Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
Purpose: to award the contract
Cabinet considered the strategic director’s report on the procurement of corporate services. The corporate services project had commenced in April 2014, attracting three new district council partners (Hart, Havant Borough, and Mendip) in addition to the council’s existing partner, Vale of White Horse District Council. The project and associated procurement exercises set out to contribute directly to the following corporate objectives:
· the excellent delivery of key services, in particular high performing services
· the effective management of resources, in particular the councils continuing to work together to extend the sharing of services and resources, such as a shared client team and a private sector provider for a number of services
In addition to re-tendering revenues and benefits services that the council and the Vale had contracted out ten years ago, the five partner councils had also invited tenders for a range of services currently delivered by in-house teams:
Lot 1 (data based services)
Lot 2 (property based services)
Already contracted out services: council tax collection and council tax reduction scheme, business rate collection, housing benefit administration, payroll, provision of financial management system, accounts payable and accounts receivable, customer services (switchboard and reception)
The partner councils had agreed to carry out two simultaneous European Union (EU) procurement exercises using a competitive dialogue process. The project generated market interest with tenders being received and evaluated in late 2015. The report set out the results of the tender evaluation process and recommended how services could be delivered most cost effectively in future. The report recommended a nine year and two month contract term for South and Vale, with Capita being the preferred bidder for the Lot 1 contract, and Vinci being the preferred bidder for the Lot 2 contract. South and Vale would commence these contracts on 1 August 2016, whereas some of the other partner councils would commence their contracted services in 2017. Irrespective of different commencement dates for different councils, the contract expiry date for all five partner councils would be 30 September 2015.
The South and Vale Joint Scrutiny Committee had met on 21 January 2016 and supported the recommendations contained in the report.
Before the Cabinet meeting, both South Oxfordshire’s and the Vale of White Horse’s Cabinets met together informally to discuss the proposals, debate the options set out in the report, and consider reasons why options should be approved or rejected. The minutes of that informal meeting are appended to these minutes.
The strategic director’s report contained several appendices. Cabinet took into account appendices 6 to 10, which contained exempt information, but did not discuss these in the meeting. Therefore, the Cabinet meeting did not move into exempt session.
The Cabinet member with responsibility for this project moved the recommendations set out in the report, subject to two amendments (1) for the chief executive to consult the relevant Cabinet member on finalising the terms of reference of the joint committee, and (2) for the chief executive to consult the chairman of the scrutiny committee on finalising the terms of reference of the joint scrutiny committee. Cabinet agreed unanimously.
Cabinet recorded its appreciation to the officers for their work on the corporate services project.
(a) designate Capita as the preferred bidder for Lot 1 of the five councils’ new joint corporate services contract from 1 August 2016;
(b) designate Vinci as the preferred bidder for Lot 2 of the five councils’ new joint corporate services contract from 1 August 2016;
(c) authorise the strategic director for finance, in consultation with the relevant Cabinet member, to agree the final terms and complete the new corporate services contract documents, and authorise the head of legal and democratic services to enter into the contracts and any other necessary agreements;
(d) agree to enter into an inter-authority agreement with the four partner councils, substantially in the form attached as appendix 1 to the strategic director’s report, and authorise the chief executive, in consultation with the relevant Cabinet member, to finalise the terms of, and to enter into, the agreement;
(e) agree to set up a joint committee as set out in the inter-authority agreement and in accordance with the details set out in appendix 3 to the strategic director’s report and to authorise the chief executive, in consultation with the relevant Cabinet member, to finalise the terms of reference of the committee;
(f) agree to the establishment of a joint client-side team, based on the principles set out in appendix 2 to the strategic director’s report;
RECOMMEND to Council to:
(g) agree to establish a corporate services joint scrutiny committee in accordance with the draft terms of reference outlined in appendix 4 to the strategic director’s report;
(h) authorise the chief executive, in consultation with the chairman of South’s Scrutiny Committee, to finalise the terms of reference of the committee; and
(i) authorise the head of legal and democratic services to appoint members and substitutes to the committee in accordance with the wishes of the relevant group leader(s) and make consequential changes to the constitution.
Report author: Steve Bishop
Publication date: 09/02/2016
Date of decision: 28/01/2016
Decided at meeting: 28/01/2016 - Cabinet
Effective from: 06/02/2016