APPENDIX C
SPECIFICATION
DATE : 7th October 2013
The Provision of Consultancy Services for Crime Competition
Financial Modelling
Ref number 643 RM2592 (MOJ 2983-1)
PROTECT – COMMERCIAL
GPS Ref RM2592
Title of Request:
Duration of Engagement:
Required Commencement Date:
1.
Consultancy Services for Crime Competition Financial Modelling
Less than 1 month
24 October
Introduction
The Ministry of Justice (MoJ) works to protect the public and reduce reoffending, and to provide a more
effective, transparent and responsive criminal justice system for victims and the public. It is a ministerial
department, supported by 37 agencies and public bodies.
The Legal Aid Agency is an executive agency of MoJ. It is a delivery organisation which commissions legal
aid services from providers (solicitors, barristers and the not-for-profit sector) and administers both civil and
criminal legal aid schemes in England and Wales..
Criminal legal aid accounts for a significant proportion of the MoJ budget, at around £1bn per annum in
2012/13 delivered by just over 1600 firms and over 4000 advocates.
2.
Aims
The Government is currently proposing to introduce competition in the criminal legal aid market. The
proposals are set out in the Government consultation response Transforming Legal Aid: Next Steps1.
In order to further develop the proposals, we wish to procure advice, based on financial analysis, from
external consultants on the proposed number of contracts to deliver Duty Provider Work (DPW) in each of
our proposed procurement areas (i.e. the proposed geographic areas within which providers would be
contracted to deliver criminal legal aid services).
This work is required to inform our assessment of options for the final model of procurement of criminal
legal aid services.
3.
Objectives
We wish to take advice from external sources to:
a) Obtain more detailed financial analysis and modelling to inform our assessment of options;
sustainability and the final decision on the number of contracts for Duty Provider Work.
b) Ensure our proposed procurement areas allow at least a minimum number of providers to continue
to operate in each area, and that a service is provided to all who need it.
c) Ensure that our final decisions achieve an appropriate balance between the need for consolidation
of the market to ensure financial sustainability and the ability of suppliers to adapt in the time
available.
1
https://consult.justice.gov.uk/digital-communications/transforming-legal-aid-nextsteps/supporting_documents/transforminglegalaidnextstepsweb1.pdf
PROTECT - COMMERCIAL
Page 2 of 8
PROTECT – COMMERCIAL
GPS Ref RM2592
Advice is sought from a provider with experience or knowledge of large scale procurement exercises and
skilled multi disciplinary resource.
The output of the financial modelling work should be a paper published by the consultants setting out their
conclusions for the optimal sized contract in value terms (including recommendations as to how the value
of own client work should be taken into account), and any associated recommendations for addressing
issues with regard to specific procurement areas. The MoJ will then use this to inform the number of Duty
Provider Work Contracts on offer under the proposed modified model.
4.
Background to the Requirement
Following a number of previous consultations on the subject, in April 2013 the Government launched the
consultation on further reform of the legal aid system, including introducing competition in the criminal legal
aid market. The competition model proposed was designed to achieve best value for money by offering
providers increased opportunities to scale up to achieve economies of scale and provide a more efficient
service, giving them the confidence to invest in the restructuring required in the knowledge they would be in
receipt of larger and more certain returns.
Having carefully considered the responses to the consultation, the Government announced in September
2013, in the consultation response Transforming Legal Aid: Next Steps that it would undertake a second
phase of consultation on refined proposals for introducing competitive tendering. The modifications to the
competitive tendering proposals include the removal of price as an award criterion, instead setting fees
administratively for criminal legal aid work. A summary of the responses to the April consultation are set out
in Annex B and the modified model is described in detail in Chapter 3 of the consultation response.
The current consultation on the proposals opened 5 September 2013 and aims to collect views on the
modified model, including the proposed procurement areas, remuneration mechanisms and the interim fee
reduction.
Governance
The Legal Aid Transformation Programme Board provides strategic oversight of the activities within
this programme, so as to ensure that the Government’s policy is implemented and that benefits are
realised. Programme Board membership is drawn from both the MoJ and the LAA, in line with the
collegiate approach to working. The Programme Board chair is Catherine Lee, MoJ Director
General of Law and Access to Justice.
The consultants appointed under this contract would be managed by Analytical Services and would
formally report to the Programme Board. Therefore, other teams across MoJ and LAA may provide
information or meet with the consultants where necessary.
5.
Scope
PROTECT - COMMERCIAL
Page 3 of 8
PROTECT – COMMERCIAL
GPS Ref RM2592
The Government is jointly commissioning a piece of research with the Law Society to help inform the
analysis of sustainability and the final decision on the number of contracts for Duty Provider Work under
the modified model described in Chapter 3 of the latest legal aid consultation.
The piece of work is divided into two stages. The Law Society has commissioned Otterburn Legal
Consulting to conduct the first stage of this research. A quantitative survey has been sent out to criminal
legal aid providers, which aims to collect certain financial data, as well as assessing their management
ability to deal with growth2. Otterburn will also be interviewing a small sample of providers to collect more
in-depth qualitative data about their views.
The scope of this procurement forms the second stage of the research which would involve taking the
quantitative and qualitative data collected by Otterburn and use it to advise MoJ’s Analytical Services and
Policy teams on the optimal size and number of contracts in each procurement area as specified in the
consultation response in order for the market and service to be sustainable.
There may also be a requirement for additional qualitative interviews to be conducted to inform the
modelling work, which could be within the scope of this procurement. Potential bidders should demonstrate
the ability to conduct qualitative research (recruit respondents, carry out qualitative interviews, analysis)
and should provide costs for conducting qualitative interviews as an additional option (for 5, 10 and 20
interviews) to inform their modelling work.
It is important to highlight that sustainable delivery is one key factor we propose to apply to help determine
the final model of procurement. For information, the other key factors are:




