Minutes:
The Chief Executive of Community Links Bromley, Mr Colin Maclean, attended the meeting to provide an update.
The Committee was briefed around issues concerning commissioning and contracting with the Voluntary, Community and Social Enterprise Sector over the last three years. Mr Maclean referenced the ‘Bromley Well’ contract which had been co-commissioned with Bromley CCG and won by Bromley Third Sector Enterprise.
Mr Maclean stated that there were several key learning points from the Bromley Well contract. The first of these was that LBB and the CCG used a staged process and a period of ‘competitive dialogue’ which had proved helpful. Another important issue was in respect of the Council’s contractual arrangements. The Council was now paying contracts monthly in arrears and this was a problem for smaller charities with a limited turnover and cash flow issues.
A significant problem for charities and the voluntary sector was the introduction of contracts incorporating a ‘Performance Bond’. This required considerable legal and financial costs, as well as posing significant risks. It was the case that many charities would not be able to meet the requirements of the Performance Bond. It was also the case that this was a practice that was not normally used across the voluntary sector nationally.
The Assistant Director for Governance and Contracts stated that Performance Bonds were typically required for higher value contracts (£200k or above). The Bromley Well contract was of a high value (£2.1M per annum) which was why a Performance Bond was applicable; but many voluntary sector contracts were for lower values and so Performance Bonds may not be an issue in many cases. In terms of procuring services from the voluntary sector, the Assistant Director for Governance and Contracts reminded the Committee of CPR 3.5.5 which allowed for a flexible approach to procurement from voluntary sector organisations, subject to Value for Money considerations. It was agreed that a briefing note on Voluntary Sector procurement in the Council would be presented to the next ER&C Committee and that the Chief Executive of Community Links Bromley should be invited to that meeting.
Mr Maclean explained the structure of Bromley Third Sector Enterprise and the Committee learned that the model was based on five core members and associate members; there were currently 23 associate members. Mr Maclean commented on best practice and learning from research. He referenced the work undertaken by ‘Collborate CIC’ which was an independent think tank working across all sectors to examine complex whole systems process and explore solutions. The Committee was informed that Bromley Third Sector Enterprise now existed as a Single Point of Access to the VCSE and its origins could be traced back to public sector commissioners in Bromley.
Members agreed that it was important to encourage the local sector to work and contract with the Council as it was mutually beneficial. It provided social and economic benefits all round and supported an ‘asset based’ approach. It was important to communicate effectively with the third sector so that they understood the implications around changes to Council policies. Mr Maclean praised the consultation that had taken place on ‘Ageing Well Bromley’ and said that it was an inclusive process that had been well received.
Mr Maclean referred to the contract that LBB had with Community Links Bromley. He mentioned that this was a short term contract which did not have much advance clarity. Because of this it was hard for Community Links Bromley to plan effectively and to deliver services pro-actively. He said that other Councils were moving such contracts onto a longer term footing. The example given in the report was Sutton Council who had just awarded a seven year contract to Community Action Sutton.
The ER&C PDS Chairman commented that a six month contract was unusual and was normally only applied when contracts were being aligned. He expressed an interest in working more closely with smaller organisations as they were more flexible to work with and involved less risk. It was important to promote working with smaller organisations. He also felt that it was important that LBB used flexibility in the way that it made payments to charities.
Members were appraised that the process of mapping the scale and extent of the Voluntary, Community and Social Enterprise Sector was becoming more systematic and purposeful. It was noted that the asset mapping work was due to be carried out again in the near future.
The Chairman commented that working with the CCG was not always straightforward and he wondered if Community Links could function as an intermediary between the CCG and LBB.
Mr Maclean stated that what was now required was a refresh process. Charities wanted to understand the direction of travel in the borough, and they wanted to understand the strategic view of the local authority.
A discussion took place around social prescribing and the need for better IT and databases for social prescribing purposes.
A Member stated that he welcomed the idea of LBB working more with small charities. He agreed that the Performance Bond should be waived and that LBB should be more flexible in terms of contract payments. He said that LBB should move away from a rigid procurement mindset. Another Member agreed and highlighted that policy decisions would need to be made. It was also suggested that in due course, Mr Maclean should present at a meeting of the Executive, Resources and Contracts PDS Committee.
Mention was made of Bromley and Croydon Womens’ Aid and the extraordinary work that they did.
RESOLVED that Colin Maclean be invited to attend the next meeting of the Executive, Resources and Contracts PDS Committee, and that a briefing note on voluntary sector contracts be presented to the Committee.