1. National Commissioning & Contracting
Training Conference
9th - 10th June 2016
“Been There, Tendered That, Got the Contract!” Contract Models & Effective Tendering Practices
Rakesh Mistry
Commissioning Manager
Childrens Commissioning Team

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

3. 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.

4. Contracts Residential Block Contract Birmingham Fostering Framework
West Midlands Fostering Framework
Externalisation of Childrens Homes
Short Breaks – Fostering
Fostering Recruitment
Children Centres
Residential Schools
Supported Accommodation
Social Impact Bonds

5. New Contract Planning Demand Analysis Supplier/Provider Analysis
What do you want from the contract?
What are you trying to achieve?
What procurement options are open to you?
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?
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 (Local / Regional)
Payment by Results Contract
Social Impact Bonds

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. CONTRACT MODEL 1 2 T I E R KEY
The letters represent different providers.
The columns are age specific lists ranked according to the price / quality split
Placement Request
Age?
Select Appropriate Age Band T I E R
0-4
Years
5-10
Years
11-15
Years
16-18
Years A B C D E A F G J B B E D A J G D C H I
Offer to Tier 1 Providers first 1 F G H I J C D E I H F G C H I A F B E J
If there is no match, offer to Tier 2 2
If there is still no match to be found
Spot Purchase using West Mids Approved Providers 8

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 Price Tender Document Interviews
Presentations
Site Visits
Children & Young People
Price

13. SCORING OF TENDERS Weighted Scores Quality Assessment Price Assessment
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 Notification to unsuccessful tenders
Heads of Service
Operational managers
Notification to unsuccessful tenders
Alcatel Case (EU case law)
Standstill period
Breach of contract

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