2. Contract Models & Effective Tendering Practices National Commissioning & Contracting Training Conference 2 nd /3 rd July 2013 Rakesh Mistry Commissioning & Brokerage Manager Childrens Commissioning Team

3. COMMISSIONING STRUCTURE Do you have a structure? What does it look like? How does it all fit together? Where are the links?

4. Why is procurement important? With budget overspends on external spending A significant growth in partnerships with private and voluntary sector suppliers it has never been more important to get procurement right. Pressure to improve performance on procurement is mounting because: procurement can play a critical role in the delivery of strategic objectives, including the improvement of services. savings realised through more efficient procurement can be channelled into priority services. authorities are accountable for achieving Best Value and are open to legal challenge under the EC public procurement directives and the UK procurement regulations. inadequate planning and contract failures can result in financial loss, poor outcomes for CYP and damage to the authority’s reputation. poor practices in design and procurement result in time and cost overruns and poor quality. unnecessary ‘red tape’ and excessive timescales are costly for authorities and suppliers alike.

5. New Contract Planning 1)Demand Analysis What do you want from the contract? What are you trying to achieve? What procurement options are open to you? 2)Supplier/Provider Analysis Are any of your current providers able to develop their services to meet the requirements of this new contract? Are providers interested in taking on this project? 3)Market Analysis Are there sufficient capable providers in the market to meet your needs? What are the unconsidered consequences of letting this contract on existing local and regional arrangements?

6. Contract Types What type of contract? Spot Purchasing Cost & Volume Block Contract Framework Contract Payment by Results Contract

7. Contract Design Objective Type of Service Number of providers Length of contract Options Appraisal Stakeholders Project Team Supplier Involvement EU Procurement Directives Public Contracts Regulations 2015

8. 16-18 Years 11-15 Years 5-10 Years 0-4 Years Offer to Tier 1 Providers first If there is no match, offer to Tier 2 GDCHIGDCHI BEDAJBEDAJ AFGJBAFGJB ABCDEABCDE AFBEJAFBEJ FGCHIFGCHI CDEIHCDEIH FGHIJFGHIJ 2 TIERTIER Spot Purchase using West Mids Approved Providers If there is still no match to be found Age? Select Appropriate Age Band Placement Request 1 KEY The letters represent different providers. The columns are age specific lists ranked according to the price / quality split CONTRACT MODEL

9. Tendering Open Restricted Negotiated Competitive Dialogue Dynamic Purchasing Systems

10. INVITATION TO TENDER (ITT) Tender Document Instructions for Tendering Tender Statement List of Contract Documents Financial References Statement of Insurance Tender Evaluation Tenderers Proposals / Method Statements Tender Pricing Summary Milestones Mid Tender Interviews Not evaluated Information shared

11. Tendering Evaluation Evaluation criteria should be published in contract notices and the invitation to tender. They must not be changed during the procurement process. Contracts should not be awarded on the basis of lowest initial price alone. There must always be an assessment of quality and costs A tender evaluation model including objective criteria for the assessment of cost and quality should be prepared in advance of procurement.

12. Tendering Evaluation Quality Tender Document Interviews Presentations Site Visits Children & Young People Price

13. SCORING OF TENDERS Weighted Scores Tender - 50% Site Visit - 25% Presentation - 10% Interviews - 15% Quality Assessment Highest weighted score = 100% Price Assessment Lowest weighted score = 100% Overall Assessment Total of Quality & Price

14. PRE-CONTRACT AWARD Risk Analysis Heads of Service Operational managers Notification to unsuccessful tenders Alcatel Case (EU case law) Standstill period Breach of contract

15. Rakesh Mistry Commissioning & Brokerage Manager 0121 464 4198 rakesh.j.mistry@birmingham.gov.uk