Purpose

Reason for the
decision
 
-      
The Non-Maintained Independent Special School
(NMISS) Dynamic Purchasing System (DPS) was established in
September 2022 for an initial period of three years, ending 31
August 2025. The DPS contains explicit provision for the Council to
exercise three optional one year extensions, with a maximum end
date of 31 August 2028.  The original
Record of Decision omitted reference to the DPS initial three year
period and the extension clauses contained within it. 
-      
The present proposal is to extend the current DPS for one year
until 31 August 2026, with a view to procuring a replacement
dynamic market or framework agreement for use from 1 September 2026
onwards.
-      
The new Specification and Terms and Conditions for the future
service beyond 1 September 2026 will take on board the learning
from the issues identified within the arrangements to ensure that
the future services and model better aligns with and meets the
needs of the transforming SEND landscape and continuum of education
support in Kent.
 
Background –
Provide brief additional context
 
-      
KCC has a statutory responsibility to provide
suitable education for all Children and Young People (CYP). Prior
to the establishment of the NMISS DPS, placements in the
independent sector had been spot purchased, with escalating number
of placements and associated costs year on year.
-      
The key drivers to establish a DPS framework for
education placements outside of the mainstream and maintained
provision for children and young people with Education Health Care
Plans (EHCPs) was to enable Kent County Council (KCC) to monitor
quality of provision, improve outcomes for children and young
people, ensure placements offered best value for money in a way
that could not be achieved through the process of spot purchasing
and set a strategic platform to communicate with the sector
differently.
-      
 It was recognised that
this was the first step to developing a baseline of information and
to this end, the DPS framework has been successful. Further work is
now needed to address the key issues identified and to ensure
placements in the NMISS sector under any newly procured dynamic
market or framework arrangement are better aligned to Kent’s
wider strategies and approach to the SEND whole system change and
continuum of needs and provision.
 
Options (other
options considered but discarded)

 
-      
Future commissioning activity must be considered
within the strategic context of:
 
o  
The Council’s commitment in discharging its
statutory duty for children and young people with SEND
o  
The Council’s drive for greater inclusion of
children and young people with SEND in mainstream settings and
schools, as outlines in the Countywide Approach To Inclusive
Education
o  
Delivery of the Safety Valve commitment and SEND
transformation
 
-      
A number of options were considered and appraised
against the above criteria, as well as consideration of the new
Procurement Act 2023 which comes into force in February
2025. 
-      
The preferred option is to extend the NMISS DPS
under its existing terms and conditions for one year, so that it
would expire 31 August 2026, and to then re-procure a new framework
that can address the issues identified through contractual and
operational management of the current framework and ensure that the
future NMISS market meets the future needs of the Council, from 1
September 2026 onwards.
 
How the proposed
decision supports the
Framing Kent's Future - Our
Council Strategy 2022-2026
 
-      
Priority 1 - Levelling up Kent -  To maintain KCC’s strategic role in
supporting schools in Kent to deliver accessible, high quality
education provision for all families
-      
Priority 4 - New Models of Care and Support –
To reshape our commissioning practice to ensure we build strategic
partnerships with our providers, through earlier engagement, more
consistent and proactive commissioning practice, and a stronger
focus on co-designing services.
 
How the proposed decision supports
Securing Kent’s Future 2022 -2026:
Securing Kents Future - Budget Recovery
Strategy.pdf
 
-      
The decision will be compliant with the Strategic
Statement in the context of the significant financial challenges
that the Council is facing, as a key driver of the current NMISS
DPS framework and any future re-provision.
-      
It will meet the strategic objectives by
contributing to bringing the Council’s budget back into
balance and support the delivery of Securing Kent’s
Future
-      
It will prioritise Best Value
considerations
 
Financial
Implications
 
-      
Total spend on Independent and Non-Maintained
providers of special educational needs placements is forecast to be
in excess of £80m in 2024-2025 as outlined in the latest
monitoring report to Cabinet on 28 November 2024, of which
approximately £50m (approximately 60%) is spent on contracted
providers through the Non-Maintained Independent Special School
Dynamic Purchasing System Therefore the estimated cost of the
extension of one year is of the same value, subject to changes in
demand over the next year, with the total cost of the contract
c£200m over the life time of its contract of four years
(September 2022 to 2026).
-      
The cost of this contract is reported against the
Special Educational Needs and Psychology Services key service
budget line, and total spend on Independent and Non-Maintained
schools is reported with Section 3g (School Budgets) of the Council
finance monitoring report to Cabinet. Whilst this spend is expected
to be fully met from the High Needs Block of the Dedicated Schools
Grant (DSG), and would not be direct cost to the General Fund,
there is a significant accumulated deficit on the DSG (estimated to
be £222m by March 2028), which the Council has agreed to
contribute a total of £82m (in addition to a DfE contribution
of £140m), between 2023 and 2027, to help pay-off the deficit
by 2028-2029. 
-      
If the contract was not to be extended, all
contracts would revert to a “spot purchase agreement”
with all the associated financial and operational risks.
 

Decision

As Cabinet Member
for Education and Skills, I agree to:
 

APPROVE the extension of the NMISS DPS contract by one year to end
31 August 2026, with a view to re-procure a new framework to
commence from 1 September 2026, under the new Procurement Act
2023.

DELEGATE authority to the Corporate Director for Children, Young
People and Education, in consultation with the Cabinet Member for
Education, to enter into extensions to
the existing contracts, as required, to ensure service
continuity

DELEGATE authority to the Corporate Director for Children, Young
People and Education, to take other relevant actions, including but
not limited to entering into relevant contracts or other legal
agreements as required to implement this decision.