NATIONAL FOSTERING CONTRACT BEST PRACTICE GUIDANCE ... · 4 Policy context, key frameworks and...

Using the National Fostering Contract

(Scotland)

Best Practice Guidance for Purchasers

and Providers

CONSULTATIVE DRAFT

Best Practice Guidance: Using the National Fostering Framework Contract (Scotland)

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CONTENTS

Section Detail Page 1 Purpose of guidance 2 2 Why the guidance was developed 2 3 How to use the guidance 2 4 Policy context, key frameworks and wider initiatives 3

5 Introduction to the contract 4 6 Overview of main contract terms & conditions 5

7 Using good practice 8 7.1 Key principles 8

7.2 Achieving best practice - the process 10 7.3 Prepare – achieve understanding 11

7.4 Plan – achieve clarity 13

7.5 Deliver – achieve outcomes 15 7.6 Review – achieve quality 20

7.7 Discussion points 21 7.8 Further recommendations 24


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1. Purpose of the guidance This guidance is provided to assist local authorities (purchasers) and registered

fostering providers (providers) to achieve best practice when using the contract (hereafter referred to as ‘the contract’) in Scotland. It defines a set of key principles which should be applied to the purchase of foster care services from independent fostering providers, and aims to ensure that the best possible placement care results from the use of the contract. It sets out the legislative and regulatory requirements which apply to foster care procurement activity and considers policy and practice at key stages in the process. 2. Why the guidance has been developed

This guidance has been developed as a result of the work of the contract Steering Group in consultation with both Local Authority and Registered Fostering Providers and other key stakeholders with an interest in foster care, including foster carers

themselves. The role of the Fostering Network in drafting and consulting upon the guidance was subject to financial support by the Scottish Government as part of the Fostering Networks National Recruitment & Retention Pilot Project in 2010. It has been developed in recognition that foster care procurement requires special

consideration within a Council’s overall approach to the procurement of goods, works and services, and that the communication and understanding of roles and responsibilities between the purchaser and provider are key considerations in achieving

the best placements outcomes Foster care procurement has a significant impact on the quality of life, health and

well being of looked after children in Scotland. In order to achieve the best outcomes for this group, it is essential that views expressed about their needs and wishes are considered in the development of procurement strategies and as an

integral part of the procurement process. 3. How to use the guidance The guidance provides advice on how to achieve the best results when using the contract for the purchase of foster care places. It outlines the legislative and policy context for foster care procurement, details the principles which must govern all foster care procurement activity and provides an overview of both contractual and best practice requirements. As explained above, the guidance provides assistance with ensuring best practice is

achieved in foster care procurement in Scotland; it is not intended to be a step-by-step guide.

Each local authority is responsible for reviewing its foster care procurement policy and procedures to ensure consistency with the guidance.

Councils will continue to have considerable discretion about the approach adopted in individual situations. This discretion should be exercised with due consideration to the requirements of the foster care procurement principles outlined in Section 7.1


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4. Policy Context, Key Frameworks and Wider Initiatives:

The National Performance Framework commits the entire public sector to working to achieve the Scottish Government’s Purpose: a more successful Scotland, with

opportunities for all to flourish, through increasing sustainable economic growth. This is supported by nine Purpose targets, which highlight what delivery of the purpose means, and 15 National Outcomes. Progress is also tested using a set of 45 National Indicators. Three national outcomes are particularly pertinent to children and young people: • our young people are successful learners, confident individuals, effective contributors and responsible citizens; • our children have the best start in life and are ready to succeed; and • we have improved the life chances for children, young people and families at risk. The contract requires providers to deliver services in accordance with the principles of

Getting it Right for Every Child (GIRFEC), the national programme that aims to improve outcomes for all children and young people in Scotland, and GIRFEC – Moving Forward in Kinship and Foster Care, which looks more specifically at looked after

children cared for by foster carers or kinship carers. Providers are expected to provide high quality, outcome focussed services that support looked after children to:

• become effective life-long learners; • develop into successful, responsible adults;

• be emotionally, mentally, and physically healthy; • feel safe and nurtured in a home setting

A wide range of policy, practitioner frameworks and wider initiatives are relevant in addressing the needs of looked after children in Scotland. Those noted below are those most relevant in the context of the contract:

Policy context: Key frameworks:

• Looked After Children (Scotland) Regulations 2009 • Protection of Vulnerable Groups (Scotland) Act 2007 • The Protection of Children Act (Scotland) 2003 • The Regulation of Care (Scotland) Act 2001 • The Social Work (Scotland) Act 1968 • The Children (Scotland) Act 1995 • The Adoption and Children (Scotland) Act 2007 • The Education (Scotland) Act 1980 (as amended) • The UN Convention on the Rights of the Child 1990 • The European convention on Human Rights

(translated into UK Law through the Human Rights

Act 1998)

• Getting it Right for Every Child (GIRFEC)

• GIRFEC - Moving Forward in Kinship and Foster Care

• We Can and Must do Better • These are our Bairns • Early Years Framework • Achieving our Potential • Equally Well

Wider Initiatives with a significant role in addressing the needs of looked

after children:

• More Choices More Chances

• Children's Hearings (Scotland) Bill 2010 • Improving Workforce Development


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5. Introduction to the contract:

The contract is comprised of the main Terms and Conditions plus a further four schedules.

