Page 5. The Adult Social Services and Health Committee. The Strategic Director of Adult Social Services, Housing and Health

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1 Page 5 Agenda Item 5 Report to: The Adult Social Services and Health Committee Date: 20 th November 2012 Report of: The Strategic Director of Adult Social Services, Housing and Health Ward Location: All Author(s) and Contact Phone Number(s): Malcolm Hepplewhite Alan Grierson Judy Lowe x4519 Area Served: All Chair of the Committee: Cllr Colin Stears Report title: Mental Health Rehabilitation Support Service Delegation of Authority for Award of Contract Summary This report sets out progress in the transfer of the in-house support service provided at Hillcroome Road to a new provider from the independent sector following a formal tender process, compliant with competition requirements in Council Contract Standing Orders. The report provides an update of the remodelling of the support service, gives details of the tender process and outcome of the tender and makes recommendations for the award of a contract for the delivery of a Mental Health Rehabilitation Support service. The report also describes future arrangements to meet the housing support and care needs of residents at Harrow Road. Recommendations I recommend that the Committee: 1. Notes the contents of the report, the actions completed and the proposals for ensuring appropriate support services are available for Hillcroome and Harrow Road residents; 2. Authorises the Strategic Director of Adult Social Services, Housing and Health, in conjunction with the Executive Head of Legal and Democratic Services, to appoint the organisation detailed in Appendix 1.

2 Agenda Item 5 Page 6 Background Documents and Previous Decisions Report to The Executive, July 5th 2011 Transforming Lives - Tendering out In House Services Provided for People with Mental Health Needs at Hillcroome Road and Harrow Road (Item 7b) Tender submissions and documentation are stored securely and confidentially on the London Tenders portal, the Council s electronic tendering system. Signed: Strategic Director Adult Social Services and Housing Date: 8 th November Background 1.1 In July 2011, The Executive received a report on the proposals for Hillcroome and Harrow Road services, currently delivered in-house, which clearly set out the purpose, rationale and benefits of externalising support services for adults with mental health needs in Sutton. 1.2 The decision to externalise the support service at Hillcroome Road, and the subsequent actions to implement this agreed approach as outlines in this report, have direct positive impacts on all of the Council s core values: Partnership Professionals (such as social workers, health professionals), service users and providers working together to deliver positive outcomes for vulnerable adults in Sutton; Respect Open and accessible services which meet citizens assessed needs, promote rehabilitation and operate from the basis of dignity and respect; Innovative Co-production, with tendering activity actively involved Service Users, demonstrating good commissioning practice. Diversity Ensuring services are accessible and responsive to people in all protected groups and in particular recognise the needs and contributions of people with mental health needs. Empowering Citizens to take an active role in shaping services to meet their assessed needs in conjunction with social work professionals and other partners.

3 Page 7 Agenda Item The Mental Health Rehabilitation Support Service tender further demonstrates Adult Social Services, Housing & Health s (ASSHH) commissioning-led approach to services which is in line with the Smarter Council programme and the Commissioning Framework. 2. Issues Service re-modelling - future arrangements for housing and support 2.1 Following the decision by The Executive agreed to proceed with the externalisation of the support services for Hillcroome and Harrow Road residents, the support service at Hillcroome has been reviewed to ensure it fits within the new social care landscape and contributes to the Transforming Social Care agenda. A revised service specification has been agreed, which has re-ablement as an underpinning core principle, and a renewed emphasis on focussed, time limited rehabilitation and on enabling people to move to settled accommodation at the earliest opportunity. 2.2 The service will be available to people assessed as having a social care need and will provide a transition stage for people moving from institutional care settings (registered residential care as well as hospital) into permanent homes of their own. People will not necessarily stay at Hillcroome until they are ready to live independently - those with longer term support needs will move to their own accommodation as soon as possible and then continue to receive self directed support through a Personal Budget or Direct Payment from a provider or personal assistant of their choice. 2.3 A tender process has been undertaken to identify an appropriately qualified and experienced provider organisation to deliver this specialist service (details below). 2.4 It has been agreed that support for Harrow Road residents will not be included in the same service specification and tender process as Hillcroome. Current residents at Harrow Road have been living in the property on a long term basis, as their permanent home. The individuals concerned do not require the intensive rehabilitative approach developed for Hillcroome and their housing support needs can be appropriately catered for through one of the Council s current external housing support providers. Any residents assessed as being eligible for social care support from the Council will receive additional support as required on an individual basis. Currently one Harrow Road resident is eligible and in receipt of social care services through a personalised support plan. 2.5 Separation of housing and support is fundamental in maintaining the rights of citizens with mental health needs. To achieve this, officers are working with the Council s ALMO, Sutton Housing Partnership (SHP) who will fulfil the landlord role at both Hillcroome and Harrow Road and then work in partnership with the external support providers through agreed protocols.

