Clinical Leader: Dr Steve Ollerton Chief Officer: Carol McKenna

Broad Lea House

Bradley Business Park
Dyson Wood Way
Bradley
Huddersfield
HD2 1GZ



FOI Ref: 1267FOI1314GH

27 March 2014


Terry Hallworth
E-mail: request-199141-67a02ae4@whatdotheyknow.com


Dear Mr Hallworth

Freedom of Information Act 2000 Request for Information

Regarding your request for information, our responses are set out below:

1 It has been stated that GHCCG intends to extend its contract for Community Health
Services which was due to expire Oct 2014 for a further year.

The Procurement Guide for commissioners of NHS-funded services, which I believe this
contract falls into, section 1.26 states

"Commissioners should retain an auditable documentation trail, that is itself transparent,
regarding key decisions (eg tender / no tender), which provides clear accountability and
could be subject to review (including Freedom of Information requests)"


Greater Huddersfield CCG is an Associate to this contract. The CCGs decision about this
contract has been informed by the North Kirklees CCG position. Extracts from the discussion
and decision-making process thus far, are appended at Appendix 1 to this document:
Finance & Performance Committee, November 2013
Clinical Strategy Group, November 2013
Governing Body, February 2014

FOI Contact: Information Governance Team
Contact Email: foi@wsybcsu.nhs.uk
Contact Telephone: (01274) 256089
2

2 - Please provide a copy of the contract documentation between Locala and GHCCG.

See attached contract - Locala contract 2013-14 and schedules.

Please note we have listed below the information which has been redacted from the contract
schedules. Also below is a list of the exemptions applied to each set of redactions.

Schedule 1, pages 15 and 16 in the interests of public safety certain information has been
redacted and is exempted under section 38 of the FOIA, wherein release of the information
would endanger the health and safety of individuals.

Schedule 2 we have withheld Section E detailing the emergency planning manual in the
interests of public safety, this is exempt under section 38 of the FOIA, wherein release of the
information would endanger the health and safety of individuals.

On pages 72 to 77 of part B2 and page 79 of part D of Schedule 5, the names of certain
individuals have been redacted and are exempted under section 40 sub-section 2 regarding
the protection of personal data of third parties.

On page 73 of part C of Schedule 6, the name of an individual has been redacted and is
exempted under section 40 sub-section 2 regarding the protection of personal data of third
parties.

It should be noted that this is subject to formal variation through the application of the NHS
Standard Contract 2014/15 Deed of Variation. The provisions of the contract that will be in
place from 1st October 2014 are under consideration but will be in the form of a NHS
England 2014/15 NHS Standard Contract.

3 - Please give value of the contract.

The estimated annual contract value of GHCCG commissioned services is 14.5m.

4 - Does the new contract include any conditions relating to Locala comply Freedom of
Information request.

The new contract will be a 2014/15 NHS Standard Contract. The 2014/15 conditions contain
provisions for Freedom of information and Transparency, these are set out and can be found
in Paragraphs 21.16 to 21.20 of the NHS England 2014/15 NHS Standard Contract General
Conditions.











Clinical Leader: Dr Steve Ollerton Chief Officer: Carol McKenna

Appendix 1

NHS Greater Huddersfield CCG Finance & Performance Committee
Wednesday 20
th
November 2013

Extract from the Contract Report for Month 6, 2013/14 submitted to the meeting:
Cover Sheet: Section 5.1 Locala
The Finance and Performance Committee is asked to consider the proposed course of
action to conduct a non-competitive procurement process (single tender) to award a new
contract to Locala, as described above, and if in agreement that this is the recommendation
to be put before the Governing Body to receive approval.
5.0 Procurement update and issues
5.1 Locala
5.1.1 The current contract with Locala expires on 30
th
September 2014. The Business
Transfer Agreement (signed at the time of the transfer of services from Kirklees
PCT) set the duration of the contract at 3 years, without provision to extend.
5.1.2 The developing view that many of the services that currently sit within are within the
scope of a significant redesign of out of hospital care being considered by Greater
Huddersfield and North Kirklees CCGs. It is clear that this redesign of services and
the subsequent implementation of any new model of provision will not occur before
30
th
September 2014, with the intention that such a model will be in place by April
2015.
5.1.3 As a consequence the Governing Body will be required to make a decision to
effectively maintain provision of these services past the contract expiry date of 30
th

September 2014 in parallel with the work undertaken to deliver any new model of
care.
5.1.4 In the context of the NHS Procurement, Patient Choice and Competition
Regulations (No2) 2013, any extension of this contract would be defined as a new
contract where a contract with a provider terminates or expires and the contract
with that provider is renewed where there is no mechanism for renewal in the
contract.
5.1.5 In deciding to enter into the new contract, the commissioners will have to:
set out their clear intention to undertake a review of services, option appraisal
as to whether to conduct a procurement that will incorporate the services
currently provided and any future services deemed to be appropriate to be
included in the intended scope. Any such programme of competitive or non-
4

competitive procurement, subsequent award and mobilisation of service is not
anticipated to be completed before 1
st
April 2015.
considered the needs of all health care users for which it is responsible when
procuring services, including the sustainability of services, including the impact
that a decision relating to one set of services may have on the ability of
providers to deliver other services that health care users require
taken the view that in respect of Regulation 5(1) of the Procurement, Patient
Choice and Competition Regulations, which provides that commissioners can
award a new contract to a single provider without publishing an intention to
seek offers from providers to provide the services in question, they are satisfied
that the services are capable of being provided by only that provider for the
period indicated.
act in accordance with their obligations under the NHS Procurement, Choice
and Competition Regulations (No2) 2013, namely in relation to: a)
Transparency - ensuring that they conduct all of their procurement activities
openly and in a manner that enables their behaviour to be scrutinised; b)
Proportionality - actions are proportionate to the value, complexity and clinical
risk associated with the provision of the services in question; c) Equality / non-
discrimination - will treat all providers equally and will not favour one provider
(or type of provider including, for example, private, public, charity, voluntary and
social enterprise) over another.
Recommendation
5.1.6 It is therefore proposed that the commissioners put in place a new contract with 12
month duration i.e. up to 30
th
September 2015, with the commissioner retaining a
right to break the contract from 31
st
March 2015, the commissioner having given 3
months notice.




5.1.7 The Finance and Performance Committee is asked to consider the proposed course
of action to conduct a non-competitive procurement process (single tender) to
award a new contract to Locala, as described above, and if in agreement that this is
the recommendation to be put before the Governing Body to receive approval.

Extract from the Minutes of the Finance & Performance Committee
Wednesday 20
th
November 2013 2.30 5.00pm, Broad Lea House, Huddersfield

FP/13/182 Contracting Report



Clinical Leader: Dr Steve Ollerton Chief Officer: Carol McKenna
Locala Martin Pursey (MP) reported the current contract with Locala expires
on 30
th
September 2014. The Business Transfer Agreement (signed at the
time of the transfer of services from Kirklees PCT) set the duration of the
contract at 3 years, without provision to extend. MP has had discussions with
NKCCG about the possibility of extending the contract by up to 12 months
with a 6 month notice period; this would require Governing Body approval.

MP asked if the Committee were happy with the above approach, the
Committee agreed the GP members will need to be briefed on this issue, Dr
Steve Ollerton confirmed this was on the Clinical Strategy Group (CSG)
agenda to discuss.

The group RECEIVED and NOTED the contents of the contract report and
thanked MP


NHS Greater Huddersfield CCG Clinical Strategy Group, 27
th
November 2013,

Please note that it was a verbal report to the Clinical Strategy Group by the Head of
Contracting.


6

Extract from the Minutes of the Clinical Strategy Group
Wednesday 27
th
November 2013, 1.30 4.30pm, Broad Lea House, Huddersfield

CSG/13/492 Contracts Update

Locala:

MP provided some background on the contract award. It was a 3 year
contract with no option to extend so it ends on 30 September 2014. An
added complication is that Locala are one of the existing partners
involved with the Strategic Review.

After discussion with North Kirklees as lead commissioner, an agreement
has been reached that we will extend the contract until the end of March
2015, at which point it will be terminated. MP added that he had raised
this at our Finance and Performance Committee and agreed that the
Governing Body will need to agree a contract award until March 2015.
This will be brought to Januarys meeting.

Action: Locala Contract to be added to Januarys Governing Body
agenda.

Dr Judith Parker (JP) highlighted that there will be risks to staff from the
contract changes amongst other things. There will also be attention from
the public and the press relating to this and the CSG discussed how best
to respond.

Further discussion took place about the impact this will have on our
practices and how we need to keep them informed of developments. A
half day workshop was suggested to review options for the future. MP
advised that we need to discuss in great detail exactly what we want to
do next. Dr Jane Ford (JF) added that we also need to look at what
exactly is in the Locala contract and review where service needs to sit.
We need to focus outside Locala as well as some of the services come
from other providers and we need to plan these in.




Clinical Leader: Dr Steve Ollerton Chief Officer: Carol McKenna


NHS Greater Huddersfield CCG Governing Body Meeting
Wednesday 5
th
February 2014

Extract of Finance, Contracting and QIPP Report submitted to the meeting:

13. Locala Community Partnerships CIC
13.1 The current contract with Locala expires on 30
th
September 2014. The Business
Transfer Agreement (signed at the time of the transfer of services from Kirklees PCT)
set the duration of the contract at 3 years, without provision to extend.
13.2 The contract is for community services across Kirklees, with some minor provision of
community services in Calderdale. The contract provides services for children and
adults in the community including health visiting, school nursing, vaccination and
immunisation service, childrens and adult therapy services, district nursing, sexual
health services, Musculo-Skeletal service, and intermediate care services.
13.3 The developing view that many of the services that currently sit within the contract
are within the scope of a significant redesign of out of hospital care being considered
by Greater Huddersfield and North Kirklees CCGs. It is clear that this redesign of
services and the subsequent implementation of any new model of provision will not
occur before 30
th
September 2014, with the intention that such a model will be in
place by April 2015.
13.4 In the context of the NHS Procurement, Patient Choice and Competition Regulations
(No2) 2013, any extension of this contract would be defined as a new contract
where a contract with a provider terminates or expires and the contract with that
provider is renewed where there is no mechanism for renewal in the contract.
13.5 The following considerations have been taken into account:
13.5.1 The Health and Social Care Act 2012 (2012 Act) places a duty on CCGs to
promote integration. It specifically states that CCGs have a duty to ensure
that the provision of health care services is integrated with the provision of
health related services and social care services.

13.5.2 The Everyone Counts: Planning for Patients 2014/15 to 2018/19guidance
issued by NHS England clearly articulates the need to integrate health and
social care services to improve the effectiveness, safety, and quality of
services for patients. The introduction of the Better Care Fund from
2015/16 onwards is a significant step towards achieving this and clearly
signals that the pooling of health and social care resources to jointly
commission services is the national direction of travel.
8


13.5.3 The health and social care landscape is changing fundamentally and
rapidly with greater integration between health and social care being both
the national and local direction of travel.

13.5.4 Better integration has the potential to deliver better care and services,
make better use of resources and facilitate progression of the wider
Greater Huddersfield Transformation Programme.

13.5.5 This means a fundamental review is needed of how community services
are provided and commissioned as the current model and practices will not
facilitate this.

13.5.6 We have an opportunity to re-commission services in ways which are far
more beneficial for patients. However, in order to maximise these benefits
considerably more work needs to be done in partnership with fellow
commissioners, including North Kirklees, the local authority and other key
stakeholders to establish what kind of service provision will be needed in
future

13.5.7 Local people, including patients/service users and their representatives,
need to be actively involved in that process and there would be insufficient
time to do that effectively if re-commissioning went ahead in the next few
months


13.5.8 If we do not allow ourselves sufficient time to do this and instead enter into
a 3-5 year contract for community health services only along the lines of
the current model of provision then we miss an opportunity to improve
services for the population of Greater Huddersfield and encumber our
ability to do so for the foreseeable future.

13.5.9 The current National Health Service (Procurement, Patient Choice and
Competition) Regulations (No2) 2013 (2013 Regulations) were laid in
Parliament in March 2013. In doing this the Department of Health stated
that:

The Governments firm view is that competition is a means to
improving services and not an end in itself.



Clinical Leader: Dr Steve Ollerton Chief Officer: Carol McKenna
There is no requirement to put all contracts out to competitive tender.
This means that commissioners are able to offer contracts to a single
provider where only that provider is capable of providing the services.
Competition should not trump integration - commissioners are free to
use integration where it is in the interest of patients.

13.5.10 In addition, the 2012 Act places a duty on CCGs to exercise their functions
effectively, efficiently and economically. Commissioning and tendering of
NHS services is a complex, time consuming and resource intensive
process for both commissioners and providers. We have a duty to ensure
the way in which we do this has a realistic prospect of securing the
expected benefits for patients and are not simply an end in themselves.

13.6 As a consequence the Governing Body is required to make a decision whether to
effectively maintain provision of these services past the contract expiry date of 30
th

September 2014 in parallel with the work undertaken to deliver any new model of
care.

13.7 Following discussion and agreement at the Finance and Performance Committee, it
is recommended that the Governing Body approve a new contract with a maximum of
12 months duration, i.e. up to 30th September 2015, with the commissioner retaining
a right to break the contract from 31st March 2015, with three months notice.

13.8 In taking this approach, the CCG will demonstrate that it has:

13.8.1 Set out our clear intention to undertake a review of services and conduct a
procurement process that will incorporate the services currently provided
and any future services deemed to be appropriate. Such a programme of
procurement, subsequent award and mobilisation of service is not
anticipated to be completed before 1
st
April 2015.

