Navigating the complexities of Individual Placement & Support (IPS)
Over the past year, Local Authority (LA) contracts for Individual Placement and Support (IPS) have experienced fluctuations in both value and delivery model across different regions. This trend is likely to continue as LAs develop their delivery and commercial strategies for the new Connect to Work service. This fragmented procurement approach can result in multiple contract variations, creating several challenges for bidders, including:
Balancing Quality & Budget Constraints
• Budgets: Contract values differ across each region, with variances of up to 50% per participant start. Despite this, providers are expected to deliver the same quality of service and measurable outcomes across multiple Lots
• Workforce: Providers need to ensure that their proposed staffing models can operate successfully under a reduced budget without compromising the key principles of the IPS Fidelity Model
• Caseload Management: Budget constraints require providers to optimise their caseload sizes so that participants receive individualized, client-centred support
• Quality Assurance: Reaffirming the importance of the IPS Fidelity Model can lead to tensions between maintaining service quality and working within a fixed budget.
Contract Terms and Risk Management
Wide ranging contract terms add another layer of complexity to IPS tenders. Key considerations include:
• TUPE: Most IPS services have staff transferring on Local Government or NHS Employment terms, which are very different to standard employment terms. Careful analysis is needed across:
o Pensions – to understand LGPS / NHSPS cost / risks associated i.e. Pension Strain, Financial enhancements on Severance, etc
o Enhanced Benefits i.e. Sick Pay, Maternity/Paternity, Leave Entitlement
o Contracted pay rises in line with NHS / Local Government business rules
• NHS/LA contract clauses often pose a risk to the Provider. It is important for Providers to review these clauses in detail to identify and mitigate risks, including Liability and Indemnities, Termination, Warranties, and Performance Management linked to Breach of Contract.
Strategies for Success
We can help you successfully navigate these commercial challenges, ensuring you submit a competitive bid that doesn’t put you and your organisation at risk, via:
• Market intelligence to understand regional variations and commissioner expectations
• Building robust financial scenarios that forecast commercial returns
• Developing flexible operational models that reflect budget constraints
• Implementing risk assessment processes for TUPE and contract terms
• Exploring partnership strategies to mitigate risks and enhance service delivery
Interested? If you’d like to have an informal chat around the services 50 Degrees can offer, please contact zach@50-degrees.com