A financial and contractual review of NELC’s key strategic partnership. The partnership was focussed on providing and improving facilities and services in NE Lincolnshire over key areas including highways, energy, recycling and facilities management.
The Council wished to consider whether performance could be improved under the existing contractual arrangements and, if so, how. Alternatively, the Council was willing to consider other options to lead on and achieve improvements in the areas concerned.
This was a deep and wide-ranging review of financial and contractual aspects of the Strategic Partnership, including performance. It involved 50 extensive interviews with key people including Council members, senior officers and people in lead positions from the strategic partner, aligned with gathering and analysing key documents and data.
Our review of the financial aspects of the Partnership included: value for money achieved by the Council having regard to standard of performance; the fees charged and financial rewards; comparisons with industry benchmarks; financial resilience of the partner; and identification of the scope for significantly reducing costs.
In parallel, we reviewed the contractual aspects of the Partnership including:
- Scrutinising the contract.
- Investigating the scope of services matched to the standards of performance and NELC needs.
- Evaluating the focus of incentives and objectives.
- Evaluating commercial risk models; and the partner’s emerging business model.
- Resource capacity.
- Risks and ongoing availability.
- Impacts on performance.
We identified practical options open to the Council to achieve improvements and made recommendations taking account of future needs and ambitions.