Agenda item

The Committee to receive an update on the issue – Market Testing of Environmental Services (Briefing note attached)

Julie Seddon, Director for Environment and Culture, referred to the briefing note that had been circulated with the agenda recapping that it has been agreed to market test waste, grounds and street care.  It would be jointly market tested with Daventry District Council. The costs  of procurement is being   It was highlighted that this may or may not lead to a joint contract.  The current process is testing the market to see if the service could be delivered at a lower cost for a better standard, i.e. significantly better value, should this be the case it would be  recommended that the service is outsourced.

The project is now at the stage where a lot of responses to  the invitation to tender have been received.  Over twenty have expressed an interest.  Shortlisting will then take place  shortly .  From March to September 2010 competitive dialogue will take place  – talking to shortlisted bidders for service solutions, obtaining idea of costs, types of service they could deliver etc.  Throughout this process it is expected that some bidders will drop out.   It is expected that a decision to select a preferred bidder will be made around December 2010.  The process to enable any new contractor to mobilise the new service in March 2011 will then commence.

Julie Seddon confirmed that she would provide updates to future meetings of the Committee.

The Committee asked questions, heard and commented: -

·        The Committee suggested there was a need for Overview and Scrutiny to be involved in this process, for example pre-decision scrutiny would be helpful especially in the latter stages.  It was felt that pre-decision scrutiny would be most beneficial at the selection of the preferred bidder stage, looking at any risk involved etc It was further suggested that when the process enters into the competitive dialogue process, Overview and Scrutiny could become more involved. Julie Seddon confirmed that she would provide suggestions to the Chair how Overview and Scrutiny could become involved. The following Councillors expressed an interest in being involved in the pre-decision scrutiny process Councillors David Garlick, Keith Davies, Jane Hollis and Brendan Glynane.  It was suggested that the Overview and Scrutiny Management Committee be asked to consider this item of pre-decision scrutiny for inclusion onto its work programme 2010/2011.

·        In response to a query how it can be proved to those not involved in the process that it has been robust, Julie Seddon advised that there are two aspects – factual – how it is ensured that a good comparison is being made, and a reference case – description and cost and quality of service, which also allows you to predict into the future taking into consideration issues such as financial constraints.  When comparisons are made the recommendation will be put forward 

·        In response to a query how the service will be kept going forward and improving throughout the process, Julie Seddon advised that there is a need to transform the culture of the service, to increase staff morale and improve sickness levels etc. The service needs to be at the best it possibly can be when the comparison is made in order that it is a most meaningful comparison. 

·        The Committee heard that there are a huge amount of pitfalls when undertaking market-testing exercise.  It is the biggest procurement exercise this Council has ever undertaken. It is a big challenge.  There is a need to ensure that the right expert advice is provided and for there to be challenge.

·        Julie Seddon advised that she had not been able to identify another joint procurement, central Government supports joint procurement as it means best value for money. 

·        Daventry’s approach – In Julie Seddon’s opinion there had been  not as much  political challenge around Daventry’s approach to the process – it appeared to be more relaxed about the outsourcing of services.  It was suggested that it be recommended to the Overview and Scrutiny Management Committee that a member of its Scrutiny Committee be co-opted for the pre decision scrutiny of this issue.

AGREED: (1)That it be recommended to  the Overview and Scrutiny Management Committee that it be asked to consider this item of pre-decision scrutiny for inclusion onto its work programme 2010/2011.

                  (2) That it be recommended to the Overview and Scrutiny Management Committee that a member of its Scrutiny Committee be co opted for the pre decision scrutiny of this issue.

                   (3)That Overview and Scrutiny Committee 3 receive a progress report on this issue – Evaluating Ways of Delivering Neighbourhood Services at every meeting.