The Terms and Conditions set out the contractual agreement between the purchaser

and provider, and makes clear the obligations upon both purchaser and provider and also covers compliance issues. Schedule 1: The Contract Specification sets out the required baseline for delivery of services to looked after children that are efficient and effective. The Specification seeks to develop a culture of outcome focussed intervention in line with the principles detailed in “Getting it Right for Every Child”. Schedule 2: The Service Delivery and Outcomes Monitoring schedule addresses the overall effectiveness of the provider in fulfilling the requirements of the Terms and conditions and the Service Specification using key performance indicators

Schedule 3: The Individual Placement Agreement (IPA) details the agreed provisions for each individual looked after child including any additional services required above core, and also the expected outcomes required for the child.

Schedule 4: The Core Cost Specification makes clear the agreed core cost for each placement and details additional and/or extra care costs which have been agreed between purchaser and provider

This guidance seeks to ensure that over and above the achievement of base line measures, the contractual agreement and documentation in place between the purchaser and provider reflects a thorough assessment of the needs of each looked

after child that is conducted and agreed in writing before the placement begins unless the child requires to be placed immediately. This early assessment should enable the best possible matching of child and carers and in this way the most positive outcomes

for looked after children can be achieved in placement purchasing situations.


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6. Overview of main Contract Terms & Conditions

This section of the guidance aims to provide an “at a glance” summary and overview of the sections within the Terms and Conditions of the contract as a

quick reference to staff involved in contract delivery. It in no way negates the requirements for parties to the contract to be fully conversant with the legal and contractual implications therein. A. Registration of the Provider and Statutory Compliance

Clarifies requirement for the provider organisation in terms of compliance with Care Commission registration requirements and legislative frameworks and notes that purchaser can terminate the agreement if any associated conditions on registration are not met.

This section also details the reporting requirements of the provider in the case of impositions by the Care commission during the term of the contract.

It also commits the provider to ensure that both they and their foster carers comply with all relevant legislative and regulatory requirements, e.g., the 2009 Regulations, the National Care Standards (NCS), and the Fostering Code of Practice.

Providers are advised to ensure that their staff and carers are equipped with the relevant level of training and information in relation to how these various legislative

frameworks affect their role in the placement process.

B. Referrals and Matching

Clarifies contractual requirements related to assessment and approval of foster carers and reinforces the process requirements outlined in the 2009 Regulations and NCS, and requires providers to have robust assessment procedures and

processes. This section also details issues around de-registration and re-registration of

foster carers and clarifies that copies of Foster Care Agreements must be provided, without which payment for services will not be made.

The requirements expected in relation to matching and referrals are outlined in this section and makes reference to the various information requirements which need to be in place prior to matching.

Providers are advised to ensure that copies of assessment procedures and processes and Foster Care Agreements are easily available and that they are fully up to date and

compliant with the relevant NCS (in the case of assessment procedures and processes) and 2009 Regulations Reg. 24 Schedule 6 (in the case of the Foster Care Agreement)


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C. The Service / Placement

This section considers requirements for the Individual Placement Agreement (IPA) and variations to same, and details the requirements in relation to

delivering the IPA. This section also makes reference to additional services and the conditions under which placement reviews should take place. Any other factors affecting the placement are also included in this section, e.g., consideration of a Permanence Orders; transfer of carers; absences; recruitment & selection of staff; disclosure requirements; reporting and notifiable events and contract management and monitoring arrangements; performance indicators and data collection timescales etc.

In many respects, from a practice perspective this is the key element of the terms and conditions and is where the contract aims to ensure quality and effective management

of placements.

D. Financial Arrangements

This section looks at price and in the main refers to the Core Cost Specification agreed and the services covered in the IPA.

It also outlines the conditions of annual price reviews and stipulates the time

frame within which reviews should take place.

It is essential that providers have considered fairness to carers when compiling the core costs specification, and have negotiated on fair terms for carers in relation to

issues such as travel distance expectations etc)

E. Expiry and Termination of IPAs and Breaches of Contract

Covers terminations of contract (automatic and otherwise) and include detail on breaches of contract situations and termination of agreement circumstances

(including notice periods).

The contract is a legally binding agreement and both purchases and provider should

always have had the relevant legal input before entering into any such agreement.

F. The Contractual Arrangements

Covers sub contracting, assignment and change of control issues, including written consents required and notification requirements.

Also covers best value requirements, required indemnity and insurance provisions, and waivers.

Both purchaser and provider should be aware that the provisions of the Contracts (Rights of Third Parties) Act 1999 are excluded from this agreement.


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G. Protection of information

This section covers data protection and information requirements, clarifies the expressions used (as per the Data Protection Act 1998, and also clarifies

confidentiality issues in relation information obtained in relation to the

purchaser and the child.

This section also covers Freedom of Information obligations and specifies

media and audit requirements.

Providers should note that although the Purchaser is the data controller in respect

of the Child’s information, the storage and use of the Child’s information on the

providers part requires to be compliant with the Seventh Data Protection Principle, "Appropriate technical and organisational measures should be taken against

unauthorised or unlawful processing, accidental loss or destruction of, or damage

to, personal data”, i.e., as though the provider were the data controller.

H. Legislation and further Statutory Compliance

The contract throughout requires that both purchaser and provider operate

in line with the range of policy and legislative frameworks relevant to Social Work Services and Looked After Children regulations (as outlined in Section

4), and Regulation of Care Act (2001) requirement that provider does not

operate ‘for profit’. These statutory obligations, including those related to the rights of the child, are referred to in this section.

