Residential Provider Block Contract Market Engagement Event 12 th - - PowerPoint PPT Presentation

Lancashire CLA Agency Residential Provider Block Contract Market Engagement Event 12th 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 1st July 2019):

• Mainstream beds within Lancashire and up to 10 miles
• utside of LCC boundaries
• Solo and complex beds within Lancashire and up to 20 miles
• utside 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
• f a placement breakdown

Provider Consultation

• Electronic questionnaire inviting provider views

(closing date 7th 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

• 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?

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

• bstacles.
• 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

• f 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
• ther) 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.

• 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.

Aspects which cause issues?

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.

Procurement Process

Key Points for Bidders:

• Register on iSupplier for access to tender documentation.
• Bidders MUST complete the Invitation to Tender documents

within deadlines and submit via the e-tendering system (Oracle iSupplier).

• A comprehensive guidance document will be published

together with full online system support functions available during office hours.

Next Stages: Tender Process

Invitation to Tender Evaluation and Selection Approval & Award Process Contract Starts (subsequent to mobilisation Period)

Tender Evaluation Criteria

Evaluation Criteria (Selection and Award) Selection criteria (formerly referred to as PQQ)

• Pass/Fail
• Selection – Business Standing, Financial Standing, Technical and Professional ability

– Demonstrate you meet minimum requirements Award Criteria

• Most Economically Advantageous Tender – Based on a Quality and Price Ratio
• Award Stage Questions

– Demonstrate how you will deliver the requirements.

• A cross-cutting panel of experts assess responses and give scores.
• A scoring matrix will be used to assess answers.

Price Evaluation

Forms part of the Award Criteria (Price/Quality ratio will be confirmed within the tender documents). Please refer to the tender documents, where further details will be provided.

General Information

• Standard Terms Contract – Potential five year term

– Initial term: Two years with potential to extend (subject to budget implications) – Indicative value totalling £20m (£4m per annum)

• Process – Open tender process

– OJEU qualifying – unrestricted/free access to all documents

• One contract per lot (x3 lots) – To one: supplier/lead consortium member/special

purpose vehicle

• Service delivery location – Northwest (Lancashire)
• Online Discussions Feature – Use this to communicate once the tender is live

Bidding Model

What is your Organisation’s strategy?

• Are you considering to bid alone (as a single provider)?
• Are you considering to form a consortium?
• Are you considering/reliant on a subcontracting arrangement?

Consortia/Subcontracting:

• What are the implications of something going wrong? i.e. submission fails
• Do you have a plan B?
• What are your options? – Have you considered submitting an individual bid

in addition to the consortia/subcontracting arrangement?

• Please note – that if you bid for more than one lot, you must provide

assurances that your organisation will be able to deliver services for all lots in the situation where your organisation is successful in bidding for multiple lots.

Simultaneous Competition

Where a Tenderer is affiliated to more than one bidding model for example;

• Consortia,
• Subcontracting arrangements,
• Special purpose vehicles,
• r as an Individual Tenderer,

then the Tenderer is under an obligation to ensure that such arrangements do not detract from its ability to service the Contract.

Consortia

Consortia and Similar Arrangements:

• Each member of the consortium must individually complete Parts 1 and 2 of the

Selection Criteria Questionnaire.

• Lead member of the consortium will submit a response on behalf of all consortium

members to Part 3 of the Selection Criteria Questionnaire. LCC will contract with

• ne legal entity (the lead) if the consortia is successful. Where a special purpose

vehicle is used (i.e. a consortia is officially registered as an individual legal entity with companies house) and is successful, LCC will contract with one legal entity in this case too.

• In the event that a member of a group of economic operators ceases to be a

member of the bidding model the lead member will have the opportunity to continue their submission with the member(s) who met the Selection Criteria.

LCC’s Consortium Exchange

Lancashire County Council would like to make it easier for suppliers to form consortia with a view to bidding on any tender process. What is the Consortium Exchange?

• An open on-line directory for like-minded organisations to share their contact details.
• The opportunity to work together is available to suppliers of any size and any type

including SMEs, large business, voluntary, faith, third sector or social enterprise.

• To have your details added, just reply to us at the email below with the following details:

– Your organisation's full name; contact person, phone number, email and address. – Your sector of work and a description of the opportunities you might be interested in.

• Your details will be published on LCC’s website, and you can remove them at any time by

contacting us at the following email address: – consortiumexchange@lancashire.gov.uk Please note: the use of the Consortium Exchange is optional, LCC does not endorse any particular bidding model. How you bid is your choice.

Indicative Dates

Issue date Mid to late December 2018 Last date for Tenderers to submit clarifications To be confirmed Tender Return Deadline Mid to Late January 2019 Tender Evaluation Mid to late February 2019 Outcome notification April or May 2019 Contracts Commence July 2019

These dates are an approximate guide only and are subject to change at the

Authority's sole discretion. Any significant changes to the procurement timetable during the tender process shall be notified to all Tenderers as soon as practicable. Changes to these dates will be notified to Tenderers via the means of the online discussions function within the e- Tendering system when the tender is live. Dates communicated to Tenderers via these means take precedent over the dates listed in the above table.

