Agenda item

(To receive a report by the Executive Director for Children's Services which seeks approval of four recommendations concerning the Corporate Support Services Re-commissioning.

Note: Appendix 1 of this report contains exempt information and is not for publication by virtue of paragraphs 3 and 5 of part 1 of Schedule 12A of the Local Government Act 1972 as the Appendix contains information relating to the business affairs of the Council and information from Serco which has been provided to the Council on a confidential basis.  Discussion of this Appendix may result in the exclusion of the press and public)

That the Executive;

(1)  Approves the entering into a contract extension with Serco for a period of two years, with effect from 1^st April 2020 to 31^st March 2022 to include the following services:

·         Information Management Technology

·         Payroll

·         HR Administration

·         Customer Service Centre (CSC)

·         Exchequer Services and Adult Care Finance.

(2)  Approves the insourcing of the following services into the Council, with effect from the 1^st April 2019;

·         Mosaic technical development support

·         Freedom of Information , Complaints and Information Governance (including Subject Access Requests) administration

·          Agresso (also known as Business World On) System Administration (People Management).

(3)  Delegates to the Chief Executive in consultation with the Leader of the Council and Executive Councillor for Community Safety and People Management authority to take all decisions relating to the future commissioning or provision of Professional People Management services to the Council and to schools

(4)  Delegates to the Chief Executive authority to determine the final terms of the extension and insourcing referred to in paragraphs 1 and 2 above and approve the form and the entering into of all contractual and other documentation necessary to give effect to the said extension and insourcing in consultation with the Leader of the Council.

Consideration was given to a report by Sophie Reeve (Chief Commercial Officer) and Andrew McLean (Chief Commissioning Officer), which sought approval of four recommendations concerning the Corporate Support Services Re-commissioning. 

The Chief Commercial Officer presented the report to the Executive and in doing so advised that a review had been undertaken to consider possible alternative commissioning approaches to the existing Serco contract, as detailed in the report and in the background reports. 

The review work had included an assessment of the Serco contract extension proposal along with a consideration of how the Council's corporate centre could be more effective in supporting staff and front-line services.  In addition, further activity had been undertaken following the decision made by the Executive on 1 May 2018 on: carrying out the necessary due diligence and assurance of the potential Payroll/HR Admin service and ERP system solution with Hoople, along with market engagement with potential ICT suppliers.

It was highlighted that Serco's performance had improved and was currently performing well against contract measures.  An extension of the existing contract with Serco would provide continuity of services at a time when the Council needed to focus on stabilising and developing its ICT.  To pursue a procurement at the same time as carrying out this work would present unacceptable risks of failure while going to the market when existing issues had not yet been resolved. 

It was therefore recommended that the Council entered into a contract extension with Serco for a period of two years, with effect from 1 April 2020 to 31 March 2022 to include the following: Information Management Technology; Payroll; HR Administration; Customer Service Centre; and Exchequer Services and Adult Care Finance. 

The report also sought approval for the insourcing of the following services in the Council, with effect from 1 April 2019: Mosaic technical development support; Freedom of information, Complaints and Information; Governance (including Subject Access Requests) administration; Agresso (Business World On) System Administration (People Management).  These services would be integrated with the corresponding services within the County Council providing an integrated, agile function.

The Chairman of the Overview and Scrutiny Management Board advised that the Board had considered the Executive report on Corporate Support Services Re-commissioning at its meeting on 27 September 2018 and agreed to support the four recommendations to the Executive.  The comments of the Board were tabled at the meeting.

The Board agreed to pass on two specific comments to the Executive:

·         Fire and Rescue Payroll – There had been some reservations expressed about the performance of the existing contractor on Fire and Rescue payroll, as the previous contractor had not created a high error rate.  Fire and Rescue services operated under national conditions of service, and retained firefighters were not unique to Lincolnshire; and

·         Effective Partnership Working – The Board was advised that Serco's payroll error rate estimated from June data was 0.3%, which equated to about 14 individuals in that month.  The Board agreed that the Council needed to become an effective partner with the contractor.     

The Chairman of the Board also highlighted that many of the problems with Agresso had related to the way it had been set up, with some responsibility resting with the client side.  It was advised that a member of staff within the Council had now been allocated responsibility and ownership of Agresso.

The Chairman also highlighted the importance of prompt and accurate information being provided by the County Council to Serco. 

Further to the Board's comments in relation to Fire and Rescue Payroll, it was advised that the Executive Councillor for Community Safety and People Management would liaise with the Chairman of the Public Protection and Communities Scrutiny Committee to obtain further information.

The Executive reiterated the importance of the Council needing to focus on stabilising and developing its ICT and rebuilding Agresso.  To pursue a procurement at the same time would present unacceptable risks of failure when existing issues had not yet been resolved. 

RESOLVED

That the Executive;

(1)  Approves the entering into a contract extension with Serco for a period of two years, with effect from 1^st April 2020 to 31^st March 2022 to include the following services:

·         Information Management Technology

·         Payroll

·         HR Administration

·         Customer Service Centre (CSC)

·         Exchequer Services and Adult Care Finance.

(2)  Approves the insourcing of the following services into the Council, with effect from the 1^st April 2019;

·         Mosaic technical development support

·         Freedom of Information , Complaints and Information Governance (including Subject Access Requests) administration

·          Agresso (also known as Business World On) System Administration (People Management).

(3)  Delegates to the Chief Executive in consultation with the Leader of the Council and Executive Councillor for Community Safety and People Management authority to take all decisions relating to the future commissioning or provision of professional People Management services to the Council and to schools

(4)  Delegates to the Chief Executive authority to determine the final terms of the extension and insourcing referred to in paragraphs 1 and 2 above and approve the form and the entering into of all contractual and other documentation necessary to give effect to the said extension and insourcing in consultation with the Leader of the Council.