This council notes in relation to the Serco contract for the delivery of back office services that
- since 1st April 2015 because of the failure of Serco to deliver services as specified in the contract there have been serious operational difficulties which have caused problems for the citizens of Lincolnshire, our Local Authority schools, organisations we trade with and which supply us with vital services, and our staff
- as a consequence the reputation of the County Council has suffered severely because we as the local authority and as a fair trader and as a good employer have to take responsibility for the failures of our contractors
- at the end of February 2016 when the last report was received by the Value for Money Committee, 9 of the 43 Key Performance Indicators which measure the delivery of services under the contract were still not being met by Serco
- as a consequence of Serco’s failure to meet the terms of the contract, service credits amounting to just under £1.2m have been repaid by Serco since April 2015
- at the present date there is no clear indication when all Key Performance Indicators and other projects not being met, will be met.
Accordingly this council expresses its serious dissatisfaction with the delivery of the back office services contract by Serco and resolves
- to ask the Chief Executive to begin at once a review using independent specialists to examine all aspects of the drawing up and implementation of the contract between Serco and the County Council. Three particular areas to include
- whether it was reasonable to expect there to be a smooth transfer of responsibilities from Mouchel to Serco and a shift from one IT system, SAP to Agresso, at the same time – 1 April 2015 – and
- whether the contract as drawn up was too large for the County Council to exit from without very serious ongoing difficulties thereby restricting the council’s freedom of movement and
- whether Serco and the County Council had sufficient specialist staff in place in the right numbers to handle their respective responsibilities during the run-up to and from 1 April 2015
- to ask the Chief Executive to explore all options available to the County Council to bring an end to the contractual relationship between Serco and the County Council within the terms of the contract
- to bring a report back to the next full council meeting in September to enable the council to make recommendations to the Executive.
Proposed by Councillor R B Parker
Seconded by Councillor P M Dilks