FURTHER COMPETITION under ESPO FRAMEWORK 653F
for the provision of
Managed Services for Temporary Agency Resources to Portsmouth City Council
INVITATION TO TENDER
Closing date for tenders: 29 September 2014
Contract commencement date: 01 February 2015
CONTENTS
Section / Heading / Page No1. / Introduction and Background / 2
2. / The Requirement / 4
3. / The Procurement Process / 9
4. / Guidance Notes and Conditions of Tender / 16
5. / Preparation, Format and Submission of Tenders / 18
6. / Conditions of Contract / 19
RESPONSE DOCUMENTS
Response Document Number / Heading / Page No1. / Contact Details and Form of Tender * / 20
2. / Tendering Certificate * / 22
3. / Response to Specification* / 23
4. / Pricing Schedules*
(for completion by the Tenderer)
APPENDICES
Appendix / Heading / Page No1 / Service Delivery Evaluation Table / 37
2
3
4
5
6
7
8 / Price Evaluation Table
Portsmouth City Council Safeguarding and Compliance Processes
Spend Information
Required Skillsets
Draft Customer Agreement
Guidance for Tenderers
MSTAR Core Specification / 38
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1. INTRODUCTION AND BACKGROUND
1.1 The Definitions as applied in the MSTAR Framework invitation to tender will apply where referred to in this further competition tender document.
1.2 Portsmouth City Council is issuing this invitation to tender as a further competition under the established ESPO MSTAR Framework (reference 653F).
1.3 The duration of the contract will be three years with the option to extend for a further one year.
1.4 Portsmouth is a vibrant maritime city with a rich and internationally important historical past; it remains a major influence in the local and regional economy. Due to its siting on the east bank of the Solent Portsmouth is both a thriving community in its own right and a seaboard gateway for commercial, merchant and naval shipping. With a population of over 200,000 the City is one of the most densely populated areas in the country outside London, the PCC’s area of influence includes 22 conservation areas. The majority of the population is contained within the urban part of the City, which in general is bounded on three sides by waterfront.
1.5 Portsmouth PCC (PCC) provides a wide range of services for the people of the City. The work of PCC is subject to a process of continuous review, this encompasses a whole range of initiatives which have the sole purpose of increasing the level of quality and standard of service that the PCC provides to their residents.
1.6 Within PCC there is a clear understanding that it needs to continue to achieve measurable improvement at the point of delivery interface with residents. The initiatives that drive such improvement can only be successful with the support and improvement to the quality, service level, and commercial sustainability of the supply of goods and services, which in turn support PCC’s core functions.
1.7 PCC relies on temporary staff to fill resource gaps created by issues such as peaks and troughs in work loads, sickness, seasonal, inability to recruit skills shortage. Failure to appoint can have an adverse effect on the delivery of front line services. The current arrangements for the provision of temporary/permanent Staff and High Level Executive Interims, which form the subject of this Tender, consist of a number of framework contracts with multiple agencies which does not lend itself to meeting the increasingly demands of the need to generate savings and also legal compliance, process efficiencies, control and risk.
PCC is changing the method by which it appoints temporary staff from the current framework contracts to a vendor neutral managed service provider model. The successful supplier must generate cost savings and high quality candidates but at the same time maintain highest levels of compliance and business process re-engineering.
2. THE REQUIREMENT
2.1 GENERAL OVERVIEW
This mini competition is conducted under Lot 1a - Managed Service Provision for Corporate Staff Only - Supply Chain Management to be provided to Portsmouth City Council only. The objective of the tender exercise is to appoint a vendor neutral managed service provider who will work collaboratively with PCC to achieve the following:
· Cost savings of at least 10% on current spend
· Consistency of approach to filling temporary posts
· Competition across a wide supply base to provide the best qualified candidates at the right price
· Compliance with PCC procedures
· Consolidated management information
· Appointments filled in the specified timescales with qualified staff including hard to fill areas such as social care staff or IT specialist with Oracle skills.
· Reduction of temporary recruitment exercises by obtaining the right candidate first time.
· Integrated working relationship with effective communication
· Local sourcing
2.2 SPECIFICATION
The specification is the MSTAR Core Specification as supplemented by the additional requirements stated within this Clause 2.2 Specification.