It also covers termination of contract issues in relation to the providers inability to meet the terms and conditions, including fundamental breaches

of agreement, insolvency events, force majeure and business continuity.

Providers should note that whilst reference as an act of good practice in section

7.5, the provision of a Business Continuity Plan is contractually required to be

provided on request.

I. Disputes and Law

This section covers the actions to be taken in the resolution of disputes, including acceptable response times, requirements to participate in mediation

for both parties and referral to arbitration, and the provision of assistance in legal proceedings.

This contract agreement is governed by the Law of Scotland. Providers who

provide services on a UK basis with an operational arm in Scotland should be aware that the contract binds them to the exclusive jurisdiction of the Scottish

Courts.


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7. Using good practice when purchasing / providing via the contract: This section outlines good practice guidance in relation to the purchasing and

placement provision process. It is based around the inputs of the membership of the contract Steering Group, as well as on the Fostering Networks Code of Practice on the recruitment, assessment, approval, training, management and support of foster carers in Scotland. 7.1 Key Principles: Procurement – general:

All procurement should be subject to competition: A competitive process provides

the purchaser with the best opportunity to procure the goods or services with value for money. There may be valid exceptions to this principle, due to the nature of the requirement. All procurement should be conducted on a value for money basis: Value for money

includes both whole life costs and quality.

Sustainability issues should be considered where appropriate and when relevant to

the contract. This must take cost and affordability into consideration:

Sustainability issues should be addressed at the appropriate stage in the

procurement.

All procurements should be fair, open and transparent: This is based on the

European Union procurement rules, about not favouring or putting any potential supplier to a disadvantage. All contracting authorities should be seen to be acting

in a fair manner. A well managed procurement, with a well defined requirement from the outset, will help enable a successful procurement. Procurement failure usually points to a badly defined requirement

Foster Care procurement specifically:

• The safety and well being of the looked after child and achievement of the best

possible outcomes for that child, should always be the primary concern. • The responsibility for initial assessment of the looked after child’s immediate needs

and how these should be met as detailed in Regulation 4 of the 2009 Regulations must always be met by the Local authority. Sharing of the assessment with provider and associated needs for the LAC should take place as early as possible.

• The responsibility for preparing the Child’s Plan must always be met by the local

authority – in the event that foster care for a child is the subject of a service purchase from a provider this information should be shared with the provider at the earliest possible opportunity. The Child’s Plan should be shared with the provider at the earliest possible time, but certainly at the time of the placement agreement meeting and, except in exceptional circumstances, always prior to placement inception.


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• The responsibility for ensuring the adequate flow of information between the local

authority and the provider is the responsibility of both parties, and both parties must behave proactively in the event that any breakdown is experienced

• The responsibility for providing the specified level of care must always be met by the provider and the foster carers (who must always be adequately supported and trained by the provider)

• The responsibility for achieving the best possible outcomes for looked after children

at all times should be shared between the local authority, the provider and the foster carer with all parties prioritising the needs of the child at all times

• All parties share responsibility to ensure that the child’s rights are upheld and that

their views are taken into account when decisions are being made about his future. • All parties should agree that they will avoid precipitate moves for the child unless

the child’s safety or the safety of others in the foster care household is at risk by the continuation of the placement.

• All parties should have full commitment to behaving in a fair, open and transparent way and should be able to justify decisions should they be challenged.


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7.2 Achieving best practice when using the National Fostering Contact – the process:

It is suggested that both purchaser and provider apply the principles of the planning and delivery cycle in order to achieve best practice when using the contract. The following sections (7.3 to 7.6) detail each step in the cycle from a best practice perspective; includes snapshots of process points where differences commonly occur between purchaser and provider; and suggests approaches to achieve quality. In addition, the ‘Discussion points’ section (7.7) focuses on aspects of good practice which, whilst they do not necessarily impact on contractual management directly, ultimately contribute to achievement of quality outcomes within the placement setting and therefore impact on achieving contractual outcomes to a consistently high standard. (Fig. 1 Planning Cycle)

- Policy / procedure check and review

- Contractual documentation

- Contract familiarisation - Communication

process / contacts reviewed and updated

- Review meetings:

child / carer - Review

meetings/discussion:

purchaser/provider

- Outcome monitoring - IPA review

- Process review:

purchaser / provider

- Process adaptation:


- Documentation review:


- Quality review: purchaser / provider

- Review Service specification

- Agree Individual

Placement Agreement

- Agree core/additional cost

- Establish placement

plan - Complete checklist - Agree placement plan

PREPARE

DELIVER

PLAN

REVIEW

Achieve quality

Achieve outcomes

Achieve understanding

Achieve clarity


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7.3 PREPARATION FOR CONTRACTING This section deals with laying good foundations before the contract agreement is in place.

The contract needs to be actively managed. Both purchaser and provider should have a

plan in place for doing this, which must include ensuring the right people are in place to

manage all aspects of the contract.

What needs to happen Points to consider

General organisational preparation

The foundations for successful contract management are laid in the stages before

contract award / agreement.

These aspects form a framework around

which a good relationship can grow.

A good contract not only identifies clearly

the obligations of both purchaser and

provider, but also forms the foundation

for a productive relationship built on

communication and trust.

Are you fully familiar and conversant with the

contract and your obligations therein?

