Review of regional purchasing systems

There are four regional purchasing systems operated by NWADCS on behalf of the North West authorities, these date back to 2009 for the first regional residential contract. As of June 2024, these four purchasing systems include 362 providers in total and 3623 children were living in homes purchased via these arrangements. 

The planned contract end dates were January 2028 for Residential, March 2028 for Fostering, February 2031 for SEND and October 2031 for Supported Accommodation.  

As a result in changes in the operating context we are reviewing all four arrangements together to support: 

• Reduced duplication in procurement activity across the region
• Improved transparency and oversight
• Better understanding of sufficiency Improved approach to pricing and uplifts
• Local and sub regional collaboration.

Two consultation sessions completed:

• 41 people attended representing 20 authorities; Blackburn with Darwen, Bolton, Halton and Trafford not represented at the session but provided input later.
• 82 provider representatives attended with a mix across types of settings including residential, fostering, supported accommodation, SEND schools and colleges and Alternative Provision.

Local authority session summary: 

• There is significant support for continuing to work as a regional collaboration.
• Authorities are largely happy with the overarching principles of the purchasing systems and dissatisfaction mainly links to contractual details that cause operational issues.
• Key considerations are uplifts; pricing and being able to work with local providers.
• Authorities voted unanimously in favour of new regional purchasing arrangements. 

Provider session summary: 

• 77% of providers voted to retain some form of regional commissioning arrangements.
• Providers feedback largely reflected operational challenges around working with local authorities and inconsistency in approaches.
• It was widely agreed that the current arrangements didn’t adequately reflect changes in context, primarily in relation to higher levels of presenting needs.

Following these sessions a paper went to NWADCS who approved:

• Progression of developing proposals for new regional purchasing arrangements.
• Securing external procurement advice to support the work. 

Two consultations sessions held with 170 attendees across both and 30 feedback forms submitted. 

Update 

• Research into commissioning practice from within the region and other areas.
• Distilled learning into a range of options that have been reviewed by commissioners.
• Work with an external legal advisor to better understand opportunities and challenges in working under new legislation.
• Internal discussions around securing a lead authority to deliver the procurement. 

Whilst provider input is important in directing discussion in coming design stages we are not in a position to finalise any decisions at this stage.

We are pleased that following strategic approval from the 24 North West authorities to progress new contracts work will now begin on developing the new arrangements. This will include working closely with the Greater Manchester Regional Care Co-operative and the emerging Cheshire Merseyside Regional Care Co-operative to provide a cohesive approach. 

This will include:

• Planning for regional resourcing of the contract management and associated workstreams. 
• Working with providers and authorities to develop the contracts. 
• Implementing governance arrangements. 

Provider engagement in the process to date has been supportive in identifying key areas of focus and giving indications around direction of these development stages. We welcome input from providers from across services and proactive contact if you come across ideas or practice we can learn from. Any questions or input can be sent to placementsnorthwest@stockport.gov.uk. 

Further communication will be coming over the summer as we progress this work. Any providers not on the current regional purchasing systems who want to be kept up to date with this work can email us on the above address to be added to mailing lists.