4 Agenda Item 5 Page 8 Hillcroome Rehabilitation Support Service - Tender Process and Submissions 2.6 The use of a two stage tender process is consistent with best practice recommended by the Audit Commission, compliant with European Union requirements and meets the requirements of Council Standing Orders. 2.7 The tender process has been managed through the London Tenders (ProContract) electronic tendering portal, the Council s preferred method for advertising and managing contract opportunities. Providers were issued with detailed guidance including an outcomes-focused specification for the types of services the Council intended to commission through the Mental Health Rehabilitation Support Service tender. 2.8 The beginning of the tender process, an invitation for providers to submit a Pre- Qualification Questionnaire (PQQ), was advertised through the tender portal. Providers had four weeks to complete the PQQ which required them to submit details about their organisation and experience. Thirteen (13) providers submitted a PQQ. 2.9 Following assessment of the PQQs, nine (9) providers were shortlisted for invitation to tender. The Invitation to Tender (ITT) involved providers submitting more detailed information about how they would deliver services which met the specification and proposed prices. Two (2) ITTs were received by the deadline for submission and accepted. Evaluation of Tenders 2.10 The Evaluation Panel consisted of a Service Manager, a Team Manager from the Adults & Safeguarding team, and officers from the ASSHH Commissioning and Contracts & Procurement teams. In addition, an independent Service User organisation - Sutton Mental Health Service User Commissioning Advisory Group - contributed to the evaluation process throughout (see 6.3 for more details) Tenders were evaluated with a weighting of 60% on quality and 40% on price. The weighting of quality and price was openly published in the tender documentation. The Evaluation Panel used agreed criteria to evaluate the tenders, and evaluation guidance was provided to all evaluators to ensure consistency of approach In addition to their written submissions, tenderers attended an interview with the full tender panel to give a presentation on delivery and quality issues and to respond to clarification questions. Tenderers also attended a second interview with members of the commissioning and contracts teams to further clarify their financial proposals.

5 Page 9 Agenda Item At the end of the evaluation process, scores were checked for consistency and fairness The Evaluation Panel is confident that the recommended provider has demonstrated the knowledge and capability to ensure that Sutton citizens will be effectively supported in a manner that promotes recovery, builds resilience and enables people to move to their own accommodation The organisation detailed in Appendix 1 was assessed as offering the best combination of quality and cost to supply value for money and high quality services. Through a rigorous selection process the selected provider has demonstrated: A track record in delivering relevant services; The capacity and expertise to provide high quality focussed and time limited rehabilitation support services for vulnerable adults with mental health needs; Commitment to constructive working relationships with statutory services (social work and health) as partners and with the Council as service commissioners; Experience of managing TUPE transfers; Experience of managing properties and working in partnership with a landlord; Value for money. Human Resources implications 2.16 The current staff team that support Hillcoome and Harrow Road residents (together with Union representatives) were made aware in July 2011 of the Council s decision to externalise the service, with regular updates on progress since this time. Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) would apply on the basis that there is a service provision (entity) and there is a dedicated team of staff employed whose main purpose is the provision of the service involved. When the service transfers to a new provider, TUPE regulations will protect their terms and conditions of staff at the point of transfer. There are ten staff (8.72 WTE) working in the service at Hillcroome and Harrow Road and the analysis carried out showed that all ten team members currently employed by the Council spend more than 50% of their time working at Hillcroome Tenderers were advised that in the Council s opinion, TUPE would apply to all Council staff currently providing support at both Hillcroome and Harrow Roads. Information about the terms and conditions of the staff potentially affected was included in the tender documentation If the decision is taken by the Committee to proceed with the recommendations, staff, recognised trade unions and the Employee Side Secretary will be formally notified and formal consultation on any TUPE measures proposed by the new provider will be factored into the process prior to the transfer. Consultation with residents

6 Agenda Item 5 Page Hillcroome residents are aware of the Council s plans to externalise the support service and the current in-house provider service managers are able to provide residents with further information as appropriate. The impact on those individuals should be minimal as it will be the management of the service that will change - support will still be delivered by the same staff team For Harrow Road residents, there will be a more significant change as they will no longer be supported by the current staff team. It was agreed to commence discussions with these residents and, if they wish, their representatives or advocates when officers were confident that an appropriate provider for Hillcroome could be identified and the intended plans were nearing implementation. This work will start in November Options Considered 3.1 The Mental Health Rehabilitation Support Service tender was conducted in line with Council Standing Orders and European Union procurement regulations - no alternative was considered. 4. Recommendations It is recommended that the Adult Social Services and Health Committee: 4.1 Notes the contents of the report and the actions completed; 4.2 Authorises the Strategic Director of Adult Social Services, Housing and Health, in conjunction with the Executive Head of Legal and Democratic Services, to appoint the organisation listed in Appendix Impacts and Implications: 5.1. Core impacts: Financial The tender for the Rehabilitation Support Service for Hillcroome includes the TUPE transfer of the full in-house team currently delivering support services at both Hillcroome and Harrow Roads. Tenderers have therefore needed to incorporate all the costs of this team in their tender price To facilitate a successful tender and subsequent service transfer, all funding currently identified in the Council s budget to meet the costs of the support services provided by the in-house team has been reserved for the purchase of an externalised Rehabilitation Support Service at Hillcroome.

