Procurement of Ernst and Young Officer taking decision: Director of People Date of decision : 01 November 2013

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1 ACTION TAKEN UNDER DELEGATED POWERS BY OFFICER Subject: Procurement of Ernst and Young Officer taking decision: Director of People Date of decision : 01 November 2013 Summary : This report describes the procurement process for an urgent piece of work which forms part of the s256 agreement and requests authorisation to award the contract to Ernst and Young initially for up to 32,000 with the option to comission further contract works up to the sum of 100,000. Officer Contributors : Karen Ahmed, Later Life Lead Commissioner Status (public or exempt): Public Wards affected : All Function of (Council/Executive) : Executive Enclosures : None Contact for further information: Karen Ahmed RELEVANT PREVIOUS DECISIONS

2 1.1 Barnet s Cabinet Resources Committee on the 2 nd March 2011 approved indicative service areas for investment of Section 256 (NHS Act 2006) monies and a set of criteria for supporting decision making in relation to the investment of the allocations. These criteria are set out below: Off set current cost pressures within adult social care experienced due to changes in the local health offer Mitigate the impact of agreed reductions in adult social care budgets Provide an opportunity to deliver overall efficiencies within the health and social care sectors and drive up quality Provide an opportunity to specifically manage hospital readmissions and the associated costs that often transfer to social care post discharge Provide an opportunity to support people living within their own homes or identified home environment to the benefit of the community. 1.2 This contract fully meets the above criteria. 1.3 The Health Act 2010 created a new statutory body the Health and Wellbeing Board from April This Board is the responsible authority for decision making with respect to s256 monies within the criteria specified by the CRC (see para 1.1). It has delegated the authority for decisions about spend to the Health and Wellbeing Finance Group. 1.4 The Health and Wellbeing Finance Group commissioned an urgent piece of work to design an integrated care pathway and allocated a budget to support this work. 2. CORPORATE PRIORITIES AND POLICY CONSIDERATIONS 2.1 The Corporate Plan includes the key outcome of supporting families and individuals to maintain and improve physical and mental health through a strong partnership with the NHS. 2.2 The development of an overarching strategic model of service delivery that effectively shapes future service direction and enables future spend of the s256 money to be assessed against how robustly proposed projects will deliver the framework against the criteria in paragraph The Council, through its membership of the Health and Wellbeing Board has signed up to a concordat which agrees a vision for integrated health and social care with partners. 3. RISK MANAGEMENT ISSUES 3.1 The contract with Ernst and Young will enable effective management of risk and the delivery of health and social care services that meet statutory responsibility within the context of a changing environment and shrinking resources across the system.

3 The contract will also support the delivery of work relating to the recently articulated changes in how future s256 money will be found and will need to be accounted for by the Health and Wellbeing Board to Government. Some of this money will be tied into payment by results. 3.2 The London Borough of Barnet and Barnet CCG must, through the Health and Wellbeing Board, agree a plan to be submitted for wider approval by the end of the financial year, relating to spend from April 2014 onwards. In addition plans need to be put into place to identify how future money relating to the Integration Transformation Fund from 2015 is released this money is currently tied up in existing services provided by both the Council and the CCG in respect of meeting statutory responsibilities. However, from 2015 onwards 3.8bm of existing money will need to be released to support an increase in the scale and pace of integration between health and social care. 3.3 The development of both national and local changes have rendered necessary sourcing an urgent piece of work to ensure that we have effective risk management strategies in place and good planning for the future or give rise to policy considerations. 3.4 I do not consider the issues involved are likely to raise significant levels of public concern or give rise to policy considerations. 4. EQUALITIES AND DIVERSITY ISSUES 4.1 Under current Equalities legislation the Council and all other organisations exercising public functions on its behalf are required, when exercising such functions, to have due regard to the need to: i) eliminate discrimination, harassment, victimisation, and any other conduct that is prohibited under the Equality Act 2010; ii) advance equality of opportunity between those with a protected characteristic and those without; iii) promote good relations between those with a protected characteristic and those without. 4.2 Having due regard means: (i) consciously thinking about the three aims as part of the decision-making process; (ii) that an incomplete or erroneous appreciation of the duties will mean that due regard has not been given to them; and (iii) that the duty must be exercised in substance, with rigour and with an open mind. 4.3 This duty, also, applies to a person, who is not a public authority but who exercises public functions and therefore must, in the exercise of those functions, have due regard to the general equality duty. This includes any organisation contracted by a local authority to provide services on its behalf. 4.4 The Council is committed to providing services which meet the diverse needs of all its residents regardless of any of the protected characteristics.

