Domiciliary Care e-Auction

1. Domiciliary Care e-Auction Lawrence Brazier Head of Procurement

2. Procurement in Walsall • Procurement team located in Children and Young People’s directorate • Devolved in the main • Small corporate core • Social Care procurement merged with corporate team to create wider knowledge base • Commissioners outside of procurement • Close working relationships developed with lead commissioners

3. Where we started from 2007 • Current contracts brought certain challenges around diversity of rates & number of providers • Budget pressure due to demographic growth from base level of 750,000 hours • Investigated the possibility of implementing a simplified price structure which gave procurement * Working relationship with incumbent providers through council led provider forums * Strong partnership with commissioning * Solutions evolved

4. Where need to be 2008 • Rates that allow us to work within budget • Joint tender with NHS Walsall for palliative care • Model that would bring stability and resilience of supply to Walsall • Able to meet the anticipated 800,000 care hours needed • Responsive to demographic and policy changes • Flexibility to work within the personalised budget agenda

5. The way forward • This was generated by the options appraisal process • Process allowed us to challenge ourselves as a council • Based on smart data from previous contracts • Sound knowledge of the market place • Mapping of needs both current and future

6. Procurement Strategy • Capped rate based on current rates and predicted volumes. • Zone working with multiple blocks of 20,000 or 30,000 hours per zone • Allow for spot purchases to manage variations • Assessment of supplier abilities to deliver • Previous work had reduced cost from high cost / volume providers • Quality levels incorporated - CSCI regulated

8. Contract distribution Block contracts awarded per annum: North Zone – 3 blocks x 30,000 hours block South Zone– 4 blocks x 30,000 hours block West Zone– 4 blocks x 30,000 hours block North-East Zone– 3 blocks x 30,000 hours block South East Zone– 2 blocks x 20,000 hours block

9. Procurement Process • Social Care a Part B Service • OJEU followed - Why ? Good practice – Robust process • Interviews to gain entry to e auction • Award of contracts not just on price • Established relationship with incumbent providers gave knowledge to interpret submissions.

10. Why an E auction? • E auction experience from successful furniture e auction • Allowed use of capped rate within e-Auction to reduce risks around affordability • To encourage further competition • Provides open and transparent process • Easier to manage than negotiated procedure

11. Preparing for the e auction • Incorporate into OJEU process • Used an OGC framework • Developed the auction structure in conjunction with e auction consultant • Worked with consultant to understand our services needs • E auction structure needed to manage number of bids • Training for both providers and internally

12. Did the market engage? • 17 out of 19 incumbent providers tendered • 29 Eligible submissions • 12 providers went forward to the e auction • 657 bids • 87 minutes of hectic activity • Bids submitted produced a further average 26p/hour reduction overall

13. e-Auction rules • Set rules in advance • Be clear on the reason for them • Explain to bidders – train them well • Enforce to all during the event – fairness • It can be frantic during the event

14. Outcomes • An appropriate number of suppliers who were awarded contracts to meet our needs • Quality of service assured through the process • Costs within our affordability envelope • Savings achieved through both the bid entry and e-Auction processes • Improved partnership working with NHS Walsall for this and future projects

15. Conclusion • E- Auction worked for Walsall • Not a substitute for good procurement practice • Quality aspects are integral part of the process • Will use the tool again in appropriate circumstances