Issue - meetings

12.10pm

Frances Craven, Deputy Director for Education and Early Intervention, and Graham Shaw, Deputy Director – Oxfordshire Customer Services, will verbally update the Committee on the current situation regarding the externalisation proposals.

The attached report (ESC9) went before Cabinet on 15 October 2013.  The Committee are asked to consider how best to scrutinise this process and the timetabling of Children Education and Family proposals into the Working Plan for Committee.

The Committee heard from Frances Craven on the report previously circulated at page 105 of the agenda, that extensive briefing of staff, National Association of Head Teachers, Schools Forum and Oxfordshire Governors Association had been taking place.  Meetings for governors, schools business manager and bursars had also been held, so that everyone was up to speed in the context of spending reviews, and it was clear that the status quo could not be maintained.  Three issues had come to the fore as areas of concern:-

·                    Choice available;

·                    Flexibility of what was on offer;

·                    Timescales that users would be tied into.

A joint venture seems to be a positive way forward and outsourcing had not proved a popular option.  Schools are keen to be involved in the process and there was interest as to what a partner would bring to the venture.  It would be challenging to present the outcomes the Council are looking for.  A questionnaire had been sent out to schools seeking views in respect of outcomes, objectives and commitments and the results were due back by the end of December summarising the situation.

In discussion Committee noted that this was a sensible way forward, with soft testing a welcome partnership and evolutionary approach that was to be warmly encouraged.

Of the other counties that had already been through this process, Committee heard from Andrew Ball, Programme Manager, that Devon had been outsourced 18 months ago, Surrey 10 years ago and Staffordshire recently.  Outcomes showed that academies had engaged in buy-backs from all services.  In the three ventures looked at Councils had engaged schools as almost partners and there had been high buy-back levels, which were very strong.

Some Councillors noted their support for this approach, and it was mentioned in discussion as being positive that the status quo was not seen as sustainable.  However, the process depended on the quality of the service offered to schools and it was discussed that sponsored academies don’t buy back into services.  If corporate care was joined to the services offered thereby expanding the base of services offered, this may provide a better quality vision.  Andrew Ball confirmed that the providers were in dialogue, and the Payroll Services were seen as essential.

Cabinet Member: Deputy Leader

Forward Plan Ref: 2013/125

Contact: Andy Ball, Programme Manager Tel: (01865) 323744

Report by Deputy Director for Environment & Economy – Oxfordshire Customer Services (CA8).

Following the completion of soft market testing, this paper is intended to update Cabinet on the outcomes and to consider recommendations for the future direction of Oxfordshire Customer Services (OCS) and Children, Education and Families (CEF) services.

The Cabinet is requested to endorse the following recommendations:

(a)              a single major procurement exercise with multiple lots should be undertaken, commencing January 2014 to address the following requirements:

(i)           a fully outsourced service to replace existing back office Corporate facing HR and Finance Back office services;

(ii)         a joint venture with a national private provider OR another public sector provider to cover school back office, Schools and Learning and Foundation Years support from April 2015 –subject to (3) below;

(iii)       skills and learning requirements should be sourced locally if possible but otherwise we should seek a joint venture with a national provider;

(b)              ICT should continue as an in-house service with the expectation that work to re-shape ICT will continue and thereby, ultimately, the majority of the service requirements will be commissioned;

(c)               final decisions about schools back office and CEF services should be taken in December after there has been an opportunity during the Autumn to shape proposals with Headteachers, Governors, Schools Forum and other stakeholders. Proposals should include arrangements for school representatives to participate directly in the major procurement exercise to begin in January 2014;

(d)              trust options for the future of the Music Service should be considered in consultation with stakeholders during the Autumn with a proposed direction of travel  to be considered by Cabinet in December;

(e)              The remaining in-house delivery to meet the Council’s own skills/learning needs should cease and all future requirements should be commissioned as necessary;

(f)                discussion should be opened now with local Oxfordshire providers first with a view to externalising qualification based learning and to determine the future of the remaining skills and learning provision.

Cabinet had before them a report (CA8), which following the completion of soft market testing, updated Cabinet on the outcomes and outlined recommendations for the future direction of Oxfordshire Customer Services (OCS) and Children, Education and Families (CEF) services.

Councillor John Christie, Opposition Deputy Leader welcomed the development since the last report for proposals for joint ventures rather than outsourcing for school services. He also welcomed the involvement of schools particularly in regard to recommendation (c) concerning the direct participation of schools in the procurement exercise in January .  However, he expressed concern regarding the fully outsourced back office services, in particular savings realised and quality of contracts, asking that the Cabinet provide a full examination and justification of the proposals to Scrutiny before any decisions were taken because to date insufficient details had been provided.

The Deputy Leader agreed that there would need to be a full justification for the proposals but indicated that soft market testing process had confirmed the level of savings achievable and that there would be market interest.

RESOLVED:  to endorse the following recommendations:

(a)               a single major procurement exercise with multiple lots should be undertaken, commencing January 2014 to address the following requirements:

(i)           a fully outsourced service to replace existing back office Corporate facing HR and Finance Back office services;

(ii)         a joint venture with a national private provider OR another public sector provider to cover school back office, Schools and Learning and Foundation Years support from April 2015 –subject to (3) below;

(iii)       skills and learning requirements should be sourced locally if possible but otherwise we should seek a joint venture with a national provider;

(b)               ICT should continue as an in-house service with the expectation that work to re-shape ICT will continue and thereby, ultimately, the majority of the service requirements will be commissioned;

(c)               final decisions about schools back office and CEF services should be taken in December after there has been an opportunity during the Autumn to shape proposals with Headteachers, Governors, Schools Forum and other stakeholders. Proposals should include arrangements for school representatives to participate directly in the major procurement exercise to begin in January 2014;

(d)               trust options for the future of the Music Service should be considered in consultation with stakeholders during the Autumn with a proposed direction of travel  to be considered by Cabinet in December;

(e)               The remaining in-house delivery to meet the Council’s own skills/learning needs should cease and all future requirements should be commissioned as necessary;

(f)                 discussion should be opened now with local Oxfordshire providers first with a view to externalising qualification based learning and to determine the future of the remaining skills and learning provision.