPMF that provides the processes, tools and mechanisms to evaluate and discuss performance, includes:

Performance reporting Record keeping Contract management meetings Dispute resolution

Contract Performance Management Framework - Manage Contract Performance Management

The final component of the CPMF that prescribes what should occur based on performance outcomes, includes performance responses for:

Performance achievement

(within performance level 1 threshold)

Under performance

(within performance level 2 threshold)

Non performance

(within performance level 3 threshold)

Sustained non performance

(fails to improve from performance level 3 over two consecutive quarter review periods)

Performance Measurement Specification (PMS) Contract Performance Management

Performance Measurement Specification

Supports the key activities required within the CPMF, specifically the measurement, monitoring and management of performance against service agreement. Defines Key Performance Indicators (KPIs) Drafted & seeking feedback

Measuring tool

Ensures that all parties use the same criteria to evaluate the service delivery, quality and safety

Support tool

Provides a shared understanding of minimum level of service delivery and performance required throughout term of service

Communication tool

Assists in opening up communication and dialogue on a regular basis in regards to performance

Defines the minimum level of performance and service delivery required throughout the term of service agreement between DCP and the Service Provider, acting as a:

Performance Measurement Specification components Contract Performance Management

Performance measures and domains

Key Performance Indicators (KPIs) are quantitative or qualitative measures that help determine the extent to which agreed contractual outcomes, outputs, quality of service and compliance with legislative requirements have been achieved. Grouped into 4 performance domains: Service delivery; Quality; Financial viability; Governance & Compliance

Performance tiers and thresholds

The level of measurement that set the goals and indicators. Tier 1 – critical, core to measuring service delivery (included in contract), initiate intervention triggers Tier 2 – supportive providing context to tier 1

Performance management responses (intervention triggers)

The action that will result based on the performance level achieved

PMS – Performance tiers and thresholds Contract Performance Management

Thresholds

The goals and indicators for levels of performance across each tier 1 KPI, that will determine:

• Performing (Performance level 1)
• Under performing (Performance level 2)
• Not performing (Performance level 3)

Tier 2 Key Performance Indicators (KPIs) Supporting performance measures that provide context to tier 1 measures

• Contract will link to service provision requirements specifying tier 2 KPIs for each service type
• 16 DCP accountable measures spread across Out of Home Care service types
• 56 Service Provider accountable measures spread across Out of Home care service types

Tier 1 Key Performance Indicators (KPIs) Critical performance measures, core to measuring service delivery, will initiate intervention triggers

• Included in contract (Attachment 4 of NFP agreement; Attachment 5 of the Goods & Services agreement)
• 24 Service Provider accountable measures spread across Out of Home care service types

PMS – Performance management responses (intervention triggers) Contract Performance Management

The action that may result based on the performance level achieved. 5 key performance management responses:

How will it be introduced Contract Performance Management

Draft Performance Measurement Specification open for sector feedback (via survey monkey) Tier 1 KPIs: 5 April 2019 ~ 22 April 2019; Tier 2 KPIs: 29 April 2019 ~ 14 June 2019* Performance Measurement Specification finalised considering sector feedback Contract Performance Management Framework & Performance Measurement Specification launched & available for implementation Late May 2019 Contractual agreements will specify Tier 1 KPIs and provide a link to service provision requirements for tier 2 KPIs, as relevant to the service type being contracted Renewals, extensions, variations or transitions to new templates as part of 2019/2020 Procurement Program (new) Contract Management and Licensing System (CMLS) design underpinned by Performance Measurement Technical Specifications To take effect from 2019/2020 Quarter 1 quarterly performance reviews & acquittal processes As set out in Contract Management Plan

*Feedback timeframes amended following feedback received during sector briefing 2

Performance Measurement Specification

Sector feedback process for Tier 1 KPIs

Contract Performance Management

5 April 2019: Feedback period opens

Document made available and overview presented as part of Sector 2 briefing Link to downloadable document & Survey emailed to current service providers following sector 2 briefing Survey template structure allows for quick collation to meet feedback review timeframes Respondents contact details required to assist with clarification of response(s) during feedback review

22 April 2019: Feedback period closes (midnight) April 2019 – May 2019: Feedback reviewed, amendments finalised via internal approval processes May 2019: Finalised Tier 1 KPIs launched and available to implement Sector feedback process for Tier 2 KPIs to commence 29 April 2019 and close 14 June 2019*

Queries or survey support please contact DCPServiceProviders@sa.gov.au

*Following feedback received during sector briefing 2, approach amended to reflect separation of feedback processes and allow an additional 7 weeks to review and provide feedback on tier 2 KPIs

Transition process How will you be supported?

Coordination of one on one meetings and sector briefing(s) for impacted service providers DCP newsletters and Service Contract Updates emailed to you Information to be made available on DCP’s Service Provider webpage https://www.childprotection.sa.gov.au/service-providers Questions? Contact DCPServiceProviders@sa.gov.au

Transitioning to the NFP Funded Agreement

Upcoming procurement & contracting events

Sector briefing 3: Family based pricing rates

Anticipated for late April / May 2019 (dependent on formal approvals)

Launch of Contract Performance Management Framework & Specifications

May 2019

Sector engagement