2.2.1 'First Generation' Customer
PCC is a 'First Generation' customer and as such is expecting the successful supplier to generate significant savings over the course of the contract. Use of the Managed Service Provider will be mandated across the Council as far as is practicable.
Only in the event of the Managed Service Provider being unable to supply within the agreed timescales and where the requirement is statutory such as in Social Care would the Council seek an alternative.
2.2.2 Internal Agency
PCC have an Internal Agency which is the first port of call for all commercial and industrial temporary staff requirements. The PCC Internal Agency will continue in this role and the supplier will treat the Internal Agency as a priority supplier on their system. Only in the event that the Internal Agency cannot fill the position will supplier go to their supply base. It is the intention of PCC to grow the Internal Agency and open it to wider markets over the course of this contract and are looking to work with the Managed Service Provider to look at innovative ways to achieve this. For example:
· Payroll Service
Temps are currently paid monthly through our PCC payroll. The MSP could potentially be asked to process the internal agency staff payroll. The internal agency would be set up on the MSP system as a supplier and temp staff paid through the MSP.
2.2.3 Agency Worker Directive
PCC policy with regards to the Agency Worker Directive is to apply paid holiday after 12 weeks in post and to pay comparable salary to PCC staff where appropriate.
2.2.4 Local Business and Employment Initiative Work Programmes
The MSP will be expected to source locally wherever possible to increase the economic regeneration of the Portsmouth area.
The MSP will be expected to work with local Employment Initiative Work Programmes aimed at getting long term unemployed back into work.
2.2.5 Safeguarding and Compliance
The Managed Service Provider must comply with the Council's safeguarding and compliance processes. Detail of our current procedures and be found at Appendix 3.
2.2.6 Spend Information
In 2012/13 PCC spent approximately £2.5M on corporate temporary labour of which approximately £500K was off contract spend. In 2013/14, the spend on corporate temporary labour rose to approximately £3M.
Management information detailing job roles and hours for one year is provided at Appendix 4 so that the Managed Service Provider can build an accurate picture of compliant spend. Approximate values of off contract spend per agency for 2012/13 is also provided at Appendix 4
2.2.7 Required Skillsets
Role descriptions of the most common requirements and those that are hard to fill are included at Appendix 5. These role descriptions demonstrate the standards that are required by PCC for individual roles.
Areas that the Managed Service Provider will need to focus include:
§ Childrens Social Care
§ Adult Social Care
§ IT Professionals
§ EBS Oracle Financial
§ Legal and Finance
2.2.8 Existing Arrangements
PCC currently has 32 framework contracts in place which will be expiring on 31 January 2015. These frameworks are with the following contractors:
§ Advanced Resource Management (IT)
§ Air Social Care (Social Care)
§ Badenoch & Clark (Revenues & Benefits)
§ Brook Street UK (Administration)
§ Brook Street UK (Industrial)
§ Capita Resourcing (Housing)
§ CMA Financial Recruitment (Finance)
§ Eden Brown (Housing)
§ Hays Specialist Recruitment (Finance)
§ Hays Specialist Recruitment (Social Care)
§ Hays Specialist Recruitment (Housing)
§ Hays Specialist Recruitment (Civil Engineering)
§ Hays Specialist Recruitment (Property & Construction)
§ Hays Specialist Recruitment (Industrial)
§ Hays Specialist Recruitment (Teaching)
§ LA International Computer Consultants (IT)
§ Manpower UK (Administration)
§ Matchtech Group (Finance)
§ Matchtech Group (Civil Engineering)
§ Matchtech Group (Property & Construction)
§ Morecare Support Services (Social Care)
§ Office Angels (Administration)
§ PRN Staff (Social Care)
§ Randstad Care (Social Care)
§ Reed Finance (Human Resources)
§ Reed Finance (Teaching)
§ Sanctuary Personnel (Social Care)
§ Servoca Education (Teaching)
§ Staff 2000 (Social Care)
§ Staff Finder Agency (Industrial)
§ Step Teachers (Teaching)
§ Venn Group (Revenues & Benefits)
§ Wild Recruitment (Industrial)
2.2.8.1 Systems in Place to Support the Hiring of Temporary Labour
There are no IT systems in place to support the management of these contracts and all transactions are completed in paper format and managed via the Internal Agency or in some cases individual hiring managers. All timesheets, invoicing and reporting is done on an individual agency basis and therefore there is scope for savings in this area by a more consolidated approach.