Hints and tips – Do

• Read the entire tender documentation.
• Read all clarification responses - the system will allow Tenderers to resubmit their

bids before the deadline.

• Dedicate time to write your submission and use the expertise within your
• rganisation, it is advisable to have someone else check through before submitting.
• Give correct information in the format requested (found in the Award Criteria

Questionnaire). Your submission may be disqualified if instructions are not followed.

Hints and tips – Don’t

• Missed deadlines – we cannot accept late submissions
• Submit Alternative bids. An alternative bid is when a tender is submitted that includes

an alternative way of delivering the service, if the submission does not align to the specification the bid may be rejected from the process.

• Submit Conditional bids or Qualify bids. A conditional bid or qualified bid is when a

condition or restriction is included in the submission. For example, if a Tenderer states they will only deliver the service in a specified way if they are successful.

• Assume, leave gaps or give ambiguous information – we can only assess the

information or responses provided.

• Promise what you can’t deliver – responses to Tender form part of the final contract.
• Insert marketing material unless instructed.
• Exceed the word/character counts provided- any information submitted which

exceeds the word/character count will not be considered at evaluation stage.

Summary

• Register on the Oracle iSupplier system at the earliest opportunity.
• Don’t leave it until the morning of the closing date to submit your tender if you can help it.

(Avoid Tuesday and Friday mornings if you will need help, especially if you haven’t used Oracle iSupplier before).

• Word/Character counts and percentage weighting reflects the depth and breadth of the

answer required. Anything over, including embedded documents and appendices, unless specifically requested by the question, will not be scored.

• Look at the evaluation criteria within the ITT documents. (Also need to PASS all the

PASS/FAIL sections for the questions to be scored).

• Don’t assume the panel know your organisation and the services you provide – they will only

score what is written. Crucial how you answer the questions – look at the scoring criteria for guidance on how the panel will score.

• Read the background information, especially the instructions and guidance which is there to

guide you through the process. Also extremely important to read the service Specification thoroughly.

• When the tender is live an advert will be released on LCC’s tender opportunities page. Go on

www.lancashire.gov.uk search for “tender opportunities”.

Part 2: Oracle ISupplier Portal

Your Oracle Self Service

It is important to keep your Oracle record up to date. This minimises the risk of missing any email notifications or delaying payments. This can be done via iSupplier using the admin section or by contacting the iSupplier Support Team. The most important information to update is:

• Email address (user account).
• Banking details.
• Contact telephone number.

ORACLE ISUPPLIER GUIDANCE

Access the e-tendering iSupplier system via: http://www3.lancashire.gov.uk/corporate/web/?siteid=6864&pageid =41137&e=e Access the Oracle iSupplier guidance via: http://www3.lancashire.gov.uk/corporate/web/?siteid=6864&pageid =41143&e=e

Clarifications

• Clarifications also known as ‘Online Discussions’ within the system are queries

submitted by Tenderers regarding the tender

• All clarifications must be sent via the online discussions function, any

clarifications sent outside of the system will be redirected to the portal

• The Authority will respond via an online discussion which will be available for all

Tenderers to view for transparency.

• Tenderers will receive a notification via the system when a new online discussion

is published by the Authority.

RFQ Amendments

• Amendments are made to the RFQ when The Authority make any changes to the tender.

For example if new or updated documents are uploaded an amendment will be made on the system.

• Tenderers will receive a notification via the system when an amendment is made and the

system will identify the changes.

• The new RFQ will have a comma followed by a version number for example: RFQ

15144481,2.

• Tenderers must submit new clarifications to the most recent RFQ version and if you have

already submitted a bid to a previous version it must be resubmitted to the new version.

• All previous clarification responses will be attached via an online discussion to the newest

amendment.

Key Points

• Register on the Oracle iSupplier e-Tendering system at the earliest opportunity. Go on

www.lancashire.gov.uk and search for “Oracle”. Takes you to straight to registration page.

• For technical support issues and for support with registering on Oracle iSupplier, dial - 01772

534966 (option 2).

• For guidance on navigating the system to locate the tender dial - 0300 123 6701.
• For written guidance on using the system, including finding tenders and how to submit your

tender to us, you can use the quick guides (http://www3.lancashire.gov.uk/corporate/web/?siteid=6864&pageid=41143) .

• Use “on-line discussions” feature within Oracle iSupplier for clarifications on the tender content
• r questions about the service. Please do not email officers directly. This is to ensure

transparency.

• Remember to check online discussions facility regularly throughout the tender process.

Bidders’ clarification questions will be published along with responses from Lancashire County Council.

Any Questions?