13.8.2 Considered the needs of health care service users for which we are
responsible when procuring services, including the sustainability of
services, and the impact that a procurement decision relating to one set of
services may have on the ability of providers to deliver other services that
service users require.

10

13.8.3 Taken the view that in respect of Regulation 5(1) of the Procurement,
Patient Choice and Competition Regulations, which provides that
commissioners can award a new contract to a single provider without
publishing an intention to seek offers from providers to provide the services
in question, we are satisfied that the services are capable of being
provided by only that provider for the period indicated.

13.8.4 Acted in accordance with our obligations under the NHS Procurement,
Patient Choice and Competition Regulations (No2) 2013, namely in
relation to: a) Transparency - ensuring that they conduct all of their
procurement activities openly and in a manner that enables their behaviour
to be scrutinised; b) Proportionality - actions are proportionate to the value,
complexity and clinical risk associated with the provision of the services in
question; c) Equality / non-discrimination - to treat all providers equally and
not favour one provider (or type of provider including, for example, private,
public, charity, voluntary and social enterprise) over another.

13.8.5 Taken due consideration of the duties placed on us by the Health and
Social Care Act 2012 to promote integration in the provision of health care
services, to improve the quality of services, and to exercise our functions
effectively, efficiently, and economically

13.9 Following detailed consideration of the above, the benefits and risks to patients and
the need for service continuity it is recommended:

13.9.1 To have a new one year contract with Locala for 12 months from 1
st

October 2014 to 30
th
September 2015 with the commissioner retaining a
right to break the contract from 31st March 2015, having given three
months notice.

13.9.2 To begin a phased re-commissioning of services covered by the current
contract with the timing of individual service reviews being phased to
minimise adverse impact on patients and to maximise the future benefits
by allowing us to fully re-design services.

14.0 Recommendations

The Governing Body is asked to approve:
the placing of a 12 month contract with Locala Community Partnerships CIC,
commencing 1
st
October 2014.



Clinical Leader: Dr Steve Ollerton Chief Officer: Carol McKenna
a phased re-commissioning of services covered by the current contract with
the timing of individual service reviews being phased to minimise adverse
impact on patients and to maximise the future benefits by allowing us to fully
re-design services.

Extract from the Public Minutes of the NHS Greater Huddersfield CCG Governing
Body Meeting held on Wednesday 5
th
February 2014, 1.30 3.20pm, Board Room,
Broad Lea House

GB/14/034 Finance, Contracting and QIPP Report

Locala
MP explained the background to the Locala contract and advised that the
Governing Body were being asked to approve a contract extension to
September 2015 with a break clause for March 2015.

MP explained the key considerations that had been taken into account in
proposing this course of action. Carol McKenna asked if this would be an
NHS standard contract. MP confirmed this was the case and it would be a
standard 1 year non-competitive contract.

The Governing Body APPROVED the extension to the Locala contract as
described.

The Governing Body RECEIVED and NOTED the contents of the report and
thanked Julie Lawreniuk/Martin Pursey.


If you are unhappy with the service you have received in relation to your request and wish to
make a complaint or request an internal review of our decision you should write to the
Information Governance Manager, West and South Yorkshire and Bassetlaw Commissioning
Support Unit, Douglas Mill, Bowling Old Lane, Bradford BD5 7JR, quoting the reference
number above.

If you are not content with the outcome of the internal review, with regards to this Freedom
of Information request, you have the right to appeal to the Information Commissioner under
Section 50 of the Freedom of Information Act. The Information Commissioner will not
investigate your case unless you have exhausted our complaints procedure. The
Information Commissioner can be contacted at: The Information Commissioners Office,
Wycliffe House, Water Lane, Wilmslow, Cheshire SK9 5AF.



12

Re-Use of Public Sector Information
If you wish to re-use the information you have requested, in whole or in part, please write to
the Freedom of Information Lead, West and South Yorkshire and Bassetlaw Commissioning
Support Unit, Douglas Mill, Bowling Old Lane, Bradford BD5 7JR, quoting the reference
number above, stating the purpose(s) you wish to re-use the information for. You will receive
a response within 20 working days of receiving your request with any conditions and charges
that relate to the re-use of the information. These will be determined in line with the Re-use
of Public Sector Information Regulations 2005 (SI 2005 No. 1515).

Yours sincerely

Barbara Booth
West and South Yorkshire and Bassetlaw
Commissioning Support Unit
on behalf of NHS Greater Huddersfield Clinical Commissioning Group