Issue details

Proposed decision:

Recommission the Contact Centre contract

Reason for the decision

The current contract reached its initial break clause in December 2022 and will come to an end in December 2025. Procurement law means that it is necessary to reconsider the Council’s options for telephony provision. Following a review of available options it was decided that the most financially viable option would be to go out to market.

Background – Provide brief additional context

-      The Contact Centre helps to support those who are unable to access our services online, who need urgent assistance or to help compliment the services we offer. Given this, telephony will continue to be part of the mix of KCC’s customer contact channels and the fact that some of the services offered are statutory. This enables those who cannot access our services online, those who have emergencies and those who require additional support to access our services.

-      There is still a need for a contact centre to ensure that most of the calls from members of public are dealt with at first point of contact, avoiding the use of service’s professional time, which means it is far more cost-effective due to the ability to multiskilled advisers and economies of scale.

-      The avoidance of duplication through one centre that handles all KCC calls, means that the customer journey is smoother, quality standards and customer experience is consistent, and the Council can achieve value for money in its service delivery.

-      This work is supported by the ambitions in the Council’s Framing Kent’s Future by offering seamless service delivery to our customers, residents and clients.

Options (other options considered but discarded)

-       Other options considered during this process were to reprocure, bring the provision back in house, or Direct Award to KCC’s local authority trading company (LATCO) or a hybrid of some of the options. The majority were either more expensive or were considered unviable after initial investigations.

How the proposed decision supports the Framing Kent's Future - Our Council Strategy 2022-2026

-      The location of the centre is to be determined pending tender responses but there may be options which favour or explore homeworking and hybrid solutions which will support Net Zero targets and reduce travelling.

-      By providing a telephony service, KCC will be acting on resident need, ensuring that those who truly cannot access KCC’s services by any other means can continue to do so by phone.

-      Whilst supporting those who can, to do so with a potential range of tools that have previously not been available through the Council’s contact centre. For example Web Chat, Chat Bots and Telephony AI (dependant on tender responses).

-      KCC will continue to support customers to access our services, ensuring that all are able to do so, whilst streamlining our processes to support our front line social workers and professionals.

How the proposed decision supports Securing Kent’s Future 2022 -2026: Securing Kents Future - Budget Recovery Strategy.pdf

-      In order to prioritise best value, and similarly to the current contract, the specification  has not been prescriptive with regards to the base of the company’s location, excepting that it must be within the UK to meet GDPR regulations.

-      As with the current contract, this may result in Home Working or Hybrid opportunities for staff employed in the centre, whilst reducing overall costs to the organisation.

-      This flexibility affords the Council the ability to reduce current costs as per its targets within the Medium Term Financial Plan, whilst still delivering a telephony service that supports customers both in-hours across a range of services and also out of hours in emergency scenarios.

-      The tender seeks providers who are able to implement service transformation opportunities to support KCC whilst driving down call volumes and costs overall. These tools will aim to help people in the most efficient way on their preferred channel. For example, web chat where customers may need online assistance.

Financial Implications

-       Overall contract costs for year 1 is expected to be no more than £2.5 million, negotiations will be held with potential providers as to the measure of increase for subsequent years.

-       Some minor elements of the current contract will be placed back within the services for long term efficiencies. Staff are likely be subject to TUPE.

-       We are seeking up to a 7 year contract term.

-       The estimated total value of the full term of the contract is likely to be between £17.5m and £20m subject to changes in demand and annual inflation pressures. Should call volume demand reduce significantly, the total value of the contract may decrease in line with contractual clauses on gain share.

-       The contract will be funded from existing budgets and represents a decrease of an agreed percentage on the current contract value as agreed in the Medium Term Financial Plan. 

-       Sufficient time is required for implementation and mobilisation to ensure that there is continuation of service. This is a complex operation to migrate and not providing enough time to complete all tasks risks either an interruption of service or a poor quality provision which could lead to the wrong advice being given to public that may lead to a claim.

-       At this time, there are unknown costs in relation to KCC pensions and TUPE of staff and these will be clarified during the procurement process.