South East Network Meeting Commissioning and Contract renegotiations How to get the best outcomes and ensure social value locally October 11, Eastbourne Agenda 10:00 Welcome and Introductions 10:05 Developing the South East cCLOA Network Emma Wiggins (Swale BC / cCLOA Exec Member) 10:15 Contract Renegotiation - From liquidation to profit? Part 1 Simon Gardner (LB Enfield) 10:40 Contract Renegotiation – How to get a result . Part 2, Ian Brooke (Oxford CC) 11:05 Coffee Break 11:30 Delivering and measuring social outcomes Duncan Wood-Allum (The Sport, Leisure, and Culture Consultancy / cCLOA Exec Member) 11:55 Preparing for the new European Directive on Procurement and Social Value Act, Richard Auton (Walker Morris) 12:20 Round table facilitated discussions 13:30 Lunch 14:30 Opportunities for ‘Go Sees’ to Eastbourne’s cultural attractions Developing the South East cCLOA Network Emma Wiggins Swale BC / cCLOA Exec Member Leisure Operator Procurement - From liquidation to profit? Simon Gardner Head of Leisure and Culture Striving for excellence www.enfield.gov.uk Summary • Enfield has over the last 4 years procured a new operator for its Leisure Facilities, invested £8.9 million in its facilities, has increased user numbers, has saved £10 million revenue over the life of the contract and has reduce the Councils exposure to repairs and renewals. • This presentation is a whistle stop tour of the process, the partners and the challenges involved in delivering these outcomes. Challenges • • • • • • • • • Liquidation Pre Liquidation situation Large Management Fee Councils political make up Fatality Ageing facilities Financial constraints What were reasons (NNDR, VAT, other?) Getting to the point where we could procure Project Delivery • • • • • • Develop a team Project oversight Involve everybody Get to risks quickly - Be honest Decide on Evaluation Criteria Bring in expertise - Procurement - Legal • Member support • Competitive Dialogue • No Specification Project Aims • • • • Lower but sustainable management fee for the leisure centres Good quality leisure centres More people participating in sports and leisure activities Transfer of risk over to the contractor, including full repairs and maintenance responsibilities and the ‘back log maintenance’ works Details • At the Pre Qualification stage 18 expressions of interest were received • 5 completed Pre Qualification Questionnaires received by the deadline. • 3 bidders were invited to participate • 2 taken through to submit “ISDS” (Detailed solutions) Level 1 Criteria Technical, Service Delivery and Innovation Cost Other Commercial and legal Proposals Total Weighting (%) 40 50 10 100% Details • • • • • • OJUE Cost of Procurement Length of time for project Preferred solutions, variations Evaluation of solutions / variants Open to innovative approaches from potential operators • Open to capital developments • Use of different funding streams, benefits? • Different structures of the partnerships Selected Contractor • Fusion Lifestyle were confirmed as the preferred bidder and appointed once legal’s complete • Fusion appointed on a 20 year, average management fee basis with their £8,911,873 capital proposals funded by the Council using prudential borrowing arrangements • New contract saved the Council £10 million revenue over the life of the contract • An officer working group was set up to work with Fusion to develop the £8.9 million Capital programme Selected Contractor • • • • • • • Manage Expectations Risks – Embed them in the Contract Penalty Clauses for delay of Capital Finalise contract before operators start Set up capital delivery working groups Ensure Pensions and TUPE complete Engage the staff and senior management of the outgoing set up – Liquidator • Plan mobilisation • Profit share Southgate – Older than ….. Southgate the newer version Albany – Added Gym space Lessons Learned • • • • • • • • • Competitive Dialogue Sort pensions early Use good consultants Link capital project management to Operator not Council Include profit share Develop a Pay Mech Contract monitoring essential Ensure latent defects are covered Try to ensure contract commencement isn’t at election time! Questions ? Contact Details: [email protected] Or 0208 379 3783 Leisure, Parks & Communities Ian Brooke 11th October 2013 Introduction 1. 2. 3. 4. 5. 6. The Oxford context The leisure contract Drivers Governance Challenges Next steps The Oxford Context A preserved historic city 9.2 million visitors 38 colleges Life inequality 10 years Educational attainment Eight areas bottom 10% of the country for child poverty Labour majority In- house / trading council The current contract Drivers 10 major projects - £4 million Social benefits The world has turned – client and contractor The decision ? Governance Project plan Gateway reviews Organisational work group External support Politics Our framework – value not just cost Criteria 1 2 3 4 6 7 8 9 Ability to make revenue savings through maximising income and optimising costs over the period of the contract Ability to raise affordable capital finance Impact on residual Council cost (non –controllable support services) Transfer and management of risk Ability to secure commissioned work from third parties Ability to contribute to strategic objectives of Council Level of control by the Council Opportunity for staff development 10 Ability to proactively engage communities through targeted outreach programmes 11 Ability to demonstrate wider impacts on outcomes linked to health and wellbeing and social inclusion Total Weighting % 15 5 10 10 10 10 10 10 10 10 100 Challenges Scope Capacity Value The next steps Decision point Executive agreement Coffee Break Until 11:30am Delivering and Measuring Social Outcomes South East CCLOA Members Meeting – Commissioning and Contract Renegotiations 11 October 2013 Duncan Wood-Allum What we’re going to cover 1. The opportunity 2. The current challenge 3. Where are now? 4. Social Return on Investment – examples 5. Social reporting – example 6. Public Health Outcomes Framework 7. Challenges ahead 8. The Future? 