The service had to make significant savings in excess of £5m over three years. This was coupled with a declining income as a floor authority. This meant that capital grants provided by government, as supported borrowing, were unable to be utilised because of the repayment terms from the council’s budget could not be met.
A lengthy procurement process started in late 2007, using competitive dialogue, to identify the preferred provider. The council were keen to enter a 15 year relationship with a company that had the right cultural fit to the local authority.
It was also critical that the provider had the determination to provide innovation in the way they delivered services bringing about effectiveness while continuing to deliver high class services.
Ringway Jacobs’ proposal was based on the principle of integration between the public and private sector.
The model abolished the relationship between the client, contractor and consultant and created one integrated organisation, with a strategic client. This gave one management team, with a combination of public and private sector employees and the thin client function purely manages the contract obligations and ensures key targets are met.
Put simply, the contract with Ringway Jacobs is founded on the principle of self delivery. Buckinghamshire County Council allows the provider to get on with delivering, setting only high objectives such as improving highway condition and only undertaking a focused audit process.
Mark Rowe, Transport for Buckinghamshire Services Leader said, “This way of working takes away the distractions you normally get with contracts. We agree a target cost and then get on with it.”
It also means that the provider reduces the amount of sub-contracting. Contracts delivering maintenance services often have an extensive supply chain but this style of contract focuses on self delivery, saving cumbersome contract management and associated costs. In addition this allows a more responsive service to the customer at a lower cost.
Only five officers are employed by Ringway Jacobs, as a result of TUPE or by the authority and directly by the authority and directly line managed by Ringway Jacobs.
You can’t see the joining between the organisations. Everybody works for Transport for Buckinghamshire rather than their employer as a single identity.
The profit element of Ringway Jacobs’ fee will not be paid if minimum progress against 25 key performance indicators is not achieved. Only if progress reached a higher level, additional profit will be paid. How these outcomes are achieved is down to Ringway Jacobs, as long as it acts within the council’s policies.
This way of working has achieved significant savings already. In year one £1.3m of savings were achieved by simply reducing the layers of management and moving to this style of contract.
Through and open book approach to accounting and bringing about innovations in the way services are delivered and the technologies introduced, this style of contract brings an open and honest approach to the future of contract delivery, bringing together the best of the public and private sector.
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