� Is there anything new or different expected for

your organisation to consider at this stage?

� Are there staffing / carer implications which

need to be considered (training etc)?

� Are all necessary practical arrangements adequate or are changes required –

registrations, insurances etc?

� Are systems in place to meet the respective

purchaser / provider responsibilities identified in

the contract?

Are all organisational policies and procedures

in line with the legislative and policy

requirements detailed within the contract? If

not this is the time to update and review

� Are adequate systems in place which provide a

means to measure performance (organisational

and placement)? Schedule 2 – Outcomes

Monitoring requires Providers to provide data to

fit a set of key performance indicators which aim

to measure the effectiveness of the service; the

IPA specifies individual outcomes to be met for

each child placed. It is essential that both sets

of performance data can be provided therefore

systems for gathering and collating should

adequately meet the reporting needs

� Do staff and carer recruitment policies and

procedures meet the needs of this contracting

arrangement?

� Are plans/procedures in place which govern the

implementation/transition/rollout of the contract?

� Are business continuity plans considered during

risk management business planning?

� Are invoicing and financial management

arrangements adequate for purpose?

� If you use any sub contractors to deliver aspects

of your agreed commitment (e.g., training

inputs, financial tasks, specific placement types)

are they all fit for purpose and conversant with

PREPARE – Achieve Understanding


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this contracting arrangement?

� Do you have agreed escalation and alternative

dispute resolution procedures

� Do you have agreed exit strategy / break

options?

Communication routes (and procedures),

typically at three levels, should be considered

at this stage, and relationships formed and

developed to ensure that once the contract is

underway these relationships are at the

performing stage of group/team development:

� Operational (Foster carers / link workers)

� Business (contract manager and relationship

manager on both sides)

� Strategic (senior management / board of

directors)

Be prepared to manage all aspects of

the contract

Contract management activities can be

divided into three areas: service delivery

management; relationship management;

and contract administration

All three areas must be actively managed:

� Decide how to organise your people resources to

manage each of the areas. You might assign a

group or individual to each area or a single

individual may cover two or more areas.

� Bear in mind that different areas will require

different skills and knowledge

Put the right people in place to

manage the contract

Contract management forms the interface

between demand (the purchaser) and supply (the provider)

The individual or team responsible for contract

management must have adequate knowledge

(business, contractual and technical) to

understand both sides of the arrangement:

� Ensure all contract management staff are clear

on why the contract was developed and what it

seeks to achieve

� Consider whether training is required for

contract management staff - the skills and

experience required to manage the relationship

are likely to be different from those required to

manage service delivery

� If you do not have expertise in house to manage

a contract consider training existing staff or if

the size of the purchaser can sustain it, recruit

an experienced professional contract manager

Assign adequate resources to

manage the contract

� There will be an overhead for in house resource

to manage the contract for both purchaser and

provider

� The financial resource required to manage a

major contract has been estimated at 2% of the

contract value. This proportion increases for

contracts of lesser value

Apply prior learning � Ensure that agreed process and / or

documentation reviews which arose from

previous contracting situations have been

applied – e.g., the quality improvement action

plan agreed at previous review period


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7.4 PREPARATION FOR PLACEMENT / CONTRACT

Now that organisational planning in readiness for contracting has been considered, it is

crucial that pre placement planning takes place which involves both purchaser and

provider. At this stage we know that a placement is required and the contract is going to

be signed. Both purchaser and provider need to take steps at this point to ensure both

parties are clear on what is being “bought and sold”.

This section deals with the actions and requirements relevant to both provider and

purchaser which should ideally be undertaken at the inception of the contractual

agreement, ad in some cases at the inception of each placement.


Ensure that the service specification

reflects both parties expectations

� Both parties need to be sure on what is covered in

the service specification and that this clearly

meets needs and expectations – if any additional

requirements exist then this is the time to have

them agreed and documented – BEFORE the

inception of the placement

Ensure there is mechanism for

feedback on carer performance � Feedback from providers (as well as the carer’s

perspective on the providers performance) and the

child’s social worker increases the likelihood of problems and issues being promptly identified and

resolved

Ensure value for money – cost

specification

Ensuring value for money is about the

balance between service quality and cost

A key objective for contract management

is to ensure that it continues to achieve

value for money over its life

� It is important to remember that value for money

is not synonymous with lowest cost

� The core cost specification includes all regular

costs associated with the contract, including: set

up costs, recurring costs, fixed costs, unit costs,

carers fees and allowances, travel costs, and the

organisation’s own overheads in managing the

contract

� This is the stage where additional services and

costs need to be agreed and reflected in the cost

specification – there is no going back for

negotiation of standard costs beyond this point

and both purchaser and provider must be clear

about this and prepared to absorb any costs they

have neglected to include. This is hugely

important aspect of contracting and one where

relationships can be damaged by non compliance

� Thought should be given at this stage to the issue

of placements becoming permanence arrangements – any reduction in agreed fees after

agreed time periods

� If there is a review period to be agreed in relation

to contract costs then timescales should be agreed

and documented now

PLAN – Achieve clarity


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Compare prices and learn from others

Benchmarking is the practice of making

like for like comparisons between

organisations with the aim of ensuring

continuing value for money, getting better performance and improving business

practices

• Price comparisons offer a quick and effective way to

gauge whether you are getting value for money –

what accounts for the differences in core cost

between one provider and another? Are you

purchasing unnecessary services? • Providers could be obliged to benchmark their own

costs or those of their sub contractors by the contract

• Compare the way you manage contracts with the

way other authorities manage theirs – are there

savings to be made? Could shared services be

entered into?

