You are here:

Decision details

AWARD OF CONTRACT FOR AGENCY WORKERS

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: No

Purpose:

Decision:

Cabinet:

(1)          note the reduction in the use of agency workers and the action that will be taken to maintain this.

(2)         award using Lot 1 of the YPO HR Services and Solutions 569 Framework a contract to Matrix-SCM for the provision of agency workers until 31st January 2023 with the enhancements set out in this report and an option to extend for a further 2 years at the end of the initial term.

 

OPTIONS & ALTERNATIVES CONSIDERED

The following options were reviewed however overall the disadvantages considered to outweigh the advantages as summarised below:

Do Nothing, allowing current contract to expire: This is non-compliant, and if there were no overarching arrangements for agency staff cost control across the Council, would be extremely difficult to manage.

Mini Competition via YPO HR Services and Solutions569 Framework (or an alternative framework e.g. the new MSTAR3): Whilst best value would be assured  from the market and it is possible that an alteranative provider could deliver additional savings / innovations that would benefit the Council, however the cost and benefits delivered to date are such that the potential is limited. This has been factored against the cost of change, resourcing the procurement and implementation costs and time associated with a change of provider e.g. templates, processes, new supply chain, new relationships etc. Additionally training would be required for Hiring Managers on a new system.

Set up DPS (Dynamic Purchasing Scheme) for Agency Staff, with LBWF Supply Chain. The advantages would be no Managed Services fee, high levels of competition and a diverse market, the DPS remains ‘Open’ for the whole contract duration, enabling new providers to join the contract at any time, so the market is as up to date as possible and each requirement is competed, so best rates obtained. This was weighed against the lack of technical expertise in-house to advise Hiring Managers, a whole  new supply chain would need to be created, time taken to procure the DPS and implement the contract e.g. supplier engagement / enrolment and gatekeep it, the current rebate would disappear.

Bespoke OJEU Procurement. This would enable the Council to  tailor the requirement to LBWF. However again this has been weighed against the time, costs and resource to procure, it is considered that it is unlikely to achieve better VfM, than the national frameworks already in existence, the frameworks meet LBWF need under the Hybrid model in any event to benefits would be minimal. There would also be added cost associated with new processes and systems, should a new supplier be successful.

Joint Venture (JV). This would potentially give a dividend paid to LBWF through the Joint Venture arrangement, market shaping and cost control ability and flexible approach that can be adapted to changing needs if both parties agree. If it was Teckal compliant there would be no need for procurement process. JV could deliver services on behalf of additional Local Authorities (LAs) in the future, so income generation opportunities.       However it would require high level of resource to set-up, lengthy and complex governance arrangements and a higher cost associated with bottom line. Likewsie such an arrangement would limit future choice and options.

4.1         In-house Recruitment Service   This would save on the procurement costs and time as none would be required, staff employed to deliver an in-house service on behalf of LBWF could sell this service to other LAs and generate income. The Council would be in control of demand, activities, processes and costs associated with service delivery. However there would be significant costs associated with setting up an internal service and governance and decision making could be lengthy especially as the Council has limited in-house technical expertise of providing and selling such a service meaning it may need to be developed / bought in.

 

 

 

Publication date: 10/10/2019

Date of decision: 10/10/2019

Decided at meeting: 10/10/2019 - Cabinet

Accompanying Documents: