There was submitted the Minute of the meeting of the Executive Sub-committee held on 24 January 2025.

DECIDED: That the Minute be approved.

There was submitted a report by the Chief Executive of Scotland Excel relative to the award of a first-generation framework for Consultancy Services relative to Local Heat and Energy Efficiency Strategies for a period of 48 months. It was noted that subject to approval, it was intended that the framework would commence in March 2025. 

The report summarised the outcome of the procurement process which contained three lots, as detailed in Table 1 of the report. The framework had been advertised with a value of up to £1.25 million per annum, totalling an estimated spend of £5 million over the maximum four-year period of the framework. Appendix 1 to the report detailed the participation, spend and savings summary for those participating in the framework. 

Tender responses had been received from 19 suppliers and a summary of the offers received and the scoring achieved by each supplier was detailed in Appendix 2 to the report. It was noted that one tenderer withdrew their offer during the evaluation process.

Based on the evaluation undertaken, and in line with the advertised criteria and weightings set out in the report, it was recommended that a multi-supplier framework arrangement be awarded to 15 suppliers, as outlined in Appendix 2 to the report, subject to satisfactory conclusion of insurance checks. 

The report detailed the approach taken by suppliers in relation to fair work practices and their position on the payment of the Real Living Wage together with the other benefits that would be achieved through the framework. The report intimated that, in accordance with Scotland Excel’s established contract segmentation tool, the framework had been classified as class D. 

The report highlighted a clause in the framework which gives councils discretion to determine whether to provide for a limitation on liability when establishing a call-off contract (“Work Order”). The clause provides that the level of limitation should be set at no less than the amount of insurance cover that the supplier must maintain under the framework contract.

DECIDED: That the award of the framework agreement for Local Heat and Energy Efficiency Strategies, as detailed in Appendix 2 to the report, be approved.

There was submitted a report by the Chief Executive of Scotland Excel providing an update on the Operating Plan 2024/25, a copy of which was appended to the report. 

The report intimated that the new five-year Corporate Strategy, outlining the organisation’s business goals and priorities from 2023/28, had been approved at the meeting of the Joint Committee held on 9 December 2022. The Strategy was supported by annual operating plans with the plan covering the period from 1 April 2024 to 31 March 2025 being approved at the meeting of the Joint Committee held on 8 December 2023.

This report presented an update on operating plan activity that had taken place between 1 October and 31 December 2024.

DECIDED: That Scotland Excel’s progress in delivering the actions contained within the Operating Plan 2024/25 be noted.

There was submitted a report by the Chief Executive of Scotland Excel relative to the transformation programme commissioned by the Society of Local Authority Chief Executives (SOLACE) Scotland following the publication of a report by the Improvement Service (IS) in October 2022 which proposed a new vision for Scottish local government.

The report intimated that it had been agreed that the programme would be supported by the IS and be built around six anchor areas, as detailed in section 2.1 of the report, with an input from a range of local government partners, including Scotland Excel. SOLACE, at a meeting in November 2024, considered a report which set out the resources required to transition from the discovery phase to the delivery phase of the transformation programme and discussed activities and funding of the partner organisations, and agreed that a review of this should be carried out. In January 2025, the Chief Executive of Scotland Excel received an invitation to be a member of the Review Working Group and to confirm Scotland Excel’s participation in the review.

The report provided the relevant background information on the transformation programme and subsequent review of activities and funding and sought agreement for Scotland Excel to participate in the review.

DECIDED: That it be agreed that Scotland Excel participate in the review of the partners activities and funding.

There was submitted a report by the Chief Executive of Scotland Excel providing an update on work currently being undertaken to renew the Secure Care Services contracts and seeking delegated authority to enable the Chief Executive of Scotland Excel to approve the award of new contracts for identified providers of this specialist service.

The report intimated that there were four identified providers operating secure accommodation (“secure care”) services in Scotland, being the Good Shepherd Centre Bishopton; the Kibble Education and Care Centre; Rossie Young People’s Trust; and St Mary’s Kenmure. Scotland Excel formally contracted with each to ensure purchasers could access these highly specialist services. These contracts were due to expire on 31 March 2025, having been further extended last year, and all 32 Scottish local authorities and the Scottish Government participated in the contracts.

The report provided detail on the work undertaken to develop renewal contracts; the publication of the Children and Young People’s Centre for Justice’s (CYCJ) Reimagining Secure Care report published in September 2024 which might result in significant changes to the way secure care services were delivered in the long-term; the Care Inspectorate’s report on St Mary’s Kenmure; and the procurement process to contract for these services with the four providers currently contracted by Scotland Excel as the only providers in Scotland which fulfil these legal requirements.

The report also provided detail on the two options available for securing the services for purchasers taking cognisance of the operational demands and stability of the sector, and advised that to enable contracts to be concluded under option 1 in the report, for commencement on 1 April 2025, approval was being sought to enable the Chief Executive of Scotland Excel to approve the contract awards under section 4.4 of Scotland Excel’s Scheme of Delegation, as detailed in the report. Further, that an extension under option 2 in the report would be dealt with in accordance with Scotland Excel’s existing delegations to the Chief Executive of Scotland Excel. The report noted that if extensions were considered to be the most appropriate route for some or all providers, this could also be dealt with under existing delegations.

The report advised that annual spend across the four identified providers was anticipated to be in the region of £2.51 million per annum and the renewed contracts were intended to be in place for a period of up to six years or shorter duration following further stakeholder engagement. If all four contracts were to be renewed, the maximum total contract value for a six-year duration is estimated to be £140 million to allow for price variations and changes in demand patterns.

DECIDED:

(a) That the contents of the report be noted;

(b) That delegated authority be granted to the Chief Executive of Scotland Excel to approve the award of contracts for the provision of secure care services of a combined total of up to £140 million in accordance with section 4.4 of Scotland Excel’s Scheme of Delegations; and   

(c) That it be noted that the Chief Executive of Scotland Excel would update members on the outcome of the process.