Information exchange / placement

documentation formation

This is the stage in the process where,

excluding emergency placements and

exceptional circumstances, the key

elements of information which need to be

exchanged to ensure smooth placement

management should exchange hands

� The child’s plan should be available at this stage

to allow the Individual Placement Agreement (IPA)

to be fully completed

� Both purchaser and provider should work

collaboratively to draw up the IPA – this is crucial

to achieving the best outcomes for the child and

also to gain a joint understanding of what is

achievable

� The checklist contained with IPA should be used at

this stage as a guide to ensuring all

documentation relevant to the child is in place

with clearly outlined written agreement as to

provision of any missing items and timescales

within which these will be provided.

� Systems in place for capturing and recording

qualitative and quantitative outcomes should be

discussed between purchaser and provider at this

stage to ensure clarity of understanding

Document key contacts relative to the planned placement

The IPA contains key contact details

related to the child (e.g., foster carers,

social worker, placement officer etc) and

also provides for some detail in terms of

contract management (e.g., finance

contact, contracts officer.

It is recommended that additional documentation

should be drawn up containing the ALL contract

management contacts and reporting relationships /

roles:

� Operational (Foster carers / link workers/child’s

social worker)

� Business (contract manager and relationship

manager on both sides)

� Strategic (senior management / board of

directors)

Plan for contract delivery and review

� A brief timeline / plan should be agreed at this

stage in terms of frequency of review meetings for

contract / placement management to take place.

Whilst the contract specifies review timescales in

relation to the 2009 regulations this does not

include the relationship management essential for

good contracting. It is recommended that the

purchaser and provider agree contractual review

meetings/discussions related to the

progress/outcomes to be achieved

� It is also recommended that the schedule for

review meetings between provider and carer are

detailed at this stage and are dovetailed to

complement the purchaser / provider review

timeline


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7.5 Delivering the outcomes

This section deals with establishing service levels and ensuring they are maintained;

managing the administration of the contract agreement; and managing the relationship

throughout the delivery phase.

During this phase risks should be managed and business continuity plans should be in place

should service failure or interruption occur.

Managing service delivery


Establish what levels of service are

required, and ensure they are

maintained

Service level management is the process

of managing the performance provided to

the customer as specified in contractual

service delivery outcomes

It balances cost and quality of services

� The Service Specification clearly outlines the

service delivery expectations and service delivery

outcomes

� However, where specific service levels have been

set, it may sometimes be appropriate to take a

flexible approach to enforcement, particularly in the

early stages of contract performance.

Measure quality as well as quantity

The quality of the service being delivered

must be assessed

This means creating and using quality

metrics – measurements that allow the

quality of a service to be measured

� The Service Delivery Outcomes Schedule as well

as the IPA deal with the quality and outcomes

measurement aspects of the contract

� Quality measures include assessing aspects such as completeness, availability, capacity,

reliability, flexibility and timeliness, among

others

� Some aspects of the service are measurable by

numerical means; others, including elements of

the IPA, require subjective assessment

� Systems in place for capturing and recording

qualitative and quantitative outcomes should

have been the subject of discussion and

agreement between purchaser and provider at

the planning stage to ensure clarity of

understanding

Undertake agreed review meeting

processes

The format, frequency and structure of

review meetings should have been agreed

at section 7.4 – Planning to achieve

clarity

• It is essential that both purchaser, provider,

and carers are committed to full participation in

the agreed schedule for review meetings and

discussions and understand the importance of

these in ensuring a quality placement

experience and achievement of outcomes for

the child

• Review meetings between purchaser and

provider should focus on outcome monitoring,

IPA review and review of administrative

processes

• Review meetings between provider and carer

DELIVER – Achieve outcomes


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should reflect the discussions between provider

and purchaser (in the appropriate level of

detail) and should ensure that needs are clearly

conveyed to the carer; adaptations made to the

foster care agreement if required; and the

relevant commitment to support and training detailed in the carers CPD plan

Managing Risks

Risk is defined as uncertainty of outcome,

whether positive opportunity or negative threat

In contract management, managing risk

means identifying and controlling factors

that may have an impact on fulfilment of

the contract.

Risk management also includes the

process of management placement risks,

e.g. in the event of an allegation.

• Risks can relate to many aspects of the contract,

including fluctuation in demand, lack of provider

capacity, change in requirement and transfer of

skilled staff (on either side) • All risks must be identified and managed

• Risks should be placed with the party best placed

to manage them – generally the provider, who

should have factored risk management into the

core cost specification – however in certain cases it

would be acceptable for additional premiums to be

paid in relation to exceptional and unforeseeable

risk

• Risks placed with providers are referred to as

transferred risks

• Business risk cannot be transferred to the

provider.

• The final responsibility for achieving contractual

outcomes remains with the purchaser

• In terms of managing placement related risks,

cost related risks should have been factored,

e.g. retainer payment in the event of an

allegation, costs of protection for carers in these

circumstance – do they have adequate legal

protection (e.g. does the provider provide for

individual membership of TFN for their carers?);

are all staff fully conversant with managing

allegations guidance etc?