We must ensure a sufficient supply to deal with potential conflicts of interest;
We must ensure a sufficient case volume to allow fixed fees to work;
We must ensure the market is sufficiently agile to meet the financial and volume demands; and
We must ensure the market is competitive in future tendering rounds (sustainable procurement).
These four factors are described in more detail in Transforming Legal Aid: Next Steps paragraph 3.31.
The scope of this stage of the research would therefore take the form of:
i.
ii.
iii.
an advisory function to provide information and evidence which will inform the assessment of
options and recommendations on the number of contracts to be offered
modelling analysis of potential market behaviour and the implications of the advised number of
contracts model
assurance that the size and geography of the proposed procurement areas are appropriate
As far as possible, the contracts to deliver Duty Provider Work should also be large enough in volume and
value to be sustainable in their own right after the cumulative reduction in fees by 17.5%. However, most
criminal legal aid providers will deliver both Own Client Work and Duty Provider Work. Therefore, this must
be taken into consideration.
We propose the research is modelled according to our currently proposed procurement areas. However, if
in modelling a procurement area it becomes clear that the size or geography of the area is inappropriate,
this should be flagged accordingly. Procurement areas should:
2
http://www.lawsociety.org.uk/news/stories/contracts-for-duty-work-help-us-build-the-evidence/
PROTECT - COMMERCIAL
Page 4 of 8
PROTECT – COMMERCIAL
GPS Ref RM2592


allow a minimum number of providers to continue to operate in each area; and
allow a service to be provided to all who need it.
6. Requirement
Using both the data collected from the survey run by Otterburn, and the consultants own knowledge of the
Legal Aid sector, the consultant will:







Produce a series of illustrative financial models to show the correct size of contracts required for a
provider to be viable under the proposed fee reductions for different types of procurement area.
Include iterations of this to show different provider structures / practices in terms of how a provider
might respond
Analyse whether changing the proposed procurement areas alters the size of contract required for a
provider to be sustainable.
Propose the relevant start up costs, and long term operating costs of providers with a contract to
deliver DPW.
Analyse the ability of the existing supplier base to adapt into the provider structures/practices (and
as applicable for new entrants) required to operate the recommended model effectively
Model a range of scenarios based on changing the variables set out above.
Attend weekly updates, where the researchers will report back on the more in depth qualitative
interviews that will be underway.
Criteria
MANDATORY
Applicants need to:

Give a concise summary highlighting key aspects of your proposal.

Set out their understanding of the specific requirements of this work and how you will work with the
MoJ to develop and define the scope of work giving examples of previous experience (preferably in
the public sector) in undertaking similar appraisals. (Note: reference site contact details are
required)

Demonstrate the relevant experience of staff who will be directly involved in the work, with full CVs
of the consultants you propose to use.

Demonstrate that the proposed consultants will have the relevant experience and expertise and
demonstrate how they have undertaken work of a similar nature.

Set out
o A detailed approach to the work;
o Evidence of experience in advising on similar work with advanced outcomes achieved as a
result of advice given / intervention i.e. where the bidder can demonstrate enhanced value
to clients through improved delivery against outcome measures;
PROTECT - COMMERCIAL
Page 5 of 8
PROTECT – COMMERCIAL
GPS Ref RM2592
o A high level implementation plan;
o Timetable of work - Underlying assumptions as to the resources that are required;
o Detailed breakdown of the proposed fees and underlying assumptions ;
o The number of consultancy days and grade of staff to complete the work.
Proposals should also allow for flexibility that may be required in response to refining the project
plan.

Show how they intend to mobilise and maintain the required resources from all parties to meet the
required timescales of the consultancy work.

Show how they would manage the overall programme of work, giving the name of the accountable
person in the organisation, to comply with the timetable, remain within budget and meet the brief.

Show detail of the assumptions they have made in preparing their response, including assumptions
over the balance of work to be undertaken by the client organisations and the Applicant.

Provide an outline of the key challenges for successful delivery of the project and an explanation as
to how they envisage these being overcome.

Indicate how they will approach communication throughout the project with all stakeholders to
reflect the sensitive nature of this project. Please submit a high level communication strategy as
part of your response.
7. Performance of the Services and deliverables
Plan and Milestones (including dates for completion)
(i)
The Plan as at the Effective Date is set out below:
Milestone
Deliverables
Duration
(bulleted list showing all
Deliverables (and
associated tasks)
required for each
Milestone)
(Working
Days)
Milestone
Date
Customer Responsibilities (if applicable)
PROTECT - COMMERCIAL
Page 6 of 8
PROTECT – COMMERCIAL
GPS Ref RM2592
A paper published by 17
the consultants setting working
out their conclusions days
for the optimal sized
contract in value terms
(including
recommendations as to
how the value of own
client work should be
taken into account),
and any associated
recommendations for
addressing issues with
regard
to
specific
procurement areas.
15 November
(ii)
If so required by the Customer, the Supplier shall produce a further version of the Plan (based on the
above plan) in such further detail as the Customer may reasonably require. The Supplier shall
ensure that each version of the Implementation Plan is subject to approval. The Supplier shall
ensure that the Implementation Plan is maintained and updated on a regular basis as may be
necessary to reflect the then current state of the implementation of the Services.
(iii)
The Customer shall have the right to require the Supplier to include any reasonable changes or
provisions in each version of the Implementation Plan.
(iv)
The Supplier shall perform its obligations so as to achieve each Milestone by the Milestone Date.
(v)
Changes to the Milestones shall only be made in accordance with the variation procedure and
provided that the Supplier shall not attempt to postpone any of the Milestones using the variation
procedure or otherwise (except in the event of a Customer default which affects the Supplier's ability
to achieve a Milestone by the relevant Milestone Date).
8. Performance Monitoring
Throughout the period Analytical Services will regularly review the work being undertaken to ensure it is
progressing in line with the contract specification.
9. Security
Subject to 102 Petty France security restrictions.
10.
Project Timetable
PROTECT - COMMERCIAL
Page 7 of 8
PROTECT – COMMERCIAL
GPS Ref RM2592
Transforming Legal Aid is one of the five priorities for the Ministry of Justice and this research work will be
a crucial element in informing the future model for commissioning DPW contracts. This research is required
to inform the assessment and recommendations for a future model of procurement which is due late
November.
On that timetable, it is therefore essential that that this research is completed and report delivered no later
than 15 November 2013.
We propose a briefing meeting in week commencing 21 October, and would look to have a contract in
place and service commencing on 24 October.
PROTECT - COMMERCIAL
Page 8 of 8