Agenda item

Report of the Deputy Chief Executive (People)

The Cabinet considered a report of the Deputy Chief Executive (People), that sought authorisation for the award of a new three year contract, with the option to extend for one further year, as a managed service for the supply of temporary agency workers commencing 4th June 2018 and expiring 3rd June 2022.

A corresponding private report detailing confidential aspects of the proposals was also submitted to the meeting for consideration

The Council currently had a contract for the supply of temporary agency workers which would expire on the 3rd June 2018.  This acted as a support contract if the Council’s first choice sourcing routes of employment from its casual working pool or fixed term appointments were unsuccessful in fulfilling temporary staffing vacancies. The current provider of this contract delivered a managed service provider (MSP) solution, which would be replicated for the new contract.

Due to the contract having no options to compliantly extend it further, Cabinet approval was awarded on the 4th October 2017 (minute 52/17 referred) for a new contract to be procured to ensure compliance with the Public Contract Regulations 2015. Both Coventry and Solihull MBC agreed to collaborate on the new contract, with Coventry leading the procurement.

A further competition had been completed through the Eastern Shires Purchasing Organisation (ESPO) Managed Services for Temporary Agency Resources (MSTAR2) national framework, used heavily by Local Authorities for their procurement route. The framework enabled a less resource intensive route to market whilst also allowing the Council to benefit from the competitive collaborated rates available through the framework. Benchmarking with other frameworks indicated that MSTAR2 would provide the most beneficial procurement route for the Councils.

Following the evaluation of the further competition it had been identified that Supplier A provided the most economically advantageous tender in line with the evaluation criteria set. Supplier A’s qualitative submission in particular indicated that the Council would receive significant benefits and savings to the contract by awarding to them.

The savings from Supplier A’s submission were clear throughout their comprehensive qualitative response, demonstrating Supplier A’s extensive supply chain that would allow them to fulfil a far greater number of requirements through the corporate contract without having to engage second tier suppliers.

Supplier A were clear that they intend to target and remove off contract spend at the Council, which would save the additional cost and resource currently lost through this. Supplier A’s submission was supported by examples of high fulfilment rates they had delivered at other Local Authorities, in areas the Council had existing off contract spend. These included social care, education, homelessness officers and drivers.

It was expected from the benefits proposed by Supplier A, that savings would be achieved.

RESOLVED that the Cabinet authorises the award of a new three year contract with the option to extend for one further year to Supplier A, as a managed service provider for the supply of temporary agency workers to commence from the 4th June 2018 and expire on the 3rd June 2022 (if extension is taken).