4 5. USE OF RESOURCES IMPLICATIONS (Finance, Procurement, Performance & Value for Money, Staffing, IT, Property, Sustainability) 5.1 Section 256 monies are monies released for the provision of social care services which will benefit health. These monies are held within the NHS and transferred to Local Authorities by way of an agreed section256 agreement. In Barnet it has been agreed that the responsible body for managing the s 256 budget is the Health and Wellbeing Board who have authorised the Health and Wellbeing Finance Group to spend against this budget within the criteria agreed by CRC. At the last Finance Group meeting, it was agreed to deploy funding from this budget to support this workstream. 5.2 Ernst and Young have committed to the development of a model, an options appraisal and a supporting business case for health and social care integration. The value of the contract for this piece of work will be up to 130,000. The funding for this contract will come from the s256 budget. 5.3 The contract will be monitored and managed throughout and regular reporting back to the Health and Wellbeing Finance Group has been built into the contract. 5.4 There are no Staffing, IT or Property issues. 6. LEGAL ISSUES 6.1 The terms and conditions of the contract will be those of Ernst and Young rather than the Council s. HB Public Law has approved their use in accordance with CPR CONSTITUTIONAL POWERS 7.1 Council Contract Procedure Rules section 7 and 8 outlines the procurement authorisation process and method. Section 8.3 states that the e-portal should be used for any tenders above 10,000. The turnaround time for procurement through the e-portal is relatively short usually around 2 weeks - in order for a specification to be responded to and bids evaluated. In this instance due to the urgency of timescales and the need for reports to inform key decisions in late September and October 2013, this turnaround time was too long. Quotes were therefore requested from Agilisys who currently support the delivery of integrated health and social care projects within the One Barnet programme. Unfortunately someway into the negotiations, they determined that were unable to deliver the required outcome within the timescale. 7.2 Whilst the integration of health and social care is the within the expertise of a small number of organisations, not every organisation has the capacity to respond to urgent requests and only Ernst and Young were able to submit a proposal and quote to deliver the service within the agreed timescales. 7.3 The authorisation of a retrospective waiver of CPR 8.3 is requested as outlined in section 7.1 of this report.

5 7.4 Acceptance thresholds for contracts are set out in Table A, Appendix 1 of these Contract Procurement Rules. A Director/Assistant Director can authorise contract awards for contracts with a value of up to 173, The value of the contract with Ernst and Young is within the acceptance threshold for a Director. 8. BACKGROUND INFORMATION 8.1 The London Borough of Barnet and Barnet CCG have jointly expressed significant local commitment to developing a shared approach to integrated care. As such a local concordat has been developed which reflects the patient centred approach articulated in the national concordat. Two spearhead projects are progressing well together with the development of a number of work streams on integrated pathways. 8.2 There are a number of significant local developments, namely the reconfiguration of acute services, and national changes, in particular the announcement of the Integration Transformation Fund both of which require an urgent stock take of where we are locally and an identification of what the key priorities are for both organisations as we seek to maintain the provision of key statutory services within the context of competing priorities and pressures. The Health and Wellbeing Finance Group agreed the procurement of resources to develop a local target operating model to inform decision against s256 spend and shape the direction of travel for the future. This piece of work is key to enabling both organisations to move forward in a co-ordinated way to meet the challenges of the future. 9. LIST OF BACKGROUND PAPERS 9.1 None 10. DECISION TAKER S STATEMENT 10.1 I have the required powers to make the decision documented in this report. I am responsible for the report s content and am satisfied that all relevant advice has been sought in the preparation of this report and that it is compliant with the decision making framework of the organisation which includes Constitution, Scheme of Delegation, Budget and Policy Framework and Legal issues including Equalities obligations. 11. OFFICER S DECISION I authorise the following action The retrospective waiver of CPR 8.3 to appoint Ernst and Young to carry out an urgent piece of work.

6 Signed Director for People Date 1 November 2013