• In the event of an allegation it is recommended

that provider and purchaser utilise the guidance

provided in the document “Best Practice

Guidance: Responding to Allegations Against Foster Carers”

http://www.scotland.gov.uk/Publications/2010/04/

26093510/0

Ensure service continuity

A major part of contract management is

considering service continuity – what will

happen if service fails or is interrupted

• Barring force majeure, such as natural disasters

or terrorist attack etc, it will normally be the

provider’s responsibility to manage service

continuity, and this will be stipulated in the contract

but it will need to be taken into account in the

provider’s wider business continuity plan

• Where contracts are interrupted due to force

majeure, the purchasers contract managers should work with the provider to identify the best way to

enable the services to resume

• Those aspects of a service identified as critical

require careful consideration and the creation of a


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business continuity plan to support achievement

• The risks associated with service interruption or

failure should be identified, formally recorded in a

risk register, assigned to an individual owner

(normally contract management staff) and actively

managed in accordance with good risk management practice

Managing the relationship

This section deals with building up mutual trust and understanding so that there is s openness in communication and a joint approach to managing delivery. When problems

arise they should be dealt with promptly, which requires good communications channels,

with the aim of delivering “win/win” outcomes.


The relationship must be managed as

well as the more formal aspects of

the contract.

It is in the organisation’s interest to make

the relationship work

The four key factors for success are:

• Mutual trust and understanding

• Shared values

• Openness and excellent communication

• A joint approach to managing delivery

Communication is crucial

Good communications are always the

make or break in managing a

relationship.

They allow problems to be identified and

resolved early, and build an atmosphere

of mutual trust and appreciation of each

other’s priorities

• The routes and media through which information

will flow during the contract should be defined and

ideally tested before the contract commences

• There are three levels of communication in a

contractual arrangement: strategic (senior

management/board of directors); business (contract

managers on both sides); and operational (technical

and frontline staff)

• Communication between provider and purchaser

should be peer to peer; that is operational problems

are resolved by staff at the operational level, not

discussed with contract managers

Culture, attitude and behaviour are

as important as the terms of the

contract

There will always be some tensions

between the different perspectives of

purchaser and provider. Contract

management is about resolving or easing

such tensions to build a win/win

relationship

• Consider whether the culture of the organisation

will support the kind of arrangement that is sought

• The right attitudes will engender the right

behaviours. Both sides’ objectives must be shared

and understood, and the arrangement directed to

achieving them

• Adversarial approaches will increase the distance

between purchaser and provider and lessen the

likelihood of achievement of contractual objectives

Deal with problems promptly

However good the relationship between

purchaser and provider, and however

stable the services being delivered,

problems may arise.

• The relationship managers should ensure that the

provider has problem management procedures in

place, including escalation procedures within the

providers organisation, and that these are used

when needed

• These procedures should seek to prevent

problems as well as resolve them


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• The contract should define the procedures for

undertaking corrective action if, for example, target

performance levels are not being achieved and also

the penalties which can be incurred

• If a dispute cannot be managed at the level at

which it arises it will be necessary to escalate to a higher level of authority. This escalation process

needs to be managed.

Managing Contract Administration

This section deals with the mechanics of the relationship between the purchaser and

provider. In particular contract documentation must be maintained, especially where any

changes to services, requirements, procedures or contracts are concerned. Senior

management should be kept informed through a clear reporting mechanism.


Administration of the contract is

important

Contract administration is concerned with

the mechanics of the relationship between

the purchaser and provider

Its importance should not be

underestimated. Clear administrative

procedures ensure that all parties to the

contract understand who does what,

when and how.

The elements that need managing are likely to

include:

• Contract maintenance and change control

• Notice periods, contract closure, disruption or

termination

• Charges and cost monitoring

• Ordering procedures

• Payment procedures

• Budget procedures

• Resource management and planning

• Management reporting

• Asset management

Maintain the contract documentation

The contract will have to evolve to reflect

changes in arrangements. Contract

maintenance means keeping the

documentation up to date and relevant to

what is happening on the ground.

Maintaining contract documentation is an

important activity.

• Establish procedures to keep contract

documentation up to date and ensure that all

documents relating to the contract are consistent

and that all parties have the correct version

Changes must be controlled

Changes to services, procedures or

contracts may have an effect on service

delivery, performance, costs and on

whether the contract represents value for

money. The specification and

administration of change control is an

important area of contract administration.

• Appropriate structures need to be in place with

representatives of both customer and provider

management for reviewing and authorising change

requests

• Be careful that changes do not fall outside the

scope of any original advertisement (particularly re

OJEU advertising) and conflict with procurement

regulations – seek advice if you’re unsure

• It is particularly important that additional

demands on the service provider should be

carefully controlled • Formal authorisation procedures will be required

to ensure that only those new requirements that

can be justified in business terms are added to the

service contract

• A single change control procedure should apply


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to all change

Make sure management understands

what is happening

Management reporting procedures ensure

that information about problems with a

contract reaches those with power to act

as soon as it is possible

• Requirements for service performance reports

and management information should be built into

the contract and confirmed at the tender stage.

• Where possible, use should be made of the

provider’s own management information and

performance measurement systems

• For many business managers a summary of the

service they have received along with a note of

exceptions is normally sufficient

• Information requirements may change over the

life of a contract


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7.6 Review period – seeking improvements:

This section deals with seeking to make improvements principally through examination of

the successes and challenges of the contracting process. The aim is to have a continuous

improvement in performance or value for money, and allow for contractual development or

alteration following negotiation by both parties.