7 Page 11 Agenda Item The tendered price for the new contract, based on delivery by 100% TUPE staff, exceeds the current budget by 21,000 per annum. This additional sum can be met from elsewhere within the Adults and Safeguarding budget The higher price is still considered to offer value for money as the new service model will enable more people with mental health needs, including those currently living in institutional care settings, to move to a home of their own. The annual price is also expected to reduce over the lifetime of the contract as the proportion of service delivered by TUPE staff decreases through normal staff turnover, transferred staff with TUPE terms and conditions leave the service and the provider appoints new staff The cost of future arrangements for Harrow Road residents to receive housing support from an external provider will be met from the housing support budget managed by the Executive Head of Community Living and Strategic Commissioning. Social care services for Harrow Road residents, where required, will continue to be provided from the Adults and Safeguarding budget. Legal As there is no actual change in the service being provided at Hillcroome, the consultation with residents as outlined at paragraph 2.19 above is appropriate Reductions in the annual price of the contract relating to reductions in staffing costs cannot be guaranteed in respect of the transferred staff whose terms and conditions of employment would be subject to TUPE protection. Whilst under current legislation the ability to change the terms and conditions of transferred staff can be quite limited, a reduction in future staffing costs and so annual price would be possible in respect any non transferred staff. Community (including safety, localism, public health) The personalisation of social care services delivers outcomes that are consistent with Sutton s Core values giving individuals greater freedom, choice and control over their care as active citizens. Enabling people to move from institutional settings into settled accommodation creates more inclusive communities and allows the individual both to benefit from and contribute to local social capital. One Planet Living Prospective providers have been required through the tender process to demonstrate an understanding of sustainability issues pertinent to their services and an understanding of, and compliance with, the Council s environmental policy. Equality Impact Assessment Updated Equalities Impact Assessment included as Appendix 2 Risk

8 Agenda Item 5 Page The Mental Health Rehabilitation Support Service tender is a contracting mechanism for a service providing care and support to vulnerable adults. The service will be critical to the health and wellbeing of vulnerable Sutton citizens and the consequences of poor quality provision would therefore be inherently higher than many other services commissioned by the Council. For this reason the procurement has been weighted on quality (60%) to ensure that the recommended provider has a demonstrable track record of delivering similar services and robust systems in place to manage the service effectively and meet the stringent requirements of the specification Up to ten Council employees will have TUPE rights. To ensure the Council is able to carrying out its responsibilities as an employer, tenderers were required to demonstrate previous experience of managing a TUPE transition and an understanding of good practice. The financial clarification referred to in section 2.10 above included a check that tenderers were aware of and had made provision for the TUPE transfer. The Council s Human Resources team will be involved throughout the transition period to ensure a successful transfer Full financial checks have been undertaken as part of the tender process to ensure that the risk of business failure and the impact of this on vulnerable citizens and the Council is minimised Regular reviews will take place with the provider to ensure that prices are adjusted downwards to reflect any reduction in the percentage of service delivered by staff with TUPE terms and conditions The successful provider will be monitored on contract compliance and effective service delivery throughout the duration of the contract by the ASSHH Contracts and Procurement team, in partnership with the Social Work team as microcommissioners. Particular attention will be paid to monitoring the number of people benefitting from the service and service users length of stay to ensure value for money through the most effective use of this specialist resource ASSHH takes a robust and proactive approach to address under-performance in order to ensure citizens receive the quality of service they are entitled to expect, reducing the risks from poor quality provision. Procurement This tender exercise was conducted through the Council s electronic tendering portal. Sections 2.6 to 2.13 (above) give more details of the tender process. 6. Consultation

9 Page 13 Agenda Item A market information event was held in September 2011, attended by twenty-one representatives from sixteen provider organisations. The context and details of the current service provision and the Council s future intentions were presented by the Executive Head of Adults & Safeguarding with support from the Service Manager (Mental Health Social Work team) and representatives from Human Resources and the contracts and commissioning teams. 6.2 Providers were given the opportunity to ask questions of key officers and engaged fully with this process. Some areas suggested for review and these were used to further refine the specification and tender documentation. 6.3 The Sutton Mental Health Service User Commissioning Advisory Group has been a key partner in co-producing the revised service specification, tender questions, topic for presentations and evaluation guidance. In addition, members of the Commissioning Advisory Group were part of the tenderer interview panel and worked with other panel members to ask follow up questions, evaluate the presentations given and agree scores. The Sutton Mental Health Service User Commissioning Advisory Group has highlighted this approach as good practice and we will seek to use it for future commissioning activity. 7. Timetable for Implementation Key Milestones: Hillcroome Road Award of Rehabilitation support service contract: December 2012 Transition & TUPE arrangements for support service: Jan to March 2013 SHP to take over role as landlord: January 2013 Support service transfer: April 2013 Harrow Road New support arrangements in place: January 2013 SHP to take over role as landlord: January Appendices Appendix 1 Details of successful tenderer (see separate confidential document) Appendix 2 Equalities Impact Assessment (attached)

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