Purpose

A Key Decision report, effective from 27
September 2024, was made to continue participating in the Joint Out
of Hours (OOH) Partnership with Ealing Council as the Lead
Authority. This decision involved evaluating tenders for a contract
for an Out of Hours Joint Telephone Handling Service. A
comprehensive competitive dialogue procurement process was
conducted, examining all commercial and technical
aspects.

Decision

To award a contract of up to 7 years (5+1+1)
to the preferred supplier, Capita Business Services Ltd, following
the conclusion of a detailed and thorough competitive dialogue
procurement, which investigated all commercial and technical
aspects, at a total cost to the Council over the 7-year term
estimated at £1,102,500. (£147,000 per annum paid to
the supplier, plus, £10,500 cost per annum paid to the Lead
Authority).
 

Reasons for the decision

Due to the success of the service,
all the participating organisations wish to continue with a similar
arrangement.

 

Standard Selection Questionnaires
(SQ) with capability questions were received from six
suppliers.

 

No SQs were rejected although one
supplier had to “self- clean”. As per the published
evaluation scheme, the four highest scoring submissions were
invited to participate in dialogue.

 

Four suppliers were shortlisted for
an invitation to participate in the dialogue process. Two suppliers
withdrew before the dialogue commenced, and one supplier withdrew
after the first week of dialogue. Capita successfully completed the
dialogue and submitted a tender, which was evaluated as included in
Appendix 1.

 

Alternative options considered

Insourcing
 
1.    
If the Council or another Participating Organisation wanted to
insource the service, it would likely split the arrangement as each
public body aims to show social value locally. This is challenging
due to Transfer of Undertakings (Protection of Employment)
Regulations 2006 (TUPE) potentially applying to current
home-working staff, and home working being the future approach
(most staff currently reside near Sheffield).A split in the
arrangements would drastically reduce efficiency. Currently, 38
staff (about 17 to 18 Full Time Equivalents (FTE)) work for Capita
Business Services. Capita is contractually obligated to pay the
National Living Wage. Although these workers are not based in
Ealing or London, the joint service supports skilled employment for
a fair wage.
 
2.    
Any division in the arrangements would significantly lower
efficiency. At historic prices, an OOH service provided
individually in-house could cost approximately £700,000 per
year, compared to up to £250,000 per year for a typical
Participating Organisation under the current outsourced joint
arrangement, depending on call volumes.The costs associated with
the comprehensive IT support service would become impractical
without being shared.
 
3.    
Given that the services provided are crucial for the support and
welfare of residents, it is not feasible to compromise on the
quality of operations (such as by not utilising the software or
reducing performance) in order to
achieve cost savings.
 
Framework
Agreement
 
4.    
This option would be restricted to a four-year term, and
establishing a framework with the current arrangements involving
Participating Organisations would pose significant challenges.
 
5.    
A framework agreement allows user organisations to access services
flexibly, joining or leaving as they choose. This contrasts with
the partnership's goal of a stable, long-term arrangement with many
participating organisations sharing costs equitably. While
additional legal drafting could address some risks, the current
joint arrangement meets business needs. Moreover, the Public
Contracts Regulations 2015 (under which this procurement was
undertaken, due to the opportunity being published prior to Monday,
24th February 2025) limit framework agreements to 4
years unless capital investment is planned, which is uncertain at
this time.
 
Dynamic Purchasing
System (DPS)
 
6.    
Dynamic purchasing systems can last over 4 years, but they are
challenging to set up, similar to
framework options. Additionally, DPSs rely on periodic re-pricing
of consumables rather than a long-term service model. Due to high
setup costs, a DPS wouldn't enable the strategic supplier to
recover their fixed expenses.
 
Do Nothing
 
7.    
It is imperative to renew the contract to ensure the continuance of
this essential service. Therefore, a "do nothing" option is not
viable in this scenario.
 
Procurement by
Ealing Council as a central purchasing body and lead authority
 
8.    
This option is the most suitable for the arrangements as it allows
a term of 5 years with an option to extend for an additional 2
years. It also accommodates new participants, which can result in
reduced costs and increased efficiencies for all involved
parties.
 
9.    
There is significant
potential to expand the service in the following areas which will
enable cost reductions and service efficiency through:

Expanding the take-up of the OOH service by public
sector organisations across the UK.
The development and enhancement of the service
itself, for example by improved use of technology.
Enable more joiners nationally.

 
10. 
The procurement document includes bid back discounts for calls if
volumes exceed two thresholds. There is no proposal to extend the
service to daytime call handling. However, it will be used for
backup and business continuity purposes.