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

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domiciliary care e auction

Domiciliary Care e-Auction

Lawrence Brazier

Head of Procurement

procurement in walsall
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
where we started from 2007
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

where need to be 2008
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
the way forward
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
procurement strategy
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
contract distribution
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

procurement process
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.
why an e auction
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
preparing for the e auction
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
did the market engage
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
e auction rules
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
outcomes
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
conclusion
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
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