Social Care Contracts in Scotland

Competitive Tendering

Traditional approach: Local authorities advertise contracts, multiple providers submit bids, and contracts are awarded based on price AND quality (cannot be price alone since 2016).

Types:

• Open Procedure: Any provider can submit a tender
• Restricted Procedure: Two-stage process with pre-qualification
• Competitive Dialogue: For complex contracts where requirements may evolve

Note: Despite rules requiring quality consideration, tight budgets often mean price becomes the dominant factor.

Framework Agreements

Pre-qualified list: Providers bid to get onto a framework. Local authorities can then "call off" from the framework without re-tendering each time.

Examples:

• Scotland Excel: Care and Support Framework (2024-2030) has 152 providers. Specifically for local authorities - all 32 Scottish councils can use it.
• Individual Authority Frameworks: Many local authorities also maintain their own frameworks in addition to Scotland Excel.

Benefits: Faster procurement, reduced administrative burden, but you must be on the framework first.

Direct Awards

No competition: For individual placements where a service user chooses a specific provider under Self-Directed Support (SDS).

SDS Context: This applies when someone is using SDS Option 1 (direct payment) or SDS Option 2 (directed support), not Option 3 (local authority arranged).

No competitive process needed - the person's choice drives the contract.

Spot Purchasing

Emergency/urgent: For emergency or urgent placements. Negotiated rates, often higher than standard contracts.

Block Contracts

Set capacity: Authority buys set capacity (e.g., 100 hours/week). Can be negotiated or tendered.

Dynamic Purchasing Systems

Electronic system: An electronic system for repeat purchases where providers can join at any time. More flexible than traditional frameworks.

Benefits: Authorities can quickly find providers, and providers can join without waiting for a new framework round.

Public Social Partnerships

Alternative approach: Mentioned in guidance as an alternative to competitive tendering. Focuses on collaboration and innovation rather than price competition.

Purpose: Encourages long-term partnerships between public bodies and social enterprises/third sector organisations.

Worker Minimum

£12.60/hour

Mandated minimum for all social care workers (April 2025)

Homecare Association Recommended

£32.88/hour

Minimum price to providers (covers wages, travel, on-costs)

Actual LA Rates

Varies

Somewhere in between, set by each authority

Basic Information

• Title: Descriptive name for the contract
• Contract Number: Reference number from local authority
• Contract Type: Type of service (Waking Hours, Sleepover, Support, etc.)
• Local Authority: Which authority the contract is with

Procurement Information

• Procurement Route: How the contract was awarded (tender, framework, direct award, etc.)
• Tender Status: Current stage in the contract lifecycle
• Framework Agreement ID: If awarded from a framework, the framework reference

Contract Terms

• Start/End Dates: Contract duration
• Extension Options: Whether contract can be extended
• Price Review Mechanism: How rates can be reviewed
• Inflation Indexation: Whether rates increase with inflation

✓ Do

• Keep detailed records of all contract terms
• Track rate changes over time
• Document any variations or amendments
• Monitor contract end dates well in advance
• Maintain relationships with local authority commissioners
• Record evaluation criteria and quality scores

✗ Don't

• Accept rates that don't cover your costs
• Ignore contract end dates
• Forget to document rate reviews
• Lose track of framework agreement renewals
• Miss opportunities for contract extensions