To approve the adoption of  the regional Flexible Contracting Arrangement (FCA) for the provision of placements for looked after children and those with complex needs in residential children's homes from 15 December 2018 to 14 December 2021 with option to extend for up to a further 3 years.

That:

(a)   the Regional Flexible Contracting Arrangement (FCA) for the provision of placements in children’s homes be adopted to support the purchasing of residential accommodation up to an annual value of £5.5m ;

(b)  the Director for Children’s and Families and relevant Assistant Directors  be authorised to take all necessary operational decisions to implement the above recommendation, including award of placement agreements and mini-block contracts through the FCA;

(c)  the Director for Children’s and Families  and relevant Assistant Directors  be further authorised to take all necessary operational decisions to spot-purchase placements outside the FCA should the need arise for individual children.

1.         Do nothing.  As there will be no framework or similar arrangements, Herefordshire will spot purchase all residential children’s home placements as and when required.  Although  spot purchase costs are higher than framework costs in some parts of the region, the FCA and spot prices expected to be paid by Herefordshire are broadly similar. However, spot purchasing can create an additional administrative pressure as a result of the additional pre-placement checks and contracting preparation. FCA providers will have already been subject to a regional evaluation and the same contractual terms and conditions, which would minimise the need for local checks and contracting arrangements

2.         Commission a Herefordshire only framework agreement.  This is not recommended as Herefordshire has relatively low purchasing powers in the residential children’s market.  It is more likely that lower costs can be achieved by working collaboratively with regional partners.

3.         Participate in a sub-regional residential children’s home framework. As all 14 Local Authorities / Trusts in the West Midlands have participated in the development and tendering of the FCA, it would be difficult to identify potential partners to support this process.

4.         For Herefordshire to procure a block contract or operate an in-house residential children’s home service.  These are service models that are being explored as potential opportunities for ensuring more children can be placed in Herefordshire when their needs require residential accommodation. Any proposals would be subject to a future governance decision. Assuming that Herefordshire did operate either a block contract or in-house residential provision however, there will continue to be a small number of children that would need to be placed under other arrangements, which the regional FCA would help to deliver.