29 Delivering and measuring social outcomes Delivering = relatively easy Measuring and evaluating = hard. 30 Delivering and Measuring Social Outcomes: The Challenge Culture and Sport demonstrating its impact on wider social outcomes: • Impact on reducing crime and Anti –Social Behaviour • Impact on health and wellbeing • Impact on social isolation • Impact on community cohesion • Impact on educational attainment and life chances • Etc. So much so, that it is investable / commissionable. 31 Where are we now? • Outcomes not a common language with many clients and their • • • • operators Operators “Sticking with the knitting” – doing things the same and being very light on data No strategic approach to measuring and evaluating wider outcomes Not gearing up to take advantage of opportunities presented by shift of Public Health to Local Government (Particularly in Boroughs and Districts) Some recent procurement exercises ‘missing a trick’. Some organisations, however, have attempted to tackle this, for example: o o o o Edinburgh Leisure Trafford Community Leisure North Lanarkshire Leisure Birmingham City Council. 32 Social Return on Investment (SROI) SROI seeks to quantify the value of the services provided by an organisation, by providing an approximate calculation for: • Positive impact on earning capacity or productivity as a result of a service provided • Saving resulting from an intervention either in the form of the cost of another intervention or in a consequential cost (e.g. introducing prevention saves on cost of the cure) • Introduction of an intervention which directly replaces a more expensive one. 33 Social Return on Investment (SROI) The Social Return on Investment model for Culture and Sport services seeks to calculate savings in a number of areas, e.g. • Reduced Costs of Intervention for the NHS • Productivity gains from fewer sick days • Savings to beneficiaries due to discounted access to facilities • Savings to schools due to provision of swimming by the local authority. 34 Edinburgh Leisure EL uses five key measures to evaluate the gains achieved by about 60-65% of its projects: • Reduction in health and social care costs • Reduction in sickness absence • Reduced cost access to facilities compared • • to commercial alternatives Reduced Anti Social Behaviour rates Reduction in NEETs. The 2011-12 evaluation showed that the total benefit from the projects included was at least £32.5m per annum in the context of total annual funding of £9.2m per annum. 35 Trafford Community Leisure Trafford Community Leisure receive an investment of £1.5m annually from the local authority. The Social Return on Investment of their activities has been calculated at £10.3m per annum: • £4.7m from health and fitness • £2.2m from swimming • £541k from coaching in • schools and leisure centres £2.9m from concessions SROI was calculated in similar way to Edinburgh Leisure. 36 North Lanarkshire Leisure NLL also use SROI. Based on the NLL activities and services assessed as part of their Social Impact Evaluation, NLL contribute in excess of £41m economic benefit to local residents “through value for money services, innovative diversionary programmes and improving the health of the participants in sport and recreation.” Some of the savings calculated include: • Reduced Costs of Intervention for the NHS • Productivity gains from fewer sick days • Savings to beneficiaries due to discounted access to facilities. 37 Social Reporting “Social Reporting” enables Operators / Partners to: • Review what it they are doing and why • Report on their performance and the benefits for the local community • Aid planning for future action and improving performance. Social Reports bring together information on the social, economic and environmental impact of an organisation and can be presented to an independent audit panel for verification. 38 Public Health Outcomes Framework 60 Indicators for measuring progress including: 2.5 Child Development – obesity, nutrition, physical activity, emotional wellbeing 2.6 Excess weight in 4–5 and 10–11 year olds - lifestyle management services and above 2.11 Diet - Interventions to tackle obesity, locally-led nutrition initiatives 2.12 Excess weight in adults - diet, physical activity, preventing type 2 diabetes 2.13 Proportion of physically active and inactive adults - Increasing levels of physical activity in the local population, Interventions to tackle obesity and Local initiatives on workplace health 2.23 Self-reported wellbeing - Public mental health services and local initiatives on workplace health So have you and our operational partners dialled into the framework yet? 39 Birmingham Be Active Birmingham’s Be Active scheme had c 350,000 participants in 2012 (c. 1/3rd population). The data it records about their users helps to justify the ongoing investment by the Health Service. Their use of data could be even more effective if they were to record the changes in the health of their users e.g.: • Weight loss • Reduction in rates of high blood pressure • Reduction in smoking rates • % of participants whose health has improved. • The programme is still in place and continuing to adapt and • expand. Their funding has been reduced significantly, forcing them to reduce the number of Be Active access hours in centres, but they are extending their offer by providing a range of physical activity opportunities in parks and open spaces. 