Issue - meetings

[Report of the Assistant Director for Commissioning. To be introduced by the Cabinet Member for Finance and Health.]Report to agree the appointment of the preferred bidder of an external organisation to take on the operational management of Haringey's Shared Lives Scheme.

The Cabinet Member for Finance and Health introduced the report which set out the proposition for the Council entering into a new partnership with the Shared Lives Incubator [SLI] to provide investment and support to the new proposed provider, Ategi, building on the established in house Shared Lives Service and growing it further so that more people can feel the benefits of Shared Lives.

RESOLVED

1. To approve the proposed social investment model with the Shared Lives Incubator (SLI), which includes a ‘growth premium payment’ paid together with the weekly management fee through a new provider.

2. In accordance with Contract Standing Order (CSO) 9.06.1(b)(i) and CSO 9.06.1(d), to approve the award of a contract to Ategi Ltd, a not-for-profit Shared Lives provider, to deliver Haringey’s Shared Lives Scheme from April 2017

3. To award the contract to Ategi Ltd for a period of five years with an option to extend for two further periods of one year each at a fixed weekly management fee as identified in Part B (exempt information) of this report. The estimated contract value for managing the Shared Lives service could be £1.85million over the 5 year contract term. The value of each extension year could be £500,000.

4. To note the TUPE transfer of 4 staff (3.6 FTE) to Ategi concurrent with the commencement of the contract.

5. To delegate authority to the Deputy Chief Executive to approve the total amount of the social investment required and the corresponding growth premium payment, which will not exceed £35 per week, once it has been finalised.

Reasons for decision

Investment model

At a time of limited financial resources, the Council continues to seek innovative solutions to fund schemes that deliver good outcomes for local people. For Shared Lives, social investment provides such an option, as it:

Leverages funds from investors who want to put their money into causes that improves people lives, particularly vulnerable people

a)    Ensures investment is only paid back to investors when outcomes are achieved

b)    Provides a ‘catalyst’ to schemes to grow and deliver good outcomes by providing additional funding up front, alongside existing investment from the local authority

As part of seeking an alternative provider for Haringey’s Shared Lives scheme, the Council has worked with the Shared Lives Incubator (SLI) – a group of four organisations comprising Social Finance, Shared Lives Plus, Community Catalysts and Shared Lives Investments Limited Partnership – who are specifically focused on supporting the growth of Shared Lives schemes across the country. Working in partnership with SLI enables the Council to leverage investment, expert advice and business support to help achieve growth of the Shared Lives Service whilst repayment is on the basis of achievement of outcomes. All of this is a critical component to helping Haringey’s Shared Lives Service grow.

The contract itself is a payment by results delivery model. The Council pays the Provider a fixed weekly management fee for each arrangement supported. This model is enabled by the social investment. It is estimated that the social  ...  view the full minutes text for item 139