Initiation
- Develop an understanding of the complexities of operating a contract designed to incentivise partnership
- Ensure that the language of partnership does not obscure the need for sound contract management
- Develop an understanding of the various incentives created by different pricing mechanisms and how these relate to performance management
- Establish a governance model that enables interaction at the strategic, senior management and operational levels (and interaction between these levels)
- Create clear protocols for the different forums for interaction within the governance model, and the remit and responsibilities of each party
- Invest in developing trust and partnership behaviours
- Although councils must undertake sound contract management, they should also consider early on how to build and develop trust in order to maximise the likelihood of a successful SSP
- Establish protocols for contractual elements that depend on trust, for example, open-book accounting
- Define clearly what is meant by open-book accounting and how it will work in practice, including the frequency and level of information sharing
- Establish appropriate contract length for the services considered for transfer
- Consider the appropriate balance between the contract length and the flexibility that the council will require to specify future service provision
- Consider how effectively the SSP can respond to changing circumstances
- Review various options to incorporate flexibility and responsiveness to changing circumstances, including change control mechanisms as well as formal review points or break clauses
Procurement and contract award
- Communicate with heads of services to ensure a consistent understanding of the aims and implications of managing an SSP
- Ensure that the service transfer is undertaken consistently, with all council officers involved sharing an understanding of the purpose of the SSP and how it will be implemented
- Develop and agree a pricing mechanism that creates appropriate performance incentives
- Assess the costs and benefits of different options in negotiation (contractors may propose different models, such as a joint venture company)
- Determine whether the bid and negotiation teams are likely to be composed of different staff to the team delivering the contract
- This may have implications for the development of relationships and the need to establish trust between different individuals on service transfer
- Develop a plan for building and maintaining trust through staff changes
- Enable bidders to meet with staff during the procurement process
- Bidders will require a full understanding of the existing model of service delivery
- This process can also assist with communicating the purpose of the SSP to council officers, and preparation for service transfer
- If the contract duration is negotiated be clear about the respective costs and benefits of different contract lengths
- Councils should continue to develop and reassess their business case as any changes are negotiated
- Test the receptiveness of the contractor to agree to formal reviews
- Councils can request that bidders put forward prices for contracts either with or without formal break clauses
- If bidders are not prepared to submit a bid that includes a break clause, or if the price is prohibitive, this may be a warning sign for councils
Contract management
- Manage SSPs first and foremost as contractual relationships
- SSPs are founded on a contract, and the language of partnership should not inhibit sound contract management
- Ensure throughout that roles and responsibilities are clear and enforced through effective contract management
- Review the agreed governance model to ensure it remains appropriate
- The council and its contractor(s) should review the model of governance to ensure that objectives for the SSP are communicated clearly, and that there is motivation and accountability for their achievement
- Focus also on trust and partnership behaviours for effective operation
- Undertake activities to develop trust and partnership behaviours
- These may include joint away days, partnership charters or the development and use of non-technical partnership performance measures
- Involve your partner organisation in succession planning
- Plan for staff turnover in both organisations through the life of an SSP
- Maintain continuity of relationships, for example by involving partners in succession planning and managerial appointments
- Undertake regular reviews of the SSP as a whole to determine whether it remains appropriately configured with the right bundle of services
- Continue to reassess the objectives of the SSP and the extent to which it is able to deliver them
Related information
4ps
Communities and Local Government
Office of Government Commerce