It is more than a decade since the national framework contracts for independent fostering placements, children's residential placements and placements in special schools were first implemented. These contracts - endorsed by national sector organisations, children's services leaders and the then Department for Children, Schools and Families - provided a set of over-arching terms and conditions for out-of-home placements, as well as offering templates for various contract schedules including service specifications and individual placement agreements.
Although developed to facilitate greater standardisation of placement contracting and amended in the intervening period, these contracts have not been universally adopted. Most local authorities and consortia use a version of the documents that is heavily adapted to meet local needs, where indeed placements are governed by any contract at all. This means that nationally, placements commissioning is still heavily fragmented and the relationship between providers and commissioners can be a postcode lottery depending on local practice.
With national framework contracts reaching milestone anniversaries and placements commissioning devolving to an increasingly spot-purchase market, it is worth asking whether they are still fit for purpose, and if not, what would replace them?
This was the subject of a workshop held by the Local Government Association and Children's Cross-Regional Arrangements Group. Research into the state of the fostering and residential sectors in the last few years has advocated consolidating purchasing consortia into fewer, larger regional groups, as well as developing national arrangements: a national register of foster carers (Narey & Owers, 2018), a nationwide Dynamic Purchasing System for residential placements (The Independent Children's Homes Association, 2016) and a national outcomes framework (Narey, 2016).
However, many authorities and purchasing groups are now moving away from traditional framework contracts towards more dynamic arrangements; and some are including independent fostering, residential and semi-independent accommodation within the same tender to develop a smoother "pathway" approach between different types of provision. Most commissioners consider that their regional contracts are meeting local needs well; and with many of these projects at the start or in the middle of their contract term, there are concerns around the potential procurement, legal and relational impacts of implementing a new set of terms and conditions.
Systematic review
The national contracts are still considered to contain a number of beneficial elements, particularly with regard to pricing schedules and notice periods, and still form the basis of many local and regional arrangements. While they can certainly be improved upon, it is likely that a more systematic review is needed which places these contracts within a "post-framework" commissioning context, taking into account the impact of austerity on local authorities' purchasing practices as well as best practice in relational commissioning and financial management needed to enable provider growth and development.
If such contracts are to become national practice, two key areas need to be addressed: the extent to which they are locally adaptable -which is currently variable - and the regulatory framework under which such arrangements are monitored - which is currently non-existent.
One area of development could be a national set of terms and conditions for semi-independent accommodation placements for 16- to 18-year-olds leaving care. With increasing attention focusing on this type of provision, and a push towards regulation and improvement of quality standards coming both from local authorities and from some providers, it seems likely that some form of regulation is imminent. Commissioners are keen to play a role in developing national quality standards for the 16+ sector as well as drive practice in commissioning and procuring semi-independent accommodation. A suite of contract documents that sits within this regulatory framework and sets out the expectations on purchasers and providers would be welcome.
NATIONAL CONTRACTS: THREE KEY ISSUES FOR COMMISSIONERS
- There are precedents for national contracts that are widely accepted by the market. The NHS terms and conditions offer an "industry standard" of bilateral core terms and conditions, where commissioners can adapt certain clauses. However, whether implemented for independent fostering agency, residential, special school or 16+ placements, such a national framework will require oversight and regulation by central government to ensure the core contract is not altered.
- Placing authorities would need to consider the impact of standardisation on their commissioning practices - we are beginning to see a positive shift towards more relational commissioning, with purchasers working in closer partnership with providers. There is a risk that, by working more nationally, we may back-slide to traditional, transactional commissioning models in order to purchase at scale, and any such initiatives will need to have partnership working and relationship building as a central consideration.
- Commissioners also need to consider how contract terms and conditions will enable both financial efficiencies by keeping fees low, and providers' need for guaranteed income in order to grow and develop provision. There is scope for more detailed discussion on how such national contracts will manage questions of fixed-price agreements, pricing uplifts, volume discounts and soft-block purchasing.
Toni Badnall-Neill is senior commissioning officer for children's & public health, Bedford Borough Council
FURTHER READING
Foster Care in England, Martin Narey and Mark Owers, Crown Copyright, Feb 2018
ICHA Response to Narey Report, Independent Children's Homes Association, Nov 2016
Residential Care in England: Report of Sir Martin Narey's Independent Review of Children's Residential Care, Martin Narey, Crown Copyright, July 2016
