Delivering services as a subcontractor (P1)

CHAIR:SHANE BRENNAN, CHIEF EXECUTIVE, STAYWELL

SPEAKER: LEE WHITEHEAD, BUSINESS DEVELOPER, 3SC

FACILITATOR:NICK DAVIES, PUBLIC SERVICES MANAGER, NCVO

P1: DELIVERING PUBLIC SERVICES AS A SUBCONTRACTOR

Focus on TR and supply chain development(risks, benefits and options)

Evolve – June 2015

15th June 2015

Overview

Focus on TR and supply chain development3

01 Large scale Government procurement - TR 04 Performance Management

and Risks

02

03

05

07

The role of Interserve and 3SC in Purple Futures

Service Delivery Structure and Model

Future Plan for 2015-16

DISCUSSION

06 A Provider’s View – P3 People Potential Possibilities

TR

4

- why / how ?

Planned since late 2012, went live late 2014

Market stewardship rules in the procurement

Prime and sub-contractor (VCSE) model

ISPAs and DOS

KPIs

Savings, efficiency and to reduce reoffending

Focus on TR and supply chain development

3SC:

• Third Sector Consortia Management – non-profit social enterprise LLP

• Win and manage public sector contracts on behalf of third sector organisations via aggregated supply chain method

• Use a consortium model – build supply chains of local third sector organisations which allow smaller third sector organisations to compete for and deliver large contracts

• ‘Enabler’ for the Third Sector

• Harnesses the power of the third sector in the delivery of public services – 4000 charitable members, 500 social landlords, 1000 social enterprises

• Manage the procurement process from start to end and then manage contracts to ensure high quality performance

• Third sector provide experienced local, passionate and mission driven organisations who can deliver effective outcomes

5 Focus on TR and supply chain development

What is Purple Futures?

Purple Futures is a new partnership of private sector, charities and social enterprise, which will be providing probation and rehabilitation services on behalf of the Ministry of Justice in five Contract Package Areas of the UK from February 2015:

– Cheshire & Greater Manchester– Hampshire & Isle of Wight– Humberside, Lincolnshire & North Yorkshire– Merseyside– West Yorkshire

• This represents almost 25% of the total Transforming Rehabilitation total contract value awarded by MoJ – c£600m over 7 years - and means Purple Futures is the largest single provider of these services.

• Interserve is the majority partner with 3SC, Shelter and P3, and the contract is a combination of a Fee for Service element together with Payment by Results, the later based on the effective reduction of reoffending.


Who are Interserve?

Engagement with VCSE

• One practical manifestation of this is our Charity Charter which from early 2014 has set out how we do business with the VCSE sector and what it should expect from us. The Charter has informed the basis on which the eventual TR contracts were constructed.

• We practise what we preach – Interserve employs more than 2,500 ex-offenders in its UK work force, and was a founder member of the ‘Ban the Box’ campaign which ensures that ex-offenders are not discriminated against in our recruitment processes.

• The TR contract is structured to ensure that the MoJ Market Stewardship principles are reflected in all elements that involved charitable organisations, hence the raft of acronyms such as ISPA etc

• In essence what this strives to ensure is that all smaller VCSE organisations are promoted within, treated fairly and are not subject to inappropriate risk or expectations. At the same time they are robust subcontracts with defined expectations of delivery.


Purple Futures and 3SC

• 3SC is a partner in Purple Futures

• MOJ emphasised intention for a high level of Local VCSE (Voluntary Community and Social Enterprise) sector involvement in the delivery of services for the TR Programme

• MOJ keen to see VCSE working alongside commercial/public partners in the delivery of rehabilitation services

• 3SC built a third sector supply chain submitted as part of the Interserve led bid


Role of 3SC in Purple Futures

• Develop a third sector supply chain and mobilise it in each area

• On contract go live assess and report the performance and quality of each partner in the supply chain in line with their individual ISPA

• Operate a supply chain refresh throughout the life of the contract – potential supplier database

• Provide support and build capacity of the members of the supply chain and potential supply chain

• Maintain a Directory of Services for each CRC – searchable database via service type/sector/location

• Sharing of best practice/developing innovative services


The Supply Chain

• Personalised communication and relationship building with all potential suppliers – invitations/presentations/Partner packs

• Due Diligence conducted with each partner to get into the supply chain

• Each partner in the supply chain has an ISPA with Interserve – volume and unit costs

• Each CRC has a team of local delivery managers and a data analyst

• 3SC Delivery Managers responsible for 8–10 Delivery Partners each - manage the performance of the third sector supply chain members


Performance Improvement Planning

• Weekly reports on progress/performance and weekly contact with suppliers

• Onsite Contract Performance Assessment meetings conducted monthly as a minimum – assess performance, quality and compliance

• Delivery Partners are required to perform within a 5% - 10% of target each month - 2 consecutive months below target will trigger a Performance Improvement Plan (PIP)

• Delivery Partners to produce PIP to improve performance - after 3 months options include: further PIP, additional improvement actions or contract termination


Work Plan for 2015-16-17

1. Review, make recommendations and impact assessment of existing suppliers in collaboration with CRC with priority for those contracts finishing now

2. Build supply chain of the prospective Schedule 6 suppliers – review DD, volume and price; contract with Interserve through ISPAs

3. Grow VCSE from 6% to 12% in supply by 2016 and then 18% by 2017.

4. Value-add – stopping serial inefficiency

5. Identify and map other local provision in CRC area – Local Authority; PCC; Community Safety Partnerships; Police and apply VCSE supply to them


More than just a supply chain!

• Directory of Services to help select the right interventions at the right time and place – holistic approach and simplify the process of identifying supplier options (cuts down waste and DNAs)

• Using the specialist skills and knowledge of the third sector coupled with other sectors’ support and finance to reduce offending – local experts

• Proactive support for existing third sector suppliers and build capacity of current and potential new suppliers of services

• Piloting innovation through work funded by social investors

• Mechanisms to identify evidence and sharing of best practice and what works in reducing offending


A Provider’s View – P3

• Social inclusion charity for 30 years

• Income over £20m per annum

• Homelessness, housing-related support, floating support, advice and drop-in centres, alternative education, youth services

• Link Worker services: intensive, personalised support for clients presenting with multiple, complex needs

• Tier 2 partner to Interserve, with 3SC and Shelter

• Over 2 years in the making ...


A Provider’s View – lessons

• Don’t cooperate unless it’s a last resort

• Stick to the knitting – don’t be tempted off/don’t get pushed off

• If we needed it, it wouldn’t have worked

• Communication – be active

• Keep charitable objectives in sight

• Fight for your brand integrity – we’re not Interserve ... but we’re not Interserve either

• Flexible and collegiate

• Don’t cooperate, collaborate


THANK YOU

[email protected]@[email protected]

Please remember to complete and hand in your evaluation forms

17

Government & Nonprofit

Delivering services as a subcontractor (P1)