2.2.8.2 Education
The Managed Service Provider will note that there are some teaching agencies mentioned in the list above but there has been very little take up of this service as the schools have preferred to use their own sourcing arrangements. It is possible that this may change in the future and PCC reserve the right to explore the addition of the teaching element at a later date if the need arises.
2.2.8.3 Off Contract Spend
There are a number of areas that currently attract off contract spend. Specifically these are:
· EBS Oracle Financial Staff
· IT professionals
· Childrens Social Care
· Legal
· Finance
The Managed Service Provider will be expected to work with PCC to reduce the amount of off contract spend by providing an exemplar service to meet requirements in these areas. Common agencies that are being used include:
· Air Social Care
· Elite Care Services
· Liquid Personnel Ltd
· Sellick Partnership Legal Ltd
· Somerset Care Ltd
· Vivid Resourcing
2.2.9 Hiring Managers
The PCC Contract Manager will work with the supplier to develop a definitive list of Hiring Managers and authorisers who will then be trained in the new procedures throughout the mobilisation period. Hiring Managers currently sit within the service areas and deal with recruitment on an as required basis.
2.2.10 Suppliers Personnel
The supplier will provide a dedicated account manager who will act as first point of contact for the day to day management of the service and a named deputy trained in PCCs organisational procedures. Any call centre arrangement is required to have a number of trained staff that are aware of PCCs organisational procedures however the dedicated account manager will be the main contact to enable a collaborative working relationship and understanding of PCCs requirements to be developed. The dedicated Account Manager shall not be changed without the agreement of PCC which shall not be unreasonably withheld.
2.3 CONTRACT PERFORMANCE REVIEWS
Initially the supplier will be required to attend monthly performance review meetings at Portsmouth Civic Offices and present monthly management information. Once the contract is embedded for a reasonable period these meetings may take place on a quarterly basis as agreed by the PCC Contract Manager and the Supplier.
The Supplier will send the appropriate personnel to each review with the Customer which will focus in detail on the service delivered to that Customer. Appropriate personnel is deemed to include but not be limited to the dedicated Account Manager for the service.
During the mobilisation period and the initial contract period it is likely that weekly meetings and a daily telephone update will be required until the PCC Contract Manager is satisfied that the contract is running smoothly.
For the avoidance of doubt, attendance at such meetings and telephone updates will be at no cost to the Customer.
2.4 MANAGEMENT INFORMATION
Management information shall be required by the nominated Contract Manager at the Customer. Management information should include the following in addition to Clause 12.11 of the core specification:
· Progress against target cost savings
· Performance against KPIs
· Up to date benchmarking of market rates and any changes in the market place that will impact PCC
· Issues to be resolved by PCC contract manager
· Continuous Improvement
and should be supplied five working days after the end of the each month or as agreed by the PCC Contract Manager. This management information will form the basis of the monthly contract review meeting.
For the avoidance of doubt, provision of management information will be at no cost to the Customer
2.5 QUESTIONS
All requests for clarification and/or additional information must be submitted via the correspondence tool within the PCC Procurement System In-Tend ensuring you identify which tender the correspondence relates to from the drop down list provided; failure to do so may result in a delay in response. Further guidance on correspondence and clarifications can be found via In-Tend under the Supplier Guidance tab and on the Council’s web site page:
http://www.portsmouth.gov.uk/business/10270.html
All questions will be recorded and forwarded to the appropriate person for a response.
A copy of all questions and answers will be maintained and distributed periodically to all recipients of the ITT.
If the tenderer expresses that the question is confidential and the Customer believes it is then the response to questions of a sensitive or confidential nature will be sent only to the Tenderer raising the question.
The Customer will endeavour to circulate a complete list of answers to all questions submitted by (up to and including) the date specified in Section 4.5 - Procurement Timetable. Queries received after this date may not be answered.