Agenda item

1.    Mr Streatfeild introduced this item as he had requested it be placed on the Scrutiny Committee agenda.  Five contract extensions had been discussed recently at the Adult Social Care Committee, with extensions ranging from 1-3 years and a total value of £1.5billion.  The decisions came to Cabinet Committee only three months before they were required to be extended.  During the process Cabinet Committee Members noted that they would have liked to have had sight of the extensions and options available before the deadline for the Cabinet Member to make the decision.   Mr Watkins empathised with the frustrations of Members over the timings of these decisions but confirmed that this did not affect the ability to make proposed savings. 

2.    Mr Ellis endorsed the previous comments that this was not a position the Council wanted to be in, additional controls had been put in place to ensure this did not happen again.  Progress had been made in making the best use of the contracts in place, maximising the use of the framework providers and negotiating fees for non-framework providers. 

3.    A Member asked whether the cost of care review had been completed and how long it was expected that consultants would remain in this role?  Mr Watkins confirmed that the initial findings had been released and this information could be made available.  The consultants were from 31ten Consulting, and the costs would be confirmed outside of the meeting.   

4.    In relation to the savings targets and whether they had been factored into these extensions Mr Watkins explained that £13million of savings were required per year, these 5 contracts did not disadvantage KCC in making these savings, the additional transformation savings in ASCH related to the MADE Strategy. 

5.    Members emphasised the importance of the timing issues around these contract extensions and that being left with short notice must not be repeated.  Mr Ellis confirmed that work was starting on future contract renewals with the initial stage being engaging with the people relying on the services, stakeholders, then detailed design work and commissioning and procurement being the final stage, a more detailed timetable would be made available.  Mr Watkins confirmed that a new team had been established within ASCH to undertake strategic commissioning on a partnership-based procurement model.  This had resulted in changes to the way services were commissioned, in addition a contract database provided transparency and the ability to view all contracts.  

6.    There had been overspending within the contracts and there was concern that the savings targets would not be met.  Mr Watkins and Mr Ellis explained that savings would be made by moving services onto framework rates and having discussions with non-framework providers around what is required to gain contracts with KCC and that is:  quality and cost.  Mr Smith commented that the frameworks were demand driven and it was essential that commissioning and operational colleagues worked closely together in conjunction with NHS colleagues to reduce demand for contracts.  

7.    The Chairman confirmed that he would discuss with the Opposition Group Spokespeople about further scrutiny of ASCH contracts.  This also linked with the important role the Scrutiny Committee had in monitoring the achievement of key savings and transformation over the coming financial year.  It was considered that 6 months would be a reasonable timescale for return to the Committee to review the relevant commissioning data and the impact on the budgets and care provided – this would be discussed with the Chair of the ASCH Cabinet Committee to ensure reporting was not duplicated.   

8.    The Chairman and Opposition Group Leaders will discuss with the ASCH Cabinet Committee Chairman how to and when to undertake further reporting on commissioning data, the impact on budgets and care provided. 

RESOLVED that the Committee note the information provided in relation to ASCH contract extensions.