Issue - decisions

10.1

The Acting Executive Director, Resources submitted a report in relation to the Corporate Statutory Servicing and Repairs (CSSR) Service – Delivery Options Post-March 2017.

10.2

RESOLVED: That Cabinet:-

(a)

approves the proposal in the report to insource the Corporate Buildings Statutory Servicing & Repairs Service from 1st April 2017;

(b)

gives its approval for the in-sourcing to be done based on the principles and assumptions described in section 9 of this report, and taking into account the risks and mitigations as set out in section 10, including the potential sub-contracting-out of a proportion of the service;

(c)

gives its approval for the budget required to cover the one-off implementation and set-up costs, as described in section 8.9 of this report;

(d)

notes that the Acting Executive Director, Resources, in consultation with the Cabinet Member for Finance and Resources and the Cabinet Member for Housing, shall ensure that all necessary steps to progress and implement the insourcing of the service are taken in accordance with his current delegations under the Leader’s Scheme of Delegations.  These steps may include:

·         At the appropriate time, commencing formal consultation with staff and Trade Unions regarding the transfer of staff from Kier into the Council (in consultation with the Director of Human Resources as necessary).

·         Developing the structure and agreeing the timescales needed to deliver an in-house corporate repairs service (in consultation with the Director of Human Resources as necessary).

·         Undertaking a more detailed assessment of which elements of the service are more appropriate to be contracted out, rather than directly delivered by the Council, and what the impact of this will be and how that will need to be managed (in consultation with the Director of Commercial Services and the Director of Human Resources as necessary).

·         Approving the procurement strategy and contract award, agreeing contract terms, entering into the contracts with appropriate contract management arrangements in line with the Council’s Intelligent Client model, for all necessary goods and services.  This will apply to both the development / implementation work required prior to the insourcing, and for in-house delivery of the service itself (including any elements of the service which it is agreed will be contracted out by the Council) once it is brought back into the Council (in consultation with the Director of Commercial Services and the Director of Legal and Governance as necessary).

·         Any other work required for the effective preparation for and implementation of the insourcing of the CSSR Service.

(e)

to the extent that the Acting Executive Director, Resources does not already have authority under the Leader’s Scheme of Delegation, delegates authority to the Acting Executive Director of Resources to approve the procurement strategy and contract award, and agree contract terms and enter into the contracts, for necessary goods and services (in consultation with the Director of Commercial Services and the Director of Legal and Governance as necessary);

(f)

notes that the Acting Executive Director, Resources will work with the Executive Director of Communities, who is responsible for insourcing the Housing Repairs and Maintenance Service, to explore potential efficiencies; and

(g)

requests that a further report is presented to Cabinet if the underlying strategy for the future of the Service cannot be achieved, or if any unforeseen significant risks emerge which may prompt Cabinet to re-consider its decision.

10.3

Reasons for Decision

10.3.1

Insourcing the Statutory Servicing and Repair Service will give the Council more control, flexibility and accountability in managing the Service, enabling the service to be fully integrated into the Council and to work in close partnership with other relevant key Council services.  This will help to ensure that the Service is delivered in a way which fully supports the Council’s corporate objectives and enables the Council to more easily make further changes in future.

10.3.2

Bringing the CSSR Service in-house for direct delivery by the Council will also help to bring about an alignment of culture in the Service to that of the Council, as well as its approach to customers.

10.3.3

Based on all information known to date, and after the initial upfront costs of transferring the service, the insourced option is expected to generate sustainable year-on-year revenue savings.  In addition, once fully integrated into the Council there will be further opportunities to reduce duplication and increase efficiency within the Service and by exploring the degree of joint-working possible with the HR&M Service potentially enabling it to improve outcomes within available budgets.

10.3.4

Insourcing also brings with it the potential to expand the service’s external-trading function, which already generates £700,000 - £800,000 revenue from work for schools. This could include undertaking statutory servicing and repairs work on behalf of other organisations, as well as increasing the amount of work done for schools. 

10.3.5

Directly delivering the service in-house, with some elements of it being outsourced to locally-based contractors wherever possible, would help support the concept of the ‘Sheffield Brand’.  Materials would be purchased from local suppliers wherever possible (subject of course to the usual procurement rules and Council policies), and the workforce would be predominantly local. The supply chain would also, where possible, be tailored to the bespoke needs of SCC Corporate Buildings to reduce material lead in times and improve service delivery.

10.3.6

Independent research by APSE (the Association for Public Service Excellence) has also identified a number of potential benefits of insourcing services, based on actual case-studies and local authority experiences:

·         Improved performance

·         Stronger links to corporate strategic objectives

·         Greater flexibility, and more responsive to local and national policy changes

·         Efficiency savings

·         Improved customer satisfaction

·         Enhanced local supply chains

·         Better integration and joining-up with other relevant key services

·         New development and employment opportunities for the workforce transferred in

10.3.7

There are of course risks associated with the option to insource the service (as indeed there are with the other alternative delivery options discussed in this report), and some of these risks are significant.  However, measures are and will continue to be in place to mitigate these risks, and if any of these risks significantly escalate, or any significant new risks (including financial ones) emerge, a further report would be brought back to Cabinet before progressing the transfer any further.

10.4

Alternatives Considered and Rejected

10.4.1

The alternative options were outlined in the report.

10.5

Any Interest Declared or Dispensation Granted

None

10.6

Reason for Exemption if Public/Press Excluded During Consideration

None

10.7

Respective Director Responsible for Implementation

Eugene Walker, Acting Executive Director, Resources

10.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

Overview and Scrutiny Management Committee