Domiciliary Care eAuction

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Domiciliary Care e-Auction
Lawrence Brazier Head of Procurement
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Procurement in Walsall

• Procurement team located in Children and Young
  Peoples 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

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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

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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

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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

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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

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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
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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.

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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

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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

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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

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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

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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

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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