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General requirements 5%Recruitment & management of agencies 5%Ordering of temporary agency workers & systemrequirementsService delivery & provision of temporary agencyworkersManaged service provider personnel & contractmanagementInvoicing & payment requirements 2%Regeneration & sustainability 4%Management information 4%Implementation 4%Total 40%All six suppliers appointed to the MSTAR framework set up by ESPO for Lot 1(b)submitted tenders, and following the tender evaluation process, Adecco were thehighest scoring tenderer and so were selected as the successful supplier.The details of the tenderers final scores and prices are contained in Appendix 1.3.11 There will be a cost to the Council of using the MSTAR framework contract.This charge is 2p per agency hour purchased, and is added to thesupplier’s hourly MSP fee. The total effect of this 2p charge is estimated at£7,718.00, based on historical agency staff usage.3.12 The current contract with Comensura expires on 8 th January 2013, and thisreport is recommending they be awarded an interim contract for 3 monthsbased on the same terms and conditions as the current arrangement. Thisis in order to allow sufficient time for Adecco to carry out theimplementation of the new service and migrate current temporary staff tothe new contract, and in particular to give sufficient time for negotiationswith existing temporary staff employing agencies, who will be required toagree terms with Adecco.4.0 Financial Implications4.1 The Council’s Contract Standing Orders state that contracts for suppliesand services exceeding £500k or works contracts exceeding £1million shallbe referred to the Executive for approval of the award of the contract.4.2 The estimated value of this contract is £11m per annum and will varydepending on the quantity of agency workers.4.3 The fee element of the current contract was £735,282.56 in 2011/12. Thisreflects the fee paid to the employing agency and the fee for theComensura service. The projected savings against these fee costs ereestimated at £212,966.51 per annum, based on 2011/12 agency staff6%6%4%\\cslsrv02.brent.gov.uk\ModernGov\Data\published\Intranet\C00000123\M00001898\AI00007948\$4rxw3aie.doc
usage. This is after the deduction of the MSTAR fee referred to in 3.11above.4.4 The cost of the contract will be funded from those service areas that useagency workers.4.5 There are no other associated costs of the contract.5.0 Legal Implications5.1 For the purpose of Contract Standing Orders, the value of this contract isthe estimated value that will be paid to Adecco for its own fees and those ofthe other agencies it uses over the lifetime of the contract. It does notinclude the pay to the temporary workers which are under separatecontracts and which are exempt from Contract Standing Orders by virtue ofa specific exception in paragraph 83(a) of Contract Standing Orders.5.2 The estimated value of this contract over its the lifetime is higher than theEU threshold for Services. However these services are classified as part Bservices under the Regulations and so the award of the contract is notgoverned by the Public Procurement Regulations apart from generalrequirements to be fair, transparent and non-discriminatory. The award issubject to the Council’s own Standing Orders in respect of High Valuecontracts and Financial Regulations.5.3 Where a contract proposed for award has been procured by calling off aframework set up by another body, there is no requirement under ContractStanding Orders for the submission of a pre-tender report to the Executive.Instead the proposal to use the particular framework has to be approved bythe Chief Officer, including confirmation that a budget is available, togetherwith confirmation from the Director of Legal and Procurement that use ofthe framework is legally permissible (SO 87(d)).5.4 For the proposed use of this framework, Chief Officer approval had beengiven. In addition, a report was submitted to the Director of Legal andProcurement detailing the process used to get to the stage of the jointappointment of Adecco by the consortium of London Boroughs asdescribed above. The appointment process used by the consortium ofLondon Boroughs was very unusual in that it operated more as aframework within a framework; ESPO had already set up the multi-supplierframework and Tower Hamlets then tendered a further single-supplierframework from one of the ESPO lots. The preferred approach would havebeen for the consortium of London boroughs to tender a joint contract fromthe ESPO framework, however there is insufficient certainty in theappointment process to say that this has happened. There is therefore atheoretical risk of challenge from one of the other Lot 1(b) providers aboutthe appointment process, however in view of the fact that services of thisnature are part B services, this risk is very low. In addition, (a) all the lot1(b) providers participated in the further competition exercise and (b) otherlocal authorities in the consortium have already awarded their individualcontracts without leading to a challenge. On this basis, the Director of Legal\\cslsrv02.brent.gov.uk\ModernGov\Data\published\Intranet\C00000123\M00001898\AI00007948\$4rxw3aie.doc
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