Decision details

To consider a report of the Executive Director of Children’s Services and learning outlining the approach being taken and recommending a delegation of authorisation to undertake all aspects of commissioning.

Southampton City Council is leading the collaborative commissioning of the Independent Fostering Agency (IFA) placements for 10 other authorities in the South East region.  The aims of the project are to:

• Reduce placement costs;
• Increase the number of local placements;
• increase the choice of placements available; and
• improve outcomes for children.

(i)  To appoint the organisations set out in Appendix 1 to the frameworks and to delegate to the Head of Legal, HR and Democratic Services, following consultation with the Executive Director for Children’s Services and Learning and the Head of Finance authority to enter into contractual arrangements with such organisations and to do all such ancillary activities as may be necessary to give effect to the proposals contained in this report.

(ii)  To delegate to the Executive Director for Children’s Services and Learning the authority to purchase Independent Fostering Agency placements via those Framework Contracts, where placements are bought at a pre-agreed price on a spot purchase basis as required.

1. The decision to go out to tender was based on the need to achieve better outcomes, improve choice and secure value for money in purchasing IFA placements.

2. A sub-regional collaborative approach to commissioning enabled Southampton to take advantage of increased scale, increased market power and transparency, and pooled commissioning capacity and capability.

3. Southampton City Council has a statutory requirement to meet the Sufficiency Duty placed on local authorities under 22 (G) of the Children Act 1989. It was recognised that a competitive tendering process would manage the market and ensure that the local placement needs of our children and young people could be met more effectively. 

Option 1 - Do nothing. This option was rejected, as the present arrangements are non-compliant and cannot be proven to obtain value for money.

Option 2 – Set up frameworks for Southampton as a stand-alone exercise.  This option was rejected, as analysis suggested that greater economies of scale, improved outcomes (e.g.; placement stability) and better value for money could be obtained through a collaborative procurement process with neighbouring authorities.