HERTFORDSHIRE COUNTY COUNCIL

HEALTH AND ADULT CARE CABINET PANEL

TUESDAY 31 JANUARY 2012 AT 1.00PM

ADULT SUBSTANCE MISUSE SERVICES

Report of the Director Health and Community Services

[Author: Sue McRitchie, Senior Commissioning Manager

Tel: 01438 843202]

Executive Member:Colette Wyatt-Lowe (Health and Adult Care)

1.Purpose of report

1.1To advise the Panel of the process and outcome in relation to the award of tender for adult substance misuse services in Hertfordshire, including criminal justice.

2.Summary

2.1The processes of the system re-design and tender have been carried out with the full involvement, at all stages, of stakeholders, including GPs and service users and carers. The process followed Hertfordshire County Council contract regulations and was carried out with due diligence with the successful bidder achieving the required outcomes of the service specification and providing best value.

2.2After following due process and correct procedure, as outlined above, CRI (Crime Reduction Initiatives) have been awarded the contract.

2.3The winning tender bid encapsulated the ambition, drive and change in attitude and approach which, in the opinion of the evaluators, offered Hertfordshire the greatest opportunity to achieve the demands of the recovery agenda. It is considered that the service will meet the needs of service users and carers and the requirements of the National Treatment Agency, whilst offering the experience of managing the significant changes required within provision to achieve a better outcome with fewer resources.

2.4The recommendation has been discussed and supported by the Joint Commissioning Partnership Executive, which includes representation from the three Clinical Commissioning Groups, and ratified by NHS Hertfordshire.

2.5All parties are in agreement with the process and method of selection to achieve the outcome.

3.Recommendation

3.1The Panel is invited to note the decision to award the contract to the preferred provider in partnership with NHS Hertfordshire.

4.Background

4.1The Drug & Alcohol Commissioning Strategy (2010 – 2015) set out the direction of travel for the Joint Commissioning Team. A central part of this was the re-design and re-commissioning of the treatment system in order that Hertfordshire would achieve its main aim:

‘To ensure that the community of Hertfordshire has a system of services accessible and available to respond to their needs.’

4.2This is especially important in the context of the emerging change of direction of national strategy towards recovery, and the necessity to achieve necessary efficiency savings and ensure best value for money.

4.3The process has been led through the Joint Commissioning Team (JCT) working in partnership with the County Community Safety Unit (CCSU) and reporting to the Strategic Commissioning Group (SCG) for drug and alcohol. The process has been conducted in accordance with Hertfordshire County Council procurement procedures, as the lead procuring agency.

4.4Both the commissioning strategy and the proposed system re-design were widely consulted upon, and a range of techniques were used to engage all stakeholders: especially service users and carers, local GPs, the Community Safety Partnerships, and existing service providers. The process was supported by a clear and comprehensive communication plan.

4.5The Invitation to Tender document indicated that the maximum annual value of the contract would be £8m. Clauses have been inserted into the contract to pass onto the provider any reductions in available funding – thus avoiding a financial risk to the Partnership.

4.6The contract is for 7 years, with a possible extension of up to 3 additional years, thus indicating Hertfordshire’s wish to establish a long term relationship with the providers. However, a ‘no fault’ clause has been included which indicates that the contract can be terminated at any time with a 12-month notice period. This has been agreed by the Strategic Health Authority and Department of Health.

4.7A clear and robust transition plan has been initiated and Crime Reduction Initiatives are working closely with existing providers, local referrers and the JCT to ensure that all necessary requirements relating to service user and staff transition are managed in an appropriate and timely fashion. This will include issues of property, data transfer, governance (clinical and corporate), HR and communications/marketing.

4.8A risk register has been established in regard to the transition and award of tender to the selected service provider and is available on request.

4.9The Equality Act 2010 requires the Council when exercising its functions to have due regard to the need to (a) eliminate discrimination, harassment, victimisation and other conduct prohibited under the Act; (b) advance equality of opportunity between persons who share a relevant protected characteristic and persons who do not share it and (c) foster good relations between persons who share a relevant protected characteristic and persons who do not share it. The protected characteristics under the Equalities Act 2010 are: race, disability, gender, age, sexual orientation, religious belief and pregnancy & maternity.

4.10 Members must be fully aware of, and have actively considered, the Council’s statutory obligations in relation to equalities. This will include paying close attention to any equalities impact assessment produced by officers.

4.11 An Equality Impact Assessment has been carried out as part of the re-tendering process, and is attached as Appendix 1.

4.12The annual budget of £8m is made up of funding from different partners, of which approximately 37% is funded from Primary Care Trust (PCT), 43% from the National Treatment Agency (NTA), 10% from Hertfordshire County Council (HCC) and 10% from Criminal Justice Partners.

4.13There are no additional financial implications arising from this proposal which are not managed within existing joint commissioning partnership budgets and there is no financial risk to the county.

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