40 Challenges ahead • Public Health – huge opportunity to influence allocation of future funding? • Budget cuts – making the case has never been more important as austerity will continue to 2020 • Key challenge is to start getting better quality data on users and non users – an essential investment required • Building outcomes evaluation into operational contracts. 41 The Future • Better data and proper evaluation • More confidence and better approaches in designing interventions and demonstrating outcomes • Stronger partnerships – Public Health, Children’s Services, Adult and Social Care • Better packaging of integrated services linked to benefits, outcomes and impacts • Better informed Elected Members. . 42 Further Reading / References • • • • • • • • • • NICE: Public Health Outcomes Framework (October 2012) LGA, Guide to developing a local outcomes framework for Culture and Sport, (September 2013) LGA, Tackling obesity: Local Government’s new public health role, (December 2012). LGA, Tackling the social determinants of health with culture and sport, (August 2012) cCLOA, Improving Strategic Commissioning in the Culture & Sport Sector, December 2008 Baker Tilly, Edinburgh Leisure Report, (January 2012) http://www.traffordleisure.co.uk/news/trafford-community-leisure-trust-hits-magic-10/ Baker Tilly, North Lanarkshire Leisure SROI Evaluation, (December 2010) Social Audit Network, Proving social impact for Leisure Trusts: A toolkit for reporting on social performance and impact Matrix Evidence, Cost-benefit analysis and social impact bond feasibility analysis for the Birmingham Be Active scheme: Final Report, (December 2011) 43 Questions 44 Contact Details Duncan Wood-Allum Director 01444 487740 / 07930 549580 [email protected] Address SLC 2nd Floor Boltro Road Haywards Heath West Sussex RH16 1BY United Kingdom www.sportleisureculture.co.uk Registered in England. Company no. 6945670 45 South East CLOA Members’ Meeting Preparing for the new European Directive on Procurement and Social Value Act 16 September 2013 Devonshire Park Centre, Eastbourne Richard Auton Director Walker Morris LLP New Directives - Proposed Directives – on public procurement – on the award of concession contracts – on procurement by entities operating in the water, energy, transport and postal services sectors • Compromise proposal published Septembers 2013 UK Implementation Expected enactment – November/December 2013 • “Cabinet Office is preparing an ambitious transposition timetable which we will agree with ministers.” Changes to scope of procurement rules ‒ Part A and Part B distinction abolished  All services will require procurement if above threshold ‒ New Procedure for Social Services ‒ Separate Directive for Concessions Social Services ServicesParts A and B Concessions Available Procedures New Procedures Open Restricted Competitive Dialogue Negotiated Procedure without Notice Competitive Procedure with Negotiation Innovation Partnerships Other Issues ‒ Sound procedures - Conflict of Interest - Prior Involvement ‒ E Procurement - Dynamic Purchasing Systems - Electronic Catalogue ‒ SME - Lots - PQQ ‒ Social and environmental issues ‒ Award PUBLIC SERVICES (SOCIAL VALUE) ACT 2012 What does it apply to ? Public Service Contracts Framework for Public Service Contract Not • Sub threshold • Part b? • Exempt services • Service Concession • Goods and Works What do you have to do? Consider before starting the process of procurement how what is procured might improve economic, social & environmental well-being of the area in conducting the procurement, it might act to secure that improvement whether to undertake consultation on those matters What are the consequences of not complying? Equalities Duty Cases Political Adverse publicity Judicial Review • Adult Social Care • Library Services • Housing Services • Planning • Carers • Abolition of BSF • Raising University Fees • Offender Management • Funding Voluntary Services • School Uniform Policy Contact Richard Auton Director Walker Morris Kings Court 12 King Street Leeds LS1 2HL 0113 283 2500 07525 198953 www.walkermorris.co.uk [email protected] Facilitated Round Table Discussions Choose from 2 out of 3 25 minute sessions 1. Delivering and measuring social outcomes - Hosted by Duncan 2. Contract Renegotiations - Hosted by Ian and Simon 3. European Directive on Procurement and Social Value Act - Hosted by Richard Feedback from Group Sessions 1. Commissioning and procurement / delivering and measuring social outcomes 2. Contract Renegotiations 3. European Directive on Procurement and Social Value Act Review 1. Acknowledgements and thanks 2. Feedback Forms 3. Further Information on cCLOA 4. Lunch 13.30 -14.30 5. Opportunities for ‘go sees’ to Eastbourne’s Cultural Attractions 14.30 onwards Keeping in touch with cCLOA • • • • • Join and benefit from information and networking Visit our website - www.cloa.org.uk Follow us on Twitter @cCLOAssociation Join the debate on Linkedin™ Subscribe to the blog