Barnet Education Skills Subcontracting Threat.pdf

Barnet Council is considering outsourcing its Education and Skills services through a Joint Venture Company (JVC) with potential bidders including Capita Group plc and Cambridge Education (Mott MacDonald). The inclusion of catering in the contract suggests both companies may subcontract this service, which comprises 60%-65% of staff. Barnet UNISON has recommended excluding catering from the JVC option due to risks associated with subcontracting.

Threat of Large-Scale Subcontracting

In Staffordshire, Capita-led Entrust subcontracted 3,300 staff (87%) to Chartwells, a Compass Group plc subsidiary, raising concerns about the original procurement process and financial implications. This decision highlights potential issues in Barnet's planned outsourcing strategy.

Recommendations by Barnet UNISON:

1. Postpone the Competitive Dialogue until the revised Outline Business Plan is completed.
2. Revise financial modeling for trading income under the JVC option.
3. Update the Outline Business Plan to address risks of subcontracting.
4. Confirm bidders' long-term plans and reject proposals involving service subcontracting, except for specialist advice.
5. Exclude catering from the JVC option and retain it in-house.
6. Revise the Equalities Impact Assessment to include a full employment profile.
7. Re-examine responsibilities, accountability, decision-making processes, contract clauses, and performance monitoring of major subcontractors.
8. Require open book accounting for the JVC, a profit-sharing agreement, and an annual report for transparency.

Barnet Council’s Planned Outsourcing

In September 2014, Barnet's Children, Education, Libraries, and Safeguarding Committee considered four options for delivering Education and Skills services, ultimately deciding to develop a full business case for a JVC with a third-party partner. Services under consideration include strategic management, school improvement, special educational needs, admissions, attendance, post-16 learning, and various traded services.

Barnet UNISON criticized the Outline Business Case for lacking an in-house option, relying on assumptions, failing to identify key risks, using crude evaluation criteria, and not incorporating TUPE Plus or the London Living Wage into the appraisal.

Large-Scale Subcontracting by Capita in Staffordshire

Staffordshire County Council outsourced educational support services to Capita Group plc in April 2013, transferring 3,800 staff to Entrust, a JVC with Capita holding a 51% stake. Two years later, Capita/Entrust subcontracted 3,300 staff to Chartwells, raising questions about the procurement process and financial impact of such decisions.