Give providers reasons to improve

The aim of incentives is to motivate the

provider to improve by offering increased

business volume or some other desirable

benefit, as a reward for improved

performance or added value

Public sector managers are under

constant pressure to improve. In contract

management this translates into a need

for continuous improvement in the

performance or value for money of

providers’ services

• Types of provider incentive include guaranteed

levels of capacity, revenue sharing and commercial

opportunities

• Incentives to improve are normally, but not

always, built into contract terms

• It is important that incentives are balanced. They

should not emphasise one aspect of performance at

the expense of other, perhaps less visible, aspects

• Financial incentives should offer rewards to both

parties that fairly reflect any investment they have

to make to achieve the saving in the first place

• Seek to bring down costs, not margins, to allow a

provider a reasonable return to cover such items as

training and development

• A requirement for continuous improvement can

be built into the contract, for example through a

price decreasing year on year

• It is important that continuous improvement is

seen as being desirable and beneficial to both

parties rather than as a means to drive down prices

Provide opportunities for review

based discussion

• It would be beneficial for purchaser and provider

to have an agreed cycle of meetings (e.g. bi-

annual) which focus not on individual placement

situation but purely on the contract

management process, taking the opportunity to

ensure that key contacts are still relevant,

communication methods and cycles still

adequate, administrative processes still valid etc

• Are changes and updates required to

documentation in line with updated/changed legislation, national policy etc? The review

period should give consideration to these factors

and both purchaser and provider need to

undertake amendments

Achieve quality improvement Contract/placement end documentation should

include consideration to:

• Drafting of an improvements action plan related

to contractual management practices

• Contribution from both purchaser and provider

to a pathway plan to achieve successful

transitions for the young person

• Contribution from both purchaser and provider

to the CPD for relevant foster carer/s

REVIEW – Achieve Quality


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RECRUITMENT & RETENTION OF FOSTER CARERS:

Contractual references:

Section 2.13 Assessment & approval of foster carers; 2.19 recruitment & selection of staff;

Service Delivery Outcome Reporting (Schedule 2; Schedule 4 Core Cost Specification.

Regulatory & Standards references:

Children (Scotland) Act 1995; LAC Regs 2009; UK Nat. Standards 4,6,7,21; Nat. Care Standards 1, 5

Compliance with all the processes and procedures prescribed in terms of the 2009 Regulations and National Care Standards.

Good practice guidance points: • Investment should be directed to ongoing public awareness activity to promote

fostering and to develop materials and resources to support local recruitment activity.

• Development of long term strategies in fostering, backed up by better information

systems to identify exactly what foster care resources are necessary

• Greater involvement of carers and their sons and daughters in recruitment

activity

• Recruitment efforts should have continuity rather than being episodic – research and

project work has proven that the ‘drip drip’ effect is the most effective form of

recruitment • Additional levels of data gathering about the demography of recruited carers should be

gathered which allows for future targeted recruitment initiatives to achieve maximum

impact from the widest possible band of potential carers, e.g. data on professional

status; housing type/size; income band; ethnicity, educational achievements

• Foster care agreements should clarify expectations about carers involvement with

training and skills development and encourage carers to take responsibility for their own

development

• Providers should be able to provide a statement of recruitment / retention standards

and should complement recruitment activity with strategies and activities to

support retention of foster carers, e.g., ensuring planned and regular support

is provided, and a training & development plan is in place for all carers outlining

pre and post approval training requirements

• All foster carers should have an individual Continuing Professional Development

(CPD) plan which details training and learning required / undertaken and a plan for

achievement of these needs.

• Staff from both local authority and registered fostering providers should work together

to contribute to Foster Carer Reviews in order to promote professional development

• Foster carers should have adequate legal protection and access to independent support

and advice (e.g. membership of relevant support organisation – The Fostering Network

membership provides access to advice and information, policy and practice updates, a

legal, medical and stress helpline, newsletters and legal protection for foster carers)

• Allowances offered to carers should, where possible, be in line with nationally

recommended minimum rates in recognition of the costs associated with the role

7.7 A key part of the preparation process that leads to

successful contracting is conducted prior to contract

inception – that being the recruitment and assessment of

foster carers, and the recruitment and training of social

work staff conducting the process.

Bulleted below are some key practice areas that should be considered as part of these processes:


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ASSESSMENT AND TRAINING OF STAFF AND CARERS:

Required contractual actions:

Section 2.13 Assessment & approval of foster carers; Schedule 2 - Service delivery & outcomes monitoring; 2.24 Contract Management and Monitoring Arrangements;

Regulatory & Standards references:

Children (Scotland) Act 1995; LAC Regs 2009; UK Nat. Standards 13, 16 & 23; Nat. Care Standards 5, 6,12 Good practice guidance points: • Social workers undertaking assessments should always be given adequate training to

undertake sound and creative work in assessing carers and be given adequate support,

time for reflection and opportunities to enhance their skills and knowledge

• Consideration should be given to the creation of a dedicated trainer role and encourage

more flexible use of other staff training resources for foster carers

• Workers are supported to develop understanding and confidence to value and promote

diversity in family placements

• Staff should have opportunities for training in key issues in family placement practice (minimum 5 days per year).

• Management continue to support assessment as a specialist task and ensure that staff

have the time to complete thorough assessments, and should maintain an overview of

the quality of assessments and receive reports from direct managers

• Managers should assist workers to gather, coordinate and analyse the information

required to prepare their report to the Fostering Panel

• Corporate parents and planning partners need to be encouraged to recognise the

specialist task of assessment and be prepared to contribute to the assessment as

required

• The assessment report should be used after approval in preparing for Carer Reviews

and to identify training needs of carers

• Thought should be given to providing a variety of different pathways to pre and post

approval training in recognition of lifestyle issues and to ensure that training is as

accessible as possible – in particular Preparation group training opportunities should be

varied and regular in order to ensure potential new carers are not lost due to lengthy

delays before training begins. In addition training should be designed to include both

partners in the foster home and the sons and daughters of foster carers

• Organisations could offer a richer learning environment by providing joint training

opportunities for carers, childcare staff and others involved in fostering

• Regular opportunities to share successful foster carers’ characteristics should be

provided by RFPs

• It would be beneficial to provide access to experienced family placement practitioners,

either employed by agency on a full time basis, to offer mentoring to staff

• Thought should be given to the training and development of fostering panel members,

e.g., CPD plan and agreed actions for Panel members and shared training / learning

activities with other panel members with minimum levels of training required per annum

• Fostering Panels should reflect the range of interests involved in fostering and the

involvement of foster carers and those brought up in foster care should be encouraged


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PAYMENTS TO FOSTER CARERS:

Payments to foster carers vary widely across Scotland. Whilst individual

providers are not required under the terms of the contract to disclose what they

pay foster carers by way of fees and / or allowances, there are a number of

factors related to the payment afforded to carers which have the ability to

influence the stability of placement provision, and should therefore be considered

– particularly in relation to allowing for these situations when core cost

specification is agreed.

The following is not an exhaustive list, but provides some key areas where

payment to foster carers can affect placement stability:

• It is recommended that allowances paid to carers should, as a minimum, be in line with

tFN minimum recommended levels. These are calculated annually and are made up from the direct costs of caring for a child plus a further amount to take account of

additional costs that arise on account of the characteristics of fostered children and the

characteristics of fostering. The allowance rates were derived from the Expenditure and

Food Survey published by National Statistics which looks at the spending patterns of

approx 7000 households and comes up with average expenditure figures. The

McClements Equivalence Scale is then used to work out what percentage of that figure

is spent on the child, and then this figure was adapted to more accurately correspond

with the costs of children in care using research in 1997 and 2001 by Oldfield. The

minimum recommended allowances do not contain any element to compensate for the

indirect costs of fostering (i.e. the time spent by foster carers). Nor do they contain any

element that recognises the foster carer’s level of skills and training.

• In many cases foster carers are paid a separate fee that provides remuneration for their

work, skills and experience. It is recommended that as a good practice measure

organisations address the need for appropriate remuneration to carers related to their

skills development and qualifications. It is also recommended that the amounts paid for

fees and allowances are detailed separately so that there is clarity on what each

payment relates to and should be used for.

• It is recommended that the equivalent of two weeks additional allowance should be paid

to cover the costs of holidays, and should be paid whether or not carers are having a

holiday, due to the cost of entertaining children in school holidays.

• It is recommended that one weeks additional fostering allowance should be paid to

cover costs associated with the child’s birthday

• It is recommended that one weeks additional fostering allowance should be pad to cover

costs associated with Christmas or other religious festival.

• The minimum recommended allowance assumes that children arrive at a placement well

clothed. In practice this is not always the case therefore a standard clothing grant at the beginning of a placement is recommended.

• Consideration should be given to provision of a retention payment when no child is on

placement. This is in recognition that many carers give up work to provide foster care

and often this is the sole source of income. If agencies wish to ensure placement

availability from fully trained and experienced carers then payment of retainer fee

should be considered.

• For similar reasons to the point above, consideration should be given to provision of a

retention payment in the case of an allegation being made against the foster carer (for

a specified period of time which is adequate to allow full investigation of the allegation).

In the event an allegation is proven to be unfounded the availability of the foster carer

for immediate placement will be more likely if the agencies treatment of them had been

fair and positive and has not caused financial hardship.


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7.8 Recommendations for future research related to best practice in foster care

procurement:

Throughout the development of this best practice guidance, a number of areas

emerged which, if researched and developed, could enhance the contracting and

procurement experience from the perspective of both purchaser and provider as

follows:

• Research in to the possible benefits of provision of a national carers register which could

be accessed by individual agencies – if the contract was adopted throughout Scotland

this function could be delivered by the contract managing organisation. This would

provide huge benefits in terms of a centralised record of carers skills, experience,

training and qualifications, but would also ensure that details of carers who had been

de-registered could be held centrally and the reasons for the deregistration accessed by

all service providers.

• Similarly, research into provision of a central foster carer recruitment resource/service

(which would complement and not replace existing localised recruitment) would allow

for sharing of resources, data and expertise across the whole of Scotland, but would

also provide a framework for easier facilitation of additional shared services, such as

training and assessment, which local services could access for their locally recruited

carers. For example a national recruitment services may be well positioned to deliver

preparation group training which could be accessed by local services for carers who

cannot access local training opportunities for a variety of reasons (work patterns,

holiday commitments etc).

• Research into the development of a national geo/demographic mapping tool to

accompany contractual delivery would allow closer analysis of recruitment demography

allowing for better informed recruitment decisions, and provide a framework for national

data gathering